..and last, but not least,

In today's issue, our featured articles are:

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by Isaac Paglialunga

The lockout seems to be most notably caused by economics. ESPN reporter Jesse Rogers reported, “Players feel, with the emergence of analytics within front offices, that fewer and fewer second- and third-tier players are getting paid when they finally become free agents after six years of major league service time, which is often when a player turns 30 or very close to it. In general, players would like to be paid more at younger ages because that’s when they are in their prime. The system also favors keeping players in the minor leagues for several weeks extra to slow down their major league service time. Players hate that.” The concern for veteran services is huge as often teams forego paying a veteran to avoid spending more payroll when they can find younger services for cheaper.

According to MLB Commissioner Robert Manfred MLB owners “offered to establish a minimum payroll for all clubs to meet for the first time in baseball history, offered a plan that would allow the majority of players to reach free agency earlier through an age-based system that would eliminate any claims of service time manipulation, offered a plan that would “increase compensation for all young players, including increases in the minimum salary.” Manfred feels the owners were forced into the lockout.

Lockouts are nothing new in sports as all four of the major sports leagues have experienced one in the past. The last time the MLB seen a stoppage of play it was a strike that lasted 232 days from August 12th, 1994 – April 2nd, 1995. This resulted in the 1994 World Series being cancelled and the 1995 season being shortened from 162 games to 144 games. Players deserve to get paid at a younger age, as the concern of veteran demand isn’t nearly as high as the demand for young players. It is unlikely the lockout carries into the season as most are optimistic of the season starting on time however, the owners and players must find common ground before progression can happen.

by Kyle Neverett

This would be a first-of-its-kind acquisition, and WAGMI’s investor group seems like the one to make it happen. Headed by current President of the Philadelphia 76ers Daryl Morey, as well as renowned entrepreneur and sports fanatic Gary Vaynerchuk, the group has the capital and knowledge of the sports industry to make it work. Vaynerchuk is a huge proponent of the crypto space, with an NFT line of his own (Veefriends). He argues that NFT’s have a myriad of benefits, the main one being the sense of community they create. This can be particularly favorable in sports, as most franchises rely on a strong sense of community. Teams such as the Green Bay Packers have deployed methods in the past (stock sales) that make fans seem like they are a part of the team, but they do not actually have any say in the decisions being made at the top. WAGMI United seeks to improve fan connection, and the decentralized nature of cryptocurrency gives them the perfect opportunity.

Similar to fan tokens deployed by other soccer clubs, the ownership group of WAGMI United would be reliant on supporters to make decisions surrounding the club. Just like SportemonGo is doing, WAGMI United seeks to use NFT’s and crypto to increase fan engagement through virtual and physical experiences, a rewards platform for the most die-hard fans, and offer top-of-the-line NFT’s that can have practical uses. In doing so, fans feel as though they are participating in something bigger than themselves, and are able to engage with a club like never before. With existing soccer fan tokens, passionate backers can gain access to exclusive events, merchandise, and even have input on minor decisions for an upcoming game, such as kit and music selection inside the stadium. With an entire team founded on this basis, the opportunities to get fans involved with the club are seemingly endless. 

The only things holding back an acquisition by WAGMI United are the stability of crypto as an asset, and the historic natures of these English Football clubs. Bradford City AFC, a team in the English minor leagues, were in the scope of WAGMI United ownership, but the chairman, Stefan Rupp, quickly turned down their bid to purchase the team. When asked for a reason, Rupp stated that he sought to, “...protect the proud history of Bradford AFC.” Although WAGMI United’s investor group has the capital to make a deal of this magnitude happen, it is the local fans who are skeptical of the crypto-centric ownership model. They have seen things run in a traditional way for such a long time, and do not want a new group to shake things up, and possibly ruin the integrity of their favorite club.

Despite the ebbs and flows of cryptocurrencies, I think that WAGMI United has a real chance of redefining what it means to own a sports franchise. A new approach is always refreshing to see, and although it is experimental, the people making up the ownership group give it a strong sense of legitimacy. Sports and crypto have begun to intertwine for a couple of years now, and this could just be the next step in the meshing between the two. Starting with a lower-tier team is a great entry point in my opinion, and if this model is successful, assuming they can make an acquisition happen, we could see WAGMI United competing with the Premier League Giants sooner than later. 

by Joseph Valandra

Looking ahead to 2022 is exciting given the pace of change spurred in part by the wildfire that sports betting has ignited. The jurisdictional growth of sports betting has not yet hit its crescendo. Until it does, the frenzied activity surrounding market share and other matrices that value potential will likely continue. This intense pressure will cause Indian gaming to have to choose to move as quickly as the commercial markets, or to hold back by defending jurisdictional prerogatives. Perhaps it will encompass some version of both. The heart of the matter is protecting sovereignty and the hard-won victories since the Cabazon decision. It will not be easy because of the rapid adoption by state governments of sports betting and its cousin – full-blown internet gaming. The Seminole/Florida model may be the path to the future.

