Betr co-founder Jake Paul was on the hot seat Tuesday, fielding questions about multiple controversial media reports and a visit from the FBI to his home, but the Massachusetts Gaming Commission seemed generally satisfied with an application for digital sports wagering from his company.
Betr’s applcation was the third of six from non-tethered digital sports betting entities. The MGC is aiming to complete the reviews by early next week before announcing which of the applicants will be awarded initial approval.
With legal counsel looking on, Paul forthrightly answered questions about stories that have run on People.com and TMZ; explained how, as a social media personality, his life is under a microscope; and defended his integrity. The questions were direct and often pointed, so much so that even the commission seemed conflicted about its actions.
In closing statements Tuesday, Commissioner Jordan Maynard said, “We ask hard questions and we probe, and sometimes we probe too far.”
But his peer, Eileen O’Brien, disagreed: “There was a lot in the application that was unique — a lot of detail about Massachusetts to a lot of detail on responsiveness and the product offering which I was very excited to see — but I had equally, an amount of concerns about it, particularly when it comes to suitability.
“I don’t think I went too far, and I don’t think anyone on this commission went too far. Suitability is a serious issue. I’ve been here five years, and I know these can be very uncomfortable situations, and I laud everyone who candidly answers the questions.”
Paul: ‘I have a stellar reputation’
Paul was earnest and spoke to all of the allegations he could.
“I’m accustomed to becoming a target for unwarranted claims,” Paul said. “I’ve made my share of mistakes and messed up, but I have grown up in the public spotlight and have learned.
“Little or nothing has come from these headlines. I’ve never been convicted of a crime, and as frustrating as they are, they have helped me to grow as a businessman and a person. In terms of reputation, we should differentiate from world of social media, where rumors go unchecked, and the real world, where I have a stellar reputation.”
Among the incidents in question was a People.com story that reported on Paul’s involvement in a protest and looting in Arizona after the George Floyd verdict in 2021. Paul said he happened to be in Arizona at the time, saw a protest, and he and his videographer followed to document it. He was, he said, a bystander or spectator who was not directly involved in the protest or the looting in a local mall, though he was cited for trespassing. The FBI searched his home in connection with the incident, but there was nothing to find.
Paul responded to several inquiries along the same line, calling most “unfounded” or “false.” He stressed that he has never been convicted of a crime and called the attacks “blasphemy.”
Commissioners ultimately appeared satisfied with Paul’s answers, his transparency, and his willingness to field questions about his character. Though the commission did request additional information about some of the incidents or reports in Paul’s past, commissioners also complimented the quality of the application, with Nakisha Skinner calling it “strong.”
Customer service, age verification questions
During Tuesday’s presentation, Betr Founder Joey Levy presented a timeline for his new company and revealed that it plans to launch daily fantasy in more than 30 states during the first quarter of 2023. He also stated a goal of expanding to iCasino as early as the end of this year.
The company, which debuted its app in the U.S. in Ohio on Jan. 1, is currently in the application process not just in Massachusetts, but also in Maryland, Virginia, and Indiana, where it has secured the needed market access. In Maryland and Virginia, Betr has applied for stand-alone mobile licenses.
Incredible effort by the @betr team to launch our first real money betting product in Ohio yesterday on the state’s universal start date. We have big plans for the state, which we will be announcing soon.https://t.co/C6hsMOcbVM
— Joey Levy (@joeyslevy) January 2, 2023
Betr offers a different experience than many other mobile sportsbooks. The focus of the platform is microbetting, a version of in-play wagering. Betr currently only accepts wagers on baseball, basketball, and football, but it does not take prop bets on college sports. Consumers can wager on shifting lines, totals, and player props during the course of a sporting event.
Separate from its questions to Paul, the MGC asked detailed questions about customer service and age verification, as Betr only offers digital customer service as opposed to assistance over the phone. Several commissioners pressed Betr executives about the reasoning behind this and pointed out that the time it could take to reach a human being could create new issues.
Commissioner Brad Hill said that he wanted to make sure that Betr execs heard “loud and clear” that the MGC wants operators to offer easily accessible customer service by phone, and Betr execs promised that if the company were licensed, that feature would be added.
Accounts on Betr can be created ahead of age verification. This same issue came up during another operator’s review. It appears that some Know Your Customer software allows for those who are underage to create accounts, but there is a distinction between active and inactive accounts, and those without proper age verification would not be active, said Betr executives. Nonetheless, Betr Head of Gaming Alex Ursa said his company would revisit the order in which verification information is taken to rectify the issue should Betr get licensed.
Who’s next, who’s already approved
Betr was the second platform to be reviewed by the MGC this week, and the third stand-alone mobile platform overall. The commission will not vote during each review. It has plans instead to announce which platforms will get initial approval by the end of the next week. So far, the commission has reviewed applications from Bally’s and FanDuel, with DraftKings (Wednesday), Digital Gaming (Friday), and PointsBet (Monday) to come.
Sports betting finally going live here in Massachusetts on January 31st. @GamblingPodcast pic.twitter.com/epiVGOeaQr
— Sal277 (@sal277) January 9, 2023
The MGC has already approved mobile operators that will be tethered to existing casinos in the state: Barstool Sportsbook (Plainridge Park), BetMGM (MGM Springfield) Caesars Sportsbook (Encore Boston Harbor), and WynnBET (Encore Boston Harbor). The commission is aiming for an early March mobile launch and has set Jan. 31 as the go-live date for the state’s three brick-and-mortar sportsbooks.
The commission last Thursday began its review of the Fanatics application, the last of the tethered operators currently on the docket. That review will continue Wednesday, Thursday, and Friday in two-hour blocks, as needed, and the commission will vote when it reaches a decision.
