In the ninth paragraph of an open letter to U.S. sports betting regulators and legislators published Thursday (13 March) morning, Sporttrade founder and CEO Alex Kane boiled his mission statement down to two sentences:
“If the goal is to have as many players as possible choosing to play in your regulated market, there must be significant changes to your regulatory approach. You must consider making a sincere effort to welcome innovative companies into your regulated market.”
Nearly seven years after the Supreme Court ruling that allowed for widespread legalization of sports betting, the public conversation around the space has turned decidedly negative. There’s a heavy focus on a rise in problem gambling. A handful of legislators are pursuing paths to undo the legalisation in their state. The threat of federal intervention is turning up its volume and growing increasingly ominous.
Kane’s open letter at “Straight To The Point” serves as an alternative of sorts to all that negativity. It acknowledges several of the industry’s mounting problems. But it does so while pointing to a path forward and aiming for a brighter future.
Increase in platforms outside regulatory purview
In a departure from assorted major operators that largely aspire to please their investors, Kane projects a focus on the customer. He wrote that “without the player, there is no industry.”
His open letter comes at a time when options for reaching customers outside the guidelines of state-by-state regulation is at an all-time high. Some operators using the “social gaming with sweepstakes prizing” model. There are also prediction markets governed by the Commodity Futures Trading Commission (CFTC) using a format similar to the Sporttrade peer-vs.-peer exchange wagering. And then there are the ever-present offshore books.
“If your goal is to maximize participation in your market, something must change: players are increasingly flocking to venues that exist outside of your oversight,” Kane wrote.
Toward the end of his letter, he emphasized: “Let me say in no uncertain terms: without an overhaul that creates a realistic pathway for entrepreneurs to participate in your market, you will cede more tax revenue, jobs, venture capital, and player participation to alternative regulatory frameworks.”
Read the full story here.
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