Category: News

For the 12 months to 30 June, SkyCity says underlying group EBITDA will amount to between NZ$280m (£136m/€159m/US$173m) and $285m. This is lower than its initial guidance of $290m to $310m.

As for net profit, SkyCity says this will range from $120m to $125m. Again, this is behind the earlier issued guidance of between $125m and $135m.

According to SkyCity, several factors are impacting its performance at present and have led to it issuing reduced guidance. These include an ongoing challenging economic environment, which is impacting customer spend. However, the group notes that visitor numbers across all sites remain strong.

SkyCity also references a further delay in the opening of its Horizon Hotel in Auckland in New Zealand. This is now not due to open until August, having initially been set to launch in March. 

Finally, the group notes a potential increase in Adelaide casino duty expense in Australia during the 2024 financial year. This follows the South Australian Court of Appeal’s ruling on the interpretation of relevant provisions in the Adelaide Casino Duty Agreement in regard to the treatment of loyalty points.

How is 2025 looking for SkyCity?

SkyCity also issued an update as to how it expects to perform during its 2025 financial year. 

The group said that current trading conditions continue to reflect a challenging economic environment, with this particularly noticeable in Auckland. This, it adds, is likely to continue throughout the year.

SkyCity also says it will be hit by several one-off items. These include delays to the Horizon Hotel, pre-opening operational costs for the New Zealand International Convention Centre (NZICC), preparing for online gambling regulation in New Zealand and its ongoing risk and compliance uplift activities in Adelaide.

With this in mind, the group has issued underlying group EBITDA guidance of $250m to $270m, both of which would be lower than the adjusted amounts for FY24. This takes into account costs related to the one-off items, with these expected to impact SkyCity by between $20m and $30m.

SkyCity also notes this guidance does not account for a potential suspension of its casino licence in New Zealand. A private hearing on the matter was due to take place in April but has been pushed back to August.

In September last year, New Zealand’s secretary of the department of internal affairs (DIA) applied to suspend SkyCity’s casino licence for an estimated 10 days.

The application concerned subsidiary SkyCity Casino Management Limited (SCML). SCML controls SkyCity’s operator licence for the SkyCity Auckland, SkyCity Hamilton and SkyCity Queenstown locations in New Zealand.

This stems from a complaint made to the department in February 2022 by a former SkyCity Auckland customer. The player in question gambled at the Auckland casino from August 2017 to February 2021.

The secretary said SCML did not “comply with requirements” outlined in its SkyCity Auckland Host Responsibility Programme. This, the secretary added, relates to “detection of incidences of continuous play by the customer”.

SkyCity set to pay $4.16m penalty in New Zealand

While uncertainly remains over the potential licence suspension, the group has been able to settle other regulatory cases.

In New Zealand, SkyCity reached a settlement with the DIA over its breach of anti-money laundering and countering financing of terrorism (AML/CFT) obligations.

Earlier this year the DIA announced it would file high court proceedings against SkyCity and its SCML subsidiary. This relates to alleged non-compliance with the country’s Anti-Money Laundering and Countering Financing of Terrorism Act 2009.

Draft pleadings set out five separate causes of action seen as “significant” compliance issues related to the Act. However, the group said they mainly refer to historical matters, with some previously self-reported to the DIA. The operator added it has taken a series of steps to prevent issues in the future.

Taking all this into account, the group was able to reach a settlement with the DIA over the matter. SkyCity and the DIA will jointly submit a proposed penalty of NZ$4.16m, with final determination for the court.

SkyCity settles regulatory case in Adelaide

As for Australia, SkyCity last month also agreed a settlement with the Australian Transaction Reports and Analysis Centre (Austrac). SkyCity is set to pay AU$67.0m over historical AML/CTF failures in the country. 

The proposal remains with the Federal Court of Australia. Both the operator and Austrac have put forward separate submissions for approval at a hearing tomorrow (7 June).

The case came to light in December 2022 but concerns date back several years. An industry-wide compliance campaign began in September 2019, with SkyCity made aware of alleged wrongdoing in June 2021.

