. OKAY WE'RE GONNA CALL
THIS MEETING TO ORDER. WELCOME
TO THE JOINT INFORMATIONAL
HEARING WITH THE ASSEMBLY AND
SENATE GOVERNMENT ORGANIZATION
COMMITTEES WE'RE GOING TO
BEGIN- WITH MY COMPATRIOTS
SENATOR DODD CHAIRMAN DODD WITH
HIS OPENING REMARKS. GOOD
AFTERNOON EVERYBODY. YES THE
CHAIRMAN SAID ON SENATOR BILL
DODD CHAIRMAN OF THE SENATE
GOVERNMENT ORGANIZATION
COMMITTEE. LET ME BEGIN BY
THANKING CHAIRMAN GREATEST
STAFF FOR THEIR HELP IN
ORGANIZING THIS JOINT HEARING
AND WELCOME YOU ALL TO DID
TODAY'S INFORMATIONAL HEARING.
ON SPORTS BETTING. AS MANY OF
YOU ARE AWARE THE SUPREME COURT
DECISION OVERTURNED PASS BUT IN
MAY OF TWO THOUSAND EIGHTEEN
HAS DRAMATICALLY CHANGED THE
SPORTS BETTING LANDSCAPE ACROSS
THE UNITED STATES. LESS THAN
TWO YEARS AFTER THAT DECISION
SPORTS BETTING IS NOW LEGAL. IN
TWENTY STATES UNFORTUNATELY
THAT DOES NOT INCLUDE THE STATE
OF CALIFORNIA. THOSE SPORTS
BETTING REMAINS ILLEGAL IN OUR
STATE THE FACT REMAINS THAT
CALIFORNIA'S HAVE IT WILL
CONTINUE TO WAGER BILLIONS OF
DOLLARS EVERY SINGLE YEAR ON
THEIR FAVORITE SPORT. HOWEVER
BECAUSE OF ITS ILLEGALITY ALL
OF THIS OCCURRING ON THE BLACK
MARKET. CALIFORNIA RECEIVED NO
REVENUE NO FUNDS ARE GOING TO
OUR SCHOOLS ARE FIRE AND POLICE
DEPARTMENTS OUR ROADS OR ANY
OTHER STATE LOCAL SERVICES. IN
ADDITION OUR CONSTITUENTS WHO
PARTICIPATE IN THE ACTIVITY OUR
LOVE COMPLETELY UNPROTECTED AND
HAVE LITTLE RECOURSE WHEN
THEY'RE TAKING ADVANTAGE OF. WE
ALL KNOW THE SPORTS BETTING
WILL CONTINUE TO OCCUR AND
CALIFORNIA REGARDLESS OF ITS
LEGALITY. THAT'S THE QUESTION
THAT WE MUST ANSWER IS WHETHER
WE BELIEVE IT SHOULD BE
REGULATED AND TAKE IT OUT OF
THE SHADOWS OR IF IT'S YOU
CONTINUE TO OPERATE ON THE
BLACK MARKET. I FOR ONE BELIEVE
THAT WE MUST BRING SPORTS
BETTING OUT OF THE SHADOWS IN A
MANNER. THAT PROVIDES THE BEST
DEAL FOR THE STATE OF
CALIFORNIA AND PROVIDES MAXIMUM
PROTECTIONS FOR CONSTITUENTS.
I'M HOPEFUL THE TODAY'S HEARING
WILL PROVIDE THIS COMMITTEE
WITH EXAMPLES OF WHAT IT WHAT
HAS AND HASN'T WORKED IN OTHER
STATES. AND WHAT WE NEED TO DO
TO ENSURE THAT THOSE
INDIVIDUALS WHO ARE CURRENTLY
WAGERING ILLEGALLY COME TO A
REGULATED MARKET. LET ME THANK
ALL THOSE WITNESSES IN ADVANCE
CHAIRMAN GRAY WHICH I'D SAY A
FEW WORDS. THANK YOU. THURMOND
AND WELCOME. TO OUR COMMITTEE
MEMBERS BOTH ASSEMBLY AND
SENATE. CERTAINLY TO ALL OF OUR
WITNESSES OUR GRATITUDE FOR.
HAVING TRAVELED GREAT DISTANCES
TO BE HERE WITH US AND PROVIDE
YOUR EXPERT TESTIMONY- AND OF
COURSE TO THE PUBLIC. FOR
THEIR- ROLE TODAY IN THIS
HEARING THERE'S NO DOUBT THAT
SPORTS WAGERING HAS BECOME A
CULTURAL PHENOM IN THE U. S.
AND- WITH THE HELP OF FANTASY
SPORTS HAS HELPED PROPEL THE
NFL TO UNPRECEDENTED RATINGS
AND RECORD REVENUE AMONGST. OUR
OTHER PROFESSIONAL SPORTS
LEAGUES AND SPORTS ECONOMY. FOR
ANY SPORTS FAN THE POPULARITY
OF SPORTS BETTING IN FANCY
SPORTS HAS BEEN HARD TO MISS.
IT IS CLEAR THAT WE ARE QUICKLY
HEADING IN THE DIRECTION THAT
OVER WELL THOUGHT OUT LEGAL
SPORTS BETTING FRAMEWORK HERE
IN CALIFORNIA. WE NEED TO
CREATE THIS FRAMEWORK TO ENSURE
REGULATORY OVERSIGHT PROVIDE
CONSUMER PROTECTIONS TO GET
THIS LONG STANDING EMERGING
ACTIVITY. OUT OF THE SHADOWS OF
THE LISTENER BLACK MARKET.
SINCE THE SUPREME COURT
DECISION A MAY TWENTY EIGHTEEN
THAT ENDED NEVADA'S MONOPOLY ON
U. S. BASED LEGAL SPORTS
WAGERING. SPORTS BETTING LAWS
OF PASSED IN TWENTY STATES THAT
ARE PENDING IN THIRTEEN. MANY
OTHER STATES ARE CONSIDERING
GOING FORWARD. INDUSTRY EXPERTS
HAVE STATED BY TWENTY TWENTY
FOUR AS MANY AS FORTY STATES
COULD ALLOW SPORTS GAMBLING. IN
ADDITION BASED ON POPULATION
ROUGHLY 50% OF AMERICANS WHO
LIVE IN STATES THAT HAVE SOME
FORM OF SPORTS BETTING BY THE
END OF TWENTY TWENTY ONE. IN
CALIFORNIA WE MUST REMEMBER
THAT WE ARE GOVERNED BY
DIFFERENT SET OF GAMING LAWS
AND REGULATIONS WE NEED TO
CONSIDER A SPORTS WAGERING
FRAMEWORK THAT FITS CALIFORNIA
AND ITS COMPLEX GAMING LOS.
CONSEQUENTLY THIS IS WHY LAST
JUNE BOTH CENTER DODD NINE
INTRODUCED CONSTITUTIONAL
AMENDMENTS RELATING TO SPORTS
WAGERING IN OUR RESPECTIVE
HOUSES TO OPEN THE STYLE WALK.
TODAY'S AGENDA INCLUDES A WIDE
RANGE OF INDUSTRY EXPERTS TO
EDUCATE US ON THE HISTORY
LOGISTICS REVENUES AND
RELATIONSHIPS WITHIN A
REGULATED SPORTS BETTING
FRAMEWORK AND SYSTEM. GAMING
EXPERT TO STAY THE CALIFORNIA
WOULD BE A PREMIUM MARKET FOR
SPORTS BETTING GIVEN ITS HE
HIGH POPULATION THE ROBUST
SPORTS ECONOMY. ERICA GAMING
ASSOCIATION ESTIMATES AMERICANS
WAGERED A HUNDRED AND FIFTY
FOUR BILLION DOLLARS ON SPORTS
IN TWENTY SIXTEEN BEFORE PASSED
WAS OVERTURNED. IT ALSO CLAIMS
NEARLY ALL OF THOSE WAGES WERE
LEGAL. IF YOU BREAK THOSE LEGAL
WAGERS DOWN BY POPULATION THAT
WOULD MEAN CALIFORNIA'S
APPROXIMATELY THIRTY NINE
MILLION RESIDENTS BAT AN
ESTIMATED EIGHTEEN POINT SEVEN
BILLION DOLLARS ON SPORTS AND
TWENTY SIXTY. WE'VE ALSO SEEN
PROFESSIONAL SPORTS LEAGUES
SUCH AS MAJOR LEAGUE BASEBALL
AND THE NBA PARTNER WAS SPORTS
WAGERING OPERATORS TO GROW
THEIR RESPECTIVE INDUSTRIES. BY
PURE SIZE LONG CALIFORNIA
SPORTS WAGERING MARKET IS
UNIQUE AND EXTREMELY LARGE. A
MODEL ACTION BY ONE STATE
RELATED SPORTS WAGERING MIGHT
BE INTERESTING CONCEPT BUT THE
END OF THE DAY WE HAVE TO
CONSIDER WHAT'S IN THE BEST
INTEREST FOR THE STATE OF
CALIFORNIA. ADDITIONALLY WE
KEEP THE HOUSE SPORTS BETTING
IS A LOW MARGIN BUSINESS BUT
WHEN YOU LOOK AT THE POTENTIAL
CALIFORNIA BY INDUSTRY EXPERTS
THE POTENTIAL GRAYSON. GROSS
GAMING REVENUES FROM LEGALIZING
THE ACTIVITY IS IN THE BILLIONS.
A LEGAL MARKET NEEDS TO HAVE
STRONG ANSWER PROTECTIONS IN
SAFEGUARDS TO ENSURE THAT THE
WAGES ARE FAIR PROHIBIT
UNDERAGE USAGE PREVENT
PATHOLOGICAL PLAY AND THE FANS
TO ENGAGE IN THE ACTIVITY SHARE
AN EQUAL OPPORTUNITY. TO WIN
AND TO GET PAID. I'M CONFIDENT
THAT THIS BODY CAN CREATE A
WHILE REGULARLY GO SPORTS
WAGERING SYSTEM HERE IN
CALIFORNIA ONE THAT GENERATES
JOBS AND RETURNS THE GREATEST
REVENUE. WHILE PROVIDING
SAFEGUARDS TO PROTECT
CALIFORNIA CONSUMERS THE
CURRENTLY BET ON SPORTS THROUGH
ILLEGAL MEANS. TODAY'S HEARING
WILL GO A LONG WAY TOWARD
SHAPING THE FUTURE OF SPORTS
BETTING CALIFORNIA HELPING TO
BRING THE ACTIVITY AYE ACTIVITY
OUT OF THE SHADOWS AND INTO THE
LIGHT OF REGULATION. LET'S
BEGIN THIS IMPORTANT
INFORMATION HEARING I WANT TO
START BY CALLING UP OUR FIRST
PANEL TITLED OVERVIEW OF
REGULATE SPORTS BETTING IN
UNITED STATES AND WHAT IT COULD
MEAN FOR CALIFORNIA SO FAR
PANELS WOULD PLEASE APPROACH.
DANIEL WALLACH AND CHRIS GROW.
WELCOME GENTLEMEN SIT DOWN AND
PROCEED WITH YOUR TESTIMONY.
GOOD MORNING CHAIRMAN DODD
CHAIRMAN GRAY HAIR AND MEMBERS
OF THE COMMITTEE THANK YOU FOR
INVITING ME TO TESTIFY TODAY MY
NAME IS DANIEL WALLACE AND I AM
THE FOUNDER OF WALLET LEGAL LLC
LAW FIRM FOCUSED PRIMARILY ON
THE REGULATED SPORTS WAGERING
IN GAMBLING INDUSTRIES I AM
ALSO THE CO FOUNDING DIRECTOR
OF THE UNIVERSITY OF NEW
HAMPSHIRE SCHOOL OF LAW'S.
SPORTS WAGERING AND INTEGRITY
PROGRAM THE NATION'S FIRST LAW
SCHOOL CERTIFICATE PROGRAM
DEDICATED TO THE STUDY OF
SPORTS WAGERING IN REGULATION
ONE OF THE CLASSES THAT I
TEACH- FOCUSES ON STATE
CONSTITUTIONAL LIMITS ON
GAMBLING EXPANSION. AN
APPROPRIATE SUBJECT FOR TODAY.
SINCE THE DEMISE OF PASS BUT-
NINETEEN STATES PLUS THE
DISTRICT OF COLUMBIA HAVE
JOINED NEVADA IN ALLOWING
SPORTS WAGERING TO TAKE PLACE
WITHIN STATE BORDERS. WITH A
FEW NOTABLE EXCEPTIONS THESE SO
CALLED FIRST WAVE STATES HAVE
AUTHORIZED SPORTS BETTING THE
OLD FASHION WAY. GROUP BILLS
PASSED BY STATE LEGISLATURES
AND SIGNED INTO LAW BY THE
GOVERNORS OF THOSE STATES BUT
AS WE MOVE INTO TWENTY TWENTY
THE NEXT WAVE OF STATES LIKE
THAT CONSIDER AUTHORIZING
SPORTS WAGERING MAY NEED TO
TAKE A DECIDEDLY DIFFERENT
APPROACH. WHICH IS AMENDMENTS
TO STATE CONSTITUTIONS
ACCOMPLISHED BY WAY OF A VOTER
REFERENDUM AMONG THE STATES
THAT ARE CONSIDERING A BALLOT
MEASURE TO LEGALIZE SPORTS
BETTING OR CALIFORNIA TEXAS
GEORGIA LOUISIANA MARYLAND
NEBRASKA SOUTH CAROLINA AND
SOUTH DAKOTA. THE REASON WHY
THE STATE'S MAY NEED TO PURSUE
LEGALIZATION TO A VOTER
REFERENDUM IS BECAUSE OF
LANGUAGE IN THEIR STATE
CONSTITUTIONS WHICH EXPRESSLY
PROHIBIT CERTAIN CATEGORIES OF
GAMBLING SUCH AS LOTTERIES OR
CASINOS OR IN SOME CASES ALL
FORMS OF GAMBLING. LEGISLATIVE
OFFICIALS CANNOT PASS NEW
STATUTES WHICH CONFLICT WITH
STATE CONSTITUTIONAL PROVISIONS
THUS IN ORDER TO LEGALIZE A NEW
CATEGORY OF GAMBLING SUCH AS
SPORTS BETTING. IN STATES THAT
HAVE BROAD CONSTITUTIONAL
RESTRICTIONS ON GAMBLING A
STATE MAY NEED TO AMEND ITS
CONSTITUTION SO AS TO AUTHORIZE
SPORTS BETTING AS AN EXCEPTION
TO THE CONSTITUTIONAL BAN WHICH
BRINGS ME TO CALIFORNIA. I DO
NOT BELIEVE THAT THE CALIFORNIA
CONSTITUTION REQUIRES A BALLOT
QUESTION FOR SPORTS BETTING I
HAVE STUDIED THIS ISSUE VERY
CLOSELY I WOULD LIKE TO SHARE
MY FINDINGS WITH COMMITTEE. THE
HE ANTI GAMBLING CAN IN THE-
CONSTITUTION IS ARTICLE FOUR
SECTION NINETEEN HE WHICH
DECLARES THAT THE LEGISLATURE
HAS NO POWER TO AUTHORIZE. AND
SHALL PROHIBIT CASINO BECAUSE
OF THE TYPE CURRENTLY OPERATING
IN NEVADA AND NEW JERSEY WHAT
IS THIS PROVISION ME SOME HAVE
INTERPRETED TO MEAN THAT UP IT
FOR CLOSES THE LEGISLATIVE
AUTHORIZATION TO SPORTS BETTING
SINCE SPORTS BETTING FORM OF
GAMBLING THAT IS CURRENTLY
AVAILABLE IN BOTH. NEVADA AND
NEW JERSEY BUT THE NEW TINO'S
AN INSPECTION NINETEEN E.
ACCOUNT. SITUATION ONLY APPLY.
IS TO BUILDINGS NOT CATEGORIES
OF GAMBLING AND CERTAINLY NOT
THE CATEGORIES OF GAMBLING THAT
WEREN'T EVEN IN EXISTENCE IN
BOTH NEVADA AND NEW JERSEY WHEN
THE CONSTITUTIONAL AMENDMENT
WAS APPROVED IN NINETEEN EIGHTY
FOUR. HOW DO WE KNOW THIS THE
CALIFORNIA SUPREME COURT HAS
SAID SO IN A NINETEEN NINETY
NINE DECISION CALLED HOTEL
EMPLOYEES AND RESTAURANT
EMPLOYEES INTERNATIONAL UNION
VERSUS STATUS I HAVE A COPY IF
YOU WANT TO SEE IT. THE
CALIFORNIA SUPREME COURT HELD
THAT SUBSECTION NINETEEN EIGHTY
APPLIES ONLY TO CASINO
BUILDINGS OR FACILITIES THAT
CONTAIN THE TYPES OF GAMBLING
ACTIVITIES THAT WERE COMMONLY
ASSOCIATED WITH CASINOS IN
NEVADA AND NEW JERSEY AS OF
NINETEEN EIGHTY FOUR- THE YEAR
THAT THE AMENDMENT WAS APPROVED
AS AN ADDITION TO THE
CALIFORNIA CONSTITUTION. THIS
OF COURSE WOULD EXCLUDE SPORTS
BETTING FROM THE REACH OF
SUBSECTION NINETEEN EIGHTY FOR
ONE BASIC REASON IT WASN'T EVEN
LEGAL IN NEW JERSEY IN NINETEEN
EIGHTY FOUR WHEN CALIFORNIA
VOTERS APPROVED THE AMENDMENT
TO THE CALIFORNIA INSTITUTION
IN FACT WOULD BE ANOTHER THIRTY
FOUR YEARS. BEFORE NEW JERSEY
CASINOS WOULD BE ALLOWED TO
LEGALLY OFFER SPORTS BETTING
THUS THE ANTI CASINO BAND IN
SECTION NINETEEN EIGHTY OF THE
CALIFORNIA CONSTITUTION DOES
NOT STAND IN THE WAY OF THIS
LET'S. AUTHORIZING SPORTS
BETTING THROUGH A NEW STATUTORY
REGIME NOW I WANT TO TALK ABOUT
ONE OTHER CONSTITUTIONAL
PROVISION- THE ONLY OTHER ONE
THAT POTENTIALLY STANDS AS A
BARRIER. TO THE LEGISLATIVE
AUTHORIZATION OF SPORTS BETTING
IS SECTION NINETEEN F. OF
ARTICLE FOR WHICH AUTHORIZES
THE GOVERNOR OF CALIFORNIA TO
NEGOTIATE AND CONCLUDE
COMPAQ'S. SUBJECT TO
RATIFICATION BY THE LEGISLATURE
THAT WOULD ALLOW CALIFORNIA'S
INDIAN TRIBES TO OPERATE SLOT
MACHINES LOTTERY GAMES AND
BANKING IN PERCENTAGE CARD
GAMES ON TRIBAL LANDS. BUT
THAT'S JUST A SIMPLE
AUTHORIZATION MEASURE AND IT
ONLY APPLIES TO A SPECIFIC SUB
CLASS OF GAMBLING WHICH ARE
SLOT MACHINES LOTTERY GAMES AND
BANKING AND PERCENTAGE CARD
GAMES IT DOES NOT PROHIBIT OR
PREVENT THIS LEGISLATURE FROM
PASSING A SPORTS BETTING LAW.
THERE IS SIMPLY NO
CONSTITUTIONAL IMPEDIMENT TO
THE LEGISLATIVE AUTHORIZATION
OF SPORTS BETTING AND I RAISE
THIS SIMPLY AS A REMINDER THAT
THE VOTER REFERENDUM PROCESS IS
OFTEN FRAUGHT WITH PERIL AND
UNCERTAINTY YOUR ESSENTIALLY
SUBJECTING THE LEGISLATION. TO
TWO VOTES- FIRST YOU'RE GONNA
NEED A TWO THIRDS VOTE OF THE
LEGISLATURE JUST TO GET IT ON
THE BALLOT. AND THEN THE PUBLIC
HAS TO APPROVE IT. AND IT
DOESN'T ALWAYS GO THE WAY YOU
WOULD EXPECT- THE RECENT VOTER
REFERENDA IN COLORADO AND NEW
HAMPSHIRE- BEAR THIS OUT IN
NOVEMBER COLORADO RESIDENTS
WENT TO THE POLLS TO VOTE ON A
SPORTS BETTING BALLOT MEASURE.
EXPECTED TO BE APPROVED BY THE
BY A WIDE MARGIN THE COLORADO
SPORTS BETTING MEASURE KNOWN AS
PROPOSITION DE DE. PASSED BY A
SLIM 512409% MARGIN WITH THE
FIFTY THOUSAND VOTES OUT OF
MORE THAN ONE POINT FIVE IN
CASH STE SEPARATING THE YES
VOTE IN THE NOTE. AND THIS WAS
A SURPRISINGLY CLOSE CALL FOR A
MEASURE THAT IT BEEN POLLING
COMFORTABLY IN THE 60% APPROVAL
RANGE AND WHICH ENJOYED THE
BACKING OF ALL KEY
STAKEHOLDERS. SO WELL NOT WHAT
COLORADO NARROWLY PASSED AT
SPORTS BETTING MEASURE. CITIES
IN NEW HAMPSHIRE DID NOT NEW
HAMPSHIRE IN JULY ENACTED A
SPORTS BETTING ALL THAT
AUTHORIZES UP TO FIVE MOBILE
PLATFORMS AND SPAIN BT SPORT
BOOK LOCATIONS BUT LOOKED IT UP
TO THE BORDERS OF THE CITY TO
DECIDE WHETHER TO ALLOW RETAIL
SPORTS BOOK IMPAIR
MUNICIPALITY. AND DESPITE NO
KNOWN OPPOSITION THE REFERENDUM
FAILED IN FOUR OUT OF NINE
CITIES. SO AT THE THRESHOLD
MATTER. YOU MAY WISH TO READ TO
ASK WHETHER THE BEST PATH FOR
LEGALIZING SPORTS BETTING
CALIFORNIA IS A STATE WIDE
VOTER REFERENDUM. OR BY A
PURELY STATUTORY ENACTMENT. THE
CONSTITUTION DOES NOT STAND IN
THE WAY. REGARDLESS OF WHICH
PATH YOU TAKE THERE ARE A
NUMBER OF CRITICAL DECISIONS
THAT YOU WILL NEED TO MAKE. ON
WHAT KIND OF LEGAL AND
REGULATORY ENVIRONMENT WOULD BE
BEST SUITED FOR CALIFORNIA. FAR
AND AWAY. THE MOST IMPORTANT
DECISION THAT YOU WILL NEED TO
MAKE IS WHETHER AND TO WHAT
EXTENT MOBILE SPORTS WAGERING
WILL BE PERMITTED OF THE TWENTY
ONE JURISDICTIONS THAT OF.
ONLINE INTERNET SPORTS BETTING.
I'M SORRY- YOU KNOW ON YOUR
SMARTPHONE ON ON THE INTERNET
ON YOUR COMPUTER OF THE TWENTY
ONE JURISDICTIONS THAT HAVE
LEGALIZED SPORTS BETTING
FIFTEEN OF THEM ALLOW MOBILE
WAGERING. SO WHY IS MOBILE SO
IMPORTANT WELL FOR THOSE OF US
WHO HAVE GONE ONLINE IN THE
LAST DECADE TO ORDER DINNER
BOOK A PLANE TICKET BY THEATER
TICKETS OR CHECK OUR BANK
ACCOUNT IT SHOULD COME AS NO
SURPRISE THAT THE VAST MAJORITY
OF SPORTS BETS ARE MADE
REMOTELY. FROM THE CONVENIENCE
OF A SMARTPHONE OR áP IN NEW
JERSEY AND PENNSYLVANIA MOBILE
SPORTS BETTING ALREADY ACCOUNTS
FOR MORE THAN 80% OF ALL LEGAL
BETSY MADE IN THOSE STATES. AND
THOSE NUMBERS ARE INCREASING
MONTH BY MONTH AS THE MARKET
MATURES. AND CALIFORNIA'S
UNIQUE GEOGRAPHY WITH NEARLY
FORTY MILLION PEOPLE SPREAD OUT
OVER ONE HUNDRED AND SIXTY
THREE THOUSAND SQUARE MILES.
DEMANDS IN INTEGRATED
INCONVENIENT APPROACH TO SPORTS
BETTING WITH THE EMPHASIS ON
THE WORD CONVENIENT I MEAN
THAT'S AN AWFUL LOT OF TERRAIN.
FOR RETAIL ONLY MARKET TO BE
ABLE TO COVER. IF CALIFORNIA
HOPES TO MAKE A DENT IN THE
ELITE SPORTS BETTING MARKET AND
BRING IN SIGNIFICANT REVENUE.
BENEFIT THEIR GREAT STATE AND
TO FUND CRITICAL PUBLIC
INITIATIVES MOBILE AND ONLINE
SPORTS WAGERING MUST BE PART OF
THE SOLUTION. SMART BED IT WAS
SMART SPORTS BETTING REGULATION
WILL ENSURE MOBILE AND ONLINE
PLOT. FORMS FOR CUSTOMERS
OTHERWISE THE ILLEGAL MARKET
WILL REMAIN NEARLY A STRONG AND
ROBUST AS IT IS TODAY AND THE
STATE WILL ONLY REALIZE A SMALL
FRACTION OF THE POTENTIAL
REVENUES. FURTHER THE LACK OF A
MOBILE SPORTS BETTING
ENVIRONMENT WILL INEVITABLY
LEAD CONSUMERS TO PLACE THEIR
BETS IN NEIGHBORING STATES.
CALIFORNIA IS BORDERED BY TWO
STATES THAT ALREADY HAVE MOBILE
SPORTS BETTING NEVADA. AND
OREGON. IT WILL BE MUCH EASIER
AND FAR MORE CONVENIENT FOR
CALIFORNIA RESIDENTS LIVING
ALONG THE BORDER TO DRIVE TO
KNOW ABOUT AN ORGAN IN PLACE
THEIR BETS WITH SMARTPHONES AND
THEN DRIVE BACK INTO
CALIFORNIA. AND THAT'S EXACTLY
WHAT'S HAPPENING IN NEW YORK
STATE WE'RE SPORTS BETTING IS
LEGAL ONLY A BRICK AND MORTAR
CASINOS LOCATED HUNDREDS OF
MILES AWAY. FROM NEW YORK CITY
SO WHERE DO YOU THINK NEW YORK
CITY RESIDENTS ARE BETTING THE
GETTING IN THE CARS DRIVING
ACROSS THE GEORGE WASHINGTON
BRIDGE GOING THROUGH THE
LINCOLN HOLLAND TUNNEL AND
TAKING THE PATH TRAIN TO
HOBOKEN. JUST TO PLACE A SPORTS
BET BECAUSE IT'S MORE
CONVENIENT. AND HERE'S ANOTHER
ESSENTIAL BENEFIT TO HAVING
MOBILE SPORTS WAGERING ONLINE
PLATFORMS IN THE INSTANT DATA
THAT THEY PROVIDE ARE THE ONLY
WAY. TO ENSURE TIGHT REAL TIME
INTEGRITY MONITORING OF BETS
AND BETTING PATTERNS TO ENSURE
THAT ANY SUSPICIOUS BEHAVIOR IS
IMMEDIATELY NOTICED AND
FORWARDED IT PROVIDES A REAL
TIME DIGITAL FINGERPRINT THAT
ALLOWS FOR MUCH MORE EFFECTIVE
MONITORING IN AS A STATE
POLICYMAKERS. IF YOU'VE
DESCRIBED AS ONE OF THE PILLARS
OF REGULATION THE PROTECTION OF
THE INTEGRITY OF SPORTING
EVENTS WILL MOBILE SPORTS
BETTING IN MOBILE WAGERING IS
THE WAY TO PROTECT. US PROTECT
SPORTS AND WAGERING INTEGRITY-
SO TO CREATE A SUCCESSFUL
STATEWIDE BETTING MARKET AND
PUT A STOP TO THE ILLEGAL BLACK
MARKET AND TO PREVENT THE LOSS
OF TAX DOLLARS TO NEIGHBORING
STATES. BIGELOW EYES SPORTS
BETTING IN CALIFORNIA NEEDS TO
BE READILY ACCESSIBLE AND
REFLECT TODAY'S HEAVY CONSUMER
INTERNET USAGE WITH FULL MOBILE
AND ONLINE AT. ACCESS THESE ARE
OBVIOUS AND SELF EVIDENT POINTS
ALONG THE SAME LINES YOU ALSO
HAVE A UNIQUE OPPORTUNITY TO
BUILD THE BEST POSSIBLE RETAIL
MARKETING CALIFORNIA THOUGH
THAT THAT'S BRICK AND MORTAR
LAND BASED SPORTS BETTING IT'S
NOT ONLY JUST ABOUT MOBILE.
TRIBAL CASINOS AND HORSE RACE
TRACKS OR WONDERFUL START BUT
THEY'RE JUST A START IT'S NOT
THE SUM AND SUBSTANCE OF RETAIL
SPORTS BETTING I'D LIKE TO
POINT TO ANOTHER LEGISLATIVE
TREND THAT HAS EMERGED. IN A
NUMBER OF STATES THAT I SEE
DEVELOPING WHICH IS BRINGING
SPORTS BETTING TO THE VENUES
WHICH ACTUALLY HOST THE
SORTING EVENTS. YOU KNOW OF A
JURY OF DO A RADICAL
PROPOSITION BUT ILLINOIS IN DC
HAVE ALREADY PASSED LAWS THAT
ALLOW IN STADIUM BATTING. AND
NEW YORK IN KENTUCKY HAVE
PROPOSED SIMILAR MAPPERS
CALIFORNIA HAS NINETEEN
PROFESSIONALS TEAMS MORE THAN
TWICE THE AMOUNT OF ANY OTHER
STATE AND MOST OF THOSE TEAMS
PLAY IN STADIUMS AND ARENAS.
LOCATED A MAJOR POPULATION
CENTERS LIKE LOS ANGELES SAN
FRANCISCO ANAHEIM SAN JOSE
OAKLAND SAN DIEGO AND YES EVEN%
SACRAMENTO. MILLIONS OF FANS
PASS THROUGH THE TURN STYLES OF
CALIFORNIA SPORTS VENUES EVERY
YEAR. YOU KNOW HOW LONG OF A
DISTANCE IT IS FROM UP MAJOR
MAJOR LOS ANGELES DIDN'T TO THE
NEAREST TRIBAL CASINO. WELL
IT'S MORE THAN TWENTY FIVE
MILES IF YOU LIVE IN LA. YOU'RE
PROBABLY NOT GOING TO BE
INCLINED TO DRIVE TO A TRIBAL
CASINO JUST PLACE A SPORTS BET-
BUT IF IT'S AT THE STAPLES
CENTER OF THE FORUM. OR ANY OF
THE MAJOR DOWNTOWN SPORTS
ARENAS YOU'VE CAPTURED A READY
MADE AUDIENCE OF SPORTS BETTORS
THOSE WHO ACTUALLY WATCHING
CONSUME THE PRODUCT AND HAVE
ENTHUSIASM FOR IT- SO WOULD IT
MAKE SENSE TO INCLUDE THESE
MAJOR VENUES IN THE EQUATION
FOR SPORTS BETTING. AND TO
CAPTURE THIS READY MADE
AUDIENCE I MEAN THERE ARE
NUMBER OF COMPELLING REASONS TO
DO SO SPORTS BET SPORTS FANS OF
THE OBVIOUS TARGETS FOR SPORTS
BETTING. THEY'RE ALREADY
CONSUMING A PRODUCT THEY'RE
ALREADY IN THE BUILDING THESE
ARENAS OR MAJOR POPULATION
CENTERS WHERE'S MY OF THE LAND
BASE. CASINOS ARE NOT- STADIUMS
ARENAS OBVIOUSLY HAVE MORE
CUSTOMERS AND SEATING CAPACITY-
YOU KNOW THEN CASINO BASED
SPORTS BOOKS LARGEST CASINO
BASED SPORTS BOOK AND MAYBE
FIT. COUPLE HUNDRED PEOPLE IN
THE SPORTS BOOK ARENAS BY
CONTRAST HAVE THOUSANDS OF
PAYING CUSTOMERS. SO IF ONE OF
THE GOALS OF STATE AUTHORIZED
SPORTS BETTING IS TO MAXIMIZE
REVENUES FOR THE STATE. THEN IT
STANDS TO REASON THAT PLACE AND
SUPPORT BOOK IN THE LARGEST
VENUES WOULD BE THE OBVIOUS WAY
TO GO. AND ONE SURE FIRE WAY OF
MEETING AND EVEN EXCEEDING
REVENUE PROJECTIONS WOULD BE TO
INCLUDE WITHIN THE PERMITTED
CLASS OF BETTING OPERATORS
THOSE VENUES AND FACILITIES
THAT TRACKED THE LARGEST NUMBER
OF POTENTIAL SPORTS WAGERING
CUSTOMERS. WHO ARE YOUR TARGET
AUDIENCE THAT IS THE MULTI
THOUSAND SEEK PROFESSIONAL
SPORTS BILL- VENUES THAT TRUCK
TENS OF MILLIONS OF âRTS
ANNUALLY- SO IN CLOSING I
APPRECIATE THE OPPORTUNITY TO
APPEAR HERE TODAY. AND I
WELCOME ANY QUESTIONS THAT YOU
MAY HAVE THANK YOU AGAIN FOR
THE OPPORTUNITY TO SHARE MY
PERSPECTIVES AND INSIGHTS.
