Shane August, managing 19 at another sports betting roadblock in DC
Entrepreneur and former college football player Shane August is found in the 4th and long term.
According to WTOP, August, who has plans for an independent bookmaker in Washington, DC, is leaving the Capitol Hill location he was targeting after pressure from a local neighborhood association. The location was the second after August abandoned location plans to Adams Morgan earlier in the process.
Handle 19 withdrew its liquor license application from the Alcohol and Beverage Control Administration on April 1. A hearing for the permit was scheduled for later this month, and members of the local neighborhood association, ANC6B, were to protest.
In addition to finding a new location, August and his Handle 19 team are reworking the app for a sports betting license after withdrawal of the initial request after review with the DC Lottery and Gaming Bureau earlier this year. The August struggles illustrate the challenges small businesses face in trying to break into a market dominated by massive domestic players like DraftKings and FanDuel and international operators trying to establish themselves in the United States such as PointsBet and Unibet.
“Today, Handle 19 made the difficult decision to withdraw its liquor license application at 319 Pennsylvania Avenue SE,” August said in a statement. “Handle 19 looked forward to being a responsible and engaged member of the Capitol Hill community and revitalizing a space that had been vacant on Pennsylvania Avenue for several years. The project is said to have created at least 25 hospitality jobs amid a pandemic that has hit the industry and its workers hardest.
“It is particularly disappointing that local neighbors and ANC6B fought so hard to undermine a small, minority-owned business, and spent thousands of taxpayer dollars to achieve such a goal; money that could have gone to much more productive causes, including grants for small businesses on Capitol Hill. “
Handle 19 back to square one?
Washington, DC, lawmakers legalized sports betting in 2019, but the rollout has been slow. To date, the only option for mobile betting in the district is OLG’s GamBetDC, while William hill last summer became the first operator to open a physical bookmaker in a professional gym.
William Hill, who is looking to further dominate sports betting in the district, has launched a mobile betting app that is operational within a 2-block radius of Capital One Arena.https://t.co/Qav6GLzZvr
– Sport handle (@sports_handle) December 29, 2020
For Handle 19, the latest change in plans comes a little over a month after his DC Lottery application was withdrawn. The Handle 19 camp hinted that the OLG had asked the company to rework its organizational structure, but an OLG spokesperson at the time denied that claim.
On January 28, the OLG published the following text executive order: “Based on the information in the application and the results of the due diligence discovery, on January 4, 2021, the Director of OLG’s Regulatory and Oversight Division issued a memorandum recommending that the application be rejected after determining that handle 19 did not meet the conditions for obtaining a permit due to the findings of the investigation related to individual qualifiers. “
Either way, August lost his $ 100,000 application fee, but he plans to reapply in the future.
As to the location of Capitol Hill, which is said to have been in the city’s southeast quadrant, August has been at odds with the neighborhood association for months. The group isn’t comfortable with a sports betting opening in a mixed-use area that also includes schools, churches, and private residences. The area is also home to several popular bars and a liquor store. August had hoped to convince residents that his bookmaker would help make the neighborhood more lively.
“This is what a lot of neighbors wanted – they thought this was not a suitable location for a gambling establishment,” said ANC6B president Brian Ready. Capitol Corner. “I would call it a short-term victory, but maybe not a long-term one, given the way City Council and the DC Lottery have organized this.”
That said, August and Handle 19 will be looking for an alternate location in the DC area. He also hopes to open sports betting in the surrounding area. Virginia and Maryland, where he testified at a hearing in March.
“While the project suffered an unfortunate setback, Handle 19 still plans to move forward somewhere else and is exploring new opportunities,” August said in the statement. “It’s not the end, it’s just the end of the beginning.”
Opening a freelance book is neither easy nor cheap
A second independent bookmaker applied in Washington, one of the few jurisdictions with an application fee reasonable enough to allow a freelance to apply.
A & B Hospitality’s Grand Central Sports Bar and Capo Deli have in partnership with Newgioco for sports betting services and are also in the process of being applied for. Grand Central and Newgioco both submitted nominations in November and are under review, according to the April 2 update on the OLG website.
The only independent bookie that operates anywhere in the United States is Tennessee Action 24/7, which is owned by the same company that owns a flexible lending business and is currently in litigation with the Tennessee Education lottery.
TELC suspension of the operating license for the 24/7 Action for about a week at the start of the NCAA tournament. The application fee for a sports betting license in Tennessee is $ 750,000.