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Attempt at elections betting raises eyebrows

CHARLESTON — For nearly two hours Tuesday night, people using the FanDuel sports wagering phone app could place bets on the U.S. presidential election, but the market was closed and now questions are being raised about how election betting was approved.

FanDuel, which operates a Sportsbook at the Greenbrier Resort in White Sulphur Springs as well as a phone app, said Tuesday it received approval from the West Virginia Lottery to begin wagering on the 2020 U.S. elections, according to Legal Sports Report.

Categories for people to place bets included the winner of the Democratic nomination for president, the winner of the 2020 presidential elections, the choice for Democratic vice president and which party is expected to win in 2020 at the national level and state-by-state. Betting on West Virginia elections was not approved, according to a press release Tuesday from FanDuel.

According to Legal Sports Report, the market was available on the app for nearly two hours before some users started seeing the market disappear from the app around 8:30 p.m. Tuesday. According to FanDuel in a statement sent Wednesday, it simply jumped the gun too soon.

“While the markets were approved, the West Virginia Lottery has asked FanDuel to refrain from offering the markets until they have time to fully work through the implications of this new market offering,” said Kevin Hennessy, a spokesperson for FanDuel.

Lottery Director John Myers, in a statement Wednesday afternoon, did not say when the decision was made to allow FanDuel to allow betting on the U.S. presidential election, but said the whole thing was a mistake and that Gov. Jim Justice was unaware.

“I didn’t inform the governor about it,” Myers said. “I thought it would be okay, but after review, it was clearly a mistake. We just screwed up. I didn’t have the authority to do it, it should have never happened and I apologize to everyone.”

Justice, speaking Wednesday during his daily coronavirus briefing, said he only found out about the Lottery approval for sports betting that afternoon and thought it was a joke.

Justice said he ordered Lottery to reverse its approval.

“I did not know, I just thought it was something that people were just fantasizing about,” Justice said. “I didn’t know it had been approved by someone in Lottery until about 15 minutes ago to tell you the truth. It will be addressed. It will be addressed very sternly. I have no earthly idea someone would approve that…we shut it down immediately.”

No state offers legal elections betting, not even Nevada, known for its casinos and sportsbook operations. According to West Virginia Code 3-9-22, it’s illegal to wager on state elections and carries with it a misdemeanor charge and a $50 fine if someone is found guilty. Secretary of State Mac Warner released a statement expressing his disapproval.

“Gambling on elections has been illegal in West Virginia since 1868,” Warner said. “Gambling on the outcome of an election has no place in our American democracy. Not today. Not tomorrow. Not ever. This is a terrible idea. Let’s shut this down right now and be very clear about it.”

The Greenbrier Resort, where the FanDuel Sportsbook is located, was purchased by Justice in 2009. The Greenbrier’s casino was opened in 2010 and is open to guests and visitors of the historic hotel. While the Greenbrier Resort – as well as the majority of Justice’s businesses – are not in blind trusts as he serves as governor, the resort is managed by his daughter Jill Justice.

In 2018, the Legislature passed the West Virginia Sports Wagering Act allowing sports wagering at the state’s four racetrack casinos and at the Greenbrier Resort. Shortly after, the Greenbrier Resort and FanDuel inked a deal to build the Sportsbook and create a phone app. Currently, all casinos in the state are closed by executive order due to the coronavirus. While people can still use the FanDuel app to bet on sports, all major sporting events have been canceled or postponed.

“We’re excited to be able to offer this service to those guests who are interested,” Jill Justice said in a statement announcing the FanDuel deal. “The Casino Club at The Greenbrier has been an attractive destination for our guests and members since its opening, and sports betting provides yet another element to the casino experience.”

Both the Greenbrier Resort and FanDuel share Larry Puccio as a lobbyist. The former chief of staff to former-governor-now-U.S.-senator Joe Manchin, Puccio is the former chairman of the West Virginia Democratic Party Executive Committee and a long-time adviser to Democratic campaigns, including Justice’s 2016 campaign for the Democratic primary for governor. Justice switched to the Republican Party in 2017.

Woody Thrasher, Justice’s former secretary of the Department of Commerce, also switched parties from Democratic to Republican to challenge Justice in the Republican primary election for governor on June 9. Thrasher, an engineer and businessman, accused Justice of allegedly brokering a deal that would help Puccio’s client FanDuel and the Greenbrier Resort.

“Jim Justice can’t even stay focused on his job as governor during a global health crisis,” Thrasher said. “Their plan to let the international gaming company Puccio represents begin taking bets on U.S. elections isn’t even allowed under the law…Justice’s scheme would have directly benefited the casino at The Greenbrier.”

Justice called the whole controversy “humorous,” and said the Lottery Commission should have checked with the Governor’s Office before approving election wagering.

“Are you kidding me? The first thing that came to mind was what next and how ridiculous that would be,” Justice said. “The very second I found out about it, I disapproved it because we’re not going to do that. That’s absolutely ludicrous. It’s humorous, but it’s ridiculous.”

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