Delaware North Left In The Dark; Sues Its WV Sports Betting Provider

Posted on April 23, 2019

Delaware North, the New York-based hospitality company filed a civil suit against its West Virginia sports betting partner, Miomni.

Miomni provided sports betting operations for Mardi Gras Sportsbook and Wheeling Island Sportsbook. It also partnered with Miomni to bring online sports betting in West Virginia with BetLucky Sportsbook.

The suit, filed on April 18, stems from a contract dispute between Miomni and its technology provider Entergaming Limited. The dispute resulted in the termination of all sports betting for Delaware North in West Virginia on March 6, 2019.

The lawsuit claims:

“Miomni Gaming and its chief executive officer fraudulently misrepresented its ownership of a key part of the BetLucky sports-wagering platform and breached the companies’ joint-venture contract.”

Delaware North: Miomni acted “fraudulently”

The civil suit revolves around what Miomni was expected to deliver in its partnership with Delaware North.
Specifically, Delaware North claims it was not informed that Miomni relied on proprietary information from a third-party service provider.

According to Delaware North President E. Brian Hansberry, Entergaming discontinued service to Miomni in February, one month prior to closure, due to possible improper usage of proprietary information.

Additionally, Delaware North asserts it was unaware of the conflict prior to signing the contract with Miomni. Miomni, counters, that it had acquired all the required rights to operate the platform.

Although sports betting abruptly shut down on March 6, players and the media were left in the dark as to why.

It was only through some investigative reporting by Legal Sports Report did the truth begin to emerge. Only then did the media and the public become aware of the contract issue with third-party supplier Entergaming.

A letter from Delaware North to the West Virginia Lottery, obtained through the Freedom of Information Act, shed some light on the closure.

“We (Delaware North) have notified the West Virginia Lottery Commission that Delaware North is taking steps to terminate its partnership with Miomni Gaming, our management services provider in West Virginia.
“Since March 6, Miomni’s contract dispute with third-party technology supplier Entergaming has resulted in our inability to accept new sports wagers at our Wheeling Island and Mardi Gras casino sports-betting operations as well as via the BetLucky.com mobile app.”

The contract between Delaware North and Miomni is not public record and was heavily redacted. The public record shows Miomni did not have as robust a sports betting capability in-house as other providers possess.

On the other hand, it is public knowledge that Miomni depends on third-party providers to deliver services in other states.

Delaware North left in the dark

According to the civil suit, when the platform ceased on March 6, Miomni communicated to Deleware North that they did not know the reason for the shutdown.

Later Miomni came forth with information that Entergaming was providing support for the platform. Miomni then stated that Entergaming was attempting to extort Miomni and had hacked into the platform.

As always there are two sides to the story. What we know at this point is that sports betting closed at Delaware North’s properties and its Bett Lucky app.

Given the intricacies of contract disputes and the fact that each party involved operates under different jurisdictions and laws, it isn’t certain when sports betting will return to Delaware North’s West Virginia properties.

Shortly after the shutdown, state Lottery Director John Myers said it could be months before sports betting resumes.

Myers said at the time:

“The West Virginia Lottery stands ready to work with Delaware North to bring both sportsbooks back online as quickly as possible once Delaware North has a solution in place.”

Delaware North wants a new WV sports betting partner

Delaware North may look for other partners to resume accepting sports bets. But finding a partner and the approval process could take some time.

In its statement, Delaware North said,

“We are evaluating all options to once again provide sports wagering services, and we want our customers to know that identifying and implementing a solution could take several months or longer,”

While the civil suit winds its way through the judicial system, sports betting options remain limited in WV.

Sports betting continues at the three remaining WV land-based casinos:

Of course, players will have to be physically present at the sportsbooks to place a bet since mobile sports betting in West Virginia is on hold – at least until Delaware North finds a new partner or another app gets approved.

Way Yuhl Avatar
Written by
Way Yuhl

Way Yuhl is a freelance writer and blogger. Way recently left his position as a Business professor at Clark University to write full-time while traveling the world. He holds an MBA in International Business and a BA in Geography. You can learn more about his travels at nomadingabout.com.

View all posts by Way Yuhl
Privacy Policy