11VAC5-70-230(M) Sports governing bodies should receive real-time, account-level information from betting operators as set forth in the sports betting statute

Virginia’s sports betting law mandates that permit holders share in real time, or as frequently as is commercially reasonable, certain betting information with sports governing bodies. See Virginia Lottery Law; Sports Betting, Section 58.1-4034(B). However, the Board’s draft regulations undercut this mandate and state that disclosure is only required if the Director determines, in his or her sole discretion, that such information sharing is “necessary.”  We recommend that the Board amend this regulation to harmonize it with the type of data sharing that is contemplated in the statute.

Using technology to identify potential integrity issues based upon abnormal betting patterns is essential for all parts of the sports betting ecosystem, and sports governing bodies are best positioned to detect integrity issues across operators and across jurisdictions. Because sports betting in the United States is currently being legalized and regulated at the state level, there simply is no interstate system that collects and monitors betting data on a nationwide basis; states thus remain unable to detect abnormal betting activity that may occur across multiple jurisdictions. Sports governing bodies are uniquely positioned to fill this gap for their sports. They also have resources that no regulator or sports betting operator has in terms of investigative reach and authority, including access to teams, referees, players, and other insiders. For all of these reasons, we recommend the following amendment to the proposed regulations:

M. If a sports governing body notifies the Director that real-time information sharing for wagers placed on its sporting events is necessary and desirable, and the Director determines in the Director’s sole discretion that real-time information sharing is necessary, a regulated entity shall share the same information with the sports governing body or its designee with respect to wagers on its sporting events. Such information may be provided in anonymized form and may be used by a sports governing body solely for integrity purposes.