DraftKings in Virginia?
Virginia having as many sports betting options as possible seems to be a matter of when, not if, judging by the company’s recent public statements.
Officials from DraftKings have recently submitted a series of comments during Virginia’s public commenting period regarding the proposed regulations for sports betting.
The commonwealth has requested comments before the official launch of online sports betting in Virginia. Once the regulations are formally approved, it is expected that the first online sportsbook operators will be available in late 2020 or early 2021.
DraftKings recently announced its intention to enter the Virginia market during an earnings call and press release. Presently, the company is striving to establish itself as the ultimate destination for sports bettors in Virginia, as well as for other operators in the region.
In a recent development, Caesars Entertainment has submitted its initial public comments in Virginia. The company, headquartered in Nevada, has joined forces with the city of Danville with plans of potentially launching a casino by 2025.
Caesars primarily emphasized regulations pertaining to responsible gaming in their remarks. Nevertheless, officials also urged Virginia to reconsider its intended prohibition on Olympic betting.
DraftKings subsequently requested the Virginia Lottery to remove the aforementioned restriction, along with another potential constraint on future sports betting opportunities.
Olympic betting with DraftKings in Virginia
After the launch of VA sportsbooks, betting on games featuring local colleges and universities will be prohibited for bettors. This restriction seems narrow-minded, particularly when considering the absence of professional sports teams in Virginia.
However, both Caesars and DraftKings are being selective in the battles they choose to engage in.
Besides the prohibition on betting props in college football for Virginia residents, out-of-state institutions are also not permitted. However, both companies did not acknowledge these limitations. Ultimately, this oversight could potentially provoke lawmakers and regulators.
Rather, the emphasis is solely on betting related to the Olympics.
As DraftKings officials wrote:
The General Assembly carefully considered which events to exclude from permissible bets, and deliberately chose not to prohibit Olympic events. To completely eliminate the illegal market, the legal market must be able to compete effectively. This entails offering a wide range of event and betting options to consumers.
Other potential betting restrictions in Virginia?
DraftKings seeks clarification from Virginia officials regarding the definition of a “sports event.”
The proposed regulations in Virginia provide a comprehensive and inclusive definition.
A “sports event” or “sporting event” refers to professional sports, college sports, as well as any athletic event, motor race event, electronic sports event, or competitive video game event.
DraftKings desires an expansion of the definition to encompass “… or any other sports event or combination of sports events that has been approved by the Board.”
What is the reason behind this? Firstly, the current definition may already exclude certain popular betting options.
Officials wrote in the public comments that there could be other sports events held throughout the year that people wager on annually, such as the Major League Baseball Home Run Derby, the National Basketball Association’s All-Star Slam Dunk Contest, the National Football League Most Valuable Player (MVP) Award, or awards shows like ESPN’s The ESPY’s. These events are conducted with integrity standards that align with Virginia’s expectations.
Virginia can prevent bettors from seeking their desired options across state or international borders by providing such betting opportunities.
Virginia faces stiff competition
Legal Virginia sportsbooks are facing competition not only from illegal offshore books and neighborhood bookies, but also from neighboring states such as West Virginia and soon Tennessee, which will provide legal betting options.
Furthermore, due to its initial struggles with legal sports betting, Washington, DC may be enticed by the prospect of a substantial Virginia betting market, which could attract its residents.
As DraftKings wrote:
Our experience has shown that markets with regulators who grant sports betting operators the flexibility to offer a diverse range of wagering events have witnessed the most rapid growth. By allowing sports betting operators to promptly provide a wide selection of betting options, licensed operators in regulated sports wagering markets can attract and retain players effectively.
They wrote that these measures would not only help align Virginia with successful markets such as New Jersey and Colorado, but also contribute to their overall progress.
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