THANK YOU SIR MR GROWTH. GOOD
AFTERNOON CHAIR GRAY CHAIR DODD
MEMBERS OF THE COMMITTEE MY
NAME IS CHRIS GROVE I'M A
PARTNER TO FIRM CALLED EILERS
INCREASE CHECK GAMING I WAS A
GREAT CHECK IS A CALIFORNIA
BASED RESEARCH AND CONSULTING
FIRM FOCUSED ON THE GLOBAL
GAMBLING INDUSTRY AND I HAD OF
OUR SPORTS BETTING PRACTICE
HERE TODAY TO PROVIDE YOU WITH
SOME COLOR IN CONTEXT AROUND
THE MARKET PERFORMANCE AND
POTENTIAL OF LEGAL SPORTS
BETTING AND TO PROVIDE THAT
PERSPECTIVE I'M GOING TO START
THE DISCUSSION BY TALKING ABOUT
HOW LEGAL SPORTS BETTING IS
PERFORMING TODAY IN THE U. S.
ITS POTENTIAL IN THE US AND
CALIFORNIA SPECIFICALLY. OR
SOME OF THE CORE POLICY LEVERS
DRAMATICALLY IMPACT THE
PERFORMANCE OF LEGAL SPORTS
BETTING MARKET PROVIDE A BRIEF
OVERVIEW OF HOW CONSUMER
PREFERENCES AND MEETING THOSE
PREFERENCES CAN ALSO IMPACT THE
PERFORMANCE OF LEGAL SPORTS
BETTING MARKET DETOUR BRIEFLY
INTO SOME RELEVANT LESSONS THAT
WE CAN LEARN FROM EUROPEAN
MARKETS BEFORE FINALLY WRAPPING
UP WITH SOME CONVERSATION
AROUND THE ILLEGAL MARKET AND
OTHER REGULATED PRODUCT CAN. OR
CAN FAIL TO CAPTURE THAT DEMAND.
STARTING FIRST WITH MARKET
POTENTIAL. IN TWENTY NINETEEN
WE ESTIMATE THAT LEGAL SPORTS
BETTING WILL GENERATE JUST
UNDER A BILLION DOLLARS IN
TOTAL TOP LINE REVENUE ACROSS
THE U. S. WE SEE THAT NUMBER
GROWING STEADILY TO JUST UNDER
SIX BILLION DOLLARS BY TWENTY
TWENTY THREE. OF NOTE BY TWENTY
TWENTY THREE WE DO EXPECT THAT
ROUGHLY THIRTY SIX STATES WILL
OF AUTHORIZED SOME FORM OF
LEGAL SPORTS BETTING. AND THAT
IT WILL AS CHAIR GRAY MENTIONED
HAVE EXCEEDED ITS REACH TO OVER
50% OF U. S. POPULATION AT THAT
POINT. IN TERMS OF THE
CALIFORNIA MARKET OUTLOOK WE
USE ROUND NUMBERS HERE BECAUSE
WE DON'T WANT TO PROVIDE A
SPECIFIC NUMBER AND SUGGEST A
GREATER SENSE OF CERTAINTY THAT
WE ACTUALLY HAVE. THESE ARE OF
COURSE SIMPLY EDUCATED GUESSES.
ARE EDUCATED GUESS IS THAT
CALIFORNIA AT BASELINE MATURITY
WOULD BE A LEGAL SPORTS BETTING
MARKET WORTH ABOUT TWO POINT
FIVE BILLION DOLLARS ANNUALLY
IN TERMS OF TOP LINE REVENUE
AND THAT AS SOON AS BOTH
RETAIL. AND ONLINE SPORTS
BETTING. ROUGHLY 85% OF THAT
TOTAL WOULD BE EXPECTED TO COME
FROM THE ONLINE SPORTS BETTING
CHANNEL. AND IN THE ABSENCE OF
AN ONLINE SPORTS BETTING
CHANNEL WE ESTIMATE AGAIN TAT
ROUGHLY RETAIL ONLY SPORTS
BETTING IN CALIFORNIA WOULD
GENERATE ABOUT HALF A BILLION
DOLLARS A YEAR ANNUALLY IN
REVENUE. SOME OF THE KEY
FACTORS THAT CAN DRIVE MARKET
PERFORMANCE IN TERMS OF THE
POLICY LEVERS THAT YOU ALL HAVE
ACCESS TO DETERMINE HETHER TO
THROTTLE BACK OR THROTTLE UP.
THE PERFORMANCE OF LEGAL SPORTS
BETTING MARKET. THE FIRST THING
I WANT TO NOTE HERE IS THAT THE
PERFORMANCE OF STATES TODAY
THAT HAVE ENACTED LEGAL SPORTS
BETTING IS HIGHLY VARIABLE YOU
CAN SEE A STATE LIKE NEW JERSEY
IS PERFORMING AT SOME THREE TO
FOUR TIMES. THE RATE THAT A
STATE LIKE MISSISSIPPI IS
PERFORMING AT IN TERMS OF THE
AMOUNT OF HANDLED THE TOTAL
AMOUNT OF BETS THAT ARE BEING
PLACED BY ADULTS IF WE LOOK TO
RECENT MONTHS. SO WHAT ARE SOME
OF THE POLICY DECISIONS THAT
SEPARATE THE STATE'S AND HOW DO
THEY IMPACT THE RELATIVE
PERFORMANCE OF VARIOUS LEGAL
SPORTS BETTING MARKETS. WE'LL
START FIRST WITH THE QUESTION
OF SPORTS BETTING DISTRIBUTION
AS DâN POINTED OUT ONLINE
SPORTS BETTING IS CURRENTLY
LEGAL IN ABOUT TWO THIRDS OF
THE STATES THAT HAVE AUTHORIZED
SPORTS BETTING SO FAR. AND IN
THOSE STATES ONLINE SPORTS
BETTING TENDS TO ACCOUNT FOR
ROUGHLY 80% OF TOTAL REVENUE IN
NEW JERSEY IT'S ABOUT 8182% WE
DO EXPECT AS A SIDE NOTE THAT
THAT NUMBER WILL STEADILY
INCREASE OVER TIME. HE WOULD
NOT SURPRISE ME IF WE WERE
HAVING THIS CONVERSATION FIVE
YEARS FROM NOW IF THAT NUMBER
WAS CLOSER TO NINETY. 14% FOR
TO MARKET. BECAUSE THAT'S THE
GENERAL TRAJECTORY OF CONSUMER
PREFERENCE IS AGAIN MORE AND
MORE THINGS THROUGH THE ONLINE
CHANNEL. I WILL THAT IN THE
STATES THAT HAVE AUTHOR I SAW
THANKS FOR BEING MIRED IN ORDER
FOR YOU TO COMPLETE TO SIGN UP
FOR YOUR ONLINE SPORTS BETTING
ACCOUNT. THE YOU ACTUALLY VISIT
RETAIL LICENSE GAMBLING
LOCATION IN ORDER TO COMPLETE
HAT ACCOUNT CREATION ILLINOIS
IS TAKING A SIMILAR APPROACH MY
HOME STATE OF NEVADA HAS
ACTUALLY HAVE. PRO TEMPLATE FOR
NEARLY A DECADE NOW. I WILL
KNOW THAT AMONG COMMERCIAL
CASINOS SUPPORT FOR ONLINE
SPORTS BETTING IS RELATIVELY A
CONSENSUS POSITION WHEN YOU
START TALKING ABOUT INDIAN
COUNTRY INTRACTABLE CASINOS
IT'S A FAR MORE COMPLEX ISSUE.
AND THERE'S FAR LESS THE
CONSENSUS IN IN IN COUNTRY
REGARDING RELATIVE MERITS OF
ONLINE SPORTS BETTING. AND YOU
CAN LOOK TO PENNSYLVANIA AS AN
EXAMPLE OF A HIGH TAX STATE
THIRTY SIX PERCENT. OF GIGI ARE
SO SAFE TO SAY THAT THERE IS NO
CONSENSUS AMONG STATES WHEN IT
COMESTO WHAT IS THE
APPROPRIATE TAX RATE. FOR
REGULATED SPORTS BETTING. I
WILL KNOW TO FEW THINGS STATES
WITH BIG TICKET TAX RATES HAVE
DEFINITELY BEEN THE EXCEPTION
AND NOT THE RULE SO IF YOU
LOOK. TO THE MIDDLE WERE STATES
ARE LANDING ON THIS QUESTION
THEY ARE LANDING ON TAX RATES
THAT TEND TO DRIFT BELOW TWENTY
PERCENT. THERE IS SOME
AVAILABLE RESEARCH ON THIS
QUESTION FROM INTERNATIONAL
MARKETS AND IT DOES SUGGEST
THAT 20% IS RIGHT AROUND THE
THRESHOLD WHERE AS YOU MOVE TAX
RATES ABOVE THAT THRESHOLD.
YOUR ABILITY TO CAPTURE DEMAND
FROM THE ILLEGAL MARKET WHICH
DOES NOT SUFFER UNDERNEATH THE
SAME SORT OF TAX BURDEN. DROPS
OFF DISPROPORTIONATELY AND I
FURTHER NOTE FOR MEMBERS THAT
THE STATE TAX RATE IS NOT THE
ONLY TOP LINE TAX BURDEN AT
OPERATORS ARE GOING TO HAVE TO
PAY. COMMERCIAL SPORTS BETTING
OPERATORS ARE ALSO SUBJECT TO A
FEDERAL TAX IT'S CALLED THE-
EXCISE WAGERING TAX. AND THAT
IS POINT 25% ON THE TOTAL
AMOUNT BET OR HANDLE ROUGHLY
SPEAKING THAT TRANSLATES INTO
ABOUT A 5% TAX. ON REVENUE SO
OPERATORS AREN'T STARTING AT 0%
TAX AND THEN STATE TAX COMES
INTO PLAY. COMMERCIAL OPERATORS
ARE STARTING AT ROUGHLY A 5%
TAX THANKS TO THE FEDERAL
GOVERNMENT AND THEN ANY TAX
THAT THE STATE ADD ON TOP OF
THAT. IS OBVIOUSLY ADDITIVE. I
THINK IT GOES WITHOUT SAYING
AND AGAIN I'M HAPPY TO SHARE
THAT THE RESEARCH THAT'S
AVAILABLE ON THE SUBJECT BUT
THE HIGHER THE TAX RATE
GENERALLY SPEAKING. THE LOWER
YOUR RATE OF A LEGAL MARKET
CAPTURE. BECAUSE YOU AS YOU
INCREASED TAX RATES YOU
DECREASE THE ABILITY OF
OPERATORS TO DO THINGS LIKE
PRICE ODDS IN A WAY THAT
COMPETITIVE THE ELITE. MARKET
AND ALL PROMOTE. TWENTY MILLION
THAT DOES REQUIRE LITTLE
CRACKING OF THE NECK WHEN YOU
SAY THAT NUMBER A TWENTY
MILLION DOLLAR LICENSE FEE FOR
AN ONLINE ONLY SPORTS BETTING
LICENSE. IT'S NOT HARD TO SEE
WHY POLICYMAKERS AND SOME
STATES ARE TAKING THAT APPROACH
BECAUSE LICENSE FEES DO PROVIDE
FOR SOME STATES. A USEFUL ONE
TIME INJECTION OF FUNDS INTO
THE BUDGET. I WILL NOTE THAT
LICENSE FEES ESPECIALLY AT THAT
LEVEL ESSENTIALLY SERVE AS A
NOTHER FORM OF TAXATION. AND A
NOTHER ASPECT THAT IS GOING TO
PULL RESOURCES AWAY FROM
PRODUCT DEVELOPMENT. FROM THE
ABILITY OF OPERATORS TO OFFER
COMPETITIVE ODDS WITH THE
ILLEGAL MARKET FROM THE ABILITY
OF OPERATORS TO PUT MONEY INTO
MARKETING. AND TO DRAW DEMAND
AND RAISE AWARENESS AWAY FROM
THE ILLEGAL MARKET AND AGAIN TO
OFFER THE KINDS OF BONUSES AND
PROMOTIONS THE YOU MIGHT FIND
IT OFFSHORE BETTING SITES. THE
QUESTION OF WHETHER OR NOT TO
ACCOMMODATE SPORTS LEAGUES IS A
NOTHER ISSUE WERE STATES HAVE
BEEN SPLIT- THE LEAGUE'S DO
CONTINUE TO LOBBY AGGRESSIVELY
ACROSS THE UNITED STATES PER
SEAT AT THE TABLE. IN TERMS OF
REGULATED SPORTS BETTING THERE
ARE FEW ASKS AND THE LEAGUES
ARE CERTAINLY NOT HOMOGENEOUS
IN THEIR APPROACH AND I'M SURE
YOU'LL HEAR. A COUPLE OF
DIFFERENT PERSPECTIVES FROM THE
LEAKS TODAY THE PRIMARY FOCUS
THAT I'VE PERSONALLY SEEN IN MY
WORK AT VARIOUS STATE CAPITALS.
APPEARS TO BE AROUND THE
CONCEPT OF ASKING THE
LEGISLATURE TO MANDATE THAT
LEGAL SPORTS BETTING OPERATORS
MUST USE LEAGUE APPROVED DATA
IN ORDER TO MAKE AND TO SETTLE
BETS. THERE ARE ALSO SOME OTHER
AREAS OF INTEREST FOR THE
LEAGUE SUCH AS CONTROL OVER
WHAT KIND OF BAD SCANNING CAM
PLACED. THERE ARE A COUPLE OF
STATES INCLUDING ILLINOIS IN
TENNESSEE THAT HAVE ENACTED A
REQUIREMENT. THAT REGULATED
OPERATORS USE OFFICIAL DATA THE
ONLY NOTE I WOULD MAKE HERE IS
THAT SUCH MANDATES DO AGAIN. AT
AN ADDITIONAL COST TO REGULATED
OPERATIONS AND WITH EACH
ADDITIONAL COST. YOU DO SEE
SOMETHING TAKEN AWAY FROM THE
OTHER SIDE OF THE SCALE IN
TERMS OF THESE OPERATORS BEING
ABLE TO BE- MAXIMALLY
COMPETITIVE WITH THE ILLEGAL
PRODUCT. ANOTHER POLICY- WORTH
DISCUSSING IS A QUESTION OF
MARKET ACCESS WHO CAN APPLY FOR
INSTANCE HOW MANY UNIQUE BRANDS
CAN BE OPERATED UNDERNEATH EACH
INDIVIDUAL LICENSE. IF YOU TAKE
A STATE LIKE NEW JERSEY THE
MOST EXPANSIVE APPROACH TO THIS
QUESTION SO FAR. THEY LIMITED
THEIR KEY LICENSES TO THE
STATE'S EXISTING CASINOS AND
RACE TRACKS. AND THEN THEY SAID
EACH OF THOSE KEY LICENSES CAN
OPERATE UP TO THREE DISTINCT
BRANDS. UNDER EACH ONE OF THOSE
LICENSES THERE THERE'S A
QUESTION ABOUT A FOURTEENTH
LICENSE THAT'S HOW WE GET TO
FORTY TWO- MY MATH IS NOT QUITE
THAT BAD. THIRTEEN TIMES THREE
THIRTY NINE. WE GET AN EXTRA
THREE BECAUSE OF AN INACTIVE-
LICENSE IN NEW JERSEY. THE
QUESTION OF MARKET ACCESS AGAIN
HAS SOME IMPLICATIONS AROUND
HOW COMPETITIVE YOUR MARKET IS
GOING TO BE. THEY ALSO HAS SOME
IMPLICATIONS THAT ARE QUITE AS
OBVIOUS AS SPECIFICALLY WHAT
THE ECONOMIC VALUE OF A KEY
LICENSE IS. AND IF YOU THINK
ABOUT A SMALLER WHETHER BE
TRIBAL WAR COMMERCIAL OPERATOR
OR RACE TRACK WE'VE SEEN IN
STATES LIKE NEW JERSEY THAT
SMALLER OPERATORS HAVE BEEN
ABLE TO LEVERAGE THEIR MARKET
ACCESS. AS A SIGNIFICANT
ECONOMIC ASSET SO SMALLER
CASINO CAN SAY TO A COMPANY
LIKE DRAFTKINGS OUR FANDUEL I'M
GOING TO BASICALLY ALLOW YOU TO
COME IN UNDER MY LICENSE. AND
IN EXCHANGE I'M GOING TO CHARGE
YOU AN UP FRONT FEE AND SOME
ERCENTAGE OF THE REVENUE THAT
YOU GENERATE UNDER THAT
LICENSE. SO MARKET ACCESS AS
MARKET ACCESS QUESTIONS NOT
ONLY IMPACT THE OVERALL SHAPING
CONTOURING COMPETITIVENESS OF
THE MARKETS BUT THEY ALSO
PROVIDE ANOTHER ECONOMIC
OPPORTUNITY FOR KEY LICENSE
HOLDERS. SO SOME QUICK
TAKEAWAYS HERE MOST STATES ARE
CHARTING THEIR OWN COURSE ON
SPORTS BETTING THERE IS NO
TEMPLATE THERE IS NO PLAYBOOK.
THE STAKEHOLDERS IN A LOCAL
MARKET OFTEN HAVE DISTINCT
AGENDAS THAT DRIVE POLICY IN
ONE DIRECTION AND THAT
DIRECTION MAY NOT NECESSARILY
BE- IN PARALLEL WITH THE
DIRECTION OF THE MOST
COMPETITIVE IN THE MOST ROBUST
MARKET. WE HAVE ASO PROVIDED A
FULL SPREAD SHEET WITH A BREAK
DOWN OF THE APPROACHES TO THESE
AND OTHER POLICY QUESTIONS BY
EVERY JURISDICTION IN U. S.
THAT HAS REGULATE SPORTS
BETTING SO FAR. THAT SHOULD
HAVE BEEN IN MADE AVAILABLE TO
COMMITTEE MEMBERS AND IF NOT
CERTAINLY FEEL FREE TO CONTACT
ME AFTER THE HEARING I'M HAPPY
TO PROVIDE THAT. BRIEFLY ON THE
CONSUMER PERSPECTIVE WE HAVE
SURVEYED THOUSANDS OF AMERICAN
SPORTS BETTORS BOTH ACTIVE AND
POTENTIAL ON THESE QUESTIONS
VERY STATES VARIOUS SURVEYS.
RESOUNDINGLY THESE ARE THE
ISSUES THAT CONSUMERS TELL US
ARE THE MOST IMPORTANT TO THEM
IN TERMS OF LEGAL SPORTS
BETTING. THEY WANT FIRST GOOD
ODDS AND PRICING. THEY WANT
SECOND EASY ACCESS TO THEIR
FUNDS THEY WANT THIRD THE
ABILITY TO ACCESS SPORTS
BETTING VIA MOBILE BANKING
APPS. FORTH THE GREATEST
VARIETY OF WAYS TO BET NOT ONLY
IN TERMS OF. TYPES OF BETS BUT
THE AMOUNT OF MARKETS TO BET
ON. OF THE VERY TURNED WITH THE
OVERALL FAIRNESS LIKE
REGULATION THEY LIKE
LEGALIZATION THEY LIKE THE
ASSURANCES THAT THAT PROVIDES.
AND FINALLY THEY ARE OF COURSE-
BEING GAMBLERS INTERESTED IN
GENEROUS PROMOTIONS AND BONUSES.
BRIEFLY SOME LESSONS FROM
EUROPE AND AGAIN I'M HAPPY TO
DISCUSS ANY OF THESE TOPICS AT
LENGTH WITH ANY OF THE MEMBERS
OUTSIDE OF THE CONTEXT OF THIS
HEARING. WE COMPARED THREE
MARKETS FRANCE DENMARK IN THE
UNITED KINGDOM DENMARK IN THE
UNITED KINGDOM ARE OFTEN
UTILIZED AS COMPARISON MARKETS
FOR APPRECIATING HOW A U. S.
MARKET MY PERFORMED BECAUSE THE
RELATIVELY SIMILAR. CULTURALLY
IN TERMS OF ECONOMIC
PERFORMANCE AND SO ON WE
CONTRAST THOSE TWO MARKETS WITH
FRANCE AS YOU CAN SEE FRANCE
HAS A TAX RATE OF FIFTY
PERCENT. COMPARED WITH TAX
RATES OF 20% IN DENMARK AND U.
K. ALSO SOME RESTRICTIONS ON
WHAT CAN AND CANNOT BE BET ON.
AND SOME REQUIREMENTS IN TERMS
OF THE MINIMUM HOLD AS THE
CHARTS ON THE SUBSEQUENT SLIDE
SHOW FRANCES DRAMATICALLY UNDER
PERFORMING U. K. IN DENMARK IN
TERMS OF THE TOTAL SPORTS
BETTING REVENUE PER CAPITA.
ALSO DRAMATICALLY UNDER
PERFORMING THOSE TWO MARKETS IN
TERMS OF THE PENETRATION RATE
SO HOW MANY CONSUMERS IN THE
MARKET ARE ACTIVELY
PARTICIPATING IN LEGAL SPORTS
BETTING. AND FINALLY A
DRAMATICALLY UNDER PERFORMING
THOSE TWO MARKETS IN TERMS OF
THE SPEND PER ACT PLAYER SO NOT
ONLY FEWER ACTIVE PLAYERS BUT
THOSE WHO ACTUALLY ARE ACTIVE
ARE STILL SPENDING LESS ON
AVERAGE. THE LESSONS THAT WE
TAKE AWAY FROM EUROPE BRIEFLY
HI TAX RATES. ABSOLUTELY APPEAR
LIMIT GROWTH PLACING BARRIERS
TO MARKET ENTRY ALSO ACTS AS A
LIMITER ON GROUP BOTH.
DIRECTIONS ON THE CONNIE. IN
THAT CAN. OFTEN BE THE TYPES.
OR WHAT EVENT YOU CAN BET ON
HAS THAT SIMILAR RESTRICTIVE
IMPACT ON GROWTH. CONSUMERS
GENERALLY RESPOND WELL TO
CHOICE AND CONTROL AND A
CAUTIONARY TALE IT'S EMERGING
FROM EUROPE DISTINCT FROM OUR
ANALYSIS OF FRANCE DENMARK AND
U. K. IS THAT SOME CONTROLS
SOME PROACTIVE CONTROLS AROUND
MARKETING. SET FORTH IN ADVANCE
BY THE LEGISLATURE MAY
CONTRIBUTE TO A MORE
SUSTAINABLE AND A MORE
PRODUCTIVE REGULATED SPORTS
BETTING MARKET. FINALLY I WANT
TO CLOSE WITH A FEW COMMENTS ON
THE ILLEGAL SPORTS BETTING
MARKET. CURRENTLY WE ESTIMATE
THAT THE REVENUE VALUE FOR
ILLEGAL SPORTS BETTING IN THE
U. S. IS ABOUT THREE POINT FIVE
BILLION DOLLARS A YEAR IN HERE
WE DO NOT INCLUDE THINGS LIKE
BETS BETWEEN FRIENDS OR OFFICE
POOLS WHICH HELPS TO EXPLAIN
THE DISPARITY BETWEEN OUR
ESTIMATES AND SOME OTHER
ESTIMATES THAT YOU MIGHT SEE.
WE COUNT ABOUT FOURTEEN MILLION
AMERICANS WHO ARE ANNUALLY
BETTING ON OFFSHORE SITES ARE
ACTIVELY WITH A BOOKIE AND WE
KNOW THAT THE TYPICAL HOLD RATE
FOR AN ILLEGAL SPORTS BOOK IS
ABOUT FIVE PERCENT. SO WHEN WE
TALK ABOUT THE IMPACT OF TAX
THE **** WE'LL TALK ABOUT THE
IMPACT OF LICENSE FEES ENOUGH
THE RESTRICTIONS THOSE ALMOST
NECESSARILY PUT THE HOLD RATE
UP FOR THE LEGAL PRODUCT TO
COMPENSATE FOR THE INCREASED
COST THEY HAVE THAT'S THE
FUNDAMENTAL CAN. SEND THAT
CONSUMERS CAN VERY EASILY MAKE
BETWEEN ILLEGAL BETS AND LEGAL
THAT'S THE PRICE IS RIGHT THERE
ON THE ACT PRICE COMPARISON IS
EASY IN SPORTS BETTING AND AS A
RESULT PRICE CITY IS A VERY
REAL. THING FOR CONSUMERS. IT
WAS IN COMMENTS ABOUT THE
CONSUMER'S POINT OF VIEW ON THE
ILLEGAL MARK. POURTANT REALIZE
A FEW THINGS ONE THE ILLEGAL
MARKET IS UBIQUITOUS AND
READILY ACCESSIBLE THERE ARE
VERY FEW BARRIERS TO ENTRY FROM
THE CONSUMER'S PERSPECTIVE
SECOND THE ILLEGAL MARKET HOLDS
SOME ADVANTAGES OVER THE
REGULATED MARKET THAT THE
REGULATED MARKET WILL NEVER BE
ABLE TO MATCH. THINGS LIKE THE
ABILITY FOR CONSUMERS TO BET ON
CREDIT THINGS LIKE THE
ABILITIES TO BET IN A WAY THAT
IS ANONYMOUS YOU'RE RELATIVELY
OR HOLY AND YOU KNOW TO BE
HONEST ABOUT IT THE ABILITY TO
NOT PAY TAXES WHEN YOU WIN. AND
OFFSHORE SITE OR WITHIN A LEGAL
BOOKMAKER THE OTHER THING THAT
THE ILLEGAL MARKET HAS GOING
FOR IT IS THE FACT THAT IT IS
AN ENTRENCHED HABIT FOR A
SIGNIFICANT NUMBER OF CONSUMERS
THE UPSHOT FROM ALL OF THIS IS
THAT POLICY MAKERS MUST MAKE
ALL DECISIONS WITH THE CONTEXT.
OF RE IGNITING THE ILLEGAL
MARKET IS HERE IT IS ACTIVE IT
IS IT FRENCH AND IT WILL
MAINTAIN SOME ADVANTAGES OVER
THE LEGAL PRODUCT THAT CAN
SIMPLY NEVER BE MATCHED BY THAT
PRODUCT AS A RESULT I BELIEVE
THAT IT'S IMPERATIVE FOR THE
LEGAL MARKET TO BE CONSTRUCTED
IN A WAY. THAT POSITIONS ITSELF
AS THE MOST APPEALING OF
ALTERNATIVE POSSIBLE TO THAT
ILLEGAL MARKET NOT ONLY FOR THE
GOOD OF THE MARKET IN TERMS OF
A REVENUE PERSPECTIVE BUT FROM
A MORE BASIC PUBLIC I'LL SEE
FACTORED IN THE OUR- SITE
CONNECT. ACTIVITY NOT KIND OF
REVENUE OUT OF THE ILLEGAL
MARKET WORK IT ALMOST
INEVITABLY RESIDES EITHER
DIRECTLY IN ORDER GRAYSON TO
CRIMINAL ENTERPRISE. THANK YOU
FOR YOUR TIME TODAY AND THE
AVAILABLE FOR. ALL I APPRECIATE
THERE ARE SEVERAL YEARS BEHIND
ME IF YOU ASK ME SINCE SIDE OF
CON THIS YEAR IN MY CONTACT
INFORMATION IS ON THE SCREEN
AND IF I CAN BE A RESOURCE IN
ANY WAY PLEASE DON'T HESITATE.
TO REACH OUT. THANK YOU MOST OF
OUR. BOTH FOR WITNESSES-
SEVERAL REFERENCES ARE MADE RUN
COURT DECISIONS AND SEVERAL
STUDIES- I THINK BELIEVE YOU
OFFER TO PROVIDE SOME SOURCE
MATERIAL TO THE COMMITTEE SO IF
YOU COULD PROVIDE- SOME OF THAT
SOURCE MITCHELL BACKER MATERIAL
IN WRITING THAT BE VERY HELPFUL
AS WE MOVE FORWARD. AND I KNOW
WE HAVE THE POWER POINT HERE.
IN OUR MINDS BUT SOME OF THE
OTHER- REFERENCE FUTURE WOULD
BE HELPFUL AS WELL. AS WELL AS
THE FOR SPEAKER. GOT FOR BOTH.
CUSTOMER. WITH THAT WILL BRING
IT BACK TO THE MEMBERS FOR
QUESTIONS. HI YA. IN A PINCH
HITTER HERE. SO KEEP A VERY
BRIEF BUT YOU SAID INDIAN
TRIBES ARE COMPLEX ON THIS
ISSUE WHAT ARE THE TOP THREE
COMPLEXITIES PLEASE. SURE SO I
DON'T IN NO PARTICULAR ORDER-
INDIAN TRIBES HAVE TO CONTEND
WITH THE CONSTRAINTS OF A GRIP
WHICH PLACES DIFFERENT
CONSTRAINTS AROUND THEIR
ABILITY TO OFFER ONLINE SPORTS
BETTING VERSES HOW COMMERCIAL
OPERATOR MIGHT APPROACH ONLINE
SPORTS BETTING. TO SOME BUT NOT
ALL MAY HAVE TO RE OPEN THEIR
CONTACTS WITH THE STATE IN
ORDER TO CONSIDER THE QUESTION
OF SPORTS BETTING AND THEY MAY
VIEW THAT AS A RISK THAT IS
SIMPLY NOT WORTH TAKING FOR THE
RELATIVE UPSIDE OF SPORTS
BETTING AND FINALLY I THINK
THAT. IF YOU AND I DON'T WANT
TO SPEAK AS IF INDIAN COUNTRIES
MARGINS BECAUSE IT OBVIOUSLY IS
NOT BUT THERE I THINK IS A
CONCERN THAT I'VE HEARD
EXPRESSED IN INDIAN COUNTRY
AMONG SOME TRIBES THAT THE
PERCEIVED BENEFITS OF SPORTS
BETTING SEEM RELATIVELY SMALL
FROM THEIR PERSPECTIVE. SLOT OF
NEW FOR EXAMPLE. AND IN EACH
INCH FOR OPENING THE DOOR EVEN
THOSE RELATIVELY SMALL BENEFITS
THEY'RE CONCERNED ABOUT WHAT
OTHER KINDS OF GAMBLING MIGHT
COME THROUGH THAT DOOR ONCE
IT'S OPENED I OFTEN SAY THAT
THE HISTORY OF GAMBLING IN THE
U. S. IS A SERIES OF. MASSIVE
EXCEPTIONS SQUEEZE THROUGH VERY
SMALL LOOPHOLES THIS IS HOW YOU
KNOW VARIOUS THINGS THAT WERE
NOT SLOT MACHINES BECAME SLOT
MACHINES RIGHT. SO I THINK
THERE IS SOME CONCERN THAT.
WE'RE SAYING THIS IS THE
EXPANSION TODAY. WE'RE NOT
QUITE SURE WHAT EXPANSION IS
GOING TO FOLLOW AS A RESULT SO
LET'S PRESERVE THE STATUS QUO
BECAUSE FRANKLY THE STATUS QUO
IS WORKING QUITE WELL FOR US.
THANK YOU AND DANTE AND THEY
HAVECERTAIN THAT THERE. I JUST
WANTED TO CHRISS COMMENT ABOUT
THE COMPLICATIONS POSED BY A
GROW WHICH IS ACRONYM FOR THE
INDIAN GAMING REGULATORY ACT
THERE IS. SOME LEGAL
UNCERTAINTY OVER WHETHER AND TO
WHAT EXTENT- KICK INDIAN TRIBES
CAN OR FROM MOBILE BETTING-
THERE'S SME PROBLEMATIC CASE
LAW OUT OF THE NINTH CIRCUIT U.
S. COURT OF APPEALS. WHICH
PLACES THAT QUESTION AT ISSUE-
I THINK OF THE IF IT PAID
TRIBES- CASE- IT MAYBE NOT
PRONOUNCING IT CORRECTLY. AND
THERE'S A AND I. G. C. NATIONAL
INDIAN GAMING COMMISSION-
ADVISORY OPINION- THAT
SUGGESTS- THAT. YOU KNOW UNDER
THE CURRENT LANDSCAPE SINCE IT
GROW APPLIES TO GAMING ON
INDIAN LANDS. THAT THERE MAY BE
SOME COMPLICATIONS WITH. INDIAN
TRIBES- BE ABLE TO OFFER
COMPETITIVE MOBILE BETTING
PRODUCTS AND AT THE SAME TIME
TO REMEDY AND ALLEVIATE THAT TO
THEIR PLAN- PROPOSED
LEGISLATION AND INTRODUCED IN
THE U. S. CONGRESS- ALLOW.