It is my view that the ineffective pronouncements and lack of meaningful precedent by the NIGC in this area are not helpful. In other words, the interpretive battle over what IGRA proscribes about the use of technology in relation to the universe of internet gaming will be largely cut from whole cloth. This is necessary for the long-term viability of Indian gaming and the continued strengthening of tribal sovereignty. As part of this battle, all of Indian Country must make it abundantly clear that when it comes to fundamental jurisdiction – including regulation – there is no room for compromise. Tribes do, in fact, set the standard for fairness, oversight, and integrity in all areas under tribal jurisdiction, especially gaming. That said, the internet has introduced nuanced views of jurisdiction that IGRA appears to not consider. Those who would make arguments narrowing the interpretation of IGRA are driven either by the overriding pursuit of money or a hostile view of Indian Country overall.

I will not go into the counter arguments that have been succinctly made in the Iipay case in the 9th circuit and in the DOI letter regarding the Seminole/Florida compact. Suffice to say that IGRA was not ever meant to be a static document. It was intended to facilitate economic development for tribes and to be given the broadest interpretation possible when technology is being used for the intended purpose. I have had the opportunity to participate in the development of these arguments for over 25 years. The struggle to allow IGRA to live up to its full potential for Indian Country continues in 2022.

THE GAMBLING INSIDER INTERNATIONAL NEWS HIGHLIGHTS

Gambling Insider is the premier business-to-business publication for the gaming industry. Each issue brings you the inside track on the global gambling market, interviews with the field’s biggest movers and shakers, and in-depth analysis from some of the sharpest minds in the business.

Gambling Insider offers expert perspective on all the industry’s major talking points from online regulation in the US to the expansion of the European gaming market – all backed up by first-rate comment and astute debate from the people on the inside.

Starting in the US, Arizona’s online and retail sportsbooks produced $486.1m in handle and $37.5m in gross operator revenue for October, by far the most ever in a US market’s second month.

According to the PlayUSA Network, Arizona’s debut is “unprecedented in the history of legal sports betting in the US.”

During the market’s first two months, sports betting generated $777.3m in wagers, which is more than double Virginia’s tally of $324.7m, and far outstrips Tennessee’s total of $27.1m.

In the Caribbean, Sportech has sold its supplier contract with the Dominican Republic’s Loteria Electrónica Internacional Dominicana SA (Leidsa) to Inspired Entertainment for $14.5m.

In a multimillion-dollar deal, the UK-based betting group transferred its agreement with Leidsa for the supply of lottery systems to Inspired.

Payment will be split into two parts: $12.5m is set to be paid in cash on completion, while a further $2m is payable in royalty-based cash revenues from the licensing of digital assets to Inspired, which will support Leidsa’s online retail platform.

Elsewhere, Aristocrat and Playtech will delay shareholder meetings regarding any merger amid ongoing interest from JKO Play.

Aristocrat initially announced an offer for Playtech on 18 October 2021, when Aristocrat said the terms of a recommended cash acquisition of Playtech would pay £6.80 ($9.21) for each Playtech share.

Now, Aristocrat suggests it will further delay its shareholder meetings in relation to the recommended acquisition, from 12 January 2022 to 2 February 2022.

This update has resulted in the UK Takeover Panel moving the latest date by which time JKO Play must clarify its position, to 5:00pm GMT on 26 January 2022.

In Scandinavia, meanwhile, the Swedish Trade Association for Online Gambling (BOS) has criticised the Government’s proposed change to deposit limits at online casinos.

Sweden’s Minister for Social Security Ardalan Shekarabi said a proposal that would lower players’ weekly deposit limit from SEK 5,000 ($548.76) to SEK 4,000 was imminent.

But BOS came out against the move and called on the Government to rethink its proposal. Gustaf Hoffstedt, the Trade Association’s Secretary General, said the new limit would only encourage at-risk players to create accounts with more operators, making it more difficult to monitor their behaviour.

In Asia, Cambodian police arrested 15 workers that were protesting against layoffs at the NagaWorld Integrated Resort in Phnom Penh.

Sources say the workers had been striking in front of the property since mid-December in a protest the police described as illegal.

The strikers were demanding the reinstatement of 365 employees who claimed to have not been properly compensated.

Cambodian police said it had issued a statement prior to the arrests, in which the protest was deemed illegal, as well as being considered a threat to public order and safety.

While Macau casinos await licence renewals, analysts believe Chinese regulators could use this opportunity to introduce experimental implementations of the digital yuan.

Casinos have to apply for their licence renewals for the first time in 20 years and regulators in China are expected to take advantage of the situation by compelling operators to accept the experimental use of the digital yuan, according to a government consultation paper.

The same paper included other ideas, such as having government representatives oversee daily operations.

Casinos in Manila have been ordered to close their doors until 15 January to combat an increase in Covid-19 cases.

In response to a sharp rise in infections, including the first local cases of the Omicron variant, authorities raised the alert status of the Philippines’ capital city to level 3, the third-highest of the East Asian country’s five-tier alert system.

While certain businesses may remain open at level 3, albeit with limited capacity, casinos are not counted among them and have been forced to shut. In Ontario, meanwhile, casinos were also shut this week – until 26 January.

SCCG Management curates a feed of news articles from over one hundred of the best industry news sources.

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