The West Virginia Lottery granted approval on Wednesday for five one-year licenses, marking the initial phase in reintroducing online sports betting in the Mountain State.
The approved companies are:
- FanDuel (Bet Fair Interactive)
- DraftKings, known as Crown West Virginia Gaming,
- William Hill
- IGT
- GeoComply
WV mobile sports betting preparing for its return
In December, DraftKings solidified its collaboration with Hollywood Casino to introduce mobile sports betting in West Virginia.
Moreover, FanDuel and William Hill are currently operating and providing support to brick-and-mortar sportsbooks in West Virginia.
- The Greenbrier’s FanDuel Sportsbook
- The Mountaineer Casino houses the renowned William Hill Sportsbook.
- The William Hill-powered Hollywood Casino Sportsbook
With prior expertise in different markets, particularly New Jersey and Nevada for William Hill, all three companies are well-equipped to ensure a seamless launch of online sports betting in West Virginia.
GeoComply and IGT are both secondary providers responsible for managing the back end technology solutions. Specifically, IGT offers technical support for the back end, including the processing of online sports bets.
GeoComply’s software guarantees that players are physically located within state borders while placing bets, which is a necessary compliance measure. As stated in a press release on GeoComply’s official website, the company has obtained complete approval as a sports wagering supplier in West Virginia for its geolocation compliance solution.
The WV Lottery has collaborated with five companies to successfully introduce mobile sports betting apps.
The Lottery’s eventful day was discussed by John Myers, the Director of the West Virginia Lottery, in an interview with WV Metro News.
In the past few weeks, we have dedicated our efforts to refining the platform, including its setup and server locations, ensuring compliance with the Wire Act. We have made significant strides in this regard, and hopefully, the remaining work won’t take as much time as it has thus far.
WV online sports betting taking its time
Until there is further clarification on the Department of Justice’s reinterpretation of the Wire Act, Myers suggested that online sports betting is likely to remain on hold.
Myers explained to Charleston Gazette-Mail that all of them have received approval to launch mobile sports betting, and ultimately, it is a decision that rests with their corporate structures.
Due to the revised Wire Act opinion, the Lottery has been proceeding with caution in granting approvals for online sports betting, stated Myers.
“We have observed a certain level of reluctance in embracing mobile betting apps, but we are hopeful that once we receive a decision on the new Wire Act interpretation in the upcoming weeks, they will gain confidence and proceed with more ease.”
Mobile sports betting is permitted under the sports betting law of West Virginia, as long as the individual placing the bet is 21 years old or above and physically present within the state.
Several states are worried that the new opinion could lead to casinos breaking the Wire Act by transmitting data through servers located in different states. In addition to sports betting, this could also have an impact on online casino gambling and multi-state lottery games, such as:
- Powerball
- Mega Millions
The state of New Hampshire appeared in court to address the matter, and it appeared that the tone of the hearing was inclined towards supporting the state. U.S. District Judge Paul Barbadoro has not yet made a decision on whether the revised opinion, as argued by the West Virginia Attorney General, exceeds its authority.
What about Delaware North?
Upon acquiring documents detailing the causes leading to the closure, it became evident that issues were arising prior to the shutdown. Regrettably, it might take a significant amount of time for Deleware North to recommence online sports wagering at its establishments.
- Mardi Gras Sportsbook
- Wheeling Island Sportsbook
According to Myers, it is necessary for Delaware North to sever its ties with former partner Miomni. Additionally, Delaware North is actively seeking a new partner to recommence its online operations. Myers expressed this viewpoint during an interaction with WV News.
One concern that arises is whether they need to fully sever ties with Miomni before starting a new relationship. The decision on this matter is yet to be made, and their legal team will have to determine it. It is definitely something we must take into account as we establish our expectations.
The lawsuit filed by Delaware North against Miomni and its CEO, Michael Venner, is still in its initial stages as it was filed just last week.
The civil suit states that Miomni and Venner failed to disclose to Delaware North that Miomni did not possess the intellectual properties required to operate the platform.
Delaware North discovered the contract dispute between Miomni and Entergaming only after the platform was shut down by Entergaming, as stated in the lawsuit.
Once Delaware North resolves its issues, it is highly probable that sports betting will be available at its West Virginia casinos. Nevertheless, it seems unlikely that BetLucky Sportsbook, the online sports betting provider for both establishments, will make a comeback in the Mountain State.
The impact of online sports wagering
With the BetLucky mobile app currently unavailable, other casino games are stepping in to fill the void. Myers suggests that the revenue of video lottery machines in casinos is on the rise. He also notes that bettors visiting sportsbooks may be trying their luck at slot machines while entering or exiting.
Is the improvement in casino gameplay this year partly due to this factor? It could also be a positive influence because we have retail sports betting.
The West Virginia Lottery’s total gambling revenue is primarily derived from sources other than sports betting, accounting for a minor portion. In March, the Lottery generated over $1.96 million, with only approximately ten percent originating from sports betting. Myers anticipates that the introduction of online sports betting will exert a noticeable influence on the overall revenue.
We had hoped to observe the impact of the mobile app, but unfortunately, that aspect has been eliminated from consideration. Despite our initial expectation that it would make a difference.
In the span of five days in March, Wheeling Island and Mardi Gras collectively generated over $81,000 through their mobile app for online sports wagering.
It is evident that mobile online sports betting has made a significant impact in its brief existence, and it will continue to do so upon its return. The demand for online sports betting options from residents is undeniable. Fortunately, West Virginia mobile sports betting seems to be on the verge of resuming its services.
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