INDIAN TRIBES TO BE ABLE TO
CONDUCT MORE SPORTS WAGERING
OPERATIONS SO THOSE TWO THOSE
TWO AVENUES KIND OF WORK
TOGETHER. AND I CAN'T SPEAK FOR
WHAT THE TRIBES MOTIVATION IS
BUT IT'S QUITE POSSIBLE THAT
THEIR RELUCTANCE. TO MOVE
FORWARD WITH MOBILE BETTING IN
SPORTS IN IN IN CALIFORNIA
COULD BE ATTRIBUTABLE TO THE
MARKING THIS OF THE LEGAL
QUESTION OVER WHETHER THEY CAN
ACTUALLY DO IT. AND THERE'S
CERTAINLY A MOVEMENT IN
CONGRESS- TO REMEDY THAT
SITUATION AND PUT THEM. ON
EQUAL FOOTING. WITH NON TRIBAL
OPERATORS. SEC OR JUST.
PROBABLY MORE OF A REQUEST FOR
INFORMATION THEN- ACTUAL
QUESTION GIVE ME A LITERATURE
OR- ANY EVIDENCE- THAT COULD
HELP US UNDERSTAND THE ROLE-
THAT- THE CHINA- MADE BEAR ON
THIS ISSUE DOWN THE ROAD ALL IN
TERMS OF SPORTS BETTING ONLINE%
BETTING WEATHER BEATER MACAU
BLACK MARKET- EVEN AUTHORIZED I
KNOW THEY HAVE- STRONG
PROTECTIONS IN PLACE ON THE
INTERNET AND WHAT NOT BUT- DO
YOU HAVE ANY THOUGHTS OR
INSIGHTS INTO WHAT ROLE THEY
PLAY OR MY PLAYING THE FUTURE.
FROM A POLICYMAKERS MAKERS
PERSPECTIVE I THINK THE ONE
QUESTION AS MOST LIKELY TO COME
INTO YOUR YOUR ORBIT IS THIS
QUESTION OF WHEN YOU'RE
THINKING ABOUT LICENSE SEEN AN
OPERATOR OR A SOFTWARE PROVIDER
PLATFORM PROVIDER ARE THEY
DOING BUSINESS IN THAT MARKET
ILLEGALLY AND WHAT KIND OF
RAMIFICATIONS DOES THAT HAVE IN
TERMS OF THEIR ABILITY TO
SECURE A LICENSE HERE IN
CALIFORNIA. OTHERWISE GENERALLY
SPEAKING I'M NOT SURE THAT TO
MARKETS ARE HER LIKE THEY DID
IN FACT- ANYTIME IN THE NEAR
FUTURE BUT EIGHT AND HAPPY TO
CONTINUE THAT CONVERSATION ALSO
HAS A RIGHT NOW MACAU ALLOWS
OUR DISALLOWS. TRONIC CURRENT.
STATUS ONLINE IN CHINA BROADLY
IS THAT'S DISALLOWED MECCA
THANK YOU. NATIONAL QUESTIONS
MEMBERS. CENTER YES THANK YOU
THE- YOUR YOUR OPENING
STATEMENT YOU MENTIONED ABOUT
THE BALLOT AND THE COURSES THE
SENATE AND THE ASSEMBLY VOTING
AND THAT SORT OF THING SO THE
COMPARISON OF THE TWO WHAT
WOULD OBVIOUSLY YOU THINK HOW
THE GENERAL PUBLIC WOULD SEE IF
WE WENT ONE WAY OR THE OTHER
AND THE LAST IS- WE DID TALK
THE TALK ABOUT CRIME WE TALKED
ABOUT YOU KNOW THE BLACK MARKET
WE TALKED ABOUT ILLEGAL
GAMBLING. AND YOU GIVE US SOME
RAIMES JUST ACCEPT HAVE IT- AND
HOW WE CAN ELIMINATE THAT BY
MAKING THIS LEGAL. WELL MAYBE
CHRIS CAN BETTER ADDRESS THAT
ISSUE BUT CERTAINLY- WITHIN THE
LEGISLATIVE PREROGATIVE. IF YOU
PASS AND CONTROL THE-
REGULATORY ENVIRONMENT AND
LEGAL ENVIRONMENT DRAFT TO
LAWS. YOU CAN CONTROL IT A
LITTLE BIT MORE EFFECTIVELY
THAN- LEAVING A PURELY TO A
VOTE OF THE PEOPLE YOU'RE GONNA
NEED TO ENACT ENABLING
LEGISLATION ANYWAY. SO IF YOU
WANT TO BE ABLE TO PROTECT-
THOSE THAT ARE YOU KNOW MOST
DISADVANTAGED OR PERHAPS- YOU
KNOW VULNERABLE. TO CRIME OR OR
PROBLEM RESPONSIBLE GAMBLING ON
THAT WOULD BE COMING UPON THIS
LEGISLATIVE BODY TO- YOU KNOW-
LEGISLATE BEST PRACTICES TO
DEAL WITH THOSE SITUATIONS BUT
I DON'T HAVE ANY STATISTICS
ARE. ANECDOTAL INFORMATION ON
ON- YOU KNOW CRIME. YOU KNOW
CRIME RISKS BUT I DO BELIEVE.
VERY STRONGLY THAT THE
CALIFORNIA CONSTITUTION DOES
NOT STAND IN THE WAY OF THIS
LEGISLATIVE BODY BEING ABLE TO
DRAFTING AND ENACT. ITS OWN
SPORTS WAGERING STATUTE THAT
CREATES A BEST PRACTICE FOR
CALIFORNIA AS THIS LEGISLATURE
SEES FIT. AND LASTLY HAVE YOU
DONE ANY PAULINE ON. WITH THE
GENERAL PUBLIC WOULD LOOK LIKE-
WHEN FACED WITH THIS
OPPORTUNITY YES OR NO. WELL
THERE'S BEEN NO SPECIFIC
POLLING THAT I'M AWARE OF IN
CALIFORNIA I KNOW WHEN IT CAME
IN COLORADO- PULLING WAS
HEAVILY IN FAVOR OF SPORTS
BETTING- BEING- PASSED. THROUGH
THE CONSTITUTIONAL BALLOT
QUESTION. BUT THERE'S BEEN NO
PULL UP ON THE ISSUE. PUBLIC
FEEL ABOUT. IT SHOULD BE A VOTE
OF PEOPLE OR ALLOW THE DULY
ELECTED REPRESENTATIVES- TO
PASS A SPORTS BETTING STATUTE
BUT THERE ARE NUMEROUS POLLS.
THAT HAVE BEEN CONDUCTED
NATIONWIDE SETON HALL- THE
AMERICAN GAMING ASSOCIATION HAS
A LOT OF INFORMATION ABOUT. THE
PUBLIC'S- ACCEPTABILITY AND
BEING IN FAVOR OF REGULATED
SPORTS BETTING- TWENTY SEVEN
YEARS AGO WHEN PASSED BUT WAS
ENACTED IT WAS A COMPLETELY
DIFFERENT ENVIRONMENT IT WAS
PRE INTERNET. LARGELY PUT AN
AD. IN THE AFTERMATH. OF THE P.
O.'S SCANDAL THERE ARE ONLY TWO
STATES. IN NINETEEN NINETY TWO
THAT EVEN HAD CASINOS SO TODAY
IN TWO THOUSAND AND NINETEEN WE
HAVE FORTY STATES THAT HAVE
COMMERCIAL CASINOS. DAILY
FANTASY SPORTS IS WIDELY
AVAILABLE THROUGHOUT THE UNITED
MOST STATES- GAMBLING HAS
BECOME A MUCH BIGGER PART OF
ECONOMIC ACTIVITY ON A STATE BY
STATE BASIS AND THE POLLS TEND
TO SHOW INCREASING PUBLIC
SUPPORT. FOR LEGALIZED SPORTS
BETTING. AND I WOULD IMAGINE
THAT PUBLIC SUPPORT WOULD BE
THE FACT THAT THERE WOULD BE
REVENUE TO ADDRESS SOME OF THE
ISSUES WITH HOUSING SCHOOLS-
OUR HIGHWAYS TRANSPORTATION
INFRASTRUCTURE. EVERYTHING IN
GENERAL THAT STILL NEEDED BUT
BUT THAT'S PART OF IT THAT'S
NOT THE ONLY REASON CERTAINLY-
THE NUMBER OF NUMBERS YOU KNOW
PEOPLE WHO ARE WHO LOVE SPORTS
AND WANT TO HAVE YOU KNOW WON'T
WANT TO BE ABLE TO DECIDE FOR
THEMSELVES. WHAT KIND OF YOU
KNOW BEHAVIOR TO IT TO ENGAGE
IN IT MINUTES THERE IT'S THEIR
RIGHT TO PLACE A BAD AND I
THINK. SO MANY PEOPLE TO BE
ABLE TO PARTICIPATE IN THIS
ACTIVITY SAFELY INSTEAD OF
BEING RELEGATED TO THE ILLEGAL
MARKET WHERE THERE ARE NO
CONSUMER PROTECTIONS THERE ARE
NO RECOURSE. AND THERE'S NO
REGULATOR TO- TURN TO IF THE
OPERATOR GOES BELLY UP SO THE
PROBLEM THAT YOU'RE FACED WITH
IS NOT WHETHER SPORTS BETTING
WILL EXIST OR NOT EXIST BELIEVE
ME IT EXISTS. AND WE CAN DEBATE
THE NUMBERS WHETHER IT'S A
HUNDRED AND FIFTY BILLION
ANNUALLY OR CHRIS IS MORE
MODEST NUMBER BUT IS IT IS A
SIGNIFICANT- ACTIVITY THAT'S
OCCURRING REGARDLESS OF WHETHER
YOU CHOOSE TO LEGALIZE IT OR
NOT. AND HE IN IN IN YOUR
RECOGNIZING THAT I CREATING A
SAFE. ROBUST REGULATORY
ENVIRONMENT FOR CONSUMERS TO
SAFELY ON SPORTS AND POSE
PROTECTIONS FOR PROBLEM
GAMBLERS IN ANY OTHER ISSUES
THAT YOU THINK RISE TO THE
LEVEL OF IMPORTANCE. THAT COULD
BE FOR YOU TO ADDRESS INSTEAD
OF HOPING THAT THINGS YOU DON'T
GO WELL BUT STICK STICKING YOUR
HEAD IN THE SAND AND PRETENDING
IT DOESN'T IT'S NOT EXISTING. I
THINK IS- IT IS THE BEST OPTION
IN ACTION. WILL ALL THIS
ACTIVITY TO FLORIDA OFFSHORE BE
ABLE TO. THE MOBILE STE. THANK.
THE BILL FOR ALL CALIFORNIA
RESIDENTS VISITING HIS BELOVED
BOSTON RED SOX IN PLACES A BAD
AT THE PARK TO BEAT THE NEW
YORK YANKEES. HELP OTHER STATES
FIGURE OUT HOW THE MONEY IS.
ALLOCATED TO STATES AND
RESIDENTS AND THINGS LIKE THAT.
IT'S SIMPLY A MATTER WHERE THE
BEST PLACE THIS IS WHERE THE
BET IS CONSIDERED FOR TERMS OF
THAT TAX REVENUE SO. THAT A
MASSACHUSETTS COUNT AS A
CALIFORNIA RESIDENT
CALIFORNIANS NOT. WELL YOU
CAN'T DO THAT TODAY WE HAVE TO
FEDERAL WIRE ACT NOT I THINK IT
I THINK IT WAS AND IF YOU
TRAVEL TO MASSACHUSETTS YOU
PLACE A BET MASSACHUSETTS
THAT'S REVENUE FOR
MASSACHUSETTS OPERATOR TAX BY
THE STATE OF MASSACHUSETTS.
OKAY BUT CALIFORNIA GETS NONE
OF ITS RESIDENTS BETTING.
ELSEWHERE NO SORRY. THANK YOU.
THE. THIS WORK IF YOU COULD- I
KNOW CHAIRMAN DODD WAS VISITING
WITH THE GOVERNOR AND HAD TO
STEP OUT OF THE HEARING FOR A
FEW MINUTES YOU TOUCHED ON THE
ISSUE THAT'S GOING TO BE
CRITICAL- IN OUR DISCUSSIONS
WITH LEGISLATURE WHICH IS
WHETHER TO PURSUE- LEGALIZATION
SPORTS WAGERING VIA A NEW SHIP
THAT THE LEGISLATURE PUTS ON
THE BALLOT OR WHETHER WE PURSUE
SOMETHING. THROUGH LEGISLATION
IN STATUTE YOU MADE THE
SUGGESTION THAT YOUR OPINION.
WE HAVE THE AUTHORITY LEGAL
AUTHORITY TO PURSUE
LEGISLATION. COULD YOU WALK US
THROUGH THAT ONE MORE TIME FOR
THE MEMBERS KAY WITHOUT NOTES-
I AM ONE HUNDRED PERCENT.
CERTAIN THAT THE CALIFORNIA
CONSTITUTION DOES NOT REQUIRE A
BALLOT QUESTION FOR SPORTS
BETTING AND I GUESS I SHOULD
STAND UP- SO I CAN BE BETTER NO
NO MORE AUDIBLE. THERE ARE ONLY
CALIFORNIA CONSTITUTION THAT
ARE POTENTIALLY CONCERNING ONE
IS SECTION NINETEEN EIGHTY OF.
ARTICLE FOUR I BELIEVE EIGHT
PROHIBITS CASINOS CASINO
GAMBLING. CASINOS OF THE TYPE
CURRENTLY OPERATING IN NEW IN
IN NEVADA AND NEW JERSEY. AND
THIS CALIFORNIA SUPREME COURT
DECISION FROM NINETEEN NINETY
NINE HOTEL AND RESTAURANT
EMPLOYEES INTERNATIONAL UNION
THAT'S THE NAME OF THE CASE.
THE SUPREME COURT INTERPRETED
THAT NO CASINOS LANGUAGE TO
APPLY ONLY TO BUILDINGS OR
ROOMS- THAT HAVE GAMBLING
ACTIVITIES THAT WOULD THEN
CURRENTLY BEING OPERATED. IN
NEW JERSEY AND NEVADA SO IT
DOESN'T IT DOESN'T ADDRESS TO
PROHIBIT CASINO GAMBLING OR
GAMBLING CATEGORIES IT SPEAKS
TO PHYSICAL STRUCTURES AND
FACILITIES AND IT COULDN'T
POSSIBLY ENCOMPASS SPORTS
BETTING BECAUSE- WITHIN THIS
VERY DETAILED COURT OPINION-
THE SUPREME COURT INTERPRETS
WHAT IS MEANT BY THE WORDS.
CURRENTLY OPERATING IS THIS-
CURRENTLY OPERATING IN ALASKA
CONCEPT THAT WE WOULD
BASICALLY- UPS I TO ACTIVITY IN
TWO THOUSAND AND TWENTY NO THIS
CREAM COURT. SAID THAT IT ONLY
MAKES SENSE TO CONSTRUCT
CURRENTLY OPERATING AT
REFERRING TO THE STATE OF IS
WHICH THIS. NINETEEN EIGHTY
FOUR HELLO. THIS IS STATION TO
CALIFORNIA CONSTITUTION AND IN
NINETEEN EIGHTY FOUR WE'RE
SPENDING WAS FOUND IN NEVADA
CASINOS BUT NOT IN NEW JERSEY
CASINOS IT WOULD BE ANOTHER
THIRTY TWO YEARS BEFORE NEW
JERSEY CASINOS HAD THE LAWFUL
ABILITY TO OFFER SPORTS
WAGERING AS AN AMENITY SO
SPORTS BETTING AS A- AS A FORM
OF GAMBLING IS NOT COVERED BY
THIS CONSTITUTIONAL BAN ON
CASINOS- WHICH LOOKS TO THE
STATE OF AFFAIRS IN NINETEEN
EIGHTY FOUR AND FOCUSES ONLY ON
BUILDINGS OR STRUCTURES. THE
OTHER POTENTIAL CONSTITUTIONAL
PROVISION THAT COULD APPLY HERE
IS SECTION NINETEEN F. OF
ARTICLE FOR WHICH IS THE INDIAN
GAMING COMPACT LANGUAGE WHICH
GIVES THE GOVERNOR OF
CALIFORNIA HEY AUTHORITY TO
ENTER INTO TRIBAL GAMING CONDO-
CONTACTS WITH THE INDIAN TRIBES
FOR THREE DISCRETE CATEGORIES
OF GAMBLING LOTTERIES. I
BELIEVE SLOT MACHINES AND
PERCENTAGE AND BANKING CARD
GAMES THIS SUB SPECIES OF
GAMBLING WHICH THE GOVERNOR HAS
THE RIGHT AND THE ABILITY TO
ENTER INTO GAMING COMPACTS WITH
CALIFORNIA'S TRIBES NO WHERE IN
SECTION NINETEEN ELF OF ARTICLE
FOUR IS THERE ANY PROHIBITORY
LANGUAGE IT DOESN'T SAY. THE
STATE SHALL NOT ALLOW ANY OTHER
OPERATOR TO OFFER A DIFFERENT
FORM A CLASS FOR GAMBLING IT'S
AN IT'S A SIMPLE AUTHORIZATION
PROVISION AND THE WAY I READ
BANKING AND PERCENTAGE CAR
GAMES IS IT DOESN'T MEAN ALL
HOUSE BANKING GAMES IT FOCUSES
ONLY ON CARD GAMES AND HOW DO
WE KNOW THIS- IN IN TWO
THOUSAND ONE PROPOSITIONONE
EIGHTY I MEAN. I DID MY
RESEARCH PROPOSITION ONE AA WAS
THE- THAT LET YOU KNOW TRIBAL
CASINO GAMING ON INDIAN LANDS
AND AT THE TIME OF THE FOR YOU
THE NONPARTISAN COMMITTEE OR
AGENCY CALLED THE LEAD
PLAINTIFF ANALYST'S OFFICE THE
WAY- THE INTERPRET. THE BALLOT
CHOOSE THE BENEFIT. THE ISSUE
VOTER PAMPHLETS THESE. GUYS AND
THEN. THE BODY OF THIS VOTER
INFORMATION GUIDE I MEAN I HAVE
COPY IT'S ONLINE ANYBODY CAN
SEARCH FOR IT VERY EASILY IT'S
NOT THAT HARD TO FIND- BUT THE
LA- THE LEGISLATIVE ANALYST
INTERPRETED THE WORDS OF
BANKING AND PERCENTAGE CARD
GAME. AS REFERRING ONLY TO CARD
GAMES NOT TO ALL HOUSE BANKING
GAMES NOT OF SPORTS BETTING NOT
TO ANYTHING ELSE SO IF YOU LOOK
AT THE CONTEMPORANEOUSLY
EVIDENCE THAT EXISTED AT THE
TIME. PUBLIC STATEMENTS MADE BY
STATE OFFICIALS AND TRIBAL
OFFICIALS COURT DECISIONS
LANGUAGE IN COMPAQ'S THEY ALL
POINT TO A SINGULAR CONCLUSION.
WHICH IS THAT THE
CONSTITUTIONAL LANGUAGE GIVING
THE GOVERNOR THE AUTHORITY TO
ENTER INTO TRAVEL CONTACTS FOR
LIMITED FORMS OF PLASTER
REGAINING. DOES NOT PROHIBIT-
THE AUTHORIZATION OF SPORTS
BETTING BY THE LEGISLATURE
THERE THERE ARE LIKE YOU KNOW
THEIR SHIPS PASSING IN THE
NIGHT HAVING NOTHING TO DO WITH
ONE ANOTHER SO REALLY THE FOR
THE TWO THE TWO PILLARS OF THE
ARGUMENT OR THAT THE NOTE THE
NO CASINO LANGUAGE. ONLY
APPLIES TO THE BUILDINGS AND
FACILITIES AND THE TRIBAL
CONTACTING LANGUAGE ONLY
AFFECTS THE A LIMITED SPECIES
OF CLASS THREE GAMES AND ONE OF
THOSE LIMITED SPECIES HAVE A
PERCENTAGE IN BANKING- BANKING
A PERCENTAGE CARD GAMES ONLY
REFERS TO CARD GAMES. NOT TO
OLD YOU KNOW HOUSE BANKING AIMS
OR WHENEVER- WHENEVER BETTER
WAGES AGAINST THE HOUSE IT'S
LIMITED TO CARD GAMES ONLY. SO
YOU HAVE A CLEAR PATHWAY TO
ENACT A STATUTE THAT PROVIDES
FOR SPORTS BETTING IN THE STATE
OF CALIFORNIA WITHOUT ANY
CONCERN I MEAN OF COURSE YOU
KNOW THE IF THEY COULD BE LEGAL
CHALLENGES BUT I ASSURE YOU I
DELVED DEEPLY INTO THIS. AND
YOU COULD LOOK AT THE CONTACTS
A NUMBER OF COURT DECISIONS THE
VOTER PAMPHLETS THAT WERE
ISSUED IN TWO THOUSAND AND- YET
AT THE LAWYER AS A TRIAL
LEARNING HELLO LAWYER WE HAVE.
A COP. PULLED ME SING EVIDENCE
IS WAY BEYOND. I THINK IF YOU
DO YOUR RESEARCH YOUR HOMEWORK-
YOU'LL FIND THAT THERE'S NO
CONSTITUTIONAL BARRIER TO THE
LEGISLATIVE AUTHORIZATION OF
SPORTS BETTING IN CALIFORNIA.
WAS THAT. I THINK THAT'S
SUFFICIENT DETAIL FOR NOW I
KNOW WE HAVE- MEMBERS
LEGISLATIVE COUNSEL HERE IN THE
ROOM WITH US I'M SURE THEY'RE
TAKING NOTES SO THAT ALL THE
ATTORNEYS CAN ARGUE LATER. BUT.
WE WILL LET WE APPRECIATE THE
CLARITY AND- AND REVIEWING THAT
ONE MORE TIME FOR THE
COMMITTEE. DO WE HAVE ANY
ADDITIONAL QUESTIONS AT THIS
TIME FOR THIS PANEL. SEEING
NONE THANK YOU HOLDING YOUR
TESTIMONY AT THIS TIME WE'RE
GOING TO MOVE ON TO THE SECOND
PANEL MEMBERS THE- ESSENTIALS
OF SPORTS BETTING KEYS TO A
SUCCESSFUL. SPORTS BETTING
MARKET WE'RE GOING TO WELCOME
FOR THEIR TESTIMONY DANIEL
SHAPIRO VICE PRESIDENT OF
STRATEGY BUSINESS DEVELOPMENT
WILLIAM HILL. J. CORNING GAVE
VICE PRESIDENT OF RACE AND
SPORTS BOOK OPERATIONS AT THE
WESTGATE LAS VEGAS RESORT
CASINO. MARK NELSON CORPORATE
DIRECTOR OF RACE AND SPORTS AT
LANDIS CASINO AS WELL AS MATT
SHELBY PUBLIC INFORMATION
MANAGER FOR THE ORGAN LOTTERY-
GERMAN THANK YOU. FOR BEING
HERE TODAY TRAVELING TO SHARE
YOUR TEST MY WITH THIS AND WHEN
YOU'RE PREPARED LET'S BEGIN
OVER HERE ON THE RIGHT AND.
GOOD AFTERNOON CENTER DODD
ASSEMBLY MEMBER GRAY AND OTHER
MEMBERS OF THE COMMITTEE. MY
NAME IS DAN SHAPIRO AND I
APPRECIATE THE OPPORTUNITY TO
TESTIFY I AM THE VICE PRESIDENT
OF STRATEGY AND BUSINESS
DEVELOPMENT FOR WILLIAM HILL
US. WE APPRECIATE THE
OPPORTUNITY TO SERVE AS A
RESOURCE AS YOU DISCUSS SPORTS
PAIN AND COMMEND YOU AND YOUR
COLLEAGUES FOR TAKING STEPS TO
LEGALIZE SPORTS BETTING. WHICH
WERE ABLE CALIFORNIA TO KEEP
PACE WITH STATES COMPETE WITH A
THRIVING BLACK MARKET WHICH
WILL NOT USUALLY GO AWAY. THE
BENEFITS OF LEGAL SPORTS
BETTING MARKET ARE NUMEROUS. IN
ADDITION TO GENERATING TAX
REVENUE LEGALIZED SPORTS
WRITING CREATES JOBS PROTECT
PROTECT CONSUMERS ESTABLISHES
RESPONSIBLE GAMING PRACTICES.
AND HELPS PROTECT THE INTEGRITY
OF SPORTING EVENTS. LET ME
START WITH A BIT OF BACKGROUND
ON WILLIAM HILL. WILLIAM HILL
IS WHEN THE LEADING SPORTS
BETTING COMPANIES IN THE WORLD
IT IS OPERATED IN NINETY
KINGDOM AND OTHER COUNTRIES
MORE THAN EIGHTY FIVE YEARS.
HAS BEEN TAKING THAT'S IN THE
U. S. SINCE TWO THOUSAND TWELVE.
OUR US BUSINESS IS
HEADQUARTERED IN NEVADA WHERE
WE ARE MARK WE ARE THE MARKET
LEADER AND WE OPERATE ONE
HUNDRED AND FOURTEEN RETAIL
SPORTS BOOKS. LOCATED WITHIN
CASINOS. ARE ALL ROUND OF THAT.
WE ALSO OP OPERATE THE LEADING
MOBILE APPLICATION IN THE STATE
OF NEVADA. SINCE THE SUPREME
COURT RULING IN TWO THOUSAND
EIGHTEEN WE'VE EXPANDED ACROSS
THE U. S. PRETTY RAPIDLY. WE'VE
TAKEN LEGAL BETS AND NINE OTHER
STATES AND WE PANEL ABOUT A
QUARTER OF THE LEGAL SPORTS
BETS PLACED THROUGHOUT THE
COUNTRY SINCE THE SUPREME COURT
RULED. SO WILLIAM HILL WORKS
WITH CASINOS RACE TRACKS
LOTTERIES AND OTHER LICENSE
HOLDERS THROUGHOUT THE COUNTRY
TO PROVIDE SPORTS BEEN SERVICES
UNDER VARIOUS MODELS. DEPENDING
ON STATE LAW AND REGULATIONS.
SPORTS BETTING IS A HIGHLY
COMPLEX AND SPECIALIZED
BUSINESS. OUR SERVICES ALLOW
PROPERTIES HAVE A WORLD CLASS
SPORTS BEEN OFFERING WHILE THEY
FOCUS ON THEIR CORE REVENUE
GENERATING ACTIVITIES SUCH A
SLOT MACHINES TABLE GAMES HOTEL
OPERATIONS AND FOOD AND
BEVERAGE. OUR PRIMARY OPERATING
MODEL WERE PERMITTED IS TO
PROVIDE A FULLY OUTSOURCED
SOLUTION WE EMPLOY AND TRAIN
THE SPORTS BOOK STAFF. WE
PROVIDE A PROPRIETARY PLATFORM
TECHNOLOGY. THE ODDS AND RISK
MANAGEMENT COMPLIANCE AND OTHER
SERVICES REQUIRED OPERATE.
BECAUSE OF OUR SIZE AND SCALE
WE CAN PROVIDE THE SPORTS BEEN
OPERATION MORE EFFICIENTLY THAN
A SINGLE PROPERTY. COULD DO ON
THEIR OWN. FOR PROPERTIES WITH
SPORTS BOOKS THE BENEFITS OF
LEGAL SPORTS BETTING ARE
NUMEROUS AND THEY RUN BEYOND TO
DEREGULATE REVENUES SPORTS
BETTING PRODUCES. SPORTS
BETTING LEADS TO INCREASE
VISITATION AND FOOD AND
BEVERAGE REVENUES. MANY SPORTS
BETTORS ALSO CROSS OVER TO
OTHER FORMS OF GAMING PRIMARILY
TABLE GAMES. SPORTS BETTING
ALSO HELPS CREATE MAJOR EVENT
HOLIDAYS AND CASINOS SUPERBOWL
IN MARCH MADNESS COLLEGE
BASKETBALL TURNER TWO GOOD
EXAMPLES OF THAT THEIR TO THE
BUSIEST TIMES IN THE CASINOS IN
NEVADA. SO THE TWENTY STATES
THAT OF AUTHORITY SPORTS
BETTING EACH IS DONE IT A BIT
DIFFERENTLY AS WE'VE HEARD FROM
THE PREVIOUS- WITNESSES. IN
NEVADA WHERE SPORTS BETTING HAS
BEEN LEGAL IN CASINOS SINCE THE
NINETEEN SEVENTIES THERE ABOUT
A HUNDRED AND NINETY RETAIL
SPORTS BOOKS. LOCATED ALL
THROUGHOUT THE STATE OF NEVADA.
THEY COME IN ALL SHAPES AND
SIZES REALLY. FROM SMALL SELF
SERVICE KIOSK OPERATIONS TO
VERY LARGE HUNDRED. TEN
THOUSAND SQUARE FOOT FACILITIES
YOU MIGHT SEE IN LAS VEGAS
STRIP. IN NEVADA MOBILE SPORTS
BETTING IS ALSO BEEN PERMITTED
SINCE TWO THOUSAND TEN. IN
ORDER TO SIGN UP FOR YOUR
MOBILE SPORTSMAN ACCOUNT A
CUSTOMER MUST GO FIRST INTO A
CASINO TO SIGN UP. AFTER
ESTABLISHING THE ACCOUNT THE
CUSTOMER CAN AND THAT FROM
ANYWHERE WITHIN THE BORDERS OF
THE STATE. IS ALSO METHODS OF
DEPOSITING WITHDRAWING FUNDS
ELECTRONICALLY AWAY FROM THE
SPORTS BOOK. IN A VAT OF FOR
WILLIAM HILL ABOUT 70% OF OUR
BUSINESS IS OVER MOBILE DEVICES.
IN NEW JERSEY WHICH IS
CURRENTLY THE SECOND LARGEST
MARKET IN THE U. S. BEHIND OF
THAT AT THEIR SPORTS BOOKS IN
THE CASINOS AUTOMATIC CITY. AND
AT THE RACE TRACKS. IN NEW
JERSEY THE LAW REQUIRES
CUSTOMERS- PERMITS CUSTOMERS
REGISTER FOR MOBILE SPORTS
BETTING FROM ANYWHERE IN THE
STATE SO THEY DON'T HAVE TO
ACTUALLY GOING TO A CASINO
RACETRACK. IN NEW JERSEY ABOUT
EIGHTY PERCENT. OF THE SPORTS
BETTING HANDLE WHICH IS A MALE
WAGERED- IS WAGERED THROUGH
MOBILE DEVICES AND ONLINE
CHANNELS. RECOGNIZING THE
CALIFORNIA'S MANY STAKEHOLDERS
IN A THRIVING TRIBAL GAMING
MARKET WE BELIEVE IT IS A
PUBLIC POLICY DECISION AS TO
WHERE LEGAL SPORTS BETTING
WOULD BE PERMITTED. WHETHER OR
MOBILE SPORTS BETTING WILL BE
ALLOWED AND IF SO HOW WHEN
WHERE CUSTOMERS MAY SIGN UP FOR
THEIR ACCOUNT. SO FAR I ONE
RHODE ISLAND HAVE FALLEN OF
THAT IS MODEL WITH RETAIL
SPORTS BOOKS IN CASINOS. AND IN
PERSON SIGN UPS FOR MOBILE
ACCOUNTS. OTHER STATES LIKE
INDIANA AND PENNSYLVANIA HAVE
FOLLOW THE NEW JERSEY MODEL IN
WHICH REMOTE MOBILE APP
REGISTRATION IS PERMITTED.
STILL OTHER STATES LIKE
MISSISSIPPI HAVE PERMITTED ONLY
RETAIL SPORTS BETTING. SO AS
YOU THINK ABOUT SPORTS BETTING
CALIFORNIA I LIKE TO REALLY
DISCUSS TO MATTERS- THEIR TAX
RATES AND BETTING ON COLLEGE
SPORTS. SO WHILE SPORTS BETTING
IS GONNA GENERATE REVENUE FOR
THE STATE OF CALIFORNIA WHEN IT
IS LEGAL. THE REALITY SPORTS
BETTING IS A LOW MARGIN
BUSINESS. THE AVERAGE HOLD
WHICH IS ABOUT RETAIN BY THIS
THE OPERATORS AFTER PAYING THE
WING CUSTOMERS IS AROUND 5%
GIVE OR TAKE. THAT WIN
PERCENTAGE IS MUCH MUCH LOWER
THAN YOU'D FIND CASINO GAMES OR
IMPAIR MUTUAL HORSE RACING.
