Category
🥇
SportsTranscript
00:00 (upbeat music)
00:03 - All right, let's get to California here.
00:05 Like many other states, Mike,
00:06 what we're finding is a lot of these states
00:09 just don't want these pick 'em games going on,
00:12 these daily fantasy pick 'em games.
00:13 I think in the case of California,
00:15 maybe a little bit different here,
00:16 because usually the road that this has gone
00:19 is that sports betting gets legalized in a state,
00:22 they're paying their taxes,
00:24 and then all of a sudden the state looks
00:25 at these DFS pick 'em operators like,
00:27 "Wait a second, they're not paying their taxes,
00:29 "so let's call them illegal and get rid of them."
00:31 Why is California doing this?
00:32 Because they don't have legal sports betting yet.
00:35 - Yeah, I think, Craig, this is just the tribes, again,
00:38 flexing their power, right?
00:39 They didn't want Fandle and Draftkings
00:41 to run sports betting, Proposition 27 got beaten.
00:44 They didn't want these venture capitalists coming in
00:47 and running sports betting operations in the state
00:49 via their proposed sports betting propositions,
00:53 and they didn't even make the ballot.
00:54 Those guys, they called it quits.
00:56 So the tribes really run the show in California,
00:59 they don't want these pick 'em games.
01:00 We've seen it in multiple jurisdictions, right?
01:02 Actually, really even more important
01:03 than the tribes last week is this morning,
01:05 prize picks said in New York, after the NFL,
01:07 after their biggest moneymaker drops,
01:09 and ends for the season,
01:12 we're finally ceasing operations on pick 'em in New York.
01:14 So that is kind of the big story this morning.
01:16 And I think you could see multiple jurisdictions.
01:18 They get those operators, prize picks and underdog,
01:21 that were operating potentially illegally in those states.
01:23 That's what the state regulators determined on pick 'em,
01:25 was it's illegal in our state, please cease and desist.
01:28 They are potentially, they got more than just New York,
01:32 they could stop in all those states
01:33 now that NFL season's over.
01:34 It wouldn't be surprising to see them come out
01:36 with multiple letters today.
01:37 They sent their New York customers, prize picks did,
01:39 a letter that said, by Wednesday at I think 11.59,
01:43 right before midnight, all these prize picks,
01:45 this paid pick 'em games are gonna be gone.
01:47 We'll have some free to play
01:48 where you can win cash prizes going forward.
01:50 So we'll see on that front, and then maybe Florida,
01:53 we'll see what happens there.
01:54 Another big state, Craig, like you said, with California,
01:57 Florida does have legal sports betting
01:58 through Hard Rock Bet.
02:00 We'll see, they were one of the states that said,
02:01 you can't do this here.
02:02 So we'll see if those operators, prize picks and underdog,
02:06 which were making waves, getting customers,
02:08 kind of probably concerning DraftKings and FanDuel,
02:10 but they're saying, well,
02:11 you're not playing by the same rules.
02:12 You're not paying the same taxes maybe as we are.
02:14 And so we'll see, probably,
02:17 is pick 'em gonna survive in the US?
02:18 Seems like they're gonna have to find another way for it to,
02:21 or they're gonna have to pay the same taxes
02:23 and go under the same regulations as the big operators,
02:25 or for them to continue.
02:26 But again, in Florida, excuse me, in California,
02:28 the tribes, they've said, they put out a big opinion
02:32 to the state attorney general,
02:33 has been investigating this issue and said,
02:35 you know, we don't want this either.
02:36 And the tribes have a huge say with their 52 members
02:38 in Sinaiga, including Pechanga, Morongo, San Manuel,
02:42 the big gaming tribes that have shut down
02:44 any sort of sports betting legislation,
02:48 or voter propositions that would get on the ballot
02:51 that the voters would be able to vote on.
02:53 So yeah, this is an issue that's not going away, Craig.
02:55 Sam McQuillan is a terrific beat writer
02:57 for us on this issue.
02:58 He knows way more about this than I do.
03:00 So he will be on this.
03:01 I'm sure you'll be talking about this
03:02 with multiple legal sports reporters this week,
03:05 because it is a huge story,
03:06 and we'll continue to get updates as the day progresses.
03:09 (upbeat music)
03:11 (bells chiming)