Digital Wager Wire highlights the most important events impacting the domestic and international sports betting and gaming industry each week throughout the year.
Hard Rock Pays for Its Error
The Seminole Indian Tribe is the owner of the valuable Hard Rock brand, and they have been making waves in the gaming world. A compact with the state of Florida gives them exclusivity over mobile sports betting and iGaming in the Sunshine State, while their newest land-based casino just opened its doors in Ontario only a few weeks ago.
Whether it is online or retail, Hard Rock has become a powerhouse brand, replete with its signature Hard Rock Cafes and rock n’ roll-themed restaurants, casinos, and core identity. But the company made headlines recently for a costly mistake that, unlike many corporations, it took complete responsibility for, and their customers are loving them for it.
Hard Rock sponsors an online trivia night in New Jersey during the summer and does not charge an entry fee to participate. The company gives away a grand prize of $5000 at the end of each session, and in late June, 353 people were playing, and all were mistakenly awarded the grand prize! That error cost the company $1,765,000, but the customers who saw their accounts credited with $5,000 are allowed to keep the erroneous grand prize.
“When made aware of the incorrect Live Trivia payouts, our response was quick and deliberate: the awards stand. While others may have tried to claw back the $5,000 awards — Hard Rock Bet wants to put our customers first wherever possible, not just when it’s convenient,” said Hard Rock Bet President Matt Primeaux.
Hard Rock Digital is one of several licensed iGaming platforms operating in New Jersey, but only seven states, including Delaware, West Virginia, Pennsylvania, Michigan, Connecticut, and Rhode Island, along with New Jersey, have launched their iGaming industry open to all licensed private gaming operators. Florida also has iGaming, but it is closed to all operators except Hard Rock.
California AG Says Online Fantasy Sports is Illegal
Underdog Fantasy did all it could do to prevent California Attorney General Rob Bonta from expressing his opinion on the legality of online fantasy sports in the Golden State. The company filed a temporary injunction stating the following:
“Absent relief from this Court, Attorney General Rob Bonta will issue an opinion later this week that will decimate fantasy sports in California,” reads the memorandum supporting the TRO request. “Attorney General Bonta should be enjoined from doing so, not because he is wrong in his views on the legality of fantasy sports—though he certainly is—but because by statute, the Attorney General can only issue opinions on questions of law and can only answer questions that relate to the duties of the official requesting the opinion.“
“Neither is true here. Thus, Attorney General Bonta lacks authority to issue the opinion and should be enjoined from doing so.”
However, that was soon tossed by Sacramento Superior Court Judge Jennifer Rockwell, who ruled against Underdog Fantasy and wrote in her decision:
“Petitioners had ample opportunity to raise such a challenge at any time after the Attorney General’s acceptance of the question posed by Senator Wilk in October 2023. The fact that Petitioners delayed filing this action does not constitute a basis for ex parte relief,” wrote Sacramento County Judge Jennifer K. Rockwell.
“The Ex Parte Application is denied. No hearing will be held.”
Bonta did articulate his opinion on the legality of fantasy sports emanating from a request in 2023 by former state Senator Scott Wilk. As expected, Bonta believes the fantasy sports industry violates California law, although it still operates in what has been a murky legal area.
The opinion does not carry any legal weight but may cause California lawmakers to sponsor bills specifically outlawing the practice.