MEANWHILE THERE ARE SIGNIFICANT
EXPENSES AND COMPLEXITIES AND
OPERATE IN A SPORTS BOOK. SO
BECAUSE OF THE LOW THE LOW
MARGINS IT IS IMPERATIVE THAT
THE TAX RATE BE REASONABLE. BY
WAY OF EXAMPLE NEVADA WHICH IS
STILL THE LARGEST SPORTS
BETTING MARKET IN THE US NEXT
DOOR- THE TAX RATE IS SIX POINT
SEVEN FIVE PERCENT- IOWA WHICH
IS ANOTHER STATE TO LEGALIZE
SPORTS BETTING LAST YEAR- ALSO
HAS A SIX POINT 75% TAX. NEW
JERSEY- THEY SPLIT THE TAX RATE
IN FOR LAND BASED CASINOS IT'S
NINE POINT SEVEN FIVE PERCENT-
AND FOR MOBILE SPORTS MINUTES
13% THAT'S A DID IN ADDITION TO
THE COURT APPOINTED PANEL THAT
WAS DISCUSSED BEFORE- TAX
FEDERAL EXCISE TAX ON THE
HANDLE OF THE AMOUNT WAGERED
WHICH GOES THE IRS. SO REALLY
ANY MORE TAXES OR FEES OR
ROYALTIES OR INTEGRITY FEES
REALLY MAKE A DIFFERENCE FROM
THE OPERATORS TO MOVE- YOU KNOW
THE CUSTOMERS FROM THE BLACK
MARKET TO LEGAL MARKET WHICH IS
REALLY WHAT WE'RE TRYING TO DO
HERE. IT IMPAIRS OUR ABILITY TO
REALLY MARKET THE PRODUCT AND
REALLY INNOVATE IN PRICE THE
PRODUCT PEDAL LEE WITH THE WITH
THE OFFSHORE. AND ILLEGAL
OPERATORS. WELL TO ME THEY'RE
REALLY THE TRUE COMPETITION
WHEN LEGAL SPORTS BETTING COMES
IN CALIFORNIA. WE KNOW THAT
SPORTS PAIN HAS BEEN AROUND IN
NEVADA FOR MANY MANY YEARS IT'S
LIVE IN OREGON AND IT'S ALIVE
AND IN MANY OTHER STATES SO FAR.
AND THE COMPETITION WHICH IS IT
THESE ILLEGAL BOOKMAKERS THEY
DON'T ONLY PAY NOTE ANY TAXES
OR FEES BUT THEY HAVE NO
COMPLIANCE COSTS. THEY MUST
FOLLOW ALL- STATE REGULATIONS
FEDERAL REGULATIONS AND THE
COST TO COMPLY- IS SUBSTANTIAL
BEYOND THE TAX RATES IN OTHER
OPERATING EXPENSES. THE FINAL
SUBJECT ALL TALK I'LL TOUCH ON
IS COLLEGE SPORTS. SO IN A VAT
OF WERE PERMITTED TO TAKE
WAGERS ON YOU AND ALL THE AND
YOU ON OUR- UNIVERSITY THAT A
LAS VEGAS UNIVERSITY OF NEVADA
RENO. BUT SOME STATES HAVE
DECIDED NOT TO PERMIT WAGER IN
OUR LOCAL COLLEGE TEAMS. BUT IF
CALIFORNIA'S LEGAL OPERATORS
CANNOT OFFER BETTING ON COLLEGE
SPORTS. IT WILL BE DIFFICULT TO
MIGRATE CUSTOMERS FROM THE
BLACK MARKET. IT'S REALLY HARD
TO EXPECT CUSTOMERS TO BED AND
LEGAL MARKET WHEN ILLEGAL
BOOKIES ONLY ONE OFFERING UCLA
BASKETBALL OR STANFORD
FOOTBALL. OR ANY OF THE LOCAL
COLLEGE TEAMS HERE IN
CALIFORNIA. BETTING ON COLLEGE
SPORTS IS REALLY ESSENTIAL FOR
THE ABILITY OF THE LEGAL
BOOKMAKERS TO COMPETE WITH THE
OFFSHORE AND ILLEGAL OPERATORS.
SO CLOSE AND THANK YOU FOR THE
OPPORTUNITY TO TESTIFY HERE
TODAY AND SUPPORT YOUR EFFORTS
TO LEGALIZE SPORTS BETTING I'M
HERE TO ANSWER QUESTIONS AS YOU
WISH. THANK YOU FOR CORD.
DISCARDED. MISTER CHAIR MISTER
CHAIRMAN- MEMBERS- IT'S A IT'S
A PRIVILEGE TO BE HERE AN HONOR
TO BE HERE AND I THANK YOU VERY
MUCH MONIES J. CORNING A- I RUN
THE- WESTGATE RACE AND SPORTS
BOOK IT'S THE IT IS THE WORLD'S
LARGEST RACES SPORTS BOOK WITH
ALMOST A THIRTY THOUSAND SQUARE
FEET. I'VE BEEN IN THE GAMING
INDUSTRY FOR JUST OVER A THIRTY
HERE'S AND. WE ACTUALLY HAVE
BEEN RUNNING A SPORTS BOOK
SINCE THE NINETEEN NINETY FIVE-
UNFORTUNATELY- I FOUND IT RIGHT
BEFORE WE CAME UP HERE THAT WE
HAD SOME TECHNICAL DIFFICULTIES
AND I WILL NOT BE ABLE TO SHOW
MY POWER POINT PRESENTATION BUT
I'M GONNA TRY TO. DESCRIBE IT
IS BEST I CAN. NO THAT IS
ACTUALLY- BEEN TAKING WAITERS
ON ON SPORTING EVENTS SINCE THE
NINETEEN FIFTIES- BUT IT WASN'T
REALLY UNTIL THE NINETEEN
EIGHTIES THAT TO THE RETAIL
BOOKS AS WE SEE TODAY WERE
PROMINENT- THERE WERE SOME TAX
RATE CHANGES- THAT ALLOWED OR
OR PREVENTED- OPERATORS FROM
SEEKING- RETAIL OUTLETS UNTIL
THEY GOT TO A POINT WHERE IS
VERY COMFORTABLE AND THEY KNEW-THAT IT WAS GOING TO BE
PROFITABLE. AS DAN SAID WE
HAVE- CURRENTLY IN THE STATE OF
THAT WE HAVE A HUNDRED AND
NINETY SPORTS BOOKS. WHEN THEY
BREAK DOWN AT. SOME OF THE
DEMOGRAPHICS OF THE MODERN
SPORTS BETTER- THERE 88% MALE-
THE H. SEGMENTS UNDER TWENTY
NINE REPRESENTS ABOUT 40% OF
THEM THIRTY TO FORTY NINE TO
TWENTY SIX PERCENT. OVER FIFTY
IS THIRTY FOUR. THE ECONOMIC
CLASS THE PREDOMINANTLY OF
MIDDLE CLASS- THEIR AVERAGE
INCOME IS JUST MORE THAN-
SEVENTY FIVE THOUSAND. DOLLARS
THERE ARE MULTIPLE MARK COLLEGE
EDUCATED AND- THEY REALLY DON'T
HAVE A POLITICAL AFFILIATION.
LOOKING OVER THE GROWTH OF
NEVADA I MEAN. AS DAN SAID
MOBILE WAGERING WAS APPROVED IN
TWO THOUSAND TEN AND- WE SAW IT
ESCALATED GROWTH THAT AT THAT
POINT IN TIME. BREAKING THE
SPORTS DOWN BY SEGMENT. YOU'RE
LOOKING AT ABOUT AS AS FAR AS
POPULARITY OF FOOTBALL
REPRESENTS ABOUT 35% OF ALL
WAGERS THAT'S COLLEGE AND PRO
BASKETBALL ABOUT 30% BASEBALL
FIFTEEN AND ALL OTHER SPORTS
SOCCER TENNIS NASCAR GOLF
REPRESENT ABOUT 20% THIS DAN
WAS MENTIONING ABOUT NEVADA
OFFERINGS WILL LEVY STARTED
ACCEPTING WAGERS ON YOU YOU AND
ARE AND YOU KNOW BE GAMES IN
NINETEEN NINETY NINE. AND GOING
BACK TO THAT TIME IT WAS IT WAS
A IT WAS BROUGHT TO US BROUGHT
TO OUR ATTENTION ACTUALLY BY
SENATOR MCCAIN BACK IN THE DAY
STATING THAT YOU KNOW WE
WEREN'T ACCEPTING WAGERS ON OUR
OWN SCHOOLS SO WE DID LOOK INTO
IT AND WE NOTICED THAT AND THIS
IS TRUE THAT MOST OF THOSE BETS
THAT WERE HAPPENING ON THOSE
SCHOOLS WERE TAKING PLACE
THROUGH ILLEGAL CHANNELS. IN SO
WITH WHAT'S WHAT'S THE
DIFFERENCE YOU KNOW WHAT THE
DIFFERENCES WOULD YOU RATHER
ACCEPT WAGERS IN A REGULATED
CONTROLLED ENVIRONMENT OR WOULD
THE SILICON COUNTS BECAUSE
THAT'S EXACTLY WHERE THEY'RE
GOING TO GOWE HAVE HOSTED OR
TAKEN WAGERS ON LOCAL EVENTS
LOCAL SCHOOL EVENTS I'D SAY
OVER THE LAST TWENTY YEARS
NEARLY A THOUSAND EVENTS WITH
NO ISSUES. NO PROBLEMS NO
SERIOUS. WAS THAT THE WORD.
YEAH I APOLOGIZE- BUT- YES THE
IT WAS IT'S JUST OVER A
THOUSAND EVENTS THAT WE HAVE
ACCEPTED WITH NO- INCIDENTS OR
OR ISSUES NOW AS FAR AS- THE
HOST EVENTS THAT WE HAVE. IN
LAS VEGAS OR IN NEVADA WE'RE
LOOKING AT ALMOST FIFTEEN
HUNDRED EVENTS THAT WE HAVE
HOSTED OVER THE LAST. SAY
TWENTY FIVE YEARS WITH THEIR
COLLEGE EVENTS OR PRO EVENTS-
AT THE PROXIMITY HAS NOTHING.
TO DO WITH IT WE ARE ABLE TO
ACCEPT THESE WAGERS EVEN THOUGH
THESE EVENTS ARE TAKING PLACE
RIGHT DOWN THE STREET AGAIN
MORE COMFORTABLE ACCEPTING
THESE WAGERS IN A CONTROLLED.
REGULATED ENVIRONMENT. AS AS
DAN MENTIONED- ABOUT THE MOBILE
AYE AYE AND THIS IS SOMETHING
I'D LIKE TO GO INTO NOW IS
ABOUT THE IMPORTANCE OF MOBILE
WAGERING AND I KNOW THAT THE
OTHER TESTIMONY AT ALSO-
ADDRESS THIS AS WELL- WE HAVE
SEEN JUST TREMENDOUS GROWTH
SINCE TWO THOUSAND TEN WHERE
MOST PROMINENT OPERATORS AND
LAS VEGAS IN NEVADA ACTUALLY
DID NOT OFFER A MOBILE WAGERING
UNTIL TWO THOUSAND FOURTEEN TWO
THOUSAND. FIFTEEN YOU LOOK AT
THE AMOUNT WAGERED THAT- HAS
TAKEN PLACE OVER THE LAST-
EIGHT OR NINE YEARS GOING BACK
TO TWO THOUSAND TEN IT'S TWO
POINT SEVEN SIX BILLION. TWO
TWO THOUSAND EIGHTEEN JUST OVER
FIVE BILLION DOLLARS. IN ABOUT
7075% OF THAT IS THROUGH MOBILE
WAGERING. THE. THE PERCENT OF.
OF TOTAL GAMING WHEN HAS
INCREASED FROM POINT SIX IN THE
EARLY NINETIES TO ALMOST TWO
POINT FIVE- THAT'S SPORTS
WAGERING SPORTS WAGERING NOW
REPRESENTS A TWO POINT 5% OF
TOTAL GAMING WENT IN THE BACK
IN AGAIN MOST OF THAT'S THROUGH
THE- OPTION. I'M TRYING TO
DESCRIBE THE IS A- THE SLIDES
AS BEST I CAN. THERE'S A COUPLE
OF. OF A IMPORTANT NUMBERS HERE
WHEN YOU LOOK UP. AT. NUMBERS
PRIOR TO MOBILE WAGERING AND
GOING THROUGH THE GROW THROUGH
THE FIRST FIFTEEN YEARS BEFORE
MOBILE WAGERING THE GROWTH OF
HANDLE TOTAL AMOUNT THAT ARE
RIGHT WAS 14% THAT'S IN FIFTEEN
YEARS OVER THE LAST NINE YEARS
AFTER MOBILE WAGERING GROWTH AS
A IS HAS GROWN 93% WITH THE WIN
GROWTH OF A HUNDRED AND 9% SO
YOU CAN SEE THE IMPACT THAT
MOBILE WAGERING HAS ON THE
BOTTOM LINE. I KNOW THAT THE A
LOT OF YOU GUYS HAVE ALREADY
MENTIONED ON A OF WHAT STATES
OF ACTUALLY ARE CURRENTLY
ACCEPTING WAGERS NEVADA
PENNSYLVANIA INDIANA IOWA. WEST
VIRGINIA RHODE ISLAND
MISSISSIPPI ORGAN WE HAVE
STATES- A NUMBER OF STATES
EIGHT OR NINE THAT ARE AWAITING
REGULATION. SUMMARIZING ALL
THIS I MEAN I I'M ACTUALLY A
BOOKMAKER THAT. HAS BEEN AROUND
FOR A LONG TIME IN THE STATE
NEVADA I- I'VE SEEN A LOT OF
THE GROWTH A LOT OF. I MEAN
WE'VE HAD A LOT OF ISSUES THAT
WE'VE ACTUALLY CORRECTED AND-
OVER TIME. THE. SOME OF THE
ISSUES THAT WE HAVE SEEN OVER A
THE LAST TWO DECADES WE WERE
ABLE TO CORRECT AND MORE TO A
POINT WHERE- STATE OF THE STATE
OF NEVADA IS PROBABLY THE
LEADER IN AND- REGULATION AND
HOUSE RULES AND- SPORTS BETTING
ENVIRONMENT. EXCUSE ME. I WOULD
RECOMMEND IF YOU GUYS ARE ARE
CERTAINLY OBVIOUSLY LOOKING
INTO IT BUT I HAVE TOLD THIS TO
OTHER JURISDICTIONS AND OTHER
DECISION MAKERS ACROSS THE
STATES THAT IF YOU ARE LOOKING
AT SPORTS WAGERING YOU SHOULD
COME TO LET THE BATTER TOUR
SOME OF THE OPERATIONS LOOK AT
THE REGULATIONS AND THE RULES
THAT WE HAVE IN PLACE BECAUSE
WE'VE BEEN DOING IT FOR JUST
OVER FORTY YEARS AND THE STATE
AND IT'S SOMETHING THAT. WOULD
GIVE YOU A JUMPSTART OF WHERE
YOU WANT TO BE. I'LL TURN IT
OVER TO MARK THANK YOU VERY
IMPORTANT FIELD TRIP FOR. ALL
OF US. YES IT IS I WILL
PERSONALLY TO ARE YOU AROUND IF
YOU COME OUT TO IN THE STATE OF
THAT. OKAY THANK YOU. CHRIS
NELSON YES- AGAIN I WOULD ALSO
LIKE TO THANK YOU MISTER
CHAIRMAN MEMBERS- FOR THE
OPPORTUNITY TO SPEAK HERE MY
NAME'S MARK NELSON I'M THE
CORPORATE DIRECTOR OF RACING
SPORTS FOR MONARCH GAMING WE ON
WE OPERATE. CASINOS IN IN
MULTIPLE JURISDICTIONS WE HAVE
A PROPERTY IN RENO NEVADA AS
WELL AS- IN COLORADO BLACK ****
WE'VE HAD THE OPPORTUNITY TO.
HELP WITH IT DRAFTING. RULES
AND REGULATIONS IN COLORADO.
AND I'M REALLY HERE TO ANSWER
YOUR QUESTIONS I DON'T HAVE A
FORMAL PRESENTATION BUT I'D
LIKE TO THANK YOU FOR THE
OPPORTUNITY THANK YOU FOR BEING
HERE WILL CERTAINLY- TAKE YOU
UP ON THAT- AT THIS TIME. WILL
MOVE TO THE- FINAL THE
TESTIMONY OF THIS PANEL- THAT
SHALL BE WITH OR LOTTERY
WELCOME. CULTURE GRAY CULTURE
DODD MEMBERS FOR THE RECORD MY
NAME IS MATT SHALL BE IN THE
PUBLIC INFORMATION OFFICER AT
THE OREGON LOTTERY AND I'M HERE
TODAY TO SHARE. A LITTLE BIT.
OF LEARNING THAT WE'VE HAD IN
THE LAST- TWO AND A HALF MONTHS
SINCE WE LAUNCHED OUR MOBILE-
SPORTS PLATFORM- OREGON LOTTERY
SCOREBOARD- A LOT OF IT- ALL
KIND OF BREEZED THROUGH A
LITTLE BIT OF THE BEGINNING
STUFF BECAUSE- A LOT OF THE
FOLKS HAVE COME BEFORE ME OF
TOUCH ON IT. I IN TERMS OF-
WHAT PEOPLE WHO KIND OF THE
GENERAL STATS IN THE NATIONAL-
APPETITE FOR SPORTS BETTING.
BUT ORIGINS A LITTLE BIT
DIFFERENT- I THINK THE
CALIFORNIA WELL IN A LOT OF
WAYS BUT- YOU KNOW OUR LEGAL
FRAMEWORK IS ACTUALLY QUITE A
BIT DIFFERENT AND WHEN VOTERS
BACK IN THE MID EIGHTIES
ENACTED. THE LOTTERY THEY
ESTABLISHED OF A LOTTERY
COMMISSION THAT'S A BIPARTISAN
COMMISSION THAT CAN AUTHORIZE
ANY GAME OF CHANCE THAT
INCLUDES SPORTS BETTING. AND SO
THE COMMISSION. APPOINTED BY
THE GOVERNOR AUTHORIZE ARE
CONFIRMED BY THE SENATE THEY
HIRED DIRECTOR WHO ACTUALLY
OVERSEAS THE DAY TO DAY
OPERATIONS OF THE LOTTERY. THE
ROLE OF THE LEGISLATURE REALLY
IS TO- WERE WITHIN CONTRACTUAL
VOTER SPEND THE MONEY THAT WE
BRING IN- ALSO- BEYOND
CONFIRMING COMMISSIONERS. OVER
THE YEARS THE LEGISLATURE IN
OREGON HAS ENACTED STATUTES
THAT REGULATE MORE OR LESS HOW
WE DO THINGS. NOT NECESSARILY
WHAT AND A GREAT EXAMPLE IS-
THAT LIMITING THE NUMBER OF
VIDEO LOTTERY TERMINALS PER-
PER LOTTERY RETAILER IN IN THE
STATE. SO WHAT THAT HAS DONE IS
WIN PASSED BUT WAS OVERTURNED-
WE WERE ABLE TO PAVE IT A
LITTLE BIT MORE QUICKLY- THAN
SOME OTHER STATES BECAUE WE
DIDN'T HAVE TO- SEEK A
CONSTITUTIONAL AMENDMENT OR- OR
REALLY EVEN LEGISLATION.
OBVIOUSLY WE DON'T OPERATE IN A
VACUUM AND WE'VE BEEN WORKING-
IN COLLABORATION WITH OUR
LEGISLATURE FOR SOMETIME NOW-
BUT IT DID SPEED THINGS ALONG.
LOTTERY HAD A SPORTS GAME- I
THINK STARTED IN THE LATE
EIGHTIES- THROUGH THE- THROUGH
THE NINETIES INTO THE EARLY TWO
THOUSANDS. IT WAS A- VERY BASIC
PARLAY GAME THAT WAS AVAILABLE
CONVENIENCE STORES IN OREGON WE
HAVE THAT ONE PASS BUT WAS
FIRST ENACTED. IN SO THAT'S WHY
OREGON- WAS GRANDFATHERED IN
THAT SAID. OUR COMMISSION-
VOTED TO END THAT- THAT PARLAY
GAME IN THE EARLY TWO THOUSANDS
PRIMARILY DUE TO PRESSURE FROM
THE NC DOUBLE A- STATING THAT
THEY WEREN'T GOING TO AUTHORIZE
ANY- CHAMPIONSHIP EVENTS IN THE
STATE THAT HAD. ANY FORMER
SPORTS BETTING- UNIVERSITY OF
OREGON WHERE TRACK
CHAMPIONSHIPS AT HAYWARD- AS
SHE WAS DOING GREAT WITH
BASEBALL- WE WANTED TO FILL-
THE MOTOR CENTER WITH A MARCH
MADNESS GAMES SO- YOU KNOW OR
LEGISLATOR WITH LEGISLATURE
LOOK AT THAT WEIGHING REALLY
THAT. THE REVENUE THAT THAT
PARTICULAR GAME WAS BRING IN
WITH THE POTENTIAL LOSSES OF
THOSE GAMES AND WE MADE THAT
DECISION OBVIOUSLY THE WORLD
HAS CHANGED SINCE THEN- AND-
AND SO WE DECIDED TO BRING IT
BACK BUT JUST BECAUSE WE CAN'T
DO SOMETHING- IT DOESN'T MEAN
WE NECESSARILY SHOWED SO WE
REALLY TOOK A STEP BACK. AND
REALLY THOUGHT ABOUT WHAT'S THE
BUSINESS CASE- TO DO THIS AND A
LOT OF THIS. YOU'VE HEARD
ALREADY. ABOUT THE TRENDS- BOTH
IN GAMBLING IN GENERAL BUT
ALSO- IN RELATION TO MOBILE-
WHAT THE CONVENIENCE
EXPECTATIONS ARE. FOR US WHEN
WE LOOKED AT IT. WE OFFER-
PRIOR TO SPORTS BETTING WE
OFFER- DRAW GAMES SCRATCH
TICKETS VIDEO LOTTERY SO- GAMES
THAT APPEAL TO A CERTAIN SUBSET
OF OUR POPULATION. BUT NOT ALL
AND SO WHEN WE LOOKED AT-
SPORTS BETTING AND REALLY WHO
THAT APPEAL TO ITS THEY TEND TO
BE YOUNGER- TEND TO BE A LITTLE
BIT HIGHER INCOME- LIKE THE
ELEMENT OF SKILL. AND FRANKLY
WE JUST AN OFFER THOSE TYPES OF
GAMES IN OUR PORTFOLIO AND SO
WE WHEN WE LOOK AT THIS. WE
THOUGHT IT WAS A GREAT WAY TO
EXPAND THE PORTFOLIO AND
REALLY- INCREMENTALLY RAISE
REVENUE WITHOUT ASKING OUR
CURRENT PLAYERS TO PLAYER WHICH
ARE MORE. SO REALLY KIND OF
EXPAND THAT PILE OF TOTAL
PLAYERS. AGAIN IT'S THAT
INCREMENTAL SALE IT IS A NEW
LEVEL OF EXCITEMENT- AS SOON AS
POSSIBLE WAS OVERTURNED WE WERE
GETTING CALLS AND EMAILS ABOUT
WINNER WHEN YOU GET A BRING
BACK SPORTS ACTION THAT WAS THE
OLD GAME THAT WE USED TO HAVE
AND- JUST DALY. A CALL SO WE
KNEW THERE WAS A LOT OF
EXCITEMENT WE KNEW THAT ILLEGAL
BETTING ON A MOBILE PLATFORMS
WAS ALREADY OCCURRING- IN IN
THE STATE AND SO THAT'S WHY WE
MADE THE DECISION TO GO
FORWARD- SO ORGAN LOTTERY
SCOREBOARD- WE LAUNCHED IN MID
OCTOBER- THERE WERE SOME POLICY
CHOICES THAT WE- THAT ARE
COMMISSION MADE- THAT I THINK
ANYONE'S GONNA HAVE TO WRESTLE
WITH WE MADE THE CHOICE TO.
LIMIT IT TO AGES TO PLAYERS-
TWENTY ONE AND OLDER- FOR US-
IT'S THE FIRST FORAY INTO
ACCOUNT BASED PLAY THROUGH THE
MOBILE PLATFORM SO WHAT THAT
MEANS IS FOR THE FIRST TIME WE
REALLY KNOW WHO'S PLAYING OUR
GAMES- WE OBVIOUSLY KNOW WHO
WINS OUR GAMES WHEN THEY COME
IN- FOR THE LARGE TAXABLE
PRICES WHEN THEY CASH THEM BUT
NOW WE HAVE INSIGHT INTO- A
PLAYER'S ENTIRE PLAYER HISTORY-
THAT'S ACTUALLY VERY BENEFICIAL
FOR SOME RESPONSIBLE GAMING AND
GAMBLING A PROBLEM GAMBLING-
ISSUES WE CAN ACTUALLY SPOT-
HIGH RISK PLAYERS- BUT ALSO. IT
POSE SOME REAL- POLICY-
DISCUSSIONS FORCED TO JUST
AROUND A PUBLIC RECORDS AND IS
THAT DATA AVAILABLE WE'RE A
PUBLIC AGENCY WE HAVE THIS
DATA- WE DON'T THINK THAT AN
INDIVIDUAL'S PROPER HISTORY IS
PUBLIC DATA ARE RELEASABLE DATE
OBVIOUSLY TAX BILL WTH SPRINT
STORY BUT- YEAH SO THOSE ARE
SOME OF THE THINGS THAT WE- TO.
ABOUT. IT'S MORE SO YOU KEEP IT
IN THE STATE OF OREGON HOW DO
YOU GUARANTEE THAT THE PLAYERS.
I SITTING IN- THEIR LIVING
ROOMS IN SACRAMENTO PLAYING
OREGON LOTTERY GAME WELL AS
BECAUSE WE- HAVE THE GEO FENCE
THE APPS S. WHEN YOU LOG INTO
THE APP WHEN YOU PLACE THE
WAGER IT BRINGS YOUR CELL
PHONE- IF YOU'RE NOT IN THE
STATE OF OREGON- IT DOESN'T
ALLOW YOU TO PUT THAT- THAT
BATHROOM. YOU CAN ACTUALLY
CREATE ACCOUNT ANYWHERE BUT YOU
HAVE TO BE IN THE STATE OF
OREGON- THERE TO ACTUALLY PLACE
THAT WAGER. WE ALSO MADE THE
POLICY CHOICES LIMIT OUR
OFFERINGS TO PROFESSIONAL
SPORTS. WE KNOW WE'RE LEAVING
MONEY ON THE TABLE- WE MADE
THAT DECISION- PRIMARILY AS A
WAY TO. REALLY IMPACT OUR SPEED
TO MARKET- WE KNOW THAT BEFORE.
WE OFFER NC DOUBLE A BETTING.
WE HAVE TO ENGAGE WITH OUR
UNIVERSITY SYSTEM- THERE'S
PROBABLY MORE ENGAGING WITH OUR
LEGISLATURE WE KNOW WE DON'T
OCCUR OPERATE IN A VACUUM-
UNLIKE CALIFORNIA. OREGON
DOESN'T HAVE A TON OF
PROFESSIONAL SPORTS- AND OUR
CAN OF MAJOR UNIVERSITIES- FOR
LARGE SEGMENTS THE PARK IT
POPULATION ARE KIND OF THE DE
FACTO PRO SPORTS AND- AND WE
KNOW THAT AND WE KNOW THERE'S A
LOT OF EXCITEMENT AND SO WE
ARE. CONTINUING TO LOOK AT WAYS
TO. BRING IT ON- BUT WE'RE
WE'RE JUST NOT THERE YET MORE
CONVERSATIONS NEED TO TAKE
PLACE- BUT WE ALSO WENT WITH A
FULL RANGE OF WAGERING OPTIONS
YOU KNOW WE KNOW THAT THE
ILLEGAL OUR OFFSHORE MARKETS
OFFER A WIDER. VARIETY OF A OF
TYPES OF BETTING AND WE WANTED
TO DO IT AS BEST WE COULD CAN
AMIR THAT SAME EXPERIENCE- BUT
ALSO BECAUSE WE ARE A PUBLIC
ENTITY AND- WE HAVE THE OF THE
PUBLIC GOOD CONSIDERATION AS
WELL WE WANTED TO MAKE THAT
THERE WERE A- WHOLE SUITE OF
RISK. GIVING WAS BUILT IN TO
OUR PLATFORM WHEN WE LAUNCHED.
SO WAT WERE SOME OF THOSE
RESPONSE FOR WHAT ARE SOME OF
THOSE RESPONSIBLE GAMING TOOLS-
WE MADE THAT THAT AGAIN POLICY
DECISION TO REQUIRE A DEPOSIT
LIMIT. WHEN YOU SET UP YOUR
ACCOUNT SO WHEN A PLAYER GOES
IN YOUR IN YOUR SETTING UP YOUR
ACCOUNT YOU HAVE TO PUT A
NUMBER AND THEY CHOOSE THAT
NUMBER IS EVERYONE'S SITUATION
IS DIFFERENT BUT WE'RE MAKE
WHERE YOU HAVE TO KIND OF TAKE
A MOMENT AND THINK ABOUT- JUST
WHAT THAT LIMIT IT. IF YOU WANT
TO INCREASE THE WOMEN ARE
WAITING PERIODS BUILT AND IT
DOESN'T ALLOW YOU JUST
IMMEDIATELY DO THAT OVER AND
OVER- WE FEEL PLAYERS ON THE
MOBILE APP THAT HAVE ACCESS
EASY ACCESS TO THEIR ACCOUNT
THREE MAKE BETTER DECISIONS- I
LIKE TO- LOOK AT THAT MY WIFE I
HAVE OUR PHONES- IT TRACKS ALL
THE- MONEY THAT. WE SPEND OUR
BOOKS SENATE MADE FOR. IN
CONVERSATION. IT ALSO IS NOT
MANDATE BUT IT'S ALL IT IT'S IT
IS OPTION PLAYERS CAN SET LOS
AND BENT LIMITS- SO BEYOND
THEIR DEPOSIT LIMIT IF THEY CAN
SET A LOS LIMIT SO THAT IF THEY
GET TO A PLACE WHERE THEY'VE
LOST EX NUMBER OF DOLLARS A
MONTH IT TIMES THEM OUT AGAIN
THAT'S AN OPTIONAL FEATURE BUT
WE WANT TO MAKE SURE THAT THAT
WAS A TOOL THAT WAS AVAILABLE-
ANOTHER ONE IS A SELF SELF SELF
ASSESSMENT QUIZ. THAT PLAYERS
CAN TAKE AGAIN MOBILE PHONE
VERY EASY TO DO- AND AGAIN THIS
KIND OF THE TREND YOU'RE SEEING
HERE IS THAT WE FEEL LIKE THE
PLAYERS THAT MORE INFORMED
PLAYERS MAKE BETTER MORE
RESPONSIBLE DECISIONS AND SO
REALLY THOSE FOR THOSE FIRST
FEW BULLETS ARE ALL ABOUT
GIVING PLAYERS AS MUCH
INFORMATION AS WE CAN. WE ALSO
KNOW THAT EVEN WITH ALL THOSE
TOOLS IT MIGHT BE TOO MUCH FOR
SOME PEOPLE AND WE OFFER A
VOLUNTARY TIMEOUTS WHICH ARE
JUST JUST THAT IT'S A TIME OUT
IT COULD BE FOR A DAY A WEEK UP
TO A MONTH. TO A MONTH BEYOND A
MONTH YOU START GETTING INTO
WHAT WE CALL SELF EXCLUSION AND
SELF EXCLUSION CAN UP CAN BE UP
FOR EVER IF YOU GET TO A PLACE
WHERE AS A PLAYER YOU FEEL LIKE
YOU JUST CAN'T HANDLE HAVING
ACCESS TO THIS CAN TURN IT OFF
IT'S NOT. BECAUSE WE HAVE SO
MUCH BUT YOUR LAST OF KNOW YOUR
CUSTOMER. JENNIFER I COME TO
THIS EACH- I CAN'T TYPE THE
CIVIC SOCIAL SECURITY NUMBER
AND BANK ACCOUNT SO IT'S NOT AS
IF YOU CAN SELF EXCLUDE
YOURSELF AND THEN A MONTH LATER
DECIDE TO AND SIGN UP WITH A
DIFFERENT EMAIL ADDRESS IT'S
NOT IT'S NOT THAT EASY. SO AS I
MENTIONED I KNOW HOW I'LL
PREFACE THIS HOLD ON TO LOOK AT
THE NUMBERS. I'LL PREFACE THIS
BY SAYING ORGANS A LOT SMALLER
THAN CALIFORNIA RIGHT OUR
MARKET IS UP. IT IS MUCH MUCH
DIFFERENT- WE'RE NOT NEW JERSEY
WE DON'T HAVE NEW YORK'S CITY
NEXT DOOR BUT IN- YOU KNOW
SINCE MID OCTOBER TILL THE END
OF THE YEAR- PLAYERS IN OREGON
HAVE PLACED ONE POINT EIGHT
MILLION BATS- AND THAT'S OVER
ABOUT A YOU KNOW EIGHT WEEK
PERIOD OR SO- THE AVERAGE BET.
IS NOT HUGE TWENTY FIVE DOLLARS.
FORTY TWO THOUSAND
REGISTRATIONS WE SAW AN
IMMEDIATE SPIKE WE SUB THIRTY
THOUSAND REGISTRATIONS IN THE
FIRST THREE WEEKS- IS LET'S
PLATEAUED OUT A LITTLE BIT
SINCE THEN- BUT OUR THREE MONTH
SCHOOL YOU CAN SEE KIND OF IN
THE IN THE GREAT OUT. OF WAS
TWENTY FIVE THOUSAND SIX MONTH
THE SIXTY SIXTY SO WE'RE WELL
ON TRACK- TO HIT OUR OUR
REGISTRATION GOALS. BECAUSE WE
ARE THE OPERATOR- IT'S A LITTLE
BIT DIFFERENT REVENUE STRUCTURE
BECAUSE WE- THAT THAT GROSS
GAMING REVENUE WE GET A CUT OF
IT'S NOT A TAX. PER SE IT'S OUR
PROFIT AT THE END OF THE DAY SO.
BUT THER'S ALSO JUST STATE TAX
ON PRICES SO YOU WHEN. YOU GET
A TEN NINETY NINE AND. THAT'S
CONTRIBUTED- TO- ACTUALLY MORE
THAN NOW- BY NOW HUNDRED AND
THIRTY THOUSAND DOLLARS I AM
BECAUSE IT'S MOBILE- AND
BECAUSE IT'S ALL DIGITAL- PAY.
THOSE THOSE WITH HOLDINGS ARE
OFF THE TOP A MEDIA. WE ALSO
CHECK FOR- AND WITHHOLD FOR-
PAST CHILD SUPPORT AND- DHS
OVERPAYMENT SO AGAIN ALL THAT
HAPPENS IN REAL TIME BECAUSE
IT'S ALL- ALL ONLINE. THESE ARE
PROJECTIONS FOR THREE YEARS
YOU'VE HEARD IT- FOLKS SAY THAT
IT'S A IT'S A FAIRLY SMALL
MARGIN BUSINESS. THE BIG
NUMBERS YOU HEAR OR READ
USUALLY ABOUT THE HANDLE MOST
OF THAT GOES BACK TO PLAYERS IN
THE FORMER WINNINGS BECAUSE OF
IT DIDN'T THEY WOULDN'T PLAY-
SO- IN THIS FIRST YEAR E
ANTICIPATE PLAYERS IN OREGON
SPENDING A LITTLE BIT OVER
THREE HUNDRED MILLION DOLLARS.
YOU TRACK IT ALL THE WAY TO.
THE RIGHT THERE AND WE
ANTICIPATE OUR PROFIT ON THAT
BEING ABOUT FIVE MILLION
DOLLARS. SO AGAIN. NOT HUGE
REVENUE BUT- BUT REAL DOLLARS
OVER A THREE YEAR PERIOD ABOUT
THIRTY SEVEN MILLION. UP TO PUT
THAT INTO SOME PERSPECTIVE FOR
YOU IN TERMS OF. OTHER GAMES
THAT WE OFFER- IN TOTAL LAST
YEAR. LOTTERY RETURNED A LITTLE
OVER SEVEN HUNDRED AND FIFTY
MILLION DOLLARS TO THE
LEGISLATURE. SO AGAIN THIS A
PRETTY SMALL SLICE OF OUR
OVERALL PIE. BUT IT DOES EXPAND
OUR BASE AND ALLOW FOR SOME
INCREMENTAL GROWTH. AS I
MENTIONED WE LAUNCHED LAST
FALL- TWENTY TWENTY IS ALL
ABOUT HI THE RETAILER STRATEGY
SO WHERE AGAIN IT WILL BE
UNIQUE IN THAT WE WITH MOBILE
FIRST. AND NOW WE'RE COMING
BACK AND ENGAGING- ON THAT THAT
RETAIL BUSINESS PLAN. IT WILL
LIKELY- INCLUDE SOME OF WORKS
FORMA KIOSKS. BUT I'M I'M NOT
GONNA CALL THE KIOSK STRATEGY
REALLY IS A RETAILER BUSINESS
STRATEGY THERE ARE LOTS OF
OPPORTUNITIES- TO BRING IN OUR
RETAILERS. BOTH ON- THE SPORTS
BETTING BUT ALSO JUST THE OTHER
STUFF THAT COMES WITH IT SO.
NOT EVERYBODY THAT WATCHES
SPORTS BETS ON SPORTS BUT
EVERYBODY THAT BETS ON SPORTS
WATCHES. AND SO THERE ARE SOME
REAL OPPORTUNITIES FOR OUR
EXISTING LOTTERY RETAILERS
ESPECIALLY OR VIDEO LOTTERY
RETAILERS. ARE FOR THE MOST
PART TAVERNS IN RESTAURANTS AND
BARS IN OREGON. SOME OF THE KEY
LESSONS WE'VE LEARNED IN THE
LAST HOW I'D SAY NINE MONTHS
LEADING UP TO THIS- YOU THAT
YOUR AS AGAIN AS YOU'VE HEARD
TODAY THE BLACK MARKET HAS BEEN
AND WILL CONTINUE TO BE- PAR
BIGGEST COMPETITION- THERE ARE
JUST SOME. SOME THINGS THAT
THEY CAN OFFER THAT THAT WE
CAN'T. BUT THERE ARE SOME
THINGS THAT WE CAN OFFER THAT
THEY CANNOT. OF PEOPLE LIKE THE
FACT. THAT WHEN THERE'S AN
ISSUE IF THERE'S AN ISSUE.
THERE TALKING TO A REAL PERSON
THERE'S AN OFFICE IN SALEM THEY
CAN DRIVE DOWN TO- THEY KNOW
THAT. THEY WHEN THEY GET PAID
THEY DON'T GET PAID A BIT COIN
THEY GET PAID IN REAL DOLLARS
THAT GO BACK INTO THEIR
ACCOUNT. IT'S MUCH MORE OF MORE
THERE'S MUCH LESS FRICTION IN
THAT FINANCIAL TRANSACTION. AND
ONE OF THE THINGS THAT WE HER.
HERE. IS ARE. PEOPLE FEEL
BETTER ABOUT SUPPORTING
FRANKLY- IN OREGON LOTTERY
SUPPORTS A NUMBER OF-
BENEFICIARIES THE VOTERS OVER
THE YEARS HAVE HAVE APPROVED-
AND PEOPLE KNOW THAT. EVEN IF
THEY DON'T WIN. THE BET. ORIGIN
IS WINNING BECAUSE OREGON IS
THE HOUSE WE ARE THE OPERATOR
THAT MONEY ULTIMATELY FLOWS TO-
SCHOOLS AND PARKS AND- ECONOMIC
DEVELOPMENT OTHER THINGS- AND
AGAIN SOME OF THE THINGS. THAT
WE DIDN'T NECESSARILY THINK
ABOUT THAT WE LEARNED ALONG THE
WAY. THERE ARE OTHER RULES AND
THINGS IN THAT MAY TRIP YOU UP
THAT YOU THAT YOU'RE NOT
THINKING ABOUT ONE OF THE ONES
THAT WAS HUGE FOR US. WAS THAT
BANKING LAWS IN OREGON
PREVENTED US FROM HOPING.
PEOPLE'S MONEY IN TRUST. IF WE
WERE A PRIVATE OPERATOR IF WE
JUST GIVE SOMEONE A LICENSE.
THERE AN OPERATOR SOMEONE
SENSIBLE PLAYER ACCOUNT. YOU
DEPOSIT YOUR MONEY THE OPERATOR
CAN HOLD IT. WE CAN'T- SO WE
HAD TO FIND A- OF WORK WITH OUR
VENDOR TO KIND OF PUT TOGETHER
A FINANCIAL FRAMEWORK. THAT HAD
A FINANCIAL PARTNER SO THAT
THERE THE PLAYER MONEY SITTING
IN AN FDIC. INSURED ACCOUNT. OF
THAT WE THAT THEY HAVE ACCESS
TO SO THAT WAS- THAT WAS WHEN
THEY CAN ADDED TO THE
COMPLEXITY- SOME OF OUR- TAX
RULES. ARE PROVING A LITTLE
BIT- HAVE PROVED A LITTLE BIT
CHALLENGING NOT TO GET TOO FAR
INTO THE WEEDS BUT- THERE ARE
SOME QUESTIONS ABOUT WIN IS A-
WIN IS A WIN A WIN AND IF YOU
HAVE MULTIPLE BATS ARE ALL
THOSE BETS INDIVIDUAL TAX
EVENTS. THAT HAVE TO BE- WHERE
YOU HAVE TO MANUALLY WITH OUR-
PROACTIVELY WITH HOLD EACH ONE
OF THOSE- CAN YOU KIND OF
BUNDLE- WE'RE WORKING THROUGH
THAT AS WE SPEAK- TO KIND OF
INPUT. AT THAT USER EXPERIENCE-
I THINK IT'S ONE FOR OUR
COMMISSION AND OUR LEGISLATURE
AND US IN GENERAL. IS THAT IT'S
NOT LIKE A REGULAR LOTTERY GAME
IT'S NOT A GUARANTEED RETURN
WITH VIDEO LOTTERY WE KNOW THE
RETURN THE PLAYER. THE LOTTERY
GAME IS ABOUT THREE CENTS ON
THE DOLLAR. OVER YOU KNOW
MILLIONS OF SPENCE. SPORTS
BETTING IF WE ARE IN A FAR
TRADERS. DON'T DON'T DO IT
RIGHT WE CAN WE CAN HAVE A
PRETTY BAD WEEKEND RIGHT AND
YOU HEAR THAT. AND SO- THAT'S
A- IT'S SOMETHING THAT THAT WE
HAD TO KIND OF A FOUNDATIONAL
WORK THAT WE HAD TO DO. AROUND
SETTING EXPECTATIONS- NOT TO
GET TOO HIGH OR TOO LOW ON A
DAY OR A WEEKEND IT'S REALLY
MORE ABOUT THE TRENDS- AND
OVERALL THE TRENDS ARE LOOKING
GOOD. BUT THEY'RE JUST THEY'RE
DEFINITELY YEAH THERE ARE
SPIKES. OF PEACE IN VALLEY.
AVENUE OF OVERTIME- FOR US HOME
TEAM BIAS IS A REAL THING WHEN
THE BLAZERS WHEN WE DO POORLY-
WHEN THE WAR YEARS WHEN WE DO
GREAT-WHICH- IS TOUGH THIS
YEAR- BUT SORRY- BUT AGAIN ALL
RIGHT. IT ALSO OUR
RELATIONSHIPS WITH CURRENT
SPORTS SPONSORSHIPS. ARE REALLY
CHANGE WE'VE BEEN A LONG TIME
SPONSOR. OF THE TRAILBLAZERS OF
THE TIMBERS ARE MLS TEAM- BUT
WHEN YOUR A SPONSOR SELLING.
POWER BALL AND SCRATCH TICKETS
IN VIDEO LOTTERY THAT'S A
DIFFERENT TYPE OF SPONSORSHIP
THE WHEN YOU'RE A SPONSOR-
SELLING A GAMBLING PRODUCT
THAT'S THAT IS OCCURRING IN THE
ARENA ON THAT TEAM AND SO- IT
IT OFFERS SOME OTHER
OPPORTUNITIES- CAN ACTUALLY FOR
US GIVE. GIVES US SOME GREAT
INSIGHT. WORKING WITH SEASON
TICKET HOLDERS AND DIFFERENT
THINGS- AROUND THAT SO JUST ONE
THING TO THE THAT WE CAN I'VE-
LEARNED ALONG THE WAY. AND
FINALLY YOU KNOW EVERY YEAR
HAVE YOU HEARD EVERY MODEL HAS
PROS AND CONS- WERE A SINGLE
STATE OPERATED SPORTS BURKE
WITH THE EXCEPTION OF TRIBAL
CASINOS WERE THE ONLY MOBILE
GAME IN TOWN. IN THE STATE OF
OREGON- YOU KNOW FOR US BUT
WE'VE HEARD FROM OUR PLAYERS
IT'S GOOD FOR THE INTEGRITY-
LOTTERIES A TRUSTED BRAND
ALREADY- AND PEOPLE FEEL
COMFORTABLE- YOU KNOW
DEPOSITING THEIR MONEY INTO AN
ACCOUNT THAT'S GOT OUR LOGO ON
IT- AND- YOU KNOW THE OTHER
THING IS THAT ALL ABOUT PROFIT.
GOES BACK TO PUBLIC PROGRAMS.
AND I THINK THE KEY ONE FOR US
IS THAT OUR GOVERNANCE MODEL
ALLOWS US TO OPERATE MUCH MORE
LIKE A BUSINESS OBVIOUSLY WE'RE
A PUBLIC AGENCY- AND WE DO WORK
WITH STAKEHOLDERS BUT OF THE
COMMISSION STRUCTURE THE BROAD-
RULE MAKING AUTHORITY THAT THAT
THAT COMMISSION HASHAS ALLOWED
US TO. GET OUT OF THE GATE A
LITTLE BIT FASTER THAN SOME
OTHERS BUT- SOME OF THE MAJOR
CHALLENGES ALONG THE WAY THAT
WE'VE RUN INTO ARE YOU COMMERCE
IS OUR FIRST FORAY INTO SELLING
SOMETHING ONLINE. SO BEYOND
ESTABLISHING A SPORTS BUT WE
HAD TO FIGURE OUT A WAY TO
ACTUALLY GET PAID AND HAVE THAT
SYSTEM LINK UP TO OUR EXISTING.
CLAIMS AND PAYMENTS AND
TAXATION- SYSTEMS- THEIR JUST
ACQUIRED YOU SPOKE TO ME ABOUT
THE REGULATIONS ABOUT HOLDING
MONEY VENDOR MANAGEMENT. WE ARE
NOT- SPORTS BETTING EXPERTS SO
WE HAVE TO RELY ON THOSE THAT
ARE- WHAT DOES THAT MEAN THAT
MEANS THAT WE'RE SPENDING A LOT
OF MONEY. ON VENDOR COSTS- IN
THE FIRST FEW YEARS OVER TIME
YOU KNOW WE'LL WE'LL WE'LL SEE
WHAT WE CAN BRING IN HOUSE BUT
RIGHT NOW- WE'RE SPENDING A LOT
OF OUR GROWTH OF THAT GROSS
GAMING REVENUE. ON ON MANAGED
SERVICE- AND WITH THAT I AM
HAPPY TO ANSWER ATTEMPTING A
FEW QUESTIONS THAT. THE
COMMITTEE MAY HAVE. THANK YOU
FOR YOUR TESTIMONY BRING IT
BACK TO THE MEMBERS FOR ANY
THOUGHTS OR QUESTIONS WHICH
GALLERY OR KICK IT OFF. YEAH
MAYBE QUICKLY FROM EACH OF YOU
YOU KNOW WHAT WHAT PROTECTIONS
DO YOU PUT IN PLACE- TO ENSURE
THAT THERE ISN'T MANIPULATIONS
OF SPORT SPORTING GAMES BECAUSE
I THINK A LOT OF THE IMPETUS
BEHIND THIS WAS THE CONCERN
OVER. APPLE SHAVING POINTS- YOU
KNOW THE DIFFERENT WAYS THAT.
THE INTEGRITY OF THE GAME COULD
BE MANIPULATED. BENEFIT AND
ARGUABLY OF COURSE SECOND
HAPPEN ON THE BLACK MARKET TO
WE KNOW THAT HAS HAPPENED. BUT
YOU KNOW THAT TEMPTATION IS
STILL GOING TO BE THERE IS
MONEY AT STAKE AND NOW IT'S
EVEN MORE WIDESPREAD.
POTENTIALLY WHAT DO YOU GUYS
PUT IN PLACE TO HELP ME A
REGULATED ENSURE THAT THINGS
LIKE THAT AREN'T HAPPENING TO
PROTECT THE INTEGRITY OF THE
SPORTING GAMES. YEAH I CAN
START- EIGHT AND YOU'RE RIGHT
PRIMARILY IF THERE'S MATCH
FICTION OR OR OR- POINT SHAVING
CAN HAPPEN IN THE IN THE BLACK
LEGAL MARKET BECAUSE THERE IT'S
GONNA GO UNDETECTED IF THE
ILLEGAL BOOKMAKER FINDS- SOME
IN A MESS HE'S NOT REALLY GONNA
GO TO THE YOU KNOW THE FBI AND
REPORTED. RIGHT HE'S PROBABLY
TO KEEP A SECRET- AND JUST YOU
KNOW KIND OF GO ABOUT HIS
BUSINESS BUT YOU KNOW ON ON THE
ISSUE OF INTEGRITY THE GAME
WERE PRECISELY ALIGNED WITH
SPORTS LEAGUES. AND COST IS NOW
WE WANT TO WE WANT A FAIR
CONTEST RIGHT AND SO- AS AS AS
LICENSE AND REGULATE OPERATORS
IN MULTIPLE JURISDICTIONS. OUR
FIRST RESPONSIBILITY WHEN WE
SEE SOME IN MRS REPORTED TO OUR
REGULATOR SO NEVADA THAT'S IN
CONTROL BOARD. JURORS THAT THE
DG- AND SO WE HAVE AN
OBLIGATION AS A LICENSEE REPORT
ANY SUSPICIOUS ACTIVITY- IN
THAT REGARD- IN ADDITION TO
THAT WE HAVE WE HAVE AN INTO A
COUPLE OF CREDENCE WITH
PROFESSIONAL SPORTS LEAGUE- WE
HAVE A- AGREEMENT WITH THE NBA
AND THE NHL. AND SO THERE AND
SO IF THERE IS- THERE ARE. A
MODERATE PROVISIONS KNOWS
AGREEMENTS. WILL SHARE
INFORMATION- SHOULD BE FIND
ANYTHING AMISS- AND YOU KNOW
PERCENT ALIGN WITH THEM IN THAT
REGARD THAT THERE'S ANY. SORT
OF ACTIVITY THAT WE FIND TO
EASE TENSIONS- IT'S SOMETHING
THAT WE DON'T HAVE A TO REPORT.
IT'S. ROCKETS THE CHANCE OF
HAPPENING. NO COST WHETHER IT'S
YOU KNOW. POINT SHAVING MONEY
LAUNDERING IN WHATEVER IT IS GO
THROUGH OUR SYSTEM AND SO THE
FIRST. YOU KNOW THAT THE FIRST
RESPONSIBILITIES TO OUR
REGULATOR AND THEN TWO AND THEN
THAT REGULATOR WILL DO WITH THE
INFORMATION WHAT THEY THINK IS
APPROPRIATE OFTEN A LAW
ENFORCEMENT- SPORTS LEASE OR
WHATEVER THAT THE NEXT
APPROPRIATE MEASURE MIGHT BE.
I'LL ADD TO THAT AND. WE
ACTUALLY HAVE SOME CONTROL
CONTROL MEASURES IN PLACE AT
THE BOOK AND- DANS EXACTLY
RIGHT WE LOOK FOR ANY TYPE OF
YOU KNOW SUSPICIOUS ACTIVITY.
AND E WILL REPORT TO OUR
REGULATORS BUT- THERE I THINK
THERE'S A MISCONCEPTION OUT
THERE THAT. VEGAS IS STILL LIKE
HOLLYWOOD NEED OR WERE YOU YOU
HAVE A KNOWN PLAYERS THAT WILL
COME UP WITH A SUITCASE OF
MONEY IN A- TANK UP TO THEIR
RESEARCH SOMETHING LIKE THAT IN
THAT WE WOULD ACCEPT THIS TYPE
OF WAGES AND WE REALLY DON'T
WITHOUT. KNOWING THE PLAYER.
THOSE TYPE OF TRANSACTIONS
REALLY JUST DON'T TAKE PLACE.
THE PLAYERS THAT TO PLACE A BET
IN LAS VEGAS. NORMALLY WILL
HAVE TO HAVE SOME TYPE OF
PLAYERS CARD OR SHOW ID IF THEY
PLAYED ANY SIGNIFICANT AMOUNT A
LOT OF TIMES IT IN AND CERTAIN
SPORTS BOOKS CAN BE AS LOW AS
FIVE HUNDRED DOLLARS- OURS IS
IT DEPENDING ON THE SPORT A. B.
WHAT IF THE- PATIENT COMES IN
INVEST OVER FIVE HUNDRED
DOLLARS OR A THOUSAND DOLLARS-
WE WILL ASK FOR THEM FOR THEIR
ID OR TO GET A PLAYER'S CARDS
SO WE CAN TRACK. THAT TYPE OF
ACTION. IS THERE ARE A FEW
CONTROL MEASURES THAT ARE IN
PLACE TO PROTECT THE HOUSE AND
AS DANCE AND WE ARE IN THE SAME
BOAT AS THE LEAKS YOU KNOW WE-
WE WANT TO MAKE SURE THAT THESE
GAMES ARE FAIR AND TRUE. AND
PLEASED. WE DON'T WANT TO BE
ACCEPTING WAGERS ON ANYTHING
THAT MIGHT BE CROOKED. THIS GUY
WOULD YOU WANT TO HEAR FROM ALL
FOUR. BUT MAYBE JUST ONE OF THE
STATE YOU KNOW THE- MAY FOR THE
LOTTERY MAYBE YOU COULD SPEAK
TO THIS OF IT BECAUSE I GET
THAT LIKE. REPORTING TO
REGULATOR. AND I'M NOT SAYING
THAT. YOU FOLKS IN YOUR
BUSINESS AND WOULD DO ANYTHING
BUT- WHO REGULATES. THE
REGULATED TO MAKE SURE THAT
THINGS ARE HAPPENING. AND I
THINK MORE SO THE CONNECTION TO
THE ACTUAL GAME ITSELF LIKE YOU
MIGHT HAVE ABOUT LOG IN ITS ALL
LEGIT THERE'S NOTHING
SUSPICIOUS ABOUT THE BET. IN
ITSELF. THERE'S A THERE'S A LOT
AT STAKE WITH THAT BET IS
SOMEONE SOMEHOW MANIPULATING
THE GAME AND WHAT PROTECTIONS
HELP STOP. THAT FROM HAPPENING
I GUESS YOU KNOW THIS KIND OF
WORK ON. OKAY I'LL DEFERMORE
TO THE OTHER FOLKS UP HERE AS I
SAID WE ARE NOT. SPORTS BETTING
EXPERTS WE HAVE A PRETTY BRIEF
HISTORY WITH THIS BUT- I DO
KNOW THAT A COUPLE OF THINGS
WITH OURS- THE WAGERS ARE
ABSOLUTELY KNOWN SO AS A WAGERS
PLACED- BECAUSE IT'S ELECTRONIC
TO OUR SYSTEM WE KNOW WHO'S
PLACING THOSE WAGERS AND WHAT
THEY'RE WHAT THEY'RE WAGED. ON
SO IF. THERE WAS A KNOWN MATCH
FIX YOU WOULD SEE. WE'RE
BETTING PATTERNS THAT SHOULDN'T
BE OCCURRING AND THOSE BETTING
PATTERNS THOSE BETS ARE ARE ARE
ACTIVELY BEING MONITORED BOTH
BY OUR TRADERS FROM A RISK
PERSPECTIVE FOR THE BOOK BUT
ALSO- OREGON LOTTERY- PARTNERS
WITH OREGON STATE POLICE AND-
WE HAVE- WORRY LOTTERY AND IT
WAS P. OFFICERS THAT ARE
MONITORING THOSE TIMES THE THAT
TYPE OF STE SUSPICIOUS ACTIVITY
AS WELL. AND AGAIN THERE'S
ELECTRONIC LOG OF ALL OF THAT
SO- YOU KNOW IF THERE WAS
SOMETHING WHERE- YOU KNOW THE
WORD GOT OUT THAT THAT
SOMETHING SPECIAL OR MAYBE NOT
SO SPECIAL WAS GONNA HAPPEN-
YOU WOULD SEE THE BAT SCUTTLED
STOCK UP ON ONE SIDE OF THAT
AND BECAUSE WE ARE A- PUBLIC.
REGULATED ENVIRONMENT THAT
THERE'S TRANSPARENCY THERE AS
OPPOSED TO A BLACK MARKET BOOK
FOR YOU YOU WOULD NOT HAVE THAT
LITTLE TRANSFERRED TO SAY THAT
TRANSPARENCY. TO EVEN SEE THAT.
I'M A FOLLOW UP ON MISTER
GALLERIES QUESTION ASK INSIDE A
DIFFERENT WAY. IS IT THE
OPINION OF ANYONE ON THIS
PANEL. THAT A BLACK MARKET HAS
LESS. ILLEGAL ACTIVITY POINT
SHAVING THAN A LEGAL REGULATED
MARKET THAT'S ONLINE. THAT'S A
NO NO SEVERAL ACTUALLY NOT
ONLINE REGULATED MARKET PLACE
HAS LAST. BAD ACTIVITY
OCCURRING THAT'S A 100% CORRECT.
WELL PEOPLE THERE'S NO
DIFFERENCE OKAY. SO. PURSUING
SOMETHING- WAS THE OBVIOUS BEST
CHOICE THERE THE ONLY IF I
COULD JUST ADD QUICKLY THE ONLY
POINT SHAVING SCANDALS OF EVER
BEEN UNCOVERED OR AND COVERED
BY LICENSED REGULATED SPORTS
BOOKS IN NEVADA AND WHILE WE'RE
ON THAT POINT. IF A STATE WERE
PURSUING- LEGISLATION. THE PAIN
OF ANYONE ON THIS PANEL THAT IT
WOULD BE- IN THE INTEREST OF
THE PUBLIC IN THE STATE TO
PURSUE. A POLICY THAT DID NOT
INCLUDE ONLINE. IT WAS BRICK
AND MORTAR ONLY. NOW THANK GOD
I MEAN FOR OREGON THAT I MEAN
OBVIOUSLY IF THE CHOICE IS
OBVIOUS FOR US WE WATCH FIRST
OF MOBILE. DANIEL I'D- ANSWER
THAT SLIGHTLY DIFFERENT I THINK
THAT- YOU JUST BECAUSE IT IS A
RETAIL SUPPORTS BEEN DOESN'T
MEAN YOU CAN'T. DO THE SAME
MONITORING THAT YOU MIGHT TO-
FOR FRONTLINE WAGERING THE
DISCS OF COURSE MATCH THOSE
WOULD YOU PURSUE A POLICY THAT
HAD NO WHAT THEY HAD NO ONLINE
THERE WAS BROKEN WATER ONLY. DO
YOU THINK THAT'S A GOOD. CREDIT
GOOD MARKETPLACE HAVE GOOD- YOU
KNOW INTEGRITY BE GOOD FOR THE
CONSUMER WE WOULD. GENERALLY WE
YOU KNOW WE DEFER TO OUR TO THE
STAKEHOLDERS IN THE PEOPLE WE
WORK WITH ON THOSE TYPES OF
ISSUES. I THINK WHEN IT COMES
TO YOU KNOW- BENEFITS OF.
RETAIL OR ONLINE I THINK THERE
THERE'S BENEFITS AND CHALLENGES
WITH BOTH OF THEM. AND BUT
CERTAINLY WHEN IT COMES TO
INTEGRITY ISSUES- THERE'S NO-
LESS- ABILITY TO MONITOR FOR
TERRY ISSUES IN A RETAIL
ENVIRONMENT THAN ONLINE. BY ANY
STRETCH THANK YOU YEAH CHAIRMAN
DOT. YEAH BUT SHALL BE YOU- YOU
PUT THE NUMBERS UP. YOU KNOW UP
THERE ABOUT- WHAT YOUR- TOTAL
TAKE IS EVERYTHING YOU DON'T DO
NC DOUBLE A- HAVE YOU DONE IT
ANALYSIS. ON WHAT YOUR HANDLE
WOULD BE IF YOU. WE'RE LEAVING
ABOUT 50% OF THE TABLE RIGHT
NOW THANK YOU. IT WAS A FOLLOW
UP TO THAT QUESTION JUST SO
WE'RE SURE EVERYONE ON THE
COMMITTEE UNDERSTANDS. THE
STATE OF ORDER IS. KEEPING THE
GROSS GAMING RAVENOUS RIGHT
VERSES BENEFITING FROM A TAX ON
GROSS CAM IS SO BOTH- THE SO
THIS IS ACTUALLY PART OF THE
BEST SLIDE TO THE KERR WALKS A
PERSON THROUGH SO- THE FAR LEFT
YOU HAVE HANDLE AND THESE ARE
PROJECTIONS BECAUSE WERE LIKE I
SAID WERE TWO AND A HALF MONTHS
AND BUT- SO FAR THIS IS PANNING
OUT FOR THE MOST PART. HANDLE
WE ANTICIPATE A PLAYER'S OREGON
WAGERING ABOUT A LITTLE OVER
THREE HUNDRED MILLION WINNING
ABOUT LITTLE OVER THREE HUNDRED
MILLION SO THEY'RE GRASPING
REVENUE TWENTY SIX POINT SIX
MILLION. NOW IT WE SPEND A LOT
OF MONEY TO PUT THIS CASE
MONTHS SERVICES THROUGH-
THROUGH TRADING AND OTHER
THINGS. THE APP ITSELF THE
PLATFORM BUT WE HAVE- SOME
PRETTY SIGNIFICANT PRODUCT AND-
THE OTHER KIND OF GEO FENCING
AND- THE BANKING FEES AND THOSE
TYPES OF THINGS IN TERMS OF
EXPENSES SO SOME FAIR OVERHEAD.
TO OFFER THE GAME AND AT THE
END OF THE DAY. I'M JUST HAVING
A FIVE MILLION DOLLARS A PROFIT
THAT THEN. AT ABOUT FIVE IN.
SOME TO SOME CONTINGENCY FOR
PRICE VOLATILITY BUT AT THE END
OF THE DAY I MEAN THAT STATE.
ULTIMATELY THAT STATE MONEY-
THE WINNINGS. THAT THREE
HUNDRED SIXTY. IN WINNINGS
WOULD BE TAXED. YOU KNOW IT
INDIVIDUAL STATE INCOME TAX. IN
THE CASE OF CALIFORNIA WE COULD
SUBSTITUTE. YOU HAVE TWENTY SIX
POINT SIX MILLION IN GROSS CAM
REVENUES THIS YEAR IN YEAR ONE-
THE ESTIMATES PROVIDED IN THE
EARLIER TESTIMONY I THINK WAS
TWO AND A HALF BILLION GROSS
GAMING REVENUES HERE IN
CALIFORNIA AT A MATURE MARKET
OBVIOUSLY NOT YOUR ONE. RIGHT.
IT'S IN A POLICY CHOICE
DIFFERENT THAN IF WE WERE TO
TAKE- 10% TAX RATE OR 20% TAX
RATE. ON THAT WOULD LOOK A
WORKING CHORE FIFTY TO FIVE
HUNDRED MILLION DOLLARS IN
TAXES AT A MATURE MARKET
VERSUS- WHATEVER PROFIT RATE WE
CAN ACHIEVE OFFER THAT YOU'RE
FIFTY NINE. YEAH I THINK THAT'S
A THAT'S A THAT'S A FAIR THAT'S
A THAT'S A POLICY DISCUSSION
RIGHT IS IT WHO'S GONNA- HOW
ARE YOU GOING TO BRING SPORTS
BETTING TO THE MARKET IS GOING
TO BE A STATE RUN. IS A
COMMUNITY LICENSED- AND IN IN
THE RUN ARE PRIVATELY RUN
OBVIOUSLY THERE'S- YOU KNOW WAS
IN CONCERT IN IN IN EACH ONE OF
THOSE MODELS. TAKE YOUR CASE A-
10% TAX RATE WOULD. CURRENTLY
WE WERE TWO AND A HALF BILLION
DOLLARS VERSUS FOUR POINT NINE
YES I VERSUS 20% TAX RATE YOU
MIGHT BE GETTING AS MUCH AS AS
YOUR- NETTING AT THE END OF THE
DAY. YES AFTER YES IT'S FOR.
OKAY DO WE HAVE ADDITIONAL.
QUESTIONS FOR THE PANEL. MISTER
COOPER YEAH I JUST ABOUT SORRY
ABOUT THAT BUT FOR THE JIM OF
MORGAN- MOLES ACOSTA SETTING UP
THE INFRASTRUCTURE FOR YOUR
SPORTS BETTING PROGRAM BOTH
YOUR ONLINE COST IN YOUR BRICK
AND MORTAR COST LOCATIONS SO
BECAUSE WE HAVE A LARGE BRICK
AND MORTAR YET THAT'S AND EASY
ANSWER ZERO- BUT FOR THE ONLINE
WE PARTNERED WITH A VENDOR
PROVIDER. FOR THE ONLINE
PLATFORM- AND SO THEY ACTUALLY-
IT'S A REVENUE SHARE MODEL AND
SO WE DID NOT WITH THE
EXCEPTION OF LOTTERY STAFF
HOURS- WE DIDN'T SPEND MONEY
LAUNCH THIS PRODUCT WE- THE
VENDOR- INCUR THE COST. CUTTING
OUT THE PLATFORM OF STAFFING
THE- CUSTOMER SERVICE CALL
CENTER- HIRING ALL THAT STUFF-
THEY DID AND NOW THAT WE ARE
ALIVE THEY ARE GETTING AND
THAT'S PART OF THIS PRODUCT.
EXPENSE THEY ARE GETTING A
PERCENTAGE OF THAT GROSS GIVING
REVENUE TO PAY BACK THE START
UP COSTS EXACTLY AND THEN I
DON'T THINK I STEPPED OUT SLOW
IS MAY BEEN ANSWERED. SORRY TAX
BOTH ON THE BEDDING AND ON THE
WINNINGS TO. SO WE ARE NOT
BECAUSE WE ARE A PUBLIC ENTITY
SO THAT THAT WE- THAT WAS A
QUESTION MARK AS WE STARTED
THIS AROUND. THE FEDERAL
EXCISE- QUESTION AND WE- DON'T
HAVE THAT AND SO. OUR TAX. WILL
CALL OUR TAX IS A LOTTERY
ESSENTIALLY NOT PROFIT DOESN'T
STICK WITH US IT GOES BACK TO
THE LEGISLATURE TO PAY TO FUND
PROGRAMS AT OREGON VOTERS HAVE
APPROVED SO. THAT'S ESSENTIALLY
OUR TAX IN GOING IN YOUR YOUR
PRE ESTIMATES WHAT YOU GONNA US
FAR AS A- TEXAS COMING FROM
THAT YOU GUYS IF YOU KNOW YOUR
MARKS. SO FAR WORK TWO AND A
HALF MONTHS AND SO. WHERE IS
THE REASON I ASK IS YOU KNOW WE
DID LOTTERY HERE MONEY FOR
SCHOOLS IT FELL SHORT CANNABIS
TAX WE FELL SHORT SO. THAT'S
JUST. A BILL TREPIDATION ABOUT
THAT AND ONE OF THE THINGS THAT
WE TOOK GREAT. PAINS TO DO IN
THE LAST OVER THE LAST YEAR AND
A HALF WAS SET EXPECTATIONS
WITH ART WITH ALL OF OUR
STAKEHOLDERS ABOUT THIS REALLY.
THAT THAT COLUMN ON THE LEFT SO
PEOPLE GET REALLY EXCITED WHEN
THEY SEE THOSE NUMBERS ON
HANDLE AND WE WORK REALLY HARD
TO MAKE SURE THAT THEY WERE
LOOKING AT THAT RIGHT COLUMN
TO. THAT LIKE IT IS A LOT OF
MONEY BUT IF THE DAY. YOU KNOW
IT'S NOT A HUGE WE ARE NOT
SEEING THIS IS A HUGE WILL FALL
I THINK YOU WERE OUT WHEN I
SEE- SO THIS YEAR ONE
PROJECTION OF FIVE MILLION
TOTAL PROFIT. FOR THE SPORTS-
BEDDING PRODUCTS. TO PUT THAT
IN PERSPECTIVE FOR WORKING
LOTTERY LAST YEAR. WE HE GAVE
THE OREGON LEGISLATURE SEVEN
HUNDRED TWENTY FIVE BILLION
DOLLARS- BUT FOR ALL OF OUR
GAMES. MOST ICE THANK YOU. OKAY
ANY OTHER ADDITIONAL QUESTIONS
FOR THIS PANEL. BEFORE YOU GUYS
WRAP UP ON. I'D LIKE TO HEAR
ONCE PERSPECTIVE ON- IN GAME
PLAY AND- I BELIEVE ORGAN IS
ENGAGED IN THAT. AND HOW WE
THINK- THE PROSPECTS OF THAT
WOULD BE FOR CALIFORNIA. AS FAR
AS A SUCCESSFUL MARKET BUT NOT
SUCCESSFUL MARKET WHAT YOU KNOW
WHAT PERCENTAGE OF YOUR OVERALL
BOOK IS A REPRESENTS SESSION
SURE SO IN TERMS OF THE HANDLE
THE AMOUNT THAT FOR US IT'S
ABOUT 40% IS BAD IN GAME OR
AFTER THE START OF THE MATCH.
BY 40% AND GROWING OF COURSE-
PRIMARILY PRIMARILY A MOBILE-
OFFERING- IT IS AVAILABLE IN
RETAIL. ASKS PLUS OVER THE
COUNTER BUT IT'S PRIMARILY- A
MOBILE OFFERING BUT IT IS A
HIGH GROWTH AREA- TOUGH FOR US
IN EUROPE YOU MIGHT SEE AS A
PERCENTAGE OF OUR BUSINESS IN
PLAY OVER 50% WELL OVER FIFTY
PERCENT. SPECIAL ON SOME SPORTS
LIKE TENNIS SOCCER- BUT IT IS A
SIGNIFICANT PART OF THE
BUSINESS AND FOR FOLKS LIKE
MYSELF WHO WOULD NEVER WAGERS
ON SPORTS- COULD YOU EXPLAIN
WHAT IN GAME PLAY IS. YEAH YEAH
SURE SO. BROADLY IN PLAYS
ANYTHING THAT AFTER THE START
OF A GAME OR MATCH SO- YOU KNOW
PRIMARILY WHAT PEOPLE ARE DOING
WITHIN IS THERE PAIN ON THE
OUTCOME OF THE GAME. OR MATCH
AT SOME POINT DURING THE GAME
SO YOU KNOW I CAN JUMP IN IN
THE SECOND HALF OF A- YOU KNOW.
AMERICA IS GAME IN THEM TO
COVER THE SPREAD. IF YOU'RE
DOWN BY A CERTAIN AMOUNT OF
POINTS RIGHT. ONE VERY POPULAR
MATH THAT IS THE BEST A HIGHLY
FAVORITE TEAM COME BACK WHEN
THEY'VE- TRAILING EARLY IN THE
GAME- BECAUSE YOU GET BETTER I.
DO IT THAT WAY- AND SO THAT
THAT'S THAT'S PRETTY EARLY NOW
WHAT PEOPLE DO- BASEBALL IS
MOST POPULAR IN PLACE OR-
BELIEVE. BECAUSE THE PACE THE
GAME IS A LOTS OF STARTS AND
STOPS DURING THE GAME. AND A
VERY POPULAR THAT'S IN BASEBALL
ARE YOU KNOW IS A RUN IN THE
SCORE. IN THIS IN THE SECOND
INNING YES OR NO SOMEBODY CAN
PULL UP THE RIGHT. AND THAT THE
YOU KNOW A BET ON THE GAME AT
THAT POINT. YOU KNOW BASEBALL-
TENNIS IS A VERY POPULAR IN
PLACE SPORT BECAUSE OF THE
AMOUNTS OF OPPORTUNITIES TO BAD
FINITE- SETS SETS YOU CAN BET
SAID BY SAT- POINT- GAME BY
GAME YOU CAN THAT- WHAT PEOPLE
ARE NOT GENERALLY BETTING IS
YOU KNOW IS LEBRON JAMES AND
HIT THIS THREE POINTER YES OR
NO THINGS THAT ARE VERY VERY
QUICK TO HAPPEN IN A GAME- BALL
STRIKING BASEBALL IS NOT
SOMETHING THAT HAS REALLY BEEN
VERY POPULAR IN THE US SO FAR.
BUT IT'S MORE AGAIN THE WELCOME
FULL MATCH YOUR GAME IT. DURING
THE GAME. I WOULD I WOULD JUST
REINFORCE THAT OUTSIDE OF A THE
MOBILE ATMOSPHERE IN GAME IS.
THE AMOUNT OF HANDLE WOULD DROP
DRASTICALLY IF YOU DON'T HAVE A
MOBILE PRODUCT IF IT'S NOT
SOMETHING YOU CAN DO IN YOUR
HAND BECAUSE THERE'S JUST
THERE'S NOT TIME THE ODDS
CHANGE SO QUICKLY THAT BY THE
TIME YOU LEAVE YOUR SEAT WALK
UP TO THE COUNTER. THE ODDS OF
CHANGED AND IT'S COMPLETELY
DIFFERENT PROPOSITION. AND
WE'RE A PRETTY IMAGE COULD
RIGHT WE'VE GOT. SINCE MID
OCTOBER- IN OUR PLAYERS ARE
LEARNING- THEY DIDN'T HAVE
SPORTS BETTING BUT EVEN EVEN
OUR NEW NOVICE FOR THE MOST
PART SPORTS BETTING PLAYERSARE
SPENDING IN IT SIGNIFICANT
OTHER HANDLE ON IN GAME IT'S
NOT 40% BUT IT'S GROWING- WE
ANTICIPATE THAT YOU KNOW BY
YOUR THREE WHEN PEOPLE GET A
LITTLE MORE USED TO THE- THE
PLATFORM- THAT IT WILL BE A
SIGNIFICANT. COMPONENT. SUSAN
SAID FORTY PERCENT OF THE
HANDLE CURRENTLY. WHAT IS THE
KIND OF PREDICTIONS GOING
FORWARD A MOLE GAMING OBVIOUSLY
IS NOT A BRAND NEW THING BUT
IT'S A RELATIVELY RECENT THING-
IF THAT'S CONTRIBUTED TO THE
SUCCESS OF IN GAME BETTING WHAT
ARE THE PROJECTIONS IN VEGAS
AND THROUGHOUT THE COUNTRY-
WOULD THAT BE A GROWING
COMPONENT. ARE WE GONNA STICK
AROUND 40% YES IN EUROPE IS IT
IS A LITTLE BIT NORTH OF 50%
GENERALLY BEEN ON THE SPORT SO
I MEAN I COULD SEE IT GOING. ON
THE U. S. 50% OR HIGHER- PRE
MATCH IS ALWAYS GOING TO BE A
POP WHAT WE CALL PRE MATCH
BEFORE THE GAME IS ALWAYS GONNA
POPULAR WAY OF THAT IN THE U.
S. A LOT OF PEOPLE WILL WILL
PARLAY MULTIPLE GAMES OR EVENTS
TOGETHER. SO I THINK THAT IN
PLAY ARE IN PLACE ALWAYS GOING
TO BE- A GROWING PART OF THE
BUSINESS BUT I DON'T SEE PRE
MATCH IS BEING- YOU KNOW
GETTING MUCH MUCH SMALLER.
EITHER IN A QUESTION FOR MR
CORRUGATED. COULD YOU TELL US
ABOUT THE NFL. SUPER CONTEST
WHAT THAT IS- A MORE TO. HELP
HOW POPULAR IS. WHAT THE
PROJECTIONS ARE THAT CENTER.
SURE WE HOST THE. THE NFL
CONTEST CALLED THE SUPER
CONTEST IT'S A HIGH END CONTEST
IT'S FIFTEEN HUNDRED DOLLAR
ENTRY FEE WHERE CONTESTANTS
PICK FIVE GAMES AGAINST THIS
SPREAD EACH AND EVERY WEEK
DURING THE SEVENTEEN WEEK
REGULAR SEASON IT'S BEEN. WE'VE
BEEN RUNNING IT SINCE- NINETEEN
EIGHTY EIGHT- WE'VE HAD. AND
ESCAPE ESCALATED GROWTH OVER
THE LAST- TEN YEARS AS WE WERE
HOVERING AROUND- THREE HUNDRED
TO FOUR HUNDRED ENTRIES EACH
AND EVERY YEAR BUT OVER THE
LAST NINE YEARS IT'S THAT SET
THE NINE CONSECUTIVE RECORDS AS
THIS PAST SEASON WE HAD THIRTY
THREE HUNDRED AND TWENTY EIGHT
CONTESTANTS WITH THE WINNER
RECEIVING ONE POINT FOUR
MILLION. JUST UNDER ONE POINT
FIVE WE PAID THE TOP ONE
HUNDRED- AND- WE DON'T SEE IT
SLOWING DOWN AT ANY TIME WE
ACTUALLY ADDED A COUPLE OF
OTHER NFL CONTESTS- SUPER
CONTEST GOLD WHICH IS A FIVE
THOUSAND DOLLAR ENTRY FEE.
WINNER TAKE ALL AND THIS YEAR'S
WINNER ONE JUST OVER FIVE
HUNDRED FORTY THOUSAND- WE ALSO
HAVE A SUPER CONTEST REBOOT
WHICH IS A MID SEASON CONTEST
THAT STARTS AND WEEK NINE FOR
THOSE THAT MAY BE MISSED OUT
THAT AT THE BEGINNING OF THE
SEASON OR MAYBE THEIR SEAT AND
ISN'T GOING VERY WELL. TO YOU
CAN YOU HAVE THAT OPPORTUNITY
TO ENTER A CONTEST THAT STARTS
IN WEEK NINE AND RUNS THROUGH
WEEK SEVENTEEN- BUT IT'S VERY
POPULAR IT IT CERTAIN. SCENES
OF A LOT OF MEDIA ATTENTION
AND- WE DON'T SEE THE GROWTH
SLOWING DOWN AT ALL. THANK YOU
THE ADDITIONAL QUESTIONS OF THE
COMMITTEE. SEEING NONE WILL
THANK THE PANELISTS FOR THEIR
TESTIMONY THEIR TIME PRESHEAF
YOU BEING HERE TODAY AND WILL
CERTAINLY BE IN TOUCH AS WE
MOVE FORWARD. OKAY MEMBERS THIS
TIME WE'RE GOING TO MOVE TO.
THE THIRD PANEL TRANSPARENCY
AND INTEGRITY IN SPORTS BETTING
THE BETTER EXPERIENCE AND
WELCOME TODD FIRM AND ANALYSTS
FOXSPORTS AND CO FOUNDER AND
HOST OF BET THE BOARD PODCAST
AS WELL AS JAKE WILLIAMS VICE
PRESIDENT OF LEGAL AND
REGULATORY AFFAIRS- WITH SPORT
RADAR SO THANK YOU FOR BEING
HERE AND- PLEASE. JOIN US TO
PROCEED WITH THE TESTIMONY
.
THANK YOU SENATOR DODD ASSEMBLY
MEMBER GRAY AND ALL THE MEMBERS
OF THE COMMITTEE FOR THE
OPPORTUNITY TO PARTICIPATE IN
THE IMPORTANCE OF THIS SPORTS
HEARING. HI MY NAME IS TODD
BERMAN AND THE GAMBLING
ANALYSTS FOR BOTH CBS AND FOX
SPORTS I WORK TO TRYING TO
GAMBLING KIND OF FROM THE
SHADOWS PROVIDE ANY MORE
MAINSTREAM LANDS. AS A
DIFFERENT WAY FOR THE CASUAL
FAN TO UNDERSTAND KIND OF WHAT
WE DO IN AND AROUND LAS VEGAS
I'VE BEEN IN THE GAMING
INDUSTRY IN A VARIETY OF
CAPACITIES EVER SINCE TWO
THOUSAND FIVE BREAKING IN AS A
FINANCIAL ANALYST DOING TABLE
GAMES ANALYTICS SLOTS.
BUDGETING FINANCE YOU NAME IT
FOR CAESARS ENTERTAINMENT HAVE
WORKED IN A CONSULTING CAPACITY
FOR A COMPANY THAT WAS ABSORBED
AS PART OF SCIENTIFIC GAME HELP
BUILD AND IN PLAY TRADING
PLATFORM. AND IDENTIFY SOME OF
THE OPPORTUNITIES THERE NOW
WILL TO MILLIE TRYING TO HAVE A
LITTLE BIT OF FUN WITH IT AS WE
KNOW THERE'S A LOT MORE FAN
TRACKS FAN ENGAGEMENT. AS IT
PERTAINS TO WORK ACT SO I COME
FROM A LITTLE BIT DIFFERENTLY
THAN A LOT OF THE GUYS HAVE
BEEN UP HERE SPEAKING MORE FROM
THE OPERATOR STANDPOINT. I'M AN
AVID SPORTS BETTER MYSELF BEEN
IN THIS USE OF OPERATOR- AND MY
WHOLE THING ABOUT SPORTS
BETTING IS I UNDERSTAND WHAT IT
CAN DO. TO THE GAME ITSELF
CREATE THAT LEVEL OF FAN
ENGAGEMENT ON ALL THE ANCILLARY
REVENUE TO COME ALONG WITH IT
NOT ONLY YOU'RE TALKING VISIT.
IN TWO MORE TOPS BUT ALSO. THE
NIGHT FAN. IN THEIRS. FOR THE
RATIONS FULL STEAM AT A HOCKEY
GAME THAT MEET. WEDDING TALK
ALL AND BETTER TOTAL. ARE
PEOPLE THAT ARE AT BARS WAITING
OUT THE WANING SECONDS OF THE
GAME IS WE'VE ALL WATCH
FOOTBALL GAMES. AND MAYBE
THIRTY POINT MARGINS BUT WHEN
THERE'S A LITTLE BIT OF SKIN IN
THE GAME A CHANGE THAT DYNAMIC
QUITE A BIT. RATHER THAN JUST
FLIPPING OFF AND LOOKING FOR A
DIFFERENT FOOTBALL GAME. SO
THERE'S A NUMBER OF DIFFERENT
WAYS IT SPORTS BETTING IS
IMPACTED MY LIFE AND KIND OF
THE PERSPECTIVE. SO WHEN I LOOK
AT IT FROM STATES THAT LOOKING
TO TRY. REGULATE AND FROM A
PLAYER PROTECTION STANDPOINT.
COME AT IT FROM A VARIETY OF
PERSPECTIVES AND I THINK. A
COUPLE OF THINGS THAT ARE
IMPORTANT TO TALK ABOUT IN A-
MORE BROAD. CONTEXTUALIZE
EXAMPLE THAT A LOT OF THE GUYS
IF IT ON ALREADY. AVAILABILITY
BEING FIRST AND FOREMOST IN MY
OPINION. THE WAGERING I KNOW
IT'S BEEN A HOT BUTTON TOPIC IN
WHEN YOU LOOK AT THE REVENUE
THE- STATE'S. SELENA SEEN
TREMENDOUS SUCCESS WITH MORE
THAN 80% OF THE BATS THAT WAY.
LOOK AT A STATE LIKE
MISSISSIPPI THAT'S ALWAYS GONNA
LAG BEHIND. BECAUSE THE MOBILE
PLATFORM ISN'T SOMETHING THAT
THEY FOUND. THAT NEEDED TO BE
INCLUDED IN THEIR INITIAL
GAMBLING BUILT. ON TAX RATE-
pOF TIMES AS WELL FROM THE
STATE'S PERSPECTIVE. I'LL BUT
THERE'S ALSO FROM THE PLAYER'S
PERSPECTIVE AS WELL BECAUSE AS
YOU. FLAYED THE TAX RATE. THE
PLAYERS TYPICALLY THE ONE THAT
SUFFERS AND WE'VE SEEN THAT IN
PENNSYLVANIA OR CERTAIN
OPERATORS. ARE CHARGING OUT
JUICER VIGOROUS BASICALLY THE
TAX ON EVERY BAT. NOT
CONSISTENT WITH THE NEVADA
MODEL BECAUSE THEY HAVE TO HEAR
THAT 36% TAX RATE. AND AS A
RESULT COSTS ARE GOING TO HAVE
TO ROLL DOWN HILL AND- THE
PLAYER. THAT ULTIMATELY
SUFFERS. AND CAN CREATE A VERY
DIFFERENT BETTING MARKET AS A
RESULT- SPORTS INCLUDED WE'VE
SEEN A LOT OF THE MODELS AND I
KNOW MATT SPOKE- ELOQUENTLY
ABOUT ORGAN. IN THE STATE OF
CALIFORNIA IF YOU WERE TO GO TO
A BUSINESS MODEL AND EXCLUDE.
ALL THE COLLEGIATE TEAMS I
THINK IT TAKES AWAY A MASK. ON
A- AS IT PERTAINS TO WHETHER
IT'S BESSIE UCLA. OR ALL THE
BIG WEST FANS THAT ARE OUT
THERE THAT WANT TO SWEAR UC
RIVERSIDE BAD ON A THURSDAY
NIGHT. TO TRY AND FIND SOME
LEVEL OF FAN ENGAGEMENT WITH
THAT. ARE YOU LOOKING NEVADA.
U. N. L. V. NEVADA AS JAY
TALKED ABOUT WERE INCORPORATED
INTO THE GAMING LOG IS AN
OPPORTUNITY TO TRY AND BACK.
BUT I THINK WHEN YOU'RE LOOKING
TO EXPAND THE MENU AND TAKE
CUSTOMERS THAT HAVE GROWN
ACCUSTOMED TO PLAYING IN THOSE.
AGAIN REGULATED MARKETS. IT'S
IMPORTANT TO GIVE THEM THAT
FULL EXPANSIVE MENU. TO INCLUDE
ALL THE COLLEGE TEAMS ALL THE
PROFESSIONAL TEAMS. AND GIVE
THEM EVERY INCENTIVE TO TAKE
THEIR MONEY FROM THAT ON
REGULATED JURISDICTION WHETHER
IT'S A CORNER BOOKMAKER. WERE
OFF SHORE AND BRING IT INTO A
MORE TRANSPARENT MARKET.
BECAUSE WE LIKE TO SAY ALL THE
TIME THE BEST DISINFECTANT IS
ALWAYS GONNA BE TRANSPARENCY
SHINING A BRIGHT LIGHT. ON
THOSE PARTICULAR ROUTE- WAGER
TYPES. I KNOW WE TALKED A
LITTLE BIT ABOUT OUT. ONLINE
ALEX USED IN RUNNING WITH
DURING. AS A POTENTIAL I THINK
CERTAIN EUROPEAN SPORTS LET
SELVES MUCH BETTER TO THAT TYPE
OF WAGERING AMERICAN SPORTS.
BUT AS THE IMAGE. AND SPOKE
BETTER FEELS MORE COMFORTABLE I
THINK THAT IS A MASSIVE GROWTH
POTENTIAL. AND IT'S SOMETHING
AGAIN THE ONLY LENDS ITSELF TO
A MOBILE PLATFORM. MORE SO THAN
A BRICK AND MORTAR. IF THE
COLLECTIVITY OF WALKING UP TO A
KIOSK FOR CONSTANTLY CHANGING
ODDS. JUST NOT A REALISTIC
POSSIBILITY- IN MY ESTIMATION.
AND THEN WHEN YOU LOOK AT THEM.
IT'S OH BY THINK STANDARDIZED
TECHNOLOGY PLATFORM. SOME OF
THE ISSUES THAT TO RUN INTO YOU
ARE A LOT OF LIQUIDITY IF EVERY
STATE OPERATES IN ITS OWN
VACUUM. DECIDES IT ONLY WANTS
TO IDENTIFY CERTAIN OPERATE.
IT'S GOING TO PRECLUDE YOU FROM
TAKING BUT THE BIGGER BATS THAT
MIGHT BE OUT THERE SO. THE
RESULT YOU'RE TAKING SMALLER
MARTINS. AND YOU'RE- GONNA HAVE
THIS IN. THE BACK AND ALL THAT
YOU OTHERWISE. IT IS BASED ON
SOME OF THE BIGGEST NAMES. I
THINK WE'LL TALK ABOUT ALL
LOCAL PAYS MARKETING PAM SHOULD
PROVIDE. PERFECT AMPLE
ILLUSTRATION. ARE THEY WANT
FIVE IS. BETTING
INTERCOLLEGIATE. THEY HAD THREE
POINT FOUR MILLION DOLLARS WE
JUST IN JUST THE FIRST. SPEAK
TO THE STRENGTH AND HOW
IMPORTANT IS TO HAVE THAT
LOCALIZED COMPONENT TO IT.
BECAUSE FANS ARE ALWAYS LOOKING
FOR THAT EXTRA WAY TO GET
INVOLVED. WHETHER IT'S A FIVE
DOLLAR BET PRE MATCH WHETHER TO
TEN DOLLAR BET AT THE HALFTIME.
THEY'RE TRYING TO FIND A UNIQUE
WAY. TO HAVE THAT DIFFERENT
CONNECTION TO THEIR TEAM- ONE
THING THAT I WILL SAY FROM THE
BETTER PERSPECTIVE HAVING DEALT
WITH THE FIRST HAND IS ALWAYS A
RESPONSIBLE GAMING COMPONENT.
WHEN YOU'RE IN A REGULATED
MARKET YOU CAN SET ASIDE
RESOURCES TO TRY AND TAKE CARE
OF PEOPLE THAT SMALL SEGMENT OF
POPULATION. THAT LET'S NOT SURE
CODE INEVITABLY ARE GOING TO
HAVE PROBLEMS. WITH SPORTS
BETTING WHICH CAN BE A VERY
ADDICTIVE. PURSUIT THE SAME YOU
HAVE POLICIES AND PROCEDURES IN
PLACE. FOR ALCOHOL OR OTHER
SUBSTANCES THAT ARE HIGHLY
MONITORED HIGHLY REGULATED. YOU
DON'T GET THAT IN THE OFFSHORE
MARKET. YOU CAN CONSISTENTLY
HAVE PEOPLE GETTING THEMSELVES
INTO TROUBLE. SOME OF THE OTHER
CIRCUMSTANCES THAT
UNFORTUNATELY. ALL COME WITH
THAT WHEN YOU GO IN ON A
DELAYED BASIS. I'M WHEN YOU
LOOK AT SOME OF THE OTHER
THINGS THAT ARE OUT THERE. ONE
OF THE REASONS OFTEN IGNORED.
IN THE SPORTS BETTING SPACE WE
SPEND SO MUCH TIME TALKING
ABOUT. OPERATE DANCE THE AREAS
THAT ARE OUT THERE. DOING A-
DROP WHEN MY- DOES MY- IN. COME
THEIR PORCH THE TWO AREAS DAVE.
WE ARE THEIR MAIN AREAS OF
CONCERN ARE EASY TO USE
INTERFACES WHICH AUTOMATICALLY
IMPLIES THAT THEY'RE THINKING
OF SPORTS BETTING COMING TO
THEIR STATE MOBILE PLATFORM NOT
THE TRADITIONAL WAY OF WALKING
UP TO THE COUNTER PLACING YOUR
WAGER GOING BACK TO YOUR SEAT
WHAT HAVE YOU I AND MORE
IMPORTANTLY COMPETITIVE PRICING
AND I THINK AS WE SEE SOME OF
THESE VERY STATES THEY COME
ONLINE YOU HAVE TO LOOK AT THE
NUMBERS THAT ARE OUT THERE. AND
WHILE ME WILL CAN NOW CHARGING
A PRICE ABOVE THE- AVERAGE THAT
CUSTOMERS ARE GONNA GET SMARTER
AND THEY'RE GOING TO TRY AND
PUSH BACK A LITTLE BIT AND GO
WELL WAIT A SECOND IF YOU'RE
GONNA CHARGE ME TAXES ON ALL OF
THIS STUFF THAT'S OUT THERE I'M
GONNA GET YOU TO GO TO THE ON
REGULATED OKAY I'M GONNA TAKE
ADVANTAGE OF CREDIT BECAUSE
IT'S A LOT EASIER TO DO THAT.
IT'S A SENSE BUT THIS WAS BUILT
ON WITH CREDIT CARDS AND HOUSE
IT'S A VERY SIMILAR MINDSET
SPORTS BETTORS ARE GONNA
UTILIZED. AT THE SAME TIME. SO
ONE OF THE BIGGEST THINGS FOR
ME AS WELL AS A SPORTS. IS THIS
MARKET IS COMPLETELY DIFFERENT
THAN ANYTHING ELSE THAT'S OUT
THERE WHEN YOU WALK INTO A
BRICK AND MORTAR CASINO. YOU
SEE LIMITS CLEARLY POSTED ON
THE TABLE IF YOU WALK UP TO A
BLACKJACK TABLE. FIVE DOLLARS
COULD BE OUR MINIMUM BAT
UPWARDS OF TWO THOUSAND WHAT
HAVE YOU. SPORTS BETTING IN MY
OPINION IT'S KIND OF BEEN IN
THAT GRAY AREA EVEN IN
REGULATED MARKETS. AND IS A
BETTER MYSELF I'D LOVE TO SEE A
LITTLE BIT MORE TRANSPARENCY.
BECAUSE THERE ARE FORTUNATELY
IS A BUSINESS MODEL OUT THERE.
THAT YOU'RE INCENTIVIZE FOR
SOME OPERATORS THAT IF SOMEBODY
HAS AN ADVANTAGE. THAT YOU
CLEARLY DON'T WANT TO TRY AND
TAKE THEIR BACK. UNLIKE ANY
OTHER RETAIL WHERE THE WHOLE
GOAL SHOULD BE SELLING THE
RIGHT PRODUCT FOR THE RIGHT
PRICE. TO THE RIGHT CUSTOMER.
SO WHEN I SEE SOME OF THE
STATE'S COME ONLINE AND NOT THE
CONSUMER PROTECTIONS IN PLACE.
I'D LIKE SOME OF THAT PRESENTED
IN A BLACK AND WHITE. ENTER
WEIGHT. HAVE THE RIGHTS AND
RESPONSIBILITIES TO OFFER LOW
LIMITS AND EXPAND. COURTESIES
TO CUSTOMERS. YOU FEEL HAVE
PLAYED WITH YOU AND HAVE
WARRANTED THOSE TYPE OF
CONCESSIONS. BUT AT THE SAME
TIME. THERE'S NOTHING MORE
INFURIATING IS A SPORTS BETTER.
THAN YOU TRYING TO. LOG GAME ON
A MONDAY YOU'RE GIVEN ONE
ACCOUNT YOU TRYING BETTER. BALL
GAME AT THE SAME OPERATOR. IS
HERE GIVEN A DIFFERENT AMOUNT.
AND YOU NEVER KNOW WHEN IT
BECOMES A MOVING TARGET. THAT
COULD BE A SOME. FRUSTRATION
AND ULTIMATELY LEAD PEOPLE BACK
TO SOMEBODY ON REGULATED
MARKETS. WHERE OFTENTIMES THEY
HAVE TO BE MORE COMPETITIVE.
AND EXTEND LARGER LIMITS ON
SOME OF THE- PARTICULAR
SPORTING EVENTS. OF COURSE THAT
DOESN'T APPLY THE MASK BUT IT
IS SOMETHING TO THINK ABOUT. AS
YOU GO ABOUT BUILDING TENSION
BILLS INTRODUCED BIG. HOW TO
WORK. BOB IS THE FACT. AND WHEN
I. LOOK AT. I MEAN I. HELLO
THESE THINGS HAVE. THROUGH A-
WHAT I. FIND IS. QUESTION COMES
UP FOR TRYING YOU'RE OUT FROM
THE- FROM THE SPORTS BETTER
STANDPOINT FROM THE LEAGUE
STANDPOINT I CAN TELL YOU
FIRSTHAND HAVING ATTENDED A LOT
OF THE SPORTING EVENTS AND INTO
THE QUESTIONS OF INTEGRITY THAT
INEVITABLY COME UP. I IT'S NOT
A CONTENTIOUS ATMOSPHERE LATE
IN THE THIRD OF A HOCKEY GAME
IT'S NOT A CONTENTIOUS
ATMOSPHERE DURING THE PAC
TWELVE TOURNAMENT WHEN A TEAMS
LOOKING AT TRYING TO SNEAK IN
THE BACK DOOR OF A BASKETBALL
GAME. WHAT I MEAN THERE IS
ESSENTIALLY YOUR DOWN BY
THIRTEEN POINTS AND YOU HAPPEN
TO BE A TWELVE AND A HALF POINT
UNDERDOG. THAT'S USED TO MUCH
GAMBLING PARLOUR HERE. IT
ENGINE THIRTY OF WATCHING THE
PLAYERS DRIBBLE OUT ALL THAT
MAY OR NOT MAY OR MAY NOT HAVE
ANY IMPACT ON PARTICULAR FAN SO
THERE'S A NUMBER OF THINGS TO
CONSIDER I THINK FAN ENGAGEMENT
IS ONE OF THE BIGGEST
COMPONENTS THAT COMES ALONG
WITH IT- BECAUSE AS TAX
REVENUES GROW YOU ALSO DO YOU
SEE SOME OF THE AUNTS THEIR
INCOME FOR SUBSIDIARY
BUSINESSES EMPLOYMENT
OPPORTUNITIES AND SO IT'S ONE
OF THOSE CLICHES THAT OFF
RISING TIDES WILL RAISE ALL
SHIPS AND I THINK THAT'S PART
OF THE REASON THAT WHEN YOU
LOOK AT SPORTS GAMBLING IN THE
POTENTIAL LEGALIZATION TO TRY
AND TAKE IT FROM THE SHADOWS
AND BREAKING INTO THE BRIGHT
LIGHT. IT'S IMPORTANT TO HAVE
THAT EXPANDED MENU I HAVE THAT
MOBILE OFFERING AND TRYING TO
GIVE THE CUSTOMERS WHAT THEY
CAN HONESTLY GO OUT AND GET AT
A MOMENT'S NOTICE WITHIN EASY
TRANSACTION- EVERY HOUSE IN THE
SPACE I PROBABLY SPOKEN TOO
LONG SO IF THERE'S ANY SPECIFIC
QUESTIONS- LOOK FOR TO
ANSWERING ALL THAN THAT YOU
GUYS MAY HAVE US IN MY
EXPERIENCE AS I SAID EITHER AS
AN OPERATOR AS A MATTER WHERE
SOMEBODY THANKS MAKES. GAMBLING
IS A STREAM I. POSSIBLY CAN.