At the time, Austrac said SkyCity Adelaide demonstrated a pattern of “serious and systemic non-compliance” with national AML and CTF laws. This includes failing to appropriately assess the money laundering and terrorism financing risks. 

The group also did not include risk-based systems and controls in AML/CTF programmes, nor establish a proper framework for board and senior staff oversight for these projects.

Change of leadership as Walbridge takes over as CEO

Against this backdrop, SkyCity has been making changes to its senior management team.

In April, the operator appointed experienced gambling executive Jason Walbridge as its new CEO with effect from July. Walbridge is replacing Michael Ahearne, who recently left the group.

Meanwhile, Julie Amey has resigned as chief financial officer. Amey will continue as CFO for a further six months, through to 25 September.

In addition, SkyCity has named Andrew McPherson as chief information officer. He had been serving in the role on an interim basis since November. 

The group plans to publish its full-year 2024 results on 24 August.

Lottery commissions throughout the US are bracing for what they assume will be an attack on their bottom lines. They fear that the exploding popularity of online sports gambling will hurt their businesses. Are their fears justified? Or is there something else at play?

Leading the call for action is Massachusetts Lottery Director Mark William Bracken. For the second year in a row, Bracken used a March lottery commissioners’ meeting to sound the alarm against maintaining the status quo in the face of increasing online sports gambling. He pointed to the 6.8% reduction in lottery sales his state recorded from February 2023 to February 2024. He also noted the lottery’s year-to-date net profit was $28.4m (£20.6m/€24.2m) less than during the same period last year.

But is Bracken’s logic sound? Is online sports betting cutting into lottery sales?

A study conducted by the universities of Alabama and Nevada suggests online wagering revenue is positively associated with lottery revenue. “The Effects of Sports Betting on Casino Gambling and Lottery,” published in December 2023, determined that “… each dollar of online sports betting is associated with a $0.21 ($0.26) increase in lottery revenue on average.” (The two different figures reflect data without and with the March 2020-April 2021 peak Covid period included).

Critical mass

If this study is accurate and online wagering is a boon to lottery sales, what accounts for Massachusetts’ sluggish sales?

“The Massachusetts Lottery story sounds like an excuse for other problems with their scratch-offs,” said Gene Johnson, executive vice-president of Victor-Strategies, a gaming industry consulting firm.

“If you look at Ohio, their scratch sales have increased substantially since the legalisation of sports betting. Kentucky also grew lottery sales through the introduction of OSB with their highest growth area being ilottery – something Massachusetts does not have.”

Read the full story here.

Announced today (6 June), the bingo review will seek opinions from industry stakeholders and the community in Victoria. This, the VGCCC says, will deepen its understanding of sector challenges and explore ways to strengthen regulatory and industry practices. 

The Commission will explore whether the current rules governing bingo in Victoria are fit for purpose. It will also look at the susceptibility of cash-based transactions to criminal activities and the extent to which profits are finding their way to support community organisations. 

According to the VGCCC, revenue from commercial bingo in Victoria generated AU$107m (£56m/€65m/US$71m) in revenue in the 2023 financial year. This is some way ahead of the $61m from keno during the same period.

“In recent years, the commercial bingo landscape has modernised,” the Commission chair, Fran Thorn, said. “It is transitioning from traditional paper-based gameplay to electronic enhancements with substantial jackpots.  

“Given this evolution, it is crucial for us to assess and address issues of fairness, integrity and the potential for gambling harm. This is particularly important among at-risk groups such as seniors, First Nations communities, women and lower income individuals.”

Thorn adds that despite regulatory oversight, the VGCCC continues to receive reports and allegations of unlicensed operators and potentially fraudulent activities. As such, it will seek opinion on how to improve rules and regulations. 

“This is an opportunity to really understand how bingo works and how it is evolving with technology,” Thorn said. “We understand the social outlet that bingo provides for many Victoria community members. 

“We want to understand the risks, reduce the potential for harm and put a stop to any behaviours threatening the integrity and fairness of the game.” 

The VGCCC is inviting all interested parties including customers, industry participants and community organisations to take part in the inquiry.

Victoria makes changes to online gambling account rules

The inquiry represents the latest step in Victoria’s ongoing efforts to improve regulations for gambling.

