Can A Small Business Like Handle19 Break Into Sports Betting?

Shane August, once a Norfolk State University quarterback and now the operator of Handle19, aspires to establish himself as the foremost authority in sports betting within the DMV region.

Washington DC, Maryland, and Virginia make up the “DMV” region with each jurisdiction having its own unique legal and regulated sports betting landscape.

Several prominent and well-financed sportsbooks in the country have devoted their efforts to the growing market. With the aim of expanding their presence across the nation, they have invested substantial amounts in campaigns, licensing, and marketing activities.

However, is it possible for smaller operators to thrive? Can local entrepreneurs truly establish a unique position in the market?

August, the creator of Handle19, believes so. After encountering high expenses during his initial endeavors to establish sportsbooks in New Jersey and Pennsylvania, he has redirected his attention exclusively towards the DMV region. He stated that the area possesses diversity, a favorable environment for small businesses, and fosters collaboration with neighboring governments.

According to Play Virginia, the spokesperson mentioned that our target audience is the residents of the DMV area. We have confidence that these individuals show strong support for their local community, especially if they are provided with a high-quality product, which is exactly what Handle19 aims to deliver. Unlike DraftKings and FanDuel, who rely on acquiring customers through purchases, our strategy is to adopt an assertive and strategic marketing approach that is specifically designed for the people residing in the DMV area. Through this targeted approach, we believe we can achieve success and emerge as the preferred choice for our customers in the region.

Nevertheless, it all begins with his idea for a retail establishment situated in the bustling center of Capitol Hill.

Handle19’s failure to launch

Despite not always being focused on academics, August, a New Orleans native, managed to earn a communications degree from Norfolk State. His journey took an unexpected turn as he found remarkable success in the healthcare and financial services industries by working with startups. This unlikely success story may surprise some, given his previous lack of focus in the classroom.

“With a chuckle, he admitted, ‘Back in the day, I fit the mold of your typical jock – a charmer with a knack for capturing attention from the ladies, but let’s just say I wasn’t at the top of my class academically. Despite that, I did manage to attract considerable interest from other prominent Division I schools in terms of my athletic abilities. So, on the field, I excelled and surpassed expectations. However, when it came to academics, well, let’s just say I didn’t quite reach the same level of excellence.'”

Nevertheless, August demonstrated a rapid grasp of the corporate realm. Presently, he holds the positions of president and CEO at the August Holding Corporation, headquartered in Virginia Beach. His aspirations extend further, with plans to incorporate a legal bookmaking enterprise into his ever-growing empire.

He said that it was a no-brainer to combine his passion for sports and business to create Handle19. Therefore, when the US Supreme Court invalidated PASPA in 2018, he saw an opportunity and seized it. However, his attempts to launch in NJ and PA, after these states legalized sports betting, did not gain much momentum.

“Calling it a ‘pain in the ass’ doesn’t even begin to describe it,” he expressed. “I’ve dealt with other heavily regulated sectors before, but nothing compares to the challenges of sports wagering due to its highly politicized nature. It’s unfortunate, but it is what it is. The political influence is undeniable… and unfortunately, the consideration for small and minority businesses seems to have been overlooked.”

However, he discovered a chance in the country’s capital.

Handle19’s Washington DC debut

Since the legalization of sports betting in DC, GambetDC, a DC Lottery product, has held an exclusive control over online sports betting in the district. This monopoly began when Gambet was introduced in May.

However, William Hill has demonstrated the potential of a physical store by surpassing GambetDC’s monthly handle in just a few months since the opening of their sportsbook at Capital One Arena.

Gambet possesses a Class A license, whereas William Hill holds a Class B license, both of which are issued by the lottery to operators who engage in businesses other than solely sports betting.

By the end of the month, August believes that he will be able to obtain his own Class B license.

However, August has no intention of relying on a sports arena for his venture. Instead, he intends to establish a bar and restaurant spanning three stories at the center of Capitol Hill. August has already secured a prime location at 319 Pennsylvania Ave. SE, partnered with PHFBM for food and beverages, and enlisted USBookmaking as the technology/software supplier.

Nevertheless, for August, his inaugural sports-betting venture will transcend the mere concept of a restaurant with sports betting.

You have the freedom to choose how you want to enjoy our space. Whether you prefer to quickly place a bet and leave, dine while watching the game, or spend the entire day with friends on our top floor enjoying drinks, food, and betting, we’ve designed our space to cater to all these preferences. Our main goal was to create an environment where stepping through our doors would transport you from DC to the vibrant Las Vegas strip, evoking the luxurious atmosphere of top-tier sportsbooks.

Despite encountering opposition from the neighborhood, August remains hopeful about Handle19’s plan to become operational in the near future. August even revealed to Play Virginia that he intends to announce partnerships with prominent sports and network organizations soon.

Handle19, an aspiring sportsbook operator, sees the early success of William Hill in DC as a significant initial stride. This achievement fills them with optimism regarding the potential accomplishments they can achieve.

He expressed his enthusiasm for the retail location at Capital One, emphasizing its superiority over the online option. He mentioned feeling excited and grateful for the chance to enter the market. Their excitement couldn’t be greater.

“It will be revolutionary. We will make history as America’s first independent sports wagering operator owned by a minority.”

Handle19’s second act in Virginia

“We desire to possess multiple arrows in our arsenal.”

August described his approach of employing varied tactics to enter various states, elucidating that Handle19’s DC location could effectively demonstrate its competence in managing a retail establishment.

Nevertheless, in Virginia, his aim is to demonstrate the versatility of Handle19. In order to achieve this, he must transform it into a fully functional online platform, equipped with strong web-based betting capabilities.

At the conclusion of the month, Virginia sports betting companies are required to submit a formal license application to be considered. The Virginia Lottery has the authority to grant licenses to a minimum of four and a maximum of twelve companies. Initially, the sports betting market will operate exclusively online, most likely commencing in January. However, once the first Virginia casinos open, which is anticipated to occur in 2024, they may also provide physical brick and mortar options for sports betting.

Last week, August expressed confidence that Virginia is a competitive state. He mentioned that they are actively working on refining and completing their application, which will be submitted prior to the October 31 cutoff. August expressed great enthusiasm about this opportunity.

August praised Virginia Del. Mark Sickles (D-Fairfax) and Virginia Lottery officials for their support of sports betting in Virginia. He commended their efforts in not only advocating for this industry in The Old Dominion but also ensuring that businesses like his own could effectively compete. This positive outcome was made possible due to the implementation of a fair tax rate of 15% and reasonable licensing costs.

He stated that our happiness stemmed from the absence of overwhelming figures that hindered our involvement. In comparison to Pennsylvania’s exorbitant $10 million fee and 34% tax rate, the licensing fee of $250,000 is manageable for us. It simply isn’t feasible for a small business to handle such a burden.

Maryland sports betting – and beyond?

Once the DC and Virginia plans come to fruition, the DMV trifecta with Maryland can be accomplished by August and Handle19.

On Election Day, Maryland voters have the power to legalize sports betting, with the official support of the widely favored governor, Larry Hogan.

August, similar to Virginia, received support from the state government. Del. Darryl Barnes (D-District 25) played a crucial role in ensuring that smaller operators, including minority-owned businesses, were provided with opportunities similar to those available in Virginia.

The success of the ballot initiative holds great significance for August, