Weekly News Desk
Here are some stories you may have missed from another whirlwind week
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Now on to the News!
Deal Desk. Axios reported that former NBA exec Dave Checketts is starting a sports-focused private equity fund to invest a planned $1.2B in major and emerging leagues, along with tech and media startups.
Why does it matter: Private equity investments in teams are on the rise and have the potential to change how teams are run, including how much they prioritize revenue versus security, integrity, and other things. Investments in tech companies also hold the possibility of finding new tools for fan engagement and more that can improve safety and security for spectators. [Note: I’m feeling optimistic today that new tech can be for good and not just open new threat streams]
Fine Time. MGM Resorts agreed to pay an $8.5M fine for its part in an alleged money laundering scheme. The allegations include a casino executive allowing illegal bookmakers at two resorts.
Why does it matter: It shows that illegal bookmakers still have an impact in sports books and still try to use legal books to circumvent the rules. Also, as states and Kalshi battle it out in the courts, states may use this as an example for why they are better suited to carry out oversight of sports gambling than the CFTC.
Spring Suit. Speaking of Kalshi, they filed a lawsuit against the State of Maryland this week to prevent a cease-and-desist letter from being enforced.
Why does it matter: This is the third lawsuit Kalshi has filed against a state that sent it a cease-and-desist letter. How the courts rule (along with whatever the CFTC does or does not do) will have a great impact on the viability of prediction markets like Kalshi.
New Markets. IC360, one of the leading integrity monitors in the U.S. announced a new partnership with the PGA of America. The partnership will include both integrity monitoring and IC360’s Prohibet, a product designed to prevent “individuals from engaging in prohibited wagering activities.”
Why does it matter: Golf can attract a significant number of gamblers (see Kalshi’s volume from the Masters) and since it is not a team sport it can be easier to manipulate the outcome of a tournament through the play of a single player. There have also been several high-profile instances of spectators disrupting golfers during play because of bets. This is a welcome step for the integrity of the game of golf.
Bigger in Texas. The executive director of the Texas Lottery Commission resigned today. He stepped down amid a series of investigations and potential scandals that has state lawmakers debating whether to make drastic changes to the lottery or even shut it down all together.
Why does it matter: You can read about the details of the alleged scandal in the story, but if state legislators don’t trust the lottery to operate fairly it seems hard for state leaders to justify sports gambling in the state.