In April, the VGCCC confirmed changes to rules for online gambling accounts in the state. This includes how players view their spending and losses.

These changes focus on how certain information is displayed to players within their online gambling accounts. This includes information on spending, with net loss now excluding free and bonus bets.

Meanwhile, net wins are now more accurate, with players’ monthly statements subtracting all stakes from their total payout amount. Licensees are also required to use plain English, avoid unnecessary jargon and limit the use of colours to black and red to clearly show losses. In addition, gambling harm messaging should feature on each monthly statement.

Operators that fail to comply could attract 60 penalty units. This is equivalent to AU$11,539 for each non-compliant activity statement issued.

With Euro 2024 set to begin next week, GamCare has urged employers to open safe spaces for workers to discuss any gambling addiction issues, as well as direct them to appropriate services to encourage support.

GamCare also outlined a five-step plan employers could adopt to support their staff and provoke discussion on gambling harms.

Samantha Turton, head of remote support services at GamCare, says the discrete nature of gambling addiction means it’s imperative to open avenues for at-risk punters to seek help, especially in the workplace.

“Last year we saw steps for more GPs to ask questions from patients around gambling, which is an important step forward,” Turton said. “We believe workplaces could be the next place to create more awareness about gambling and could be a win-win for organisations and staff, with people feeling more supported and engaged at work, and organisations benefitting from a happier, healthier workforce.

“In the most severe cases, it can even help prevent against gambling-related crime at work, which can protect both employees and their businesses.”

GamCare’s five-step policy

GamCare’s five measures for employers all encourage the raising of awareness of gambling harms within the workplace.

The first step is the implementation of HR policies to show staff open spaces to disclose gambling addiction. These would be in line with similar policies on drugs, alcohol or mental health issues.

GamCare also encouraged training for line managers to support staff by directing them towards support services such as the National Gambling Helpline.

Additionally, another step is the creation of internal support networks. This would include the reduction of stigma surrounding gambling harms by increasing education on the topic.

With the Euros coming up, GamCare urged employers to be cautious when creating sweepstakes. This is particularly important around key sporting events of the year.

Finally, GamCare noted employers should be aware that gambling harms don’t only affect the gambler. Others may be related to, or friends with, a problem gambler and therefore require different support.

Addiction in the UK

In its advice for employers, GamCare highlighted recent research on the levels of addiction in the UK, as well as the lack of gambling support in the workplace.

For instance, a recent YouGov study highlighted only 9% of people had support for vulnerable gamblers in their workplace. In comparison, 47% said their workplace had mental health policies.

The lack of support is in spite of Public Health England stating 1.6 million people in England struggled with gambling. Last year, the GamCare-operated National Gambling Helpline found work difficulties to be one of the core consequences of gambling addiction.

YouGov found only 28% of problem gamblers would be comfortable with telling their employer about their issues. Meanwhile, 57% would tell friends, while 42% would disclose with family.

Euro 2024 a potential addiction flashpoint

In France, regulator L’Autorité Nationale des Jeux (ANJ) has launched a new problem gambling prevention campaign ahead of Euro 2024.

The ANJ stated that nearly €1bn (£851.4m/$1.1bn) could be wagered on the competition. Toluna-Harris Interactive research found 35% of France’s population plan to bet on the tournament.

As a result, the ANJ is calling on players to pay attention to advertising notices outlining the associated risks.

The campaign’s messages will highlight in yellow a “deliberately disproportionate” section on gambling harms. The campaign also refers to the Evalujeu site, where players can evaluate their play and seek support.

“The ANJ wishes to make an impact with its campaign which aims to make people understand that legal notices on advertisements are not only a legal obligation but that they contain stories of players’ lives, testimonials on the risks linked to excessive gambling such as those we receive every day at the ANJ,” said Isabelle Falque-Pierrotin, ANJ president.

Stats Perform will continue to collect and distribute official ICC data and live streams to licensed betting operators worldwide. The deal represents an exclusive agreement between the two parties.

The agreement will see Stats Perform provide a range of services for the ICC tournaments to its betting operator partners. These include real-time ball-by-ball match data and low latency video streams.

