matters can even be beneficial , “ almost like bringing in an outside member of a board of directors who ’ s good at auditing or finance .”
“ The worst circumstance ,” he says , is when a person takes the job for the prestige , the pay , to bump up a government pension , or to do the bidding of higher-ups .
“ Sometimes they go into that position viewing how they act within the construct of the political atmosphere in which they ’ re appointed ,” says Cabot , “ making decisions based on friendship or politics . There have to be checks and balances .”
Technical Difficulties
The work is more challenging in the digital-first era . Mobile sports betting and online betting are intricate technologies that can ’ t be grasped quickly . But in states that need money , there can be a race to get the cash cow market-ready .
“ They legalize sports betting , then some politician says , ‘ We ’ re going to be open by New Year ’ s , or football season , or the Super Bowl , or March Madness ,’” says Schuetz . “ What they should say is , ‘ We ’ ll open when the regulatory agency ’ s ready .’” To do otherwise can “ damage the industry and detract from its ability to be sustainable .”
In August , Massachusetts Governor Charlie Baker signed a bill to legalize sports betting . Since then , gaming commissioners have debated issues of licensing , consumer protections , advertising rules , responsible gaming programs and the like , as well as launch dates . Commission spokesman Tom Mills told news station WBUR that the team needs to formalize “ over 200 regulations .”
Fans are pushing for a speedy launch , and lawmakers certainly want to start reaping the estimated $ 60 million in projected annual revenues that could come from the bets . Commissioners Brad Hill and Jordan Maynard want to go live by Super Bowl LIV in February . But Commissioner Nakisha Skinner has questioned what she called an “ aggressive ” push to open .
“ If this compressed timeline makes sense and it ’ s responsible , I ’ m all for it ,” Skinner said . “ I just need to understand the rationale for why there ’ s this compressed timeline being advanced , as opposed to a reasonable timeline by which the team can get this done .”
In response , Boston sportscaster Mike Mutnansky tweeted , “ The people don ’ t seem excited about a timeline that might not allow for legal sports betting in Massachusetts in time for the Super Bowl .” To which a follower replied , “ Complete group of bozos running this state .”
Interestingly , a voice of reason came from sports fan Liam Arnason , a student at the University of Massachusetts , who told Springfield news station WWLP , “ I think it is faster than I expected ... I think it ’ s cool , but at the same time , it has to be standardized .”
Getting It Right
Shepherd calls Virginia a great example of a relatively new jurisdiction that ’ s done it the right way .
“ They got the expertise they needed when they realized they didn ’ t have it in-house .” Among the recruits : Gina Smith , former Maryland Lottery and Gaming Control Agency ( MLGCA ) executive , who was tapped to serve as the Virginia Lottery ’ s new deputy director for gaming compliance , and Bob Fontaine , former principal counsel for the MLGCA , as deputy general counsel
“ It can work if they ’ re honest , above-board people who take the time to learn , meet with members of the industry and get educated on the issues .”
— Tommy Shepherd , gaming law attorney and partner , Jones Walker LLP
for casino gaming and sports betting regulations .
Those appointments , among several others , “ gave them a tremendous leg up on not only regulating the industry the right way , but doing the investigations the right way , bringing mobile sports wagering up very quickly and getting the revenue stream going for the state ,” says Shepherd .
Similarly , in Florida , a new gaming commission was created in May 2021 after lawmakers passed a new compact with the Seminole Tribe . At the body ’ s first formal meeting , Louis Trombetta , director of the Division of Pari-mutuel Wagering at the Department of Business and Professional Regulation , beat out two other finalists to be named executive director .
Commenting on the appointment , Commission Chairwoman Julie Brown said , “ Having gaming experience is helpful ,” as is “ having legal experience , knowing that rulemaking is going to be a critical component of this commission .”
Along with minimum standards ( at least ) for commissioners , Shepherd says there should be “ some sort of consistency of regulation from jurisdiction to jurisdiction .
“ It doesn ’ t mean they have to be identical , but if an issue is multi-state in nature , let ’ s say for mobile sports wagering , you don ’ t want one jurisdiction to jump out in front and fine someone a gazillion dollars , because that makes other regulators feel like they have to do the same thing .
“ There should be some consistency in reaction to incidents —‘ Have we fixed the problem ? Will it happen again ?’— versus a knee-jerk reaction to really punish these people .”
Until such time , in some cases gaming commission appointments may continue to be perks for the privileged or golden parachutes for termed-out government workers . Cabot says the perception that gaming insiders may be biased is no longer legitimate . “ Today , with the industry as big as it is , there ’ s really quite a large talent pool , big enough to find the best qualified regulators .” It should be no problem for states to identify , evaluate and sanction regulators who can fulfill their duties with expertise and integrity . Or as Schuetz wrote in a January 2021 column for this publication , those making the appointments should “ work to secure talent who actually can understand the complexity of the industry .
“ Too many jobs , tax dollars and economic activity are involved to make this a dimension of the political nonsense that plagues so much of our country . Moreover , expecting lay people to understand the complexity of the modern gaming industry is a stretch goal that has a small likelihood of success .”
40 Global Gaming Business DECEMBER 2022