THANK YOU. DAVID HAS MORE THAN
A DAY. I UNDERSTAND BILL
SENATOR JONES IS HER BRADFORD
OF OFFER TO COME ON YOUR SHOW
AND GIVE. WELL THE WAY THE WAY
MY SEASON IS GONE I WOULD
WILLINGLY ACCEPT ANY PICS FROM
YOU GUYS SO IF YOU GUYS WHEN WE
CAN TRY AND WORK OUT A POSITIVE
ARRANGEMENT ONE WAY OR ANOTHER
WE ALL MAKE THAT HAPP. I
APPRECIATE. THE MILLION
INSTAGRAM ANSWER SOME QUESTIONS
FROM THE COMMITTEE- AT THIS
TIME WILL WELCOME JAKE WHICH.
THANK YOU TO EMIGRATE GERMAN
DODD MEMBERS OF THE COMMITTEE
THANK YOU VERY MUCH FOR HAVING
ME HERE TODAY. MY NAME IS JACK
WILLIAMS AND I'M THE VICE
RESIDENT OF LEGAL AND
REGULATORY AFFAIRS WITH SPORT
RIGHT UP. SINCE TWO THOUSAND
AND FIFTEEN- I'VE BEEN WORKING
FOOTBALL RIGHT AREN'T AS A
COMPANY WE SIT IN A PRETTY
UNIQUE SITUATION- WITHIN THE
SPORTS WAGERING ECOSYSTEM.
WE'RE TRULY GLOBAL COMPANY WITH
MORE THAN THIRTY OFFICES AROUND
THE WORLD. INCLUDING NEW YORK-
U. S. HEADQUARTERS IN
MINNEAPOLIS AS WELL AS TO-
OFFICES HERE IN CALIFORNIA ONE
IN SAN FRANCISCO ANOTHER IN
MENLO PARK. WHETHER LEADING
SERVICE PROVIDED A TO SPORTS
WAGERING OPERATE IS SPORTS
LEAGUES REGULATORS LAW
ENFORCEMENT'S AND OTHER KEY
STAKEHOLDERS IN THE SPORTS
WAGERING AND SPORTS INTEGRITY
SPACE. ADDITIONALLY BALL RIGHT
OFFIS THE OFFICIAL DAUGHTER
PROVIDE UP TO MANY- SPORTS
LEAGUES IN THE UNITED STATES AS
WELL AS AROUND THE WORLD. GIVEN
THAT WE THINK WE KNOW FIRST
SOME UNIQUE INSIGHTS INTO MANY
FACETS OF. THE BUSINESS OF
SPORTS WAGERING AS WELL AS
REGULATION. GIVEN WE HAVE A
LIMITED AMOUNT OF TIME I'M NOT
GONNA RETREAD SOME OF THE
TOPICS IN TOO MUCH DETAIL YOU
PROBABLY HEARD ABOUT IN DETAIL
TODAY I DO WANT TO TOUCH ON
THREE MAIN AREAS THE FIRST
BEING INTEGRITY OF THE GAME AND
I BELIEVE WE'VE ALREADY HAD
QUESTIONS ON THAT FROM EARLIER
TODAY- ONLINE MOBILE IN PLACE
SPORTS WAGERING I'LL TALK ABOUT
VERY BRIEFLY AS WELL AS THE
ABSORPTION. OF CURRENTS SPORTS
WAGERING TAKING PLACE HERE IN
CALIFORNIA AND BRINGING THAT TO
SIT WITHIN A REGULATED
FRAMEWORK. SO I THINK IT'S VERY
IMPORTANT TO START WITH SPORTS
INTEGRITY OF HEARD FROM. THE
OPERATE ASIDE IN THE PREVIOUS
GROUP YOU PROBABLY HEAR MORE
FROM. THE SPORTS LEAGUE SIDE I
WANT TO GIVE YOU AN INSIGHT
INTO THE THIS BILL RIGHT
OUTSIDE. SPORT RADAR IS THE
GLOBAL LEADER IN MONITORING THE
INTEGRITY OF SPORT AND
PREVENTING MATCH FIXING.
THROUGH BET MONITORING.
EDUCATION AS WELL AS
INTELLIGENCE AND INVESTIGATION
SOLUTIONS FOR. REGULATORS LARA
ENFORCEMENTS AS WELL AS SPORTS
LEAGUES. GIVEN OUR EXTENSIVE
EXPERIENCE IN REGULATED MARKETS
AROUND THE WORLD WELL HAPPY TO
SHARE OUR EXPERIENCES ON MOST
EFFECTIVE PRACTICES FOR
PROTECTING THE INTEGRITY OF
SPORTS HERE IN CALIFORNIA.
INCLUDING WHY REGULATED AND
COMPETITIVE MARKET IS THE
SUREST WAY TO UPHOLD THE
HIGHEST INTEGRITY STANDARDS.
OVER A HUNDRED ORGANIZATIONS
AROUND THE WORLD INCLUDING US
MOSTLY EXACTLY MBA MAJOR LEAGUE
BASEBALL THE NFL NHL- AN MLS AS
WELL AS INTERNATIONAL
FEDERATIONS LIKE FIFA. AND THE
INTERNATIONAL TENNIS FEDERATION
UTILIZE OUR SERVICES AND
EXPERTISE IN SUPPORT INTEGRITY
SPACE TO COMBAT MANY OF THE KEY
THREATS TO THE INTEGRITY OF THE
GAME. A REGULATED SPORTS
WAGERING MARKET WITH THE ROBUST
INTEGRITY FRAMEWORK FOR
MONITORING WAGERING. IN
CONTRAST TO THE UNREGULATED AND
LEGAL MARKET HAS CLEAR
INTEGRITY BENEFITS. BRINGING AS
MUCH OF THE UNREGULATED
WAGERING UNDER THE
SOPHISTICATED AND
TECHNOLOGICALLY ADVANCED MICRO
SCOPE OF BET MONITORING CAN
ONLY INCREASE THE PROBABILITY
OF DETECTING AND THWARTING ANY
ATTEMPT TO FIX OR OTHERWISE
CORRUPT A SPORTING EVENT. WE
ALL UNDERSTAND HOW IMPORTANT
THE INTEGRITY OF THE GAME IS
AND I'LL LET YOU ASK ANY
FURTHER FOLLOW UP QUESTIONS-
POST MY TESTIMONY I JUST WANT
TO TOUCH ON THE OTHER TWO AREAS
VERY BRIEFLY BEFORE I BEFORE I
FINISH UP THAT BEING ONLINE AND
MOBILE AND IN PLACE BOTH
WAGERING. AND I'LL TALK ABOUT
THAT TOGETHER WITH THE
ABSORPTION OF CURRENT
UNREGULATED SPORTS WAGERING
THAT IS HAPPENING HERE IN THE
STATE OF CALIFORNIA. ONE OF THE
MAIN DRIVE IS. LEGALIZING
REGULATING SPORTS WAGERING
SHOULD BE TO CAPTURE THE
UNREGULATED MARKET THAT'S
TAKING PLACE ALREADY. IN DOING
SO WE CAN LOOK AT WHAT DRIVES
ABSORPTION OTHER JURISDICTIONS
AND USE BEST PRACTICES HERE IN
CALIFORNIA. AS MR GROVE ALREADY
MENTIONED THROUGH THE NEW
JERSEY DIVISION OF GAMING
ENFORCEMENT WE KNOW THAT SPORTS
BETTORS IN NEW JERSEY OF PLACE
MORE THAN 80% OF ALL WAGES. VIA
MOBILE DEVICES AND ON THE
INTERNET. FURTHER TO THIS AS MR
SHAPIRO ALSO MENTIONED IN MANY
JURISDICTIONS AROUND THE WORLD.
THAT HAVE HAD MORE TIME TO
MATURE THAN THE CURRENT U. S.
LANDSCAPE IT IS NOT UNCOMMON
FOR IN PLAY WAGERING TO RETRAIN
80% OF THE TOTAL. WAGERING
HANDLE- AS MENTIONED SPORTS
LIKE TENNIS AND SOCCER LEND
THEMSELVES TO THIS IN PLAY
WAGER. WHAT THESE METRICS AND
EVEN TRENDS TELL US. IS THAT
THE FUTURE OF ONLINE AND MOBILE
SPORTS WAGERING IS LIKELY TO
INCLUDE SIGNIFICANT BETTING
ACTIVITY. DURING A LOT OF THAT.
IF THE VAST MAJORITY OF THOSE
INTERESTED IN ENGAGING SPORTS
WAGERING ARE EXCLUDED FROM
DOING SO IN THAT JURISDICTION
THEY MAY LOOK ELSEWHERE. AND
THAT'S THE PURPOSE OF
REGULATING THE PRACTICE BECOMES
LESS ACHIEVABLE. I PERSONALLY
LIVE IN NEW JERSEY AND I'VE
ALREADY NOTICED MANY PEOPLE AT
THE FAVORITE SPORTS VENUE. ALL
THE OLD SORRY AT THE- WILL
ENJOY THEIR FAVORITE SPORTS
VENUE- WITH PHONE IN HAND
PLACING BETS IN THE PRE GAME OR
DURING A LIVE GAME MY WIFE A
LOYAL FAN AND SEASON TICKET
HOLDER FOR THE NEW YORK JETS
WILL OFTEN PLACE BETS. DURING
THE GAME WALLS WATCHING HER
BELOVED TEAM. AS WITH MANY
OTHER RECREATIONAL ENDEAVORS IN
TWO THOUSAND AND TWENTY BEING
ABLE TO DO SO- FROM YOUR
DEVICE. FROM THE COMFORT OF
YOUR HOME OR YOUR FAVORITE
LOCATION WILL BE A PILLAR OF
ANY SUCCESSFUL FRAMEWORK. THAT
AIMS TO BRING ALL WAGERING
ACTIVITY WITHIN A REGULATED
FRAMEWORK. LAND BASED ONLINE.
MORE WELL IN PLACE BOLTS
WAGERING. SHOULD BE INCLUDED
INTO THE REGULATORY FRAMEWORK
TO AND TO ENSURE REGULATED AND
LICENSED OPERATORS ARE ABLE TO
COMPETE WITH UNLICENSED
OPERATORS. AND JUST FINALLY I
WANT TO TOUCH ON ANY OTHER
RESTRICTIONS CONDITIONS. OTHER
APPLY TWENTY STAKEHOLDERS FOR
EXAMPLE OF HEARD ABOUT.
PROHIBITIONS ON PROPOSITION
BETS OR EVEN ON REASONABLE AND
BURDENSOME LICENSING CONDITIONS
FOR THOSE ENTERING THE MARKET.
SHOULD BE CRITICALLY EVALUATED
IN ORDER TO ACHIEVE THE
INTEGRITY AIMS TO OPTIMIZE
MARKET CONDITIONS FOR ALL
STAKEHOLDERS. AND A CHANNEL ON
REGULATED WAGERING ACTIVITY TO
SIT WITHIN THESE REGULATED
FRAMEWORKS. THAT CONCLUDES MY
TESTIMONY AND THANK YOU AGAIN
FOR THE OPPORTUNITY I'M MORE
THAN HAPPY TO ASK SORRY TO
ANSWER ANY QUESTIONS YOU HAVE.
THANK YOU FOR YOUR TIME. IS
FUHRMAN. WHAT'S A LIGHT ON THE
NIGHT- VIKING GAME THIS WEEKEND
IT WHICH WHERE YOU GO AND. OPEN
AT SEVEN IT WAS BACK DOWN TO
SIX AND A HALF AND NOW SEVEN
PRETTY MUCH THE CONSENSUS I CAN
GIVE YOU THE FULL BREAKDOWN
OREGON HAVE YOU TUNE INTO THE
SHOW TOMORROW. WHERE WE CAN
REALLY GET THAT I CAN KEEP MY
FOX- GOVERNMENT AFFAIRS AND
LAWYERS HAPPY BUT THE BUILDING
RIGHT NOW WOULD BE TO POINTS
BEING AT A PREMIUM IN THAT
FOOTBALL GAME BUT WE CAN HAVE
THAT STRICKEN FROM THE
TESTIMONY OF THE GAME GOES
WELL. OVER FORTY FOUR AND A. WELL YOU HAVE BEEN DOING
VERY WELL THIS. THAT YOU KNOW.
I APPRECIATE THAT MAYBE THIS
CAN BE WHAT I NEED TO PROPEL ME
TO A STRONG FINISH TO THE
SEASON THAT'S ALRIGHT PERFECT.
OKAY OTHER THAN THE FORTY
NINERS TO HAVE. UNFORTUNATELY
YOU CAN'T ACTUALLY ABOUT THE
PRESIDENTIAL ELECTION ANYWHERE
IN THE STATE OF NEVADA OR TO MY
KNOWLEDGE ANY OF THE OTHER
JURISDICTIONS HERE CURRENTLY IN
THE STATE SO YOU'RE GONNA HAVE
TO FIND AN UNREGULATED MARKET
TO FIND PRICES THERE AND I
DON'T KNOW HOW THEY GO ABOUT
PRICING THING SO I COULD EVEN
SHARE THAT INFORMATION WITH IF
I TRY. THIS IS WITH MOST
POPULAR PANEL. ANY ADDITIONAL
QUESTIONS NUMBERS IN THIS TIME.
SEEING NONE- APPRECIATE THE
TESTIMONY AND WILL CERTAINLY TO
AN END TO THE SHOW AND- SEE IF
I CAN LEAD TO THOSE
EXPECTATIONS OKAY THANKS SO
MUCH THANK YOU ASKED. OKAY AT
THIS TIME MEMBERS WE'RE GOING
TO MOVE TO OUR FINAL PANEL OF
THE DAY THE IMPACT OF SPORTS
BETTING ON PROFESSIONAL SPORTS
LEAGUES. WE'RE GONNA WELCOME
BOTH THE DANCE PLANE VICE
PRESIDENT AND ASSISTANT GENERAL
COUNSEL WITH THE NBA. AND RYAN
CEILING SENIOR VICE PRESIDENT-
DEPUTY GENERAL COUNSEL
INVESTIGATIONS COMPLIANCE AND
SECURITY WITH MAJOR LEAGUE
BASEBALL WELCOME GENTLEMEN AND
PLEASE PROCEED WITH YOUR
TESTIMONY. THANK YOU VERY MUCH
CHAIRMAN GRAY CHAIRMAN DODD
MEMBERS OF THE COMMITTEE- THE
OPPORTUNITY SHARE THE VIEWS OF
THE NBA ON SPORTS BETTING IN
CALIFORNIA- MY NAME IS DANCE
BLAINE I'M SENIOR VICE
PRESIDENT AND ASSISTANT GENERAL
COUNSEL FOR LEAGUE GOVERNANCE
AND POLICY WITH THE NBA- IN MY
JOB RESPONSIBILITIES INCLUDE
SETTING AND ENFORCING LEGAL
POLICIES. WITH RESPECT TO
SPORTS GAMBLING. THE NBA HAS A
STRONG INTEREST IN HOW SPORTS
BETTING- IS HANDLED IN EVERY
STATE BUT PARTICULARLY IN
CALIFORNIA WE HAVE FOUR NBA
TEAMS IN THE STATE AND ON TOP
OF THAT- EAT- OTHER TEAMS
ACROSS THE W.NBA. THE NBA G.
LEAGUE AND THE NBA TO KAYLEE.
AND ALTHOUGH I WORK IN NEW YORK
I GREW UP IN THE BAY AREA MY
WIFE AND I ARE CAL GRADS AND
STILL HAVE FAMILY IN THE AREA
SO I HAVE A PERSONAL INTEREST
IN HOW THIS UNFOLDS AS WELL.
I'M JOINED TODAY BY BRIAN SEALY
OF MAJOR LEAGUE BASEBALL AND
OUR ORGANIZATIONS HAVE A SHARED
VIEW ON HOW SPORTS BETTING
SHOULD BE LEGALIZED AND
REGULATED SO IN THE INTEREST OF
TIME AT THE END OF THE DAY TO
HELP EXPEDITE THINGS- WE WON'T
DUPLICATE EACH OTHER'S
TESTIMONY WILL DIVIDE AND
CONQUER A LITTLE BIT AN
EXERCISE DIFFERENT POINTS. AND
EACH OF US WILL JOIN IN THE
OTHER STATEMENTS. THE NBA HAS
INVESTED A LOT OF TIME AND
RESOURCES- OVER THE PAST
SEVERAL YEARS AND STUDYING. THE
ISSUE OF SPORTS GAMBLING AND-
AND BEGINNING TO ENGAGE- FROM A
COMMERCIAL STANDPOINT IN THE
INDUSTRY AND THINK ABOUT WHAT
LEGISLATION SHOULD LOOK LIKE.
ADD OUR VIEW IS THAT SPORTS
BETTING- PROPERLY REGULATED CAN
HAVE BENEFITS TO BRING BEDDING
OUT OF THE SHADOWS INTO THE
SUNLIGHT- TO GIVE US TOOLS TO
BE ABLE TO MONITOR BETTING ON
OUR GAMES AND PROTECT THE FANS.
WHO BET ON SPORTS. UPI WANT TO
FOCUS IN TODAY'S REMARKS ON THE
PERSPECTIVE OF A PROFESSIONAL
SPORTS LEAGUE WHICH IS A LITTLE
BIT DIFFERENT FROM- OPERATORS
AND OHERS WHO ARE ENGAGED- IN
THE SPORTS BETTING BUSINESS
ALTHOUGH THERE A LOT OF SHARED
INTERESTS THERE ARE SOME THAT
REALLY I THINK ARE ARE UNIQUE
TO SPORTS- IN SHORT AS IS
CALIFORNIA IS CONSIDERING THIS
TOPIC I THINK THERE'S AN
OPPORTUNITY TO ADOPT AN
APPROACH TO TREAT SPORTS
LEAGUES AS PARTNERS- AND
STAKEHOLDERS IN THIS BUSINESS
RATHER THAN AS BYSTANDERS AND
TO BECOME A NATIONAL LEADER. IN
THIS AREA. ALL ADDRESS TO
PARTICULAR ISSUES TODAY MOBILE
BETTING AND CONSUMER PROTECTION
IN PARTICULAR THE SOURCES OF
DATA THAT ARE USED TO. SEC ODDS
AND TO SETTLE BATS AND BRIAN
WILL ADDRESS OTHER ISSUES
RELATING TO HOW SPORTS
ORGANIZATIONS CAN POLICE THE
INTEGRITY OF THEIR COMPETITIONS.
FIRST SPORTS BETTING AS OTHERS-
IN THIS HEARING HAVE SAID IT
SHOULD BE AUTHORIZED ON
INTERNET AND MOBILE PLATFORMS
AND NOT JUST A PHYSICAL BRICK
AND MORTAR LOCATIONS. OUR
ENTIRE APPROACH TO THE ISSUE OF
SPORTS BETTING IS PREDICATED ON
THE REALITY THAT PEOPLE IN
CALIFORNIA AND ELSEWHERE
ALREADY- BETTING ON SPORTS-
LARGELY THROUGH ONLINE APPS
THAT ARE OPERATED BY OFFSHORE
BOOK MAKERS. AND A COMPETITIVE
MOBILE BETTING MARKET IS
ESSENTIAL TO THE STATE'S
ABILITY TO SHIFT BETTERS- FROM
THESE ILLEGAL MARKETS TO LEGAL
BETTING MARKETS. AND WITHOUT AN
APPEALING MOBILE OPTION PEOPLE
JUST CONTINUE TO BET ON THEIR
PHONES OR ARE USING COMPUTERS
WITH OFFSHORE SITES BETTING
ALSO IS BETTER SUITED TO THE
PREFERENCES OF SPORTS FANS WHO
INCREASINGLY ENGAGE WITH SPORTS
ONLINE AND USING MOBILE
DEVICES. A LOT OF PEOPLE WHO
THAT OFFSHORE AREN'T EVEN AWARE
OF THAT DOING SO ILLEGALLY AND
OF A SPORTS FAN IS INTERESTED
IN PLACING A BAD THERE SHOULD
BE AN OPTION TO DO THAT. SAFELY
AND LEGALLY. SECOND POINT IS
SPORTS BETTING FRAMEWORK- ALSO
SHOULD INCLUDE EFFECTIVE
CONSUMER PROTECTION
REQUIREMENTS. ADD THESE WOULD
INCLUDE THINGS LIKE A RIGOROUS
LICENSING PROGRAM TO ENSURE
THAT OPERATORS ARE PROPERLY
VETTED. AGE RESTRICTIONS SELF
EXCLUSION PROGRAMS AND OTHER
MEASURES TO ADDRESS PROBLEM
GAMBLING. THESE ARE REASONABLE
REGULATIONS THAT SHOULD APPLY
TO ALL TYPES OF GAMBLING
INCLUDING BETTING ON SPORTS.
WITH RESPECT TO SOME IN
PARTICULAR- THIS PACKAGE OF CAN
SHOOT CONSUMER PROTECTION
MEASURES SHOULD INCLUDE A
MANDATE THAT OPERATORS USE
OFFICIALLY DATA TO SETTLE IN
GAME AND PROPOSITION BETS WHICH
INCLUDE- BEST THAT ARE PLACED
AFTER A GAME STARTS IN OFTEN
RESOLVED BEFORE IT ENDS. AS
OPERATORS INCREASINGLY OFFER IN
GAME AND PROPOSITION BETS
MAINTAINING RELIABLE MARKETS
FOR THESE WAITERS IS GOING TO
BECOME MORE DIFFICULT AND MORE
COMPLICATED. AND REQUIRING
OFFICIAL LEAGUE DATA TO RESOLVE
THESE BATS WILL HELP ENSURE THE
ACCURACY AND CONSISTENCY OF
BETTING OUTCOMES. AND GIVE
CALIFORNIA BETTERS ACCESS TO
RELIABLE AND WELL FUNCTIONING
IN GAME AND PROPOSITION BETTING
MARKETS. FOR REFERENCE AND
MATURE BETTING MARKETS OVERSEAS
A SIGNIFICANT PROPORTION OF
BETTING VOLUME AND THE U. K.
UPWARDS OF 70% COMES FROM IN
GAME OFFERINGS AND WE EXPECT A
SIMILAR TRENDS TO TAKE HOLD IN
THE U. S. IS BETTING MARKETS OF
ALL HERE. AND WE UNDERSTAND
FROM OUR BEDDING OFF YOUR
PARTNERS THAT IN SOME PLACES
ARE NEW OPERATIONS ARE ALREADY-
ABOVE THE 50% MARK. SO A WELL
FUNCTIONING IN GAME MARKET IS
ESSENTIAL TO THE HEALTH OF THE
SPORTS BETTING MARKET OVERALL.
THREE STATES HAVE ADOPTED
UNOFFICIALLY DATA REQUIREMENT
AND WE EXPECT MORE TO FOLLOW
THIS YEAR- THERE IS A VERY
HELPFUL SLIDE PRESENTTION AT
THE BEGINNING THAT- I JUST
NEEDED TO BE UPDATED OR THREE
STATES I THINK THAT WHEN IT
SAID THERE WERE TWO. EACH OF
THESE ELEMENTS AND DOES THAT
BRIAN WILL BE ADDRESSING IS
CRITICAL TO THE NBA SUPPORT. OF
LEAGUE OF SPORTS BETTING
LEGISLATION IN CALIFORNIA AND
OUR FIRST AND PARAMOUNT
RESPONSIBILITY IS TO PROTECT
THE INTEGRITY OF PROTECTION OF
PERSONAL BASKETBALL. AND ALSO
PRESERVE PUBLIC CONFIDENCE IN
OUR LEAGUE AND IN OUR SPORT. WE
HOPE YOU'LL INCLUDE THESE
PRINCIPLES AND WHATEVER
FRAMEWORK- YOU ULTIMATELY ADOPT
AND WE LOOK FORWARD TO WORKING
WITH THIS COMMITTEE WITH
REGULATORS WITH BETTING
OPERATORS TO MAKE SURE THAT
SPORTS BETTING- AND IN
CALIFORNIA IS SAFE AND
SUCCESSFUL. THANK YOU. GOOD
AFTERNOON- CHAIRMAN GRAY
CHAIRMAN DODD MEMBERS OF THE
COMMITTEE MY NAME'S BRIAN
CEILING ON- SENIOR VICE
PRESIDENT DEBBIE GENERAL
COUNSEL FOR MAJOR LEAGUE
BASEBALL I- MY WORK IN MAJOR
LEAGUE BASEBALL REALLY FOCUSES
ON PROTECTING THE INTEGRITY AND
THE SECURITY OF THE GAME. SHE
HAD THE OPPORTUNITY TO BE HERE
TODAY APPRECIATE- YOUR TRYING
TO ADVANCE LEGAL SPORTS BETTING
CALIFORNIA WERE SUPPORTIVE OF
THE CONCEPT OF- CONSTITUTIONAL
MINUTES SIXTEEN. AND LOOK
FORWARD TO WORKING TOGETHER- TO
TRY TO BRING A LEGAL REGULATED
SAFE MARKET. THAT PROTECTS
CALIFORNIA CONSUMERS AND
PROTECTS OUR SPORT- I'M GONNA
TALK ABOUT BETTING BUT EVERYONE
TODAY'S TALKED ABOUT BETTING SO
INDULGING WHILE I TALK A LITTLE
BIT ABOUT SPORTS THE FIRST WORD
IN SPORTS BETTING- CALIFORNIA'S
A REALLY IMPORTANT STATE. FOR
MAJOR LEAGUE BASEBALL WE HAVE
FIVE CLUBS HERE THAT'S BY FAR
THE MOST OF ANY STATE- WE HAVE
MORE ON TEAMS HERE I THINK THAN
ANY OTHER INDIVIDUAL. LEAGUE
YET IN THE U. S. AFTER THE
WORLD SERIES THIS PAST DECADE
INCLUDED A TEAM FROM CALIFORNIA
YOU KNOW THEY'VE BEEN PRETTY
SUCCESSFUL. OUR OUR OUR CLUBS
HERE WE CALL CLUBS NOT TEAMS
THAT SORT OF MLB LINGO OUR
CLUBS ON HAD BEEN IN THEIR
COMMUNITIES FOR DECADES AND
THEY BECOME IMPORTANT PARTS OF
THEIR COMMUNITIES- WHEN I'M-
WALKING AROUND LA- I KNOW IT'S
WEIRD WALKING ALIVE. I DO THAT-
WHEN I WALK AROUND LA I SEE
PEOPLE OF ALL WALKS OF LIFE ALL
RACES ALL AGES ALL
NATIONALITIES WEARING DAUGHTERS
CAPS. IN A WORLD THAT EEMS
SORT OF INCREASE. PRICE WERE
COMMON GROUNDCAN BE HARD TO
FIND PEOPLE FIND COMMON GROUND
IN THAT THEY FIND COMMON GROUND
IN BASEBALL. IT'S PART OF WHAT
BRINGS PEOPLE IN THEIR
COMMUNITIES TING OTHER IT
BECOMES PART OF THEIR SHARED
HISTORY. PART OF THEIR SHARED
IDENTITY- AND THAT'S IMPORTANT-
BUT IN ADDITION TO BASEBALL
PLACE IN THE CULTURE ARE OUR
CLUBS OR AN ECONOMIC ENGINE FOR
THE STATE. WITH THE FIVE OF
THEM- THEY EMPLOY THOUSANDS OF
PEOPLE- THEY GENERATE TENS OF
MILLIONS OF DOLLARS IN ANNUAL
TAX REVENUE THEY SPEND TENS OF
MILLIONS OF DOLLARS ANNUALLY IN
CALIFORNIA. WE PLAY OVER FOUR
HUNDRED GAMES A YEAR IN THIS
STATE. BY FAR THE MOST IN IN A-
WEEK- AND FOR EXAMPLE IF YOU
WALK ECHO PARK IN SAN DIEGO ON
A GAME DAY- YOU SEE- THE
ECONOMIC ACT. THAT IS GENERATED
BY THAT CAN HELP. IN VITAL IT
IS TO- BUSINESSES IN DOWNTOWN
SAN DIEGO. OUR CLUBS AND OUR
PLAYERS ARE ALSO FORCES FOR IT
IN THEIR IN THEIR COMMUNITIES
WE GIVE BACK A LOT- INCLUDING
THROUGH OUR YOUTH ACADEMY IN
COMPTON CALIFORNIA WHERE WE
PROVIDE EDUCATIONAL AND
BASEBALL AND SOFTBALL
INSTRUCTION OPPORTUNITIES TO
YOUNG PEOPLE. AS PART OF OUR
LEGACY IN A- CONNECTION WITH
THE TWENTY TWENTY ALL STAR GAME
READ ME DONATING MILLIONS OF
DOLLARS TO COMMUNITY ENRICHMENT
PROJECTS AROUND LOS ANGELES-
AND OUR PLAYERS DO YOU-
CHARITABLE EFFORTS THROUGHOUT
THE YEAR SO THE REALLY FORCE
FOR GOOD. SO WELL WHY AM I
TELLING YOU ALL THIS- I THINK
IT'S IMPORTANT KEEP THAT IN
MIND BECAUSE THAT IS WORTH
PROTECTING. AND SPORTS BETTING
IS GOING TO HAVE A BIG IMPACT
ON BASEBALL. AND IT'S REALLY
IMPORTANT THAT CALIFORNIA- GET
IT RIGHT- PARTICULAR BECAUSE
THIS WILL BE THE LARGEST SPORTS
BETTING MARKET IN THE COUNTRY-
AND- IT WILL BE A STATE THAT
OTHER STATES LOOK TO. AND SO
WHAT IS GET YOUR RIGHT MEAN IN
TERMS OF SPORTS INTEGRITY ALL
TALK ABOUT THREE THINGS BRIEFLY.
THE FIRST THING IS ANY LEGAL
FRAMEWORK FOR SPORTS BETTING
SHOULD INCLUDE MANDATORY
COOPERATION BETWEEN LEAGUES
SPORTS BETTING OPERATORS AND
REGULATORS. MY BACKGROUND IS
INVESTIGATIONS I WAS A FORMER
PROSECUTOR- AND I CAME TO
BASEBALL TO HEAD UP THE
DEPARTMENT INVESTIGATIONS AND I
KNOW AS A FORMER INVESTIGATOR-
OR IN KERN INVESTIGATOR THAT.
YOU KNOW THE QUALITY YOUR
INVESTIGATIONS INTO POTENTIAL
MANIPULATION OF PROBLEMS WITH
INTEGRITY YOU'RE ONLY AS GOOD
AS THE INFORMATION YOU CAN
RECEIVE. A LOT OF THEM
INFORMATION IS IN THE HANDS OF
THE OPERATORS AND SO IT'S
IMPORTANT THEY WORK TOGETHER
WITH WEEKS- AND PROVIDE US-
INFORMATION ABOUT ABNORMAL
BACK. EARNS ABOUT SUSPICIOUS
BETTING ACTIVITY THINGS THAT WE
NEED TO KNOW ABOUT. A SECOND
ITEM IT'S IMPORTANT IS FOR THE
ABILITY TO WORK WITH
REGULATORS. ON WHAT KIND OF
BATS CAN BE OFFERED WE'RE NOT
LOOKING TO RESTRICT THAT'S ON
THE OUTCOMES OF OUR GAMES WERE
NOT EVEN LOOKING TO RESTRICT
BETTING ON YOU KNOW WHAT THE
NEXT PLAYER WILL DO IN THE NEXT
AT BAT. BUT THEY'RE CERTAIN
BETTING THAT PROVIDES- GREATER
RISK OF PRESENTS GREATER RISK
OF THOSE CAN BE REALLY SMALL
GRANULAR BATS LIKE SOMETHING ON
A BALL OR STRIKE. ALSO BETTING
ON THE LOWER LEVELS OF BASEBALL
ON JUST PRESENTS MORE RISK FOR
MANIPULATION SO WE'D LIKE THIS
YOU KNOW IN ANY LAW TO HAVE A
VEHICLE TO WORK WITH THE
REGULATOR. ON WHAT KIND OF. CAN
BE. I'M FINE I. REALLY PROTECT
SPORTS INTEGRITY- WE THINK
THERE NEEDS TO BE A MOBILE
OPTION. THE ILLEGAL MOBILE
BETTING MARKET IN CALIFORNIA IS
A THREAT TO INTEGRITY ILLEGAL
OPERATORS AND DO NOT. COOPERATE
WITH MY INVESTIGATIONS HEY DO
NOT PROVIDE US INFORMATION
ABOUT SUSPICIOUS BETTING
ACTIVITY OR ABNORMAL PATTERNS
ON AND SO TO REALLY PROTECT
SPORTS INTEGRITY YOU NEED TO
STAMP OUT THE LEGAL MARKET AS
MUCH AS YOU CAN. I CAN NEVER
STAMP OUT COMPLETELY AS OTHER
PEOPLE TALK ABOUT DAY- BUT
YOU'RE DEFINITELY NOT GOING TO
STAMP IT OUT IF YOU DON'T GIVE
PEOPLE IN CALIFORNIA ON A LEGAL
SAFE OPTION FOR MOBILE BETTING.
IN CALIFORNIA ARE BETTING ON
THE PHONES NOW. ON IT'S EASY
AND SO UNLESS YOU PROVIDE THAT
OPTION AND THEN YOU'RE REALLY
NOT DOING THE MOST YOU CAN TO
PROTECT SPORTS INTEGRITY. SO I
APPRECIATE YOUR TIME TODAY.