The partnership covers all major men’s and women’s ICC events. These include the ongoing ICC Men’s T20 Cricket World Cup, which is running from 1-29 June. Other covered events include the ICC Cricket One Day World Cup, ICC Champions Trophy and the ICC World Test Championship.

Alex Rice, chief commercial officer of Stats Perform, said the provider is delighted to be working with the ICC again.

“It reinforces our dedication to collecting and providing the highest quality sports data and live streams to licensed betting operators across the globe,” Rice said. 

“We pioneered live streaming for betting. We know betting operators trust our sports data to provide the best experiences for them and their users. So, we look forward to leveraging our cutting-edge technology and extensive expertise to bring the thrill of ICC cricket to an even wider audience.”

The ICC adds: “We are delighted to reunite with Stats Perform. We’ve been very impressed by the way their recent AI-powered innovations have triggered new growth for the sports industry. 

“The partnership is a significant step in enhancing the digital consumption of cricket content. It upholds the premium position we have built in the sport. Stats Perform’s trusted, innovative services will undoubtedly elevate the experience for cricket bettors worldwide.”

Stats Perform adds to growing portfolio

The ICC deal represents the latest major partnership for Stats Perform, which counts many of the world’s leading sports organisations among its clients.

In December last year, Stats Perform extended its exclusive agreement with the Women’s Tennis Association. The deal runs through to 2030.

Stats Perform will continue to serve as the official data supplier of the WTA. It will deliver an exclusive umpire-derived data feed for matches and data feed collected by the supplier’s Opta analysts.

Meanwhile, Stats Perform in August last year also renewed an exclusive official rights deal with Football DataCo. The organisation manages data for the English Premier League and other major British competitions.

Stats Perform will continue to collect detailed event data at all major English and Scottish football leagues. The agreement runs to the end of the 2024-25 season.

This includes England’s Premier League, Championship, League 1 and 2. The deal also covers all leagues overseen by the Scottish Professional Football Leagues, including the Scottish Premiership.

Stats Perform also counts Spain’s La Liga, France’s Ligue 1, Italy’s Serie A and Germany’s Bundesliga among its football partners.

Borghetti will replace William McBeath, who is stepping down as chairman after taking on the role in July 2022. McBeath will continue as an independent non-executive director of Crown.

An experienced executive, Borghetti has been chairman of the Crown Sydney business since mid-2022. He was appointed by Blackstone after the private equity giant acquired Crown for AU$8.87bn (£4.63bn/€5.43bn/US$5.93bn).

Prior to this, he spent more than 45 years working within the aviation industry. This includes a spell as chief executive of airline Virgin Australia, which he led for 10 years until March 2019. 

Borghetti is currently a director of Balmoral Pastoral Investments and a member of O’Connell Street Associates. In addition, he previously served as a director at Brisbane Airport Corporation, Alinta Energy, Coca-Cola Amatil, Energy Australia and the Art Gallery of New South Wales.

Despite taking on the wider chairman role, he will also continue as chair of Crown Sydney.

Borghetti focused on compliance, safety and profit 

“I look forward to continuing the transformation of Crown,” Borghetti said. “This includes ensuring the company exceeds the expectations of all its stakeholders, including government, regulators, guests and team members. 

“The board’s priority remains on compliant, safe and profitable operations while ensuring we position the business for future growth.”

The outgoing McBeath also reflected on his time as chair and backed Borghetti to succeed as his replacement.

“As chair, my priority was to lead the board and support the executive leadership team to successfully deliver the extensive regulatory and cultural reform and remediation programme for Crown Resorts and to achieve suitability. 

“I am proud that both Crown Melbourne and Crown Sydney have retained their licences to operate during this time. Remediation work in Crown Perth is also well progressed. 

“Now is the appropriate time to appoint an Australian-based chair. He will continue Crown’s focus on transformation, regulatory compliance and safe and sustainable future growth. 

“I am delighted that John Borghetti will continue this critical work as chair and lead the Crown Resorts Board in its strategic development of Crown’s businesses in Victoria, New South Wales and Western Australia, working constructively with government and regulators.”

