When the state of West Virginia introduced sports betting on Aug. 30, online gambling also became legally permissible. Despite the initial success of the launch, a recent joint hearing in the West Virginia legislature exposed numerous unresolved issues.
The Joint Committee on Finance was the setting for the emergence of these revelations. Within the meeting, Doug Buffington, the Acting Director of West Virginia Lottery, faced difficulties in providing satisfactory responses to a series of probing inquiries raised by legislators.
The lawmakers were primarily concerned about the chaos at the West Virginia Lottery, which ultimately resulted in Buffington being appointed. Alan Larrick, the director of the lottery, unexpectedly resigned from his position on September 1, just two days after Hollywood Casino Charles Town’s inaugural sports bet was accepted.
The absence of Danielle Boyd, the Lottery’s general counsel, was a cause of concern for committee members, who also expressed dismay. In a September 17th article by WV MetroNews reporter Brad McElhinny, it was highlighted that Boyd is the Lottery’s expert in sports betting, making her absence even more noticeable.
Senator Corey Palumbo expressed his concerns regarding the current state of the lottery and the absence of key personnel. He requested information from someone who can provide a general overview of the lottery’s current situation. Specifically, he mentioned the departure of the lottery director and the uncertainty surrounding the presence of the longtime general counsel.
Buffington refused to provide a complete response to Palumbo’s question, explaining that he wanted to safeguard Boyd’s reputation. Yet, he hinted that there were doubts about Boyd’s employment at the lottery, stating that the agency is currently reviewing concerns regarding her job.
Emergency rules creating tons of issues
The legislators’ remarks were made during a conversation regarding the emergency regulations for sports betting, which were recently published by the West Virginia Lottery. The purpose of the meeting was to determine and solidify the specific regulations that the Lottery Commission would adopt permanently.
In contrast, the recent implementation of emergency rules necessitated a 30-day interval for public feedback. Within this timeframe, an influential lobbyist named Jeremy Kudon submitted a comprehensive eight-page letter as a noteworthy comment.
Kudon, as a representative of three prominent sports leagues namely the NBA, the MLB, and the PGA Tour, expressed his plea to lawmakers to reconsider the allocation of integrity fees to leagues, establish official data sources, and grant the leagues the authority to veto certain types of bets made by players.
Given the history of the legislature’s firm rejection of such suggestions, it appears that Kudon’s letter would be of little significance. However, it is possible that Kudon may find a receptive audience within the executive branch.
Justice administration a likely culprit for all the headaches
Since the passing of the law to legalize sports betting in March 2018, Gov. Jim Justice has maintained a strained association with this issue. When the bill was presented, Justice abstained from signing it due to conflicts of interest arising from his ownership of The Greenbrier Resort.
The NFL’s Houston Texans have chosen The Greenbrier as their spring training home, while the NBA’s New Orleans Pelicans have utilized the resort for their offseason activities. Additionally, The Greenbrier is proud to be the annual host of a PGA Tour event.
It is understandable that Justice would be cautious about endorsing a sports betting bill. However, the meeting organized by Justice’s special assistant, Bray Cary, after the bill was passed, is rather perplexing.
Cary, an advisor to the governor, who had unrestricted access to Justice, organized a meeting between the state’s casinos and the sports leagues with the aim of compelling them to reach a business agreement. It was reported that Justice participated in the meeting via phone call to encourage the casinos to collaborate.
Additionally, McElhinny mentioned that Boyd’s nonattendance at the Lottery Commission meeting might be due to influence from the governor’s office. Both she and the lawmakers involved have firmly stood against the leagues’ requests.
The committee wants the lottery to hold its horses
No major decisions were made during the meeting of the Joint Committee on Finance. Nonetheless, the committee strongly advised Buffington to postpone the implementation of the rules until the legislature reconvened.
The meeting ended, and Sen. Craig Blair, the committee chairman, could be seen expressing his evident frustration.
Blair expressed deep disturbance at the current unfolding of events, stating, “It’s really unsettling me how things are happening.”
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