Comments on Draft Virginia Sports Betting Regulations
Score Digital Sports Ventures Inc.
Dear Virginia Lottery Board Members:
Score Digital Sports Ventures Inc. (“theScore Bet”) is pleased to submit comments to the Draft Sports Betting Regulations promulgated by the Virginia Lottery Board. theScore Bet appreciates the opportunity to provide input on the draft regulations and looks forward to the upcoming launch of sports betting in the Commonwealth of Virginia.
PLEASE NOTE: text in underlined bold denotes an insertion and strikethrough text in brackets [strikethrough] denotes a deletion.
11 VAC 5-60-10 Definitions
theScore Bet respectfully suggests that the two separate definitions for “Targeted mailing” be merged into a single definition and that the last sentence of the definition reads as follows:
“Targeted mailing further does not include any Internet “pop-up” advertisement that appears on an individual’s computer or mobile device on the basis of his or her IP Address.”
For online operators, a physical description that may assist in identification of the individual is not applicable. Therefore, theScore Bet respectfully suggests the following modifications:
“vi. A physical description of the individual, if applicable, including height, weight, gender, hair color, eye color, and any other physical characteristic that may assist in the identification of the individual; and”
theScore Bet respectfully suggests that this provision should be modified by deleting Section 3 so that operators are permitted to allow an individual’s outstanding bets to settle after they have been added to the self-exclusion list. A requirement to void outstanding bets opens the possibility for individuals to exploit self-exclusion for purposes of cancelling pending wagers (e.g. to avoid a potential betting loss) rather than due to legitimate responsible gaming concerns.
A. A sports betting permit holder shall establish procedures that are designed, to the greatest extent practicable, to:
[3. Void all outstanding wagers of an individual on the self-exclusion list;]
11 VAC 5-70-10. Definitions
theScore Bet respectfully recommends defining “Managerial Capacity” as set forth below, to ensure that the appropriate Principal Employees are licensed and to avoid middle-level and lower management positions of permit holders from unintentionally or unnecessarily being called forward for licensure.
“Managerial Capacity” means an employee performing the function(s) of an officer or director of the company.
theScore Bet respectfully suggests that the above definition of “Managerial Capacity” be included in the regulations, including in the definition of “Principal” which we suggest should be updated as follows:
“Principal” means an individual who, solely or together with the individual’s immediate family members, (i) owns or controls, directly or indirectly, five percent or more of the pecuniary interest in any entity that is a permit holder, or (ii) has the power to vote or cause the vote of five percent or more of the voting securities of such entity. “Principal” includes an individual who is employed in a Managerial Capacity [managerial capacity] for a sports betting platform on behalf of a permit holder.
theScore Bet respectfully recommends that the definition of “Sports betting employee” be updated as follows to make clear that individuals located outside of the Commonwealth of Virginia are permitted to serve as Sports betting employees:
“Sports betting employee” means an individual who does not meet the definition of a principal and works [within the borders of the Commonwealth of Virginia] for a permit holder, sports betting supplier, or vendor on non-management support services such as software or hardware maintenance, provision of products, services, information or assets, directly or indirectly, to the permit holder.
theScore Bet respectfully recommends that the definition of “Vendor” be updated as follows to make clear that vendors located outside of the Commonwealth of Virginia are permitted:
“Vendor” or “sports betting vendor” means a person [within the Commonwealth of Virginia] who is engaged by, under contract to, or acting on behalf of a permit holder and does not meet the criteria for licensing as a principal or a supplier.
theScore Bet respectfully suggests that A3. and A4. are contradictory and that A4. should be removed as follows:
3. Applications and required fees for permits will be accepted by the Director only during the initial permit application period, and thereafter, during an annual permit application period, as defined in these regulations.
[4. Applications and required fees for licenses and registrations may be accepted by the Director at any time following the effective date of these regulations.]
theScore Bet respectfully suggests that it will be difficult for applicants and the Department to accurately estimate adjusted gross revenue and associated tax revenue given the uncertainty concerning how many permits will be awarded. Therefore, theScore Bet respectfully recommends that T.5 be eliminated and that the Department award sports betting permits after consideration of the other enumerated items in Section T.
Further, theScore Bet believes that it is imperative that the Virginia Lottery foster competition and breadth of choice so that sports bettors in the Commonwealth of Virginia have the best betting experience possible. To this end, awarding sports betting permits on the basis of estimated adjusted gross and associated tax revenues favors larger operators at the expense of smaller, more innovative and customer-centric operators to the detriment of consumers.
11 VAC 5-70-140. Reserve and Insurance Requirements
theScore Bet respectfully requests that Section D.2 be updated to provide additional clarity on the type of “Errors and omissions insurance” that is required.
11 VAC 5-70-240. Advertising and Marketing
theScore Bet respectfully recommends that sections “A” and “B” be removed. The requirement for a permit holder to provide all advertising and marketing materials to the Director for review and approval is overly burdensome for permit holders, vendors, suppliers, and the Virginia Lottery. Regarding submission and approval of promotional materials developed by or on behalf of the permit holder, theScore Bet respectfully suggests that this can be accomplished by requiring promotional materials to be submitted to the Director as a “Notify and Do” at least five (5) business days prior to making the promotion available to patrons and permitting the permit holder to utilize all submitted promotions unless the Lottery requires additional information or otherwise notifies the permit holder that the submitted promotional materials are unacceptable for use.
[A. A permit holder shall provide all advertising, marketing, and promotional materials developed by or on behalf of the permit holder by a supplier or vendor to the Director in advance of publication or dissemination for review and approval in accordance with guidelines issued by the Director.]
[B. A supplier or vendor who advertises, markets, or offers promotions on behalf of more than one permit holder or without affiliation to any permit holder shall provide materials to the Director in advance of publication or dissemination for review and approval in accordance with guidelines issued by the Director.]