Crown keeps hold of New South Wales and Victoria licence

The appointment comes in the wake of Crown receiving a major boost in April with the news it can retain its casino licence for its Sydney property. This follows three years of intensive remediation in the state.

Crown was deemed “unsuitable” to operate a casino at Barangaroo in Sydney in February 2021 in the Bergin report. This came after the New South Wales Casino Inquiry found evidence its facilities and accounts were used for money laundering.

The inquiry also found Crown engaged with junket operators with alleged connections to organised crime without carrying out proper due diligence. Furthermore, it put employees at risk of harm in its promotion of gambling in mainland China.

As such, Crown was unable to operate a casino in its dining and hotel tower to patrons for more than a year.

Crown did eventually secure permission to operate in NSW 16 months later, shortly after the Blackstone acquisition. This was contingent on Crown not breaching more rules.

Having monitored Crown since permission was granted, the New South Wales Independent Casino Commission said it was satisfied with Crown’s progress. As such, it has been allowed to retain its licence.

The decision came just weeks after Crown was also allowed to keep its casino licence in Victoria. The Victorian Gambling and Casino Control Commission (VGCCC) in March ruled Crown is suitable to hold a licence for its Melbourne property.

Like in New South Wales, Crown implemented widespread changes at the casino in the wake of the Royal Commission into casino licences. This progress was enough for the VGCCC to hand Crown a reprieve. 

Bressler replaces Ronen Kannor, who resigned as CFO in April to pursue opportunities away from Bragg.

Bressler joined the gambling industry in 2014, working as a controller at The Intertain Group. From here, he went on to become vice-president of finance and corporate controller at Gamesys Group.

After five and a half years with Gamesys, Bressler took on a similar role at Bally’s and completed its acquisition of Gamesys in October 2021. Bressler spent just under a year as senior vice-president of finance for interactive at Bally’s before leaving the business.

From here, he took on the role of CFO at ForumPay in February 2023, serving in the position ever since.

Prior to his time in the gambling industry, Bressler worked in the financial services assurance group at Ernst & Young.

“I am excited to join Bragg at this pivotal time in the company’s growth trajectory,” Bressler said. “Bragg has established itself as a leader in the global gaming technology and content space.

“I look forward to working with the talented team to continue driving the company’s financial performance and further unlocking shareholder value.”

Bragg CEO Matevž Mazij added: “We are delighted to welcome Robbie to the Bragg team as interim CFO. His deep expertise in finance and accounting, coupled with his extensive experience in the gaming industry, make him the ideal person to lead our finance function.”

More changes at Bragg

Bressler joining as interim CFO is the latest senior-level change at Bragg in recent months.

A few weeks after Kannor stepped down, Bragg appointed Neill Whyte as its new chief commercial officer. Whyte joins from Digital Gaming Corporation, where he was CCO until his departure in February.

Lara Falzon also exited her roles as president and chief operating officer of the business late last year. 

Incidentally, Falzon’s exit was announced two months after Mazij was appointed as CEO and chairman. Upon taking charge, Mazij said he planned to initiate growth strategies for Bragg in its existing markets, including North America and Europe.

Bragg continues to mull strategic alternatives

The changes come as Bragg could push forward with a potential sale. In March, Bragg said it was considering strategic alternatives for the business, with a special committee formed to review its options. 

Possibilities being mooted include the sale of the group or its assets, a merger, financing and further acquisitions.

Updating the market when Bragg published its Q1 results last month, Mazij said the group is making “encouraging progress” on the review process. However, he also said it is very much “business as usual” while this work continues.

As for its performance in Q1, the period was somewhat mixed for Bragg. Revenue was 49.9% higher at €23.8m (£20.3m/$25.9m) but higher spending hit bottom line.

Bragg posted a net loss of €2.3m, more than double the €1.0m loss in 2023. In addition, adjusted EBITDA dropped 12.8% to €12.8m for Q1.

However, the business remains upbeat about its prospects for 2024, so much so that it reiterated full-year guidance. Revenue is set to be between €102.0m and €109.0m in 2024, with adjusted EBITDA to range from €15.2m to €18.5m.

The ministry of finance noted that growth in lottery sales had fallen, but added that this had begun to stabilise.

