Bill Sponsor Says Sports Betting Expansion in West Virginia is likely dead
A conversation to expand on that West Virginia The sports betting market started this session. The effort, however, is likely dead in the water.
Senator Mike Maroney West Virginia believes that there is a lack of potential revenue by keeping WV sports betting tied to casinos. Maroney’s proposal went from untying sports betting licenses to a complex piece of legislation, primarily aimed at helping the state’s small businesses.
“I want as many skins out there as possible,” Maroney told LSR. “Why should a state like us hold a lottery? BetMGM, FanDuel, why should we force them through a third party when they are just skimming the money off the top. “
Maroney’s SB 603 passed the Senate Finance Committee on Wednesday and go to senate Next floor. He doesn’t have high hopes.
“I thought so (had a chance) at first,” said Maroney. “It doesn’t stand a chance. I’m grateful to the Senate leadership just so I can get the message across. There’s nowhere going in this session … I just wanted to put it on an agenda and start the conversation. “
West Virginia Sports Betting Landscape
Current legislation allows the state’s five casinos to work with up to ten three Skins respectively.
There are five market-access sports bets in West Virginia:
The Climber Casino has an exclusive contract that limits him to William Hill.
Just The greenbrier has more than one skin tied to FanDuel and BetMGM. Carnival Casino and Wheeling Island both use Betly Sportsbook after their well-known debacle with the BetLucky Platform supported by Myomas and EnterG.
Since starting in September 2018, West Virginia sports betting have more than handled $ 776.2 million in bets and generated more than $ 59.5 million in sports betting revenue and $ 5.9 million in taxes. The state went after that for months without an online betting option Delaware North Situation in 2019.
BetMGM and DraftKings’ recent success with iGaming could attract more operators to the company Mountaineering state.
West Virginia small businesses want into sports betting
Maroney said the bill is designed to help the state’s small businesses bounce back from it COVID-19 Pandemic.
“We lost so much money here, hundreds of millions of dollars,” Maroney said during the committee meeting on Wednesday. “This is a slap in the face for any small business in West Virginia.”
Maroney believes there should be more skins in West Virginia that aren’t tied to the racetracks and casinos. However, the language in the bill seems to be rather limiting in this mission:
“’New Entrant’ means a sports betting provider who (i) is not licensed to participate in sports betting in any other jurisdiction; (ii) is not controlled as defined in §29-22D-5 (c) of this Code, or owned in whole or in part by any person or organization licensed to participate in sports betting in any other person’s jurisdiction; and (iii) has submitted an unapproved administrative service provider license application to the Commission at least one year prior to the effective date of this decree. “
The new entries would pay far less license fees: $ 10,000 rather than $ 100,000 every five years.
SB 603 would allow bars and restaurants to get part of the action through companies like the West Virginia-based company PropMe, a peer-to-peer betting platform with a revenue sharing model.
WV racetracks and casinos don’t have it
West Virginia Racing and Gaming Association president John Cavacini stood against the bill in the committee. He said the experience of companies like FanDuel and DraftKings is why these companies are better partners than local “new entrants”.
“It’s bad legislation. One of the requirements to be a small business is that you don’t have to have operated games in any jurisdiction. How is this helping the state of West Virginia? “
Cavacini also said there is already more than enough sports betting for the state 1.8 million People – an addressable market that he said was roughly 1 million.
John Myers, Director of West Virginia Lotterybelieves the legislation “would be relatively neutral”.
Maroney said “the other side” is why the “new entry” definition made it into the bill. He believes that ultimately it would allow casinos to add an additional skin to their license.
“The original bill consisted of unbound skins. Just let everyone get a skin if they want. It’s a free market. Because of the power and influence of big corporations, that got squeezed. “
Esports is getting some game
The updated bill would legalize esports betting in sports betting in West Virginia. The state does not currently accept sports betting.
Bettors could place bets on popular official esports leagues. This includes games like League of Legends and CS: GO.