NCLGS Notebook: Seminoles Mull Partnerships In Florida, Eyes Turn To Washington For Sports Betting Hearing

While the Washington Commanders traveled to the “Big Easy” to take on the New Orleans Saints over the weekend, the gambling industry’s focus was split between both Louisiana’s largest city and the nation’s capital.

On a mild weekend along the Gulf Coast, a host of state legislators, regulators, sportsbook executives, and lobbyists convened at Caesars New Orleans for a major gaming conference, the 2024 National Council of Legislators from Gaming States (NCLGS) Winter Meeting. The four-day event concluded on Sunday morning, hours before the contending Commanders beat the Saints.

At least one industry insider who spoke at the NCLGS event promptly headed to Washington, D.C., for the first federal sports betting hearing in six years. David Rebuck, the former director of the New Jersey Division of Gaming Enforcement, was set to testify at Tuesday’s Senate Judiciary Committee hearing. Ahead of the hearing, Rebuck met with aides of SJC Chairman Richard Durbin for several hours, a regulatory source told Casino Reports.

A former New Jersey assistant attorney general, Rebuck is one of five witnesses who will testify at the hearing entitled “America’s High-Stakes Bet on Legalized Sports Gambling.” It’s been a busy few days for the recently “retired” Rebuck.

Curbing problem gambling

Topics related to problem and responsible gambling were a huge part of the conversation at the semi-annual conference in New Orleans.

An estimated 2.5 million adults meet the criteria for a severe gambling problem, according to the National Council on Problem Gambling. NCPG Executive Director Keith Whyte is among those joining Rebuck on Capitol Hill Tuesday morning.

As online sports betting commercials continue to flood the airwaves, customers can be enticed with boosted bet promos that operators use as a carrot to retain bettors. Among young adults aged 18-22, more than 50% claimed on an NCPG survey that they were more likely to place a bet due to the promotions.

On Saturday, a committee discussed NCLGS’ proposed model legislation for iGaming. One provision limits total deposits by a customer to $20,000 over a 24-hour period.

On the federal level, the SAFE Bet act, a bill authored by Sen. Richard Blumenthal and Rep. Paul Tonko (expected to be discussed extensively during Tuesday’s hearing), requires an operator to conduct an affordability check on a customer before accepting any wager in excess of $1,000. In addition, language in the bill authorizes the Substance Abuse and Mental Health Services Administration to establish a national self-exclusion list for sports betting.

Washington state Rep. Shelley Kloba indicated that she would be in favor of such a list, if it is done correctly. Kloba, co-chair of the Regulated Substances & Gaming Committee in the Washington state House of Representatives, also supports dedicated funding on the federal level for gambling addiction and treatment.

“I think any amount of consistent funding would be welcomed among the states. Sports betting has a higher risk profile and a much higher uptake among the public,” she told Casino Reports. “States need to step up their game as far as the adequacy of prevention, treatment, and recovery services to match the increased number of folks who will struggle with addiction after the addition of sports betting in their state.”

Legalized iCasino in the Sunshine State

Hard Rock Bet has increased its OSB market share largely on the back of its performance in Florida, where the Seminole Tribe has a monopoly. In October, Hard Rock International Chairman and Seminole Gaming CEO Jim Allen indicated that he’s amenable to partnering with outside operators such as FanDuel and DraftKings.

Such a partnership would be possible under a hub-and-spoke model where all transactions would be facilitated through servers located on tribal land. Any deal will likely contain a revenue-sharing component where Hard Rock will receive a percentage of every losing bet placed by a customer.

FanDuel announced on Dec. 11 that Louis Trombetta will join FanDuel Group as a director of government relations. Trombetta previously worked as the inaugural executive director of the Florida Gaming Control Commission.

At the NCLGS conference, a report surfaced that the Seminole Tribe is mulling whether to engage in negotiations with the state of Florida on a modified gaming compact. The tribe is interested in potentially adding iCasino to the compact, according to GLI executive Gabe Benedik, as first reported by Covers. In 2021, the Florida House announced key changes to the compact in stripping iCasino from the agreement.

In New Orleans, American Gaming Association CEO Bill Miller appeared on a panel with Rebuck on the implications of the U.S. presidential election on the gambling industry. Miller called issues around the hub-and-spoke model one of the top issues for 2025. President-elect Donald Trump has nominated former North Dakota Gov. Doug Burgum for a vacancy as secretary of the Department of the Interior. Burgum previously rejected a hub-and-spoke proposal in North Dakota two years ago.

“While we understand and appreciate the desire by some of the tribes to extend online gaming beyond their reservation boundaries, a clear legal path does not exist for the governor to grant such a broad expansion of gaming,” Burgum said at the time.

A ban on college player props

Kansas tight end DeShawn Hanika appeared on a NCLGS panel on protections for college athletes from bettor harassment. Hanika, a transfer from Iowa State, was one of more than a dozen players from the state who were charged with betting infractions last year. According to an affidavit, Hanika placed about 300 wagers over a nine-month period, averaging less than $5 a wager.

NCAA President Charlie Baker has urged numerous states to place a ban on prop wagers involving college athletes. Asked if he supports the restriction, Hanika noted that it would ease the pressure on top players such as Justin Hunter and Ashton Jeanty. Nevertheless, he added that most players are ultra competitive and that some of the demands would still exist from bettors on straight wagers.

Temple basketball player Hysier Miller is under investigation for sports betting improprieties. The case was not broached during the panel. There are multiple schools under investigation in the probe, Forbes reported last month.