April’s total was down a negligible amount compared to March, when sales came to CNY55.60bn.

The Sports Lottery accounted for CNY36.69bn of this, up by CNY1.96bn or 5.7% year-on-year. The Welfare Lottery made up the remaining CNY18.76bn, which represented a much higher jump of 20.3% compared to April 2023.

For January to April, sales totalled at CNY204.92bn, a rise of 17.0% compared to the same period last year. Sports Lottery sales accounted for more than half of this at CNY134.96bn – a 12.7% increase – while the Welfare Lottery sales totalled at CNY69.96bn, up 26.3% yearly.

Sales by type and region

The month saw growth across the board. Instant lottery sales hiked 11.7% to CNY9.98bn, while lotto digital generated CNY16.34bn, up 5.5% yearly.

Betting, meanwhile, grew 9.7% compared to April 2023 to CNY25.46bn. But it was Keno lottery that had the most significant boost, jumping 36.8% to CNY3.67bn.

For the period of January to April, lotto digital has generated CNY59.26bn in sales – a boost of 10.1% yearly. Betting sales rose slightly by 2.4% to CNY83.40bn for the four months, while instant lottery garnered an impressive 60.9% year-on-year increase in sales to CNY48.95bn. A similarly large growth was recorded for Keno lottery between January and April this year, up 40.5% to CNY3.83bn.

Turning to sales by region, the ministry of finance reported that lottery sales were up in all provinces during April. This is with the exception of Hubei and Tianjin.

As expected, Guangdong experienced the largest increase in sales, growing by CNY550m in April. This was followed by Hunan and Hebei, which saw lottery sales increase by CNY390m and CNY380m respectively.

Lottery sales in Xinjiang jumped CNY330m, landing the province in fourth place.

GiG said this is the latest appointment in the strategic strengthening of its senior executive team for the business. Richards will report directly to Platform and Sportsbook CEO Richard Carter.

The group added that Richards will bring expansive financial expertise and experience within online sports betting to the role. Richards has previously held executive positions at the likes of Kambi, Shell, KPMG and, most recently, Corero Network Security.

As CFO, Richards will be responsible for the evolution of the division’s finance department and wider strategic development. This includes mergers and acquisitions, investor relations and market development. 

“I am delighted to be joining GiG at such a pivotal moment in the company’s growth story,” Richards said. “The strength of the product and market reach… will enable the company to rapidly expand and gain market share. 

“Working alongside such an experienced executive team will allow me to further support the continued evolution of GiG’s platform.”

Carter added: “Phil’s appointment is another significant step towards helping us reach the high bar we have set. We are completing a process of bringing together the strongest leadership in sports betting and igaming. 

“I am confident that his arrival will help further fuel our strategic plans, establishing us as a leader across igaming.”

Seeking separation success

The appointment is the latest senior change at GiG as it prepares to split its business. As set out early last year, GiG Media and Platform and Sportsbook will become separate businesses.

GiG chairman Petter Nylander updated the market on progress when GiG published its Q1 results last month. Nylander reiterated that the split is due to complete by Q3.

As for performance in Q1, revenue increased 27.5% to a record €36.2m (£30.8m/$39.4m). Of this, €28.0m came from GiG Media and €8.3m from Platform and Sportsbook.

Also this week, GiG announced the strategic acquisition of online casino forum and review platform Casinomeister. The deal is valued at €3.0m.

Mizuhara, wearing a dark suit with an untucked shirt and no tie, told Judge John A Holcomb: “I worked for Victim A and had access to his accounts. I had fallen into major gambling debt. The only way I could think of to pay that was to send money from Victim A’s account” to the illegal bookmaker.

Mizuhara then pled guilty to one count of bank fraud and one count of subscribing to a fraudulent tax return. The maximum penalty for the charges is 33 years in prison and a $1.5m fine. Tuesday’s proceedings took place at the Ronald Reagan Federal Building and Court House in Santa Ana, California. Previous court appearances were at the Roybal federal complex in downtown Los Angeles.

From here, the court and US Probation Office will put together a pre-sentencing packet that Holcomb will use as a reference at sentencing.

