NBA Betting Ring: Fourth Suspect Arrested

The fourth suspect in the NBA betting scandal, Ammar Awawdeh, turned himself into authorities last week following the arrests of Timothy McCormack, Mahmud Mollah, and Long Phi Pham.

The four individuals are charged with conspiracy to commit wire fraud but have not yet entered a plea. It is alleged that Awawdeh pressured an NBA athlete, known as "Player 1" (AKA Jontag Porter, who was banned from the NBA for life in April and is currently seeking treatment for gambling addiction) to leave two games early (on January 26th and March 20th) in order to resolve his gambling debts.

According to the complaint, the defendants used their prior knowledge to place bets on the player's performance using DraftKings and FanDuel (referred to as "Betting Company 1" and "Betting Company 2").

On March 20th, Mahmud Mollah was due a $1 million payout on his winning bet, but the betting company did not pay. Instead, it reported suspicious activity to the National Basketball Association (NBA) and the International Betting Integrity Association. It is suspected that Awawdeh funded (or partly funded) this bet.

Bovada: Still in the Bad Books

Illegal gambling is a hot topic of conversation currently, and back in May, The Michigan Gaming Control Board became the first US licensing commission to threaten legal action against an offshore gambling site - Bovada. 

The site, licensed in Curaçao and already banned in five states (New Jersey, Delaware, New York, Maryland, and Nevada), is one of the most popular offshore sportsbook options for US players.

The MGCB issued the operator a cease-and-desist order threatening legal action unless Bovada stopped operating by June 12th, 2024. The order stated that the company was breaking the Lawful Internet Gaming Act, Michigan Gaming Control and Revenue Act, and Michigan Penal Code. 

While there's no news of enforcement action just yet, we're sure it won't be long, as the MGCB is well-known for taking swift action against illegal gambling (often seizing and destroying illegal gambling machines). 

Joining the momentum, the Connecticut Department of Consumer Protection has also reported plans to issue a cease-and-desist letter to the operator, so it's a double whammy for the site - seven states down, 43 to go.

DC: Sports Wagering Amendment Act of 2024

Washington DC's new state budget looks set to include a significant shakeup to the sports betting scene in the form of the Sports Wagering Amendment Act of 2024. The Council has already approved the FY25 budget but must now pass a second vote. Should the budget gain approval, it will open DC's betting market.

Currently, only FanDuel is available to offer online betting throughout the district (FanDuel took over from GambetDC on April 15th and has reported a handle of $29.7m, a 450% increase YoY), while DraftKings Inc. and Caesars Sportsbook & Casino are allowed to provide limited digital and retail services. 

If the new budget is approved, DraftKings and Caesars can operate online without location restrictions. Additional operators will also be able to apply for licensing, and a new type of permit (and fee structure) will be introduced.

While it's currently unclear if the new budget will get the go-ahead and create a competitive sports betting market in DC, we won't have long to wait to find out, as it's scheduled to come into force on July 15th.

New York: Players Bet Almost $2bn in May

New York State bettors have bet $1.97 billion in May, a 45.9% year-over-year increase from $1.36 billion in 2023. Empire State online bookies banked over $203 million in revenue, with $106 million going to the state's tax fund. 

FanDuel remained in the top spot, leading the market with a handle of $747.5m ($88m in revenue), DraftKings in second ($812.3m handle, $84.2m in GGR) and Caesars in third ($160m handle and $11.1m GGR).

The news follows a Yield Sec/Campaign for Fairer Gambling report published last month showing that New York's offshore market earns an estimated $1.9bn in gross gambling revenue (GGR) annually and holds a larger market share than the legal market. 

North Carolina: Sports Betting GGR Plummets

North Carolina's GGR has plummeted in the state's second full month of legal sports betting. The NC market, which launched on March 11th and generated $105.3m in April, has sharply declined after the initial excitement and flurry of competitive welcome bonuses, with GGR for May decreasing by 40.1% to $63.1m. The state regulator has not divulged how much tax was generated, but online operators pay 18% in the Old North State.

In Other News

• RLX Gaming (the US arm of Relax Gaming) goes live in Pennsylvania with BetMGM.
• Mohegan has promoted Nelson Parket to Chief Strategy Officer in a move set to drive growth.