TERMS OF YEAH- MISPLAYED YOU-
BROUGHT UP OFFICIALLY DATA I
CAN SEE WHY THAT'S REALLY
IMPORTANT AS OPPOSED TO. USING
THE. WHO WHO ARE THE OTHER
SPORTS. BOOK OR WHOEVERTHE
THEIR STATISTICS IT'S I THINK
IT'S REALLY IMPORTANT BUT I
GUESS ONE OF THE QUESTIONS THAT
HAVE TO ASK YOU IS WHAT KEEPS
SOME OF YOUR EMPLOYEES OR- OR
EVEN A MAJOR LEAGUE BASEBALL
TO- OF GETTING CAUGHT UP IN
THIS AND ALL OF SUDDEN TRIED
TO. YOU KNOW MOVE THE NUMBERS-
FOR THEIR SELF GRATIFICATION SO
TO SPEAK YEAH THAT STUFF IT'S A
GREAT QUESTION AND ONE THAT I
SPEND A LOT OF TIME THINKING
ABOUT IN TERMS. OF HOW DO WE
MAKE SURE. SITUATION YEAH. I'M
SORRY. HOW TO MAKE SURE PEOPLE
IN OUR ORGANIZATIONS-
ORGANIZATION UNDERSTAND THE
RULES HOW DO WE ENFORCE THEM
HOW DO WE DETECT- ACTIVITY
THAT- IS CONTRARY TO THE RULES
AND SO LET ME SAY A FEW
DIFFERENT THINGS ONE IS- THE
MANY LAYERS. OF REVIEW AND
REDUNDANCY IN THE DATA
COLLECTION PROCESS WE HAVE-
FOUR OR MORE PEOPLE THAT ARE AT
THE STATISTICIANS STATISTICIANS
TABLE IN A GAME THAT ARE
COLLECTING CHECKING EACH
OTHER'S WORK THERE'S AN
CONSIDER. THESE FLAGS WILL GO
UP. THE APP. ON THEIR REVIEWERS
IT OUR OPERATIONS CENTER IN
AUGUST JERSEY THAT ARE LOOKING
AT THE WORK OF THE PEOPLE WHO
ARE IN THE ARENA THEY SPOT
THINGS THAT SEEM WRONG AND THEY
WILL OVERRIDE THAT AND CHANGE
IT OR PHONE IN- YOU KNOW TO THE
PEOPLE WHO ARE- TABULATING THE
DATA AND SAY I THINK WE YOU
SOMETHING'S OFF HERE AND ALL
AGREE ON. ON FIXING THAT AND
THEIR OTHER LAYERS REVIEW THE
CHAIN AS WELL TO MAKE SURE OR-
ANYTHING THAT IT. GETS
CORRECTED SO. ONE PERSON CAN BE
ABLE TO MANIPULATE OUR DATA.
HEY THERE. ANY KIN OF BEDDING
OUTCOME OR OR ANYTHING ELSE
THIRTY KEY. I TAX AND LET.
PLACE BROADLY WE HAVE- VERY
SWEEPING INTEGRITY PROGRAM TO
MAKE SURE THAT WE HAVE TRAINING
ALL OF OUR PERSONNEL. WHAT ARE
RULES ARE IN THOSE RULES BY THE
WAY ARE INCREDIBLY STRICT-
LEAGUE PERSONNEL CAN'T. BET ON
THE NBA CAN'T SHARE INSIDE
INFORMATION CONNECTION WITH
GAMBLING ON NBA GAMES AND OF
COURSE. CAN'T MANIPULATE OR DO
ANYTHING THAT IS INTENDED TO
MANIPULATE A GAME OUTCOME OR
SOMETHING THAT THAT HAPPENS IN
A GAME FOR IMPROPER PURPOSES-
YOU CAN GET A LIFETIME BAN.
FROM THE LEAGUE IF YOU VIOLATE
THESE RULES- AND WE ARE TRYING
TO GET AT OUR PERSONNEL AND AS
MANY DIFFERENT WAYS OVER THE
COURSE OF THE SEASON AS WE CAN
TO MAKE SURE THAT NO ONE WOULD
BE ABLE SAID I DIDN'T KNOW- I
COULDN'T DO THAT. THEY HAD YOU
KNOW TAKE A REALLY STRICT ACT
AND IF WE FIND SOMETHING SO.
THOSE ARE THE TYPES OF THINGS
WE DO. DIRECT MY QUESTION TO
SEE THE- WE'VE HAD FOUR PANELS
THUS FAR TODAY. ON THIS
QUESTION OF NOT JUST THE
INTEGRITY OF THE GAMES BUT THE
CONSUMER EXPERIENCE THE. THE
STATE PUBLIC GOOD NOT A SINGLE
PAYER WILLIS HAS SUGGESTED THUS
FAR THAT HAVING A BRICK AND
MORTAR ONLY WITHOUT AN ONLINE
COMPONENT IS GOOD FOR ANY THAT.
WOULD YOU CONCUR WITH THOSE
COMMENTS. WELL. I'D SAY THIS I
I'M NOT IN THE GAMING INDUSTRY
PER SE RIGHT SO I DON'T- MY
EXPERTISE IS NOT GAMING
PRODUCTS BUT- I DO THINK THAT-
AS A PANELIST SAID EARLIER I
WOULD AGREE IN TERMS OF THAT UP
THE PRODUCTS THAT ARE AVAILABLE
IN THE BETTING THAT'S AVAILABLE
IF YOU'RE DOING IT RETAIL- IS
NOT DIFFERENT A LOT ON SMALLER
IN SCOPE THAN WHAT YOU CAN DO
ONLINE PARTICULAR WITH IN PLAY
BETTING AND I DO THINK. AND WE
THINK THAT IMPORTANT ADDING IS
THE FUTURE OF THAT AND IT'S
BETTING IN EUROPE OUR GAME IS
PRETTY DO SERVICE AS ONE OF THE
PANELISTS SPOKE TO FOR IN PLAY
BETTING WE THINK. IF DONE. AND
DONE AS PART OF THE FRAME. OF
TEXAN TERRY GAME IT CAN BE
REALLY GOOD FOR ENGAGEMENT OUR
FANS AND NOT SOMETHING WE WANT
AND THAT GROWS THE PIE FOREVER.
THE MORE SPECIFICALLY NAM I ASK
YOU TO SPEAK. TO THE BUSINESS
OF GAMING BUT AS IT RELATES TO
INTEGRITY OF THE GAME YEAH HAVE
AN ONLINE COMPONENT IS.
ABSOLUTELY AND- I CAME TO THAT
CONCLUSION VERY EARLY IN
EDUCATING MYSELF ABOUT THIS
BECAUSE- BECAUSE OF THE FACT
THAT THERE IS A ROBUST ILLEGAL
MARKET- THAT IS NOT GOOD FOR
INTEGRITY IT'S IMPORTANT TO
HAVE A LEGAL ALTERNATIVE- AND
IT'S IMPORTANT HAVE A
TRANSPARENT. AND IF
TRANSPARENCY- IS WHAT- SURE IS
INTEGRITY AND SO WE'RE
TRANSPARENT YOU MAKE THE MARKET
THE MORE THE DIFFERENT PEOPLE
IN THE MARKET THE OPERATORS THE
REGULATORS THE LEAGUE'S WORK
TOGETHER- THE BETTER IT'S GOING
TO BE FOR THE LEASE THE BETTER
IT'S GOOD. FOR CONSUMERS AND.
SINCE HE'S IN INTO THE PRODUCT
THEY'RE GONNA BUT MORE IN THAT
FOR THE STATE COFFERS AS WELL
AS WEBER EIGHTY I THINK IT
REALLY RIGHT RESULT BOATS. BOTH
THE MID SHIP KIND OF LARGER
SPORTS ECONOMY THIS IS. I THINK
A PART OF DISCUSSION. THIS
SEEMS TO GET LOST. I THINK WE
HAVE DIALOGUE AMONGST THE
MEMBERS THAT WE SHOULD
LEGISLATURE. ON A PRETTY ROBUST
SPORTS COMING CALIFORNIA YOU
MENTION FIVE- BASEBALL TEAMS I
THINK WE HAVE- IN THE
NEIGHBORHOOD OF FIFTEEN-
PROFESSIONAL SPORTS TEAMS- UP
AND DOWN THE STATE OF
CALIFORNIA THAT I ASSUME
EMPLOY. WE YOU SAID THAT TENS
OF MILLIONS AND- A FEW THOUSAND
BUT I SUSPECT IF WE- TAKE THAT-
THAT ENTIRE ECONOMY THAT'S
PRETTY FAST ENOUGH NOT TO
MENTION- IT WILL PANELISTS HERE
TODAY THAT HAS A. TV SHOULD.
DEAL WITH THE CURRENT BETTING
WE'VE GOT. SPORTS SHOWS IT
SEEMS THAT BOTH SPORTS WAGERING
AND FANTASY SPORTS ARE
SIGNIFICANTLY TIED TO THE
SUCCESS OF YOUR ISSUE IN A AND
AS I WATCH AS A LAY PERSON- YOU
KNOW BASEBALL MAKE RULE
CHANGES- TO TRY TO ADAPT AND
EVOLVE- I ASSUME TO- THE
CONSUMPTION HABITS OF BASEBALL
FANS- HOW INTEGRAL CRITICAL. IS
SPORTS BETTING IN AND FANTASY
SPORTS TO THE FUTURE OF NOT
JUST BASEBALL BUT THE SPORTS
ECONOMY AS A WHOLE. AND WHAT IS
THAT MEAN FOR CALIFORNIA WITH
FIFTY PROFESSIONAL SPORTS TEAMS.
HI I CERTAINLY COULDN'T GIVE A
NUMBER OR PERCENTAGE TO IT
WE'VE- BEEN PRETTY OPEN ABOUT
THE NOTION THAT- ADDITION TO
THE INTEGRITY BENEFITS OF LEGAL
BETTING THERE'S A FAN
ENGAGEMENT. BENEFIT AS WELL
THAT PEOPLE IT'S AN IT IS
ANOTHER FUN WAY FOR PEOPLE TO
ENGAGE WITH SPORTS AND PEOPLE
WHO- ARE BETTING ON SPORTS ARE
PLAYING FANTASY OR OTHERWISE
HAVE SOME- SOME STAKE IN THE
GAME ARE GOING TO WATCH GAMES
LONGER GONNA WATCH MORE GAMES
CONSUMER THEIR CONTENT TO JUST
BE MORE INTO IT WHICH IS- KIND
OF STATING THE OBVIOUS BUT-
THAT'S THAT'S PART. THE IS THIS
THIS YEAR NOW HOW MUCH OF THAT
COMES FROM PEOPLE WHO ARE DOING
IT COOLEY WHO ARE PLACING BETS
BEFORE VERSUS PEOPLE WHO ARE
SHIFTING FROM ILLEGAL OPERATOR
TO. OPERATOR I DON'T KNOW I
DON'T HAVE DATA TO BE ABLE TO
ANSWER THAT YET- AND- LARA HART
THIS IS HAVE. A LOT OF OTHER
CHALLENGES AND OPPORTUNITIES%
BEYOND SPORTS BETTING THIS IS A
YOU KNOW A TOPIC THAT WORK FULL
CON RIGHT NOW THERE ARE RISKS.
BUT ALSO OPPORTUNITIES THERE.
WERE ALSO FOCUSED ON A LOT OF-
OPPORTUNITY AS WELL TERMS OF
INTER PERSONAL NEW TYPE. OF
MEDIA AND LIKE THAT. TEAMS HAVE
DONE THAT IN STATES WHERE IT'S
LEGAL AND WE'RE STARTING TO
SEE. MORE OF THAT TO AN THEIR
OPPORTUNITIES- IN THOSE
AGREEMENTS TO GROW. THE
BUSINESS RIGHT IT YOU CAN HAVE
A MORE ROBUST SPORTS BETTING
MARKET WHEN LEAGUES ARE
PARTICIPATING AT ONE OPERATORS
CAN USE LEGAL LITTLE PROPERTY
WHEN YOU HAVE OFFICIAL DATA IT
IS PART OF THE SYSTEM. WHEN YOU
HELP THE LEGAL OPERATORS TO
DISTINGUISH THEMSELVES FROM
ILLEGAL OPERATORS THAT'S A PLUS
FOR EVERYBODY. FOR BOTH OF YOU
IN STATES WITH EXISTING BOOKS
SPORTS BETTING DO ANY OF YOUR
TEAMS HAVE ON SITE. SPORTS
BETTING FACILITIES. IF SO CAN
YOU KIND OF DESCRIBE HOW THEY
OPERATE. ALTHOUGH FIRST NOT NOT
YET- THERE- THERE'S BEEN AN
ANNOUNCEMENT BY THE WIZARDS AND
MONUMENTAL SPORTS OF A SPORTS
BOOK THAT WILL BE. PART OF THE
CAPITAL ONE AENA STRUCTURE-
BUT THAT HASN'T OPENED YET- AND
IS STILL IN DEVELOPMENT A LONG
WITH THE REGULATIONS AND DC-
THERE A COUPLE OF OTHERS THAT
ARE ARE LOOKING AT IT IN
ILLINOIS WAY THERE'S AN
AUTHORIZATION. FOR SPORTS BOOKS
TO BE ABLE- TO BE LOCATED AT-
AT AN ARENA BUT THEY'RE STILL
PRETTY EARLY ON AND THAT
PROCESS AND NOTHING HAS
HAPPENED YET SO- WE'RE SEEING
WHERE THE VERY EARLY STAGES OF
THAT AND HAVEN'T ACTUALLY. SEEN
THAT COME TO FRUITION YET IN
THE NBA BUT THERE'S INTEREST.
THERE IS INTEREST YES AND A
COUPLE OF THINGS IN THE
PIPELINE. YEAH EVENTUALLY
BASEBALL CURRENT RULES DON'T
ALLOW IN GARY IN STADIUMS
SPORTS BOOKS- BUT THERE ARE. IN
DC AND IN ILLINOIS I EXPECT
THAT OUR CLUBS WILL TAKE
ADVANTAGE OF THE ABILITY TO-
THE ABILITY THAT'S IN THE LAW
TO HAVE RETAIL SPORTS BOOKS
OUTSIDE THE STADIUM. THANK YOU.
OKAY. BECAUSE I WILL QUICKLY
GET QUESTION THANK YOU. THE
QUESTION ABOUT BRICK AND MORTAR
VERSUS MOBILE- ASPECTS OF THE
SOLAR INDUSTRY KEEPS COMING UP.
AND I GUESS FOR ME THE QUESTION
IS- AND MAYBE THE RIGHT
PNELIST ANSWER THIS ISSUE OF
OVERSIGHT OF AND SECURITY RIGHT
OF. THE SCENARIO WAS PRESENTED
EARLIER OF PERSON- WALKING IN
WITH THE- THE BLACK- SUITCASE
IN AND MONEY WALKING AND- TO
GAMBLE AND WHETHER OR NOT WE
ARE. ABLE TO VIA A MOBILE
SOURCE- VERSUS A BRICK AND
MORTAR LOCATION TO BE
APPROPRIATE OVERSIGHT-
ACCOUNTABILITY OF WHAT COULD
POTENTIALLY BE- MONEY
LAUNDERING- DIRTY MONEY AND SO
I BECAUSE THE QUESTION BY THE
CHAIRMAN KEEPS COMING UP A
BRICK AND MORTAR AND- THE
MOBILE ASPECTS AND JUST WONDER
IF THERE'S A DIFFERENT. ARE THE
LEAST UNDER LOOKING AT THAT.
FROM OF. TRANSPARENCY AND-
ETHICAL YOU KNOW A STANDPOINT-
THAT THE INTEGRITY THE WORD
INTEGRITY ENOUGH I'M JUST
WONDERING IF MAYBE THE RIGHT
PANELISTS IT MAY NOT BUT I MEAN
KEEP RAISING THE QUESTION ABOUT
BRICK AND MORTAR AND THE NEED
FOR THIS TO WORK IS TO BE A
MOBILE COMPONENT. TO THIS. YEAH
I DON'T KNOW IF ON THE RIGHT
PANEL SPIN OFF ANTHRAX RIGHT.
THERE I USED TO PROSECUTE MONEY
LAUNDERING CASES SO I'LL MAYBE
TRY TO PUT ON THAT HAVE A
LITTLE BIT BUT- I THINK. I
THINK IT MAY DEPEND ON THIS.
BUT MY UNDERSTANDING IS IN AT
LEAST SOME STATES IF YOU BAT IN
A SPORTS BOOK ON MUCH BENDING
OVER TEN THOUSAND DOLLARS-
SOMETIMES YOU DON'T EVEN NEED
TO PROVIDE YOUR ID. OR CORE
FILL OUT FORMS- AND AGAIN I'M
THE GAME INDUSTRY SELF WRONG
THEN I'M SURE THEY'LL TELL ME
AFTERWARD BUT THAT'S FINE SO.
ANYTHING OVER TEN THOUSAND
DOLLARS YOU WOULD HAVE TO LIKE
FIVE GUYS BACK THERE'SA NOTED
THERE HAD YEAH THAT. SO THAT
THEY CAN BOB BUT- I DO THINK
WITH WITH A MORE WILL. TELL YOU
THIS THE WITH A MOBILE PRODUCT
TO ME YOU ARE SIGNING UP YEAH
YOU KNOW WITH YOUR NAME. YOUR
IDENTIFIERS AND SAID SO. I
THINK IT THE SHIELD LAUNDRY
THROUGH A LEGAL REGULATED.
GLOBAL MARKET IS MUCH LOWER
ATTENTIONAL UNDERSINK THROUGH
BURKE MORE. I WAS THAT I. IT AT
THE- CORNER. WHO IS. SAID THAT
YOU KNOW THE- GATE AT FIVE
HUNDRED OR THOUSAND AS THEIR
OWN INTERNAL CUT OFF YOU KNOW
WHAT. THE BIGGER BETTER THAN
TAT AND SOMEONE THEY DON'T
KNOW THEN THEY'RE GONNA ASK FOR
ID YEAR CARD OR WHATEVER AND
THAT'S GREAT I LIKE TO HEAR
THAT KIND OF THING. AND YOU
KNOW THE- THE GOOD OPERATORS
ARE GOING TO. BE ON TOP OF THE
THINGS THAT BRING TO. MIND WITH
OUR INTERESTS A LOT OF WHAT.
THE REASON WHY WE'RE LOOKING
FOR THE TYPES OF THINGS- YOU
KNOW THE- TYPE PROTECTIONS THAT
THE- BRIAN WAS DESCRIBING IS
NOT BECAUSE WE THINK THAT. THE
BEST OPERATORS ARE GOING TO DO
THOSE THINGS ANYWAY IT'S
BECAUSE WE WANT TO MAKE SURE
THAT ALL. AS ARE ALWAYS GOING
TO BE ARE CHOOSING TO WHAT ARE
THE MORE AGGRESSIVE- MANAGER.
KNOWS WHERE WHAT WE- NEED TO BE
SOME CONSISTENT STANDARD. WHAT
I'M NOT. AWARE I THINK. I'D
LIKE TO. CONTINUE TO LOOK AT A
LOOK TO SEE A LOW. BURKE YOU
KNOW REGULATORY THRESHOLD FOR
ONE- MEAN ID HAS TO BE TAKEN
OUR IDENTITY DISCLOSED. THANK
YOU. SURE IN THE PAST HOW THE
DIFFERENT SPORTS LEAGUES DEALT
WITH THE LEGAL OFFSHORE
SPORTSBOOK OPERATORS IN THE
NAME INTEGRITY. NINE THE SHORT
ANSWER IS WE HAVE SOMETHING WE
DON'T HAVE REALLY ANY CONTACT
WITH THOSE FOLKS- THEY
CERTAINLY DON'T REACH OUT TO
US- WE HAVE NO ABILITY TO
MANDATE COOPERATION FROM THEM-
REALLY GET ANYTHING. FROM THEM
TO HELP WITH INTEGRITY. AYE AYE
THE ONLY THING THAT WE REALLY
CAN DO IS THIS IS ONGOING IS TO
HELP. AT LEAST EDUCATE OUR
PERSONNEL AND BUSINESS PARTNERS
ON. YOURS WHO'S LICENSED AND
REGULATED AND HERE'S WHO'S NOT
SO YOU KNOW IF YOU AVOID THESE
OFFSHORE COMPANIES THEY'RE
ILLEGAL ON PEOPLE DON'T KNOW
THAT THE INNOCENTLY JUST SEE AN
AD. OR THE SYSTEM YOU TO DO A
SEARCH YOU KNOW HOW MY PLACE A
BET ON THE NBA AND YOU KNOW
YOU'LL GET A BUNCH OF SITES
THAT COME UP THAT ARE ILLEGAL
OFFSHORE SITES AND THOSE GO UP
IN THEIR CREDIT CARD AND ALL
WORKS IN. THE PRE SPLIT AFTER
WHAT. AND THERE YET SO PART OF
WILL. TRY TO DO IS MAKE SURE
THAT PEOPLE UNDERSTOOD. ONES
ARE LICENSED IN OUR INNER
GOODNESS YOU'RE GONNA DO IT YOU
SHOULD USE THOSE AND DON'T.
HERE'S WHAT YOU SHOULDN'T BE
USING. GIVE AN ESTIMATE OF WHAT
THE PERSON IS A FRAUD OUT THERE
IS. YOU GUYS HAVE ANY IDEA I'M
NOT A I'M NOT JUST TALKING
SOLELY OFF SHORE BUT JUST IN
GENERAL. GIVE ME FRAUD IN TERMS
OF THAT BETTING THAT IDEA
BUILDING AND I DON'T. OKAY ANY
ADDITIONAL QUESTIONS MEMBERS.
SEEING NONE THANK YOU GENERAL
VIEW TESTIMONY WILL CERTAINLY
BE IN TOUCH AS THE COMMITTEE-
SCORE OVER THIS ISSUE OF A
CLAIM THANK YOU VERY MUCH. AT
THIS TIME MEMBERS WERE TOO WELL
PUBLIC COMMENT WELCOME. ONE TWO
THE MICROPHONE HERE. I SEE WE
HAVE SOMEONE PROCEED SIR. THE
AREA OKAY- GOOD AFTERNOON- MY
NAME IS JOHN LEVEL I'M A
LOBBYIST TO THE CAPITAL I
REPRESENT- PLAYERS- POKER CLUB
HE AND- VENTURA I'VE ALSO FOR
THE LAST THIRTY FIVE YEARS
REPRESENTED VARIOUS LAW
ENFORCEMENT GROUPS OF THE
CAPITAL I WANT TO COMMANDED THE
COMMITTEE FOR ONE OF THE MOST-
INFORMATIVE HEARINGS THAT I
HAVE SEEN IN THE THIRTY FIVE
YEARS THAT I'VE BEEN HERE- BUT
I THINK WHAT IS VERY IMPORTANT.
IS THE MESSAGE THAT. THE SIXTY
THE ANTI AS MUCH AS POSSIBLE OF
THE SPORTS BETTING MARKET HAS
TO BE MOVED UNDER A REGULATORY
AEGIS- AND THE FAILURE TO DO
THAT- WOULD BE- CATASTROPHIC
QUITE FRANKLY- IN MANY WAYS THE
PROPOSED BALLOT MEASURE THAT'S
BEING PENDING HAS SIT BACK AND
PUBLIC SAFETY AND LAW
ENFORCEMENT EMPLOYER SHINS OF
ONCE- THE OTHER THING I WOULD
SUGGEST IS THAT THE COMMITTEE-
REALLY CONSIDER THE TESTIMONY
OF ON THE- FIRST- WITNESS
MISTER WALLACE. ABOUT REALLY IT
I THINK POINTS THE WAY FOR WHAT.
THIS COMMITTEE AND THIS
LEGISLATURE CAN DO WITHOUT
HAVING TO GO THROUGH THE STEPS
OF A CONSTITUTIONAL AMENDMENT
THAT PERHAPS WE CAN ENACT A
COMPREHENSIVE ALL INCLUSIVE
SPORTS BETTING MODEL THAT
BRINGS. THAT MARKET INTO UNDER
A REGULATORY AEGIS I WOULD JUST
COMMEND THAT FOR YOUR FOR YOUR
THINKING THANK YOU VERY MUCH.
THANK YOU SIR. GOOD AFTERNOON-
CHAIRMAN DODD AND CHAIRMAN
GRAY- MY NAME IS CHESTER FIAMMA
THE CHAIR OF THE CALYX PO IN
STATE FAIR BOARD OF DIRECTORS
THANK YOU FOR BRINGING TO LIGHT
THIS POPULAR SUBJECT- SPORTS
WAGERING IS A- IS POPULAR
ACROSS THE COUNTRY IT IS
DEFINITELY POPULAR AT CAL EXPO.
AS WE HAVE BEEN- ACCEPTING
WAGERING ON HORSE RACES SINCE
THE CALIFORNIA STATE FAIR
STARTED IN EIGHTEEN FIFTY FOUR
ON BEHALF OF OUR BOARD I WANT
TO STATE OUR SUPPORT FOR SPORTS
WAGERING PROVIDED THAT RACING
FAIRS ARE INCLUDED- THE STATE
FAIR HAS A PROVEN AND SAFE
RECORD AS A WAGERING FACILITY
WE PROVIDE EXPOSURE TO MORE
THAN TWO MILLION PEOPLE.
ATTENDING EVENTS AT CAL EXPO
EACH YEAR THEY'RE ALREADY A
LIFE IN STE AND CLOSELY
REGULATED GAMING FACILITY.
CALYX SPOKE CURRENT HANDLES
RIGHT THE ONE HUNDRED BILLION
DOLLARS ANNUALLY AND WAGERS
INCLUDING PARKS RAISING STATE
FAIR BRACING AND SATELLITE
DURING THE WAGERING REP
GENERATED AT OUR FACILITY
SUPPORTS OUR STATE FAIR AND
CAN. STILL WORRIES. WHO ARE THE
FOUR DIFFERENT BANDS. AS UNDER
RACING FAIRS SCOOTED FROM THE
CURRENTLY PROPOSED TO STATE
WAGERING INITIATIVE WE WILL BE
OPPOSING IT SHOULD IT MOVED TO
THE BALLOT. AND HOPE THE
LEGISLATURE CAN OFFER A BETTER
ALTERNATIVE THANK YOU FOR YOUR
TIME. THANK YOU SIR. GOOD
AFTERNOON CHAIRMAN THAT GERMAN
GRAY COMMITTEE MEMBERS MY NAME
IS LARRY SWARTS LANDER I'M THE
EXECUTIVE DIRECTOR OF THE
CALIFORNIA THIRTY RACING FAIRS
KILEY NOTICE CARVE UP WE HAVE
THIRTEEN NUMBER AFFAIRS WHICH
TO HAVE SATELLITES THAT THEIR
OPERATE YEAR ROUND IN FOUR OF
THOSE FACILITIES ARE OPERATE
LIVE RACING AND YOUR CONDUCT
LIVE RACING FROM MID JUNE TO
MID OCTOBER AND I WAS A CAL
EXPO IS ONE OF OUR MEMBERS. WE%
STRONGLY SUPPORT THE
LEGISLATION OF SPORTS WAGERING
IN CALIFORNIA AS LONG AS STATE
DESIGNATED RAISING FARES ARE
ABLE TO PARTICIPATE. IS IMPAIR
THE SPORTS WAGERING BE
CONDUCTED IN A MANNER THAT
PRIORITIZES THE INTEGRITY OF
THE SPORTING EVENT. RAISES
REVENUE FOR THE STATE ENSURES
THE STATE THE SAFETY OF THE
PUBLIC. CALIFORNIA'S RAISING
FARES BEEN SAFELY SUCCESSFULLY
ACCOMPLISHING THIS SINCE
NINETEEN THIRTY THREE. AND AS A
RESULT WE BELIEVE STRONGLY THAT
IS THE STATE THE PUBLIC'S
INTEREST TO ALLOW US TO OFFER
SPORTS WAGERING IN OUR LIFE SO
THESE AND SATELLITE FACILITIES.
STATE DESIGNATED RAISING FARES
ARE REGULATED BY THE CALIFORNIA
DEPARTMENT OF FOOD AGRICULTURE.
IN THE CALIFORNIA HORSE RACING
BOARD. ALL KIND OF MEMBER
MEETINGS AND FINANCIAL
STATEMENTS ARE SUBJECT OPEN
MEETING LAWS PUBLIC RECORD
REQUEST STATE AUDITS ARE
GOVERNED BY LOCALLY APPOINTED
INDIVIDUALS. CONSEQUENTLY
THEY'RE NOT A SAFER AND MORE
REGULATED LOCATION FOR THE
PUBLIC TO PLACE A WAGER IN
CALIFORNIA THANK YOU. THANK YOU
SIR. GOOD AFTERNOON MY NAME IS
GLENN FELDMAN- ALTHOUGH I'M IN
ARIZONA LAWYER- I'VE BEEN
PRETTY ACTIVELY ENGAGED IN
TRIBAL GAMING IN CALIFORNIA FOR
QUITE A LONG TIME AND I DON'T
KNOW MISTER WALLICH BUT I DID
TELL HIM THAT I WAS GONNA MAKE
A COMMENT ON SOME OF THE
TESTIMONY HE MADE EARLIER
TODAY- I THINK MISTER WALKS
TESTIMONY WAS THAT HE WAS 1100%
CONVINCED THAT THE LEGISLATURE
HAD THE AUTHORITY TO AUTHORIZE
SPORTS BETTING. THROUGH SIMPLE
LEGISLATION AND THAT THE
CONSTITUTION AND THE CALIFORNIA
CONSTITUTION WAS NOT AN
IMPEDIMENT TO DOING THAT. UP
I'M NOT PREPARED TO SAY THAT
MISTER IS WRONG IN THAT
OPINION. BUT I CAN'T TELL YOU
THAT IT IS CONTRARY TO THE
CONVENTIONAL WISDOM OF MOST
LAWYERS WHO HAVE BEEN DEALING
WITH GAMING ISSUES IN
CALIFORNIA FOR THE LAST. TWENTY
OR THIRTY OR FORTY YEARS- SO I
WOULD SUGGEST THAT BEFORE THE
LEGISLATURE- RUSHES TO ENACT
LEGISLATION TO AUTHORIZE SPORTS
BETTING. I WOULD RECOMMEND THAT
YOU HAVE YOUR LAWYERS LOOK AT
THAT ISSUE PRETTY CAREFULLY
BECAUSE I THINK THAT ISSUE IS
QUITE A BIT MORE NUANCED AND
QUITE A BIT MORE COMPLEX THE
MAY HAVE BEEN SUGGESTED. THANK
YOU. THANK YOU SIR. MEMBERS
THANK YOU VERY MUCH FOR HAVING
THIS HEARING HE WAS VERY
INFORMATIVE MY NAME IS REALLY
BERMUDA'S ON THE EXECUTIVE
DIRECTOR OF CALIFORNIA CITIES
GAMINE AUTHORITY A JPA. THE
ORGANIZATION WAS FORMED AS A
JPA TO SUPPORT AND ARTICULATE
ISSUES OF CONCERN FOR LOCAL
GOVERNMENT MUNICIPALITIES WITH
SMALL AND MEDIUM CARD ROOMS AS
YOU'VE HEARD FROM- WITNESSES
TESTIFYING BEFORE YOU TODAY.
THE SPORTS WAGERING IS VERY
IMPORTANT ASSET OF IT'S A NEW
JOB REVENUES GENERATOR FOR THE
STATE OF CALIFORNIA. AS WELL AS
FOR MINISTER GOVERNMENTS AND
COUNTY GOVERNMENTS THROUGHOUT
THE STATE. IT'S IMPORTANT TO
THAT. AN OPPORTUNITY BE GIVEN
TO ALL OF THE SIXTY SIX CITIES
THAT HAVE SMALL MEDIUM CARD
ROOMS THROUGHOUT THE STATE.
THIS WILL CREATE A GREATER
OPPORTUNITY FOR. RESIDENTS TO
PARTICIPATE. AND ENJOY THE
SPORTS THAT THEIR WAYS RING ON
AT OUR CARD ROOMS IT ALSO GIVES
US THE ABILITY IN LOCAL
GOVERNMENT TO STABILIZE OUR
REVENUES SO THAT WE CAN
CONTINUE TO FUND OUR PUBLIC
SAFETY FIRE POLICE AND
PARAMEDICS SERVICES WHICH IS OF
NUMBER ONE REVENUES.
EXPENDITURE YOU ARE BUDGETS I'D
LIKE TO THANK YOU AGAIN VERY
MUCH FOR THIS OPPORTUNITY HAVE
A NICE EVENING. THANK YOU SIR.
WE HAVE AN ADDITIONAL OUR
PUBLIC TESTIMONY AT THIS TIME.
SEEING NONE THAT CONCLUDES OUR
HEARING FOR TODAY ALL THANK
AGAIN ALL OF OUR PANELISTS THE
PUBLIC THE REPRESENTS YOU BEING
HERE TODAY. THANK YOU MEMBERS
AND WITH THAT WERE JERKED