SPORTS BETTING IN FOCUS
Greenblatt pumps the brakes on prediction markets, sports betting prosecutor sees term extended, SIGA forms new integrity board and more.
Greenblatt: BetMGM Not “First Mover” in Prediction Markets
One day after a U.S. Senate committee delayed the confirmation vote of Brian Quintenz for the second time in two weeks, BetMGM weighed in on prediction markets during a quarterly earnings call.
Addressing Wall Street analysts for BetMGM’s second-quarter business update, CEO Adam Greenblatt reiterated July 29 that the sportsbook will not be a “first mover” in launching a prediction market. The exchange trading models utilized by prediction markets are very much “liquidity driven,” Greenblatt told analysts, providing less emphasis on first-mover advantage.
Greenblatt pointed to companies such as Robinhood and Coinbase as those with the wherewithal to invest and grow a liquidity pool for event trading on sports. Their advantages are rooted in the liquid nature of certain markets with high volumes of trade, not which company is first to market, he noted.
The comments seem to indicate that Greenblatt has little reluctance if a competitor such as DraftKings or FanDuel becomes the first major sportsbook in North America to launch a prediction market. Earlier this month, reports surfaced that DraftKings entered into discussions on a potential acquisition of prediction market Railbird Exchange. Greenblatt, however, did not rule out the possibility that BetMGM will consider offering sports event contracts if the right opportunity presents itself.
On July 28, the Senate Agriculture Committee abruptly pulled a vote on the confirmation of Quintenz to be the next chairman of the Commodity Futures Trading Commission. The committee delayed the vote for the second time in eight days. The CFTC is the federal agency tasked with regulating prediction markets.
Trump Extends Term for Los Angeles Federal Prosecutor
U.S. President Donald Trump extended the appointment of federal prosecutor Bill Essayli on July 29, one day before his interim term was set to expire.
Essayli, the interim U.S. Attorney for the Central District of California, leads an office that has conducted a multi-year investigation into the illegal sports betting market in Southern California. On August 29, Matt Bowyer is scheduled to be sentenced in Santa Ana on charges of illegal bookmaking, money laundering and federal tax evasion. Bowyer is the bookmaker who handled $325 million in sports wagers from Ippei Mizuhara, the former interpreter for Shohei Ohtani.
Trump appointed Essayli in April for an initial 120-day term. Essayli succeeded acting US Attorney Joseph McNally, who spoke outside the Santa Ana courthouse after Mizuhara’s sentencing. The extension allows Essayli to serve an additional 210 days without Senate confirmation.
Besides Bowyer, two other illegal bookmakers are awaiting sentencing in the district. The office has delayed the sentencing of Damien LeForbes, a pro poker player, several times this year. Another bookie, former A’s minor league pitcher Wayne Nix has seen his sentencing continued on multiple occasions since his 2022 guilty plea. The office is also prosecuting the Gilbert Arenas illegal poker case.
Weber, Hicks Top New Advisory Group Focused On Sports Betting Integrity
A new advisory board focused on tackling major issues in sports betting integrity has added several prominent members, including the former head of IRS Criminal Investigations.
The Sport Integrity Global Alliance announced the appointment of the new board, SIGA America, a group that is composed of leaders across the legal, sports, business and media industries. The appointees are headed by Richard Weber, a former New York federal prosecutor, and Mark Hicks, managing director of enforcement at the NCAA.
At IRS-CI, Weber led the agency’s 2015 FIFA investigation into widespread corruption at the world’s governing body on soccer. The investigation resulted in numerous convictions and the suspension of former FIFA president Sepp Blatter.
Under Weber’s leadership, IRS-CI designed the Illegal Source Financial Crimes Program in 2016. The initiative encompassed tax, money laundering and currency violations with investigations focused on individuals who derived income from illegal sources, including illicit gambling operations. Hicks has played an integral enforcement role in several NCAA sports betting scandals impacting University of Alabama baseball, the University of Iowa and Iowa State athletics.
The board will support SIGA America in three core areas: sports betting integrity, governance in sports and youth development and protection. James Parker, senior vice president and general counsel of the Boston Celtics, will serve as co-chair of the board. He will lead the board with Sandra Lopez, CEO of Ambi Ventures.
Separately, the UNLV International Gaming Institute this week announced the school’s inaugural executive director’s advisory board. Composed of more than a dozen gambling executives, its members include DraftKings Chief Responsible Gaming Officer Lori Kalani, Wondr Nation CEO Anika Howard and Penn Entertainment SVP Justin Carter.
Circa Survivor Docuseries Returns For Second Season
Ahead of football season, VSiN is set to air the second rendition of a docuseries on the most lucrative pro football survivor pool in the nation.
Beginning on August 5, the network will debut a 10-part docuseries entitled “Circa Survivor: The Quest for $14.2 Million.” The series will feature contestants from the 2024 pool, as well as celebrity sightings of Dana White, CEO of the Ultimate Fighting Championship, and former Major League Baseball pitcher Greg Maddux.
“Each year, Circa Sports’ professional football contests get bigger and bigger, with 2024 bringing our largest Circa Survivor payout to date,” said Circa Sports CEO Derek Stevens in a press release. “So, it was fitting to catch every moment of the action with a second season of ‘Circa Survivor: The Quest for $14.2 Million.’ Our colleagues at Longball Productions did an excellent job of showcasing the high-stakes nature of this contest.”
The network will release the first five 30-minute episodes on August 5 beginning at 9 p.m. ET. The remaining five episodes will be posted on Aug. 12. The episodes will be available on VSiN.com and YouTube TV.
Heading into Week 18 of the 2024 regular season, there were 18 contestants remaining with eight survivors splitting the $14.26 million pool. The contest has grown year-over-year, according to Circa, with a guaranteed minimum of $21 million for the 2025 season. In addition, the Las Vegas-based venture has also launched Circa Grandissimo – a high-stakes survivor-style contest with $1.5 million guaranteed. Each entry will go for $100,000, with no rake in the contest for high rollers.
