Sports Betting is Legal!
The US Supreme Court’s landmark ruling has cleared the way for every state to offer legalize sports betting.
Although there are a number of issues to consider when looking to take advantage of this new gaming opportunity, compliance heads the list.
The recent DOJ opinion impacting any roll out of sports betting requires a direct solution that will give you peace of mind when integrating sports betting into your inventory of services.
Among other legal and regulatory issues that may be in play in your jurisdiction, there are three legal controls that must be considered in setting up the appropriate operations of a sports book –
The Wire Act, The DOJ, and why is it a concern to Indian casinos.
The Wire Act, which was originally enacted in 1961 to assist states in enforcing their gaming laws and to suppress organized gambling activities across state lines.
Additional opponents to online sports betting using the Wire Act as a club against the activity include:
People that think sports wagering is just bad for the sport.
And even the offshore sportsbooks, that of course don’t want the competition.
So how does this affect sports wagering?
The issue stems from how most sportsbook software was designed. Many of the programs offered to operators were created in the UK.
And now that UK sports betting software, is coming to America.
This UK based sportsbook software was developed within a country wide jurisdiction with the architecture that would justify the use of one giant million dollar main server to provide services throughout an entire country.
Unfortunately That Model Is Expensive
It will not be economically feasible in the US because the Wire Act prohibits betting activity that crosses state lines.
Even when multiple Tribal casinos are within a single state, participating as an operator at a Tribal location may not be economical when splitting that server cost.
With respect to Indian casinos, the cost of placing this expensive server on the casino property can never be economically justified.
If several Tribal locations within a state are sharing one giant server providing the sports betting platform to them all in an economical manner, it might be argued that all is well under the Wire Act.
Even when these conditions are present, potential peril may still lurk under this scenario.
Indian Casinos, IGRA and the Indian Compacts
Federal law relating to gaming on Indian properties mandates that all bets must occur on Indian land via the Indian Gaming Regulatory Act.
Furthermore state negotiated Indian Compacts may reinforce that requirement as well.
Which means that even if the server farm is within the state, this will most likely fail to satisfy iGRA and may run afoul of compact language!
As has been said recently by Jonodev Chaudhuri former Chairman of N.I.G.C.
“having the server that takes a sports wager placed on the tribal casino premises, will be a safer bet to help satisfy the need for tribal control of the activity under iGRA.”
Even if the federal authorities are lax in enforcement of IGRA violations, this template may lead to problems in future compacts between the state and tribe.
To avoid any future issues, place the server on the casino’s land!
The Solution, HUB and SPOKE Technology
ISI Race And Sports believes the server should be located on the casino’s premises and accordingly has developed a cost effective technology called the HUB and SPOKE Technology!
ISI and Amelco has developed a technology that allows the servers, that take the wagers, to be on the casino premises at a very low cost.
This server at the casino, the Spoke is overseen from a Hub server located in a central location by ISI Sports. In fact this Hub will oversee multiple Spoke servers for multiple casinos.
The Spoke server is where the confidential sports transaction is made. And Your data is kept on Your server!
And most importantly, this Spoke server is located in a secure location within the casino’s premises.
Which means the wager is made at your casino!
Our Turnkey Sportsbook Solution
Our Sportsbook Solution is completely white label and allows you to brand Your casino and NOT some 3rd party provider.
We can customize everything to Your market and demographics.
We have a full retail option, a stand alone kiosk option, as well as mobile, when allowed by law and or compact.
Branded and customized to your own specs, colors and market. We included thousands of Pre-match and In-Play offerings