Mass media in and out of courtroom

More than 100 media members were outside the courthouse and inside the court room, temporarily clogging Santa Ana’s 4th Street. Mizuhara spoke only in the court room and in response to Holcomb’s questions. His attorney, Michael Freedman, declined to comment despite the pair being literally surrounded by media as they exited the courthouse.

In April, Mizuhara turned himself in after federal investigators revealed he had stolen $17m from Ohtani to settle gambling debts. Although he has not been named in any of the cases related to the Wayne Nix illegal gambling ring, it appears Mizuhara was betting with Mathew Bowyer. Based in Orange County, Bowyer is also under federal investigation, but has not been charged.

Nix is set to be sentenced in September. Former Las Vegas casino executive Scott Sibella was sentenced to one year of probation and a $9,500 fine on 9 May. Sibella failed to file a suspicious activity report when Nix gambled at MGM Grand, where Sibella worked. He allowed Nix, a known illegal bookmaker, to pay for a $120,000 casino marker in cash.

Mizuhara double dipped for dental work

Mizuhara faces a much stiffer penalty. He admitted in court and in a plea agreement that he had lied to Ohtani (referred to as Victim A). Mizuhara also lied to Ohtani’s agents, financial managers and an Arizona bank. According to US Attorney Jeff Mitchell, Mizuhara impersonated Ohtani in 24 phone calls with the bank. He also “regularly logged in (to Ohtani’s bank account) and initiated wire transfers”.

Federal authorities labeled Ohtani as a victim early in the investigation. Following Mizuhara’s guilty plea, MLB cleared Ohtani and released a statement saying the Dodgers star is a “victim of fraud and this matter has been closed”.

Mizuhara used some of the $16,975,010 he transferred from Ohtani’s account for other things. Mitchell said “Victim A” agreed to pay for $60,000 of dental work in September 2023 and “drew a cheque”. Mizuhara then used Ohtani’s debit card to pay for the dental work and deposited the cheque into his personal account. Mitchell also said Mizuhara used Ohtani’s money to buy Yogi Berra, Juan Soto and Ohtani baseball cards on eBay and WhatNot. Mizuhara intended to sell the cards at a profit.

Throughout the deception, Mitchell said, Mizuhara lied to Ohtani’s sports agents and financial advisors. Mizuhara denied both access to Ohtani’s accounts, claiming the baseball star said they were “private”.

Next step: Sentencing

Tuesday’s court appearance began with Holcomb welcoming the large crowd, but with a warning that recording was prohibited. He then questioned Mizuhara about his fitness to stand trial and explained what rights he waived by pleading. Before addressing the plea agreement, Holcomb told Mizuhara: “All that will be left of your case is for me to impose sentencing, which may include imprisonment.”

The total offense level for Mizuhara’s crimes is classified at 29. But the level will be reduced by up to four because Mizuhara is a zero offender and he is co-operating with authorities.

In addition to potential prison time and fines, Mizuhara will be required to pay restitution to Ohtani. He’ll also have to pay additional taxes of $1.15m before interest and penalties.

Tough stretch for MLB

It has already been a difficult several weeks for Major League Baseball with regard to gambling. On 17 May, MLB opened a betting investigation into former Ohtani teammate David Fletcher and his high school friend Cody Schultz. Fletcher currently plays for the Atlanta Braves and Schultz is a former minor leaguer. ESPN reported that Fletcher bet with Bowyer, but did not bet on baseball. Schultz, according to ESPN, bet on Angels games in which Fletcher played. He is also thought to be “Bookmaker 3” in the federal affidavit that is the basis for the Mizuhara complaint.

Then, on Monday afternoon, the Wall Street Journal broke a story saying MLB had opened a separate gambling investigation into San Diego Padres shortstop Tucupita Marcano and four minor league players. The WSJ reported that Marcano was betting on baseball when he was on the Pittsburgh Pirates roster.

Betting on baseball is a violation of MLB rules. Mere hours before Mizuhara’s court appearance on 4 June, the league announced that Marcano had received a lifetime ban. He allegedly placed 231 MLB-related wagers, including 25 wagers on the Pirates when he was on the active roster.