Deutsche Bank Analyst Reflects on Louisiana Sports Betting Hearing

Carlo Santarelli, a Deutsche Bank analyst, has weighed in on the recent discussions surrounding sports betting in Louisiana.  He analyzed the various points made by lawmakers, saying that the latest Senate Judiciary Committee hearing ended up producing “more heat than light.”

Witnesses included NCAA’s president Charles Baker, Harry Levant, law director of gambling policy at Northeastern School, NCPG exec director Keith Whyte, National Football League Players Association representative Jonathan Bademosi, and ex-NJDGE David Rebuck.

The Hearing Saw Witnesses Express Their Thoughts

As reported by CDC Gaming, the Deutsche Bank analyst addressed ex-Massachusetts Governor Charles Baker’s position. Now serving as the sixth president of the National Collegiate Athletic Association (NCAA), Baker has, on numerous occasions, proposed federal intervention in sports betting.

Baker has cited concerns about betting-related harassment of athletes and has advocated for a ban on certain wagering products, including under bets on player performance and the acquisition of biometric athlete data. He has also extensively promoted a ban on college player prop bets.

Sen. Adam Schiff agreed with Baker’s points, proposing a complete ban on prop bets for professional sports too.

Keith Whyte, the executive director of the National Council on Problem Gambling, meanwhile, promoted a less-sweeping federal role. He has been a staunch supporter of the GRIT Act, which would set aside federal money for problem gambling treatment.

Some Were More Concerned about the Industry’s Dangers

Dr. Harry Levant was much more “aggressive” in his stance, Santarelli said. Levant strongly highlighted the addictive nature of gambling, arguing that it should necessitate increased federal regulation. According to him, alliances between social media and sports leagues are “unthinkable” since new technology allows every moment of a game to be made part of the gambling action.

Levant furthermore slammed responsible gaming as a “euphemism for industry self-policing” and described sports betting as a public health crisis.

Of the witnesses, David Rebuck was the only one to support the status quo, citing New Jersey as an exemplary market. While he acknowledged some of the problems faced by the industry, he said that they do not mean that federal oversight is needed.

No Significant Progress Was Made

Among other things, Santarelli was puzzled by Sen. John Kennedy’s decision to digress into a discussion about transgender athletes in sports.

Santarelli said that the meeting opened with a focus on the marketing side of betting. According to him, problem gambling was discussed in detail, stacking the odds against the industry. Speaking of that, the American Gaming Association noted that the industry lacked witnesses.  While the association vowed to continue protecting customers, it regretted that the industry’s voice was not heard.

In the meantime, most witnesses agreed to support Sen. Richard Blumenthal’s SAFE Bet Act.

Santarelli concluded that the unusual timing of the hearing paired with other challenges resulted in no significant advancement. He said: “We remain of the view that the regulatory and media scrutiny around the industry is elevated at present, though we don’t know that today’s hearing does more to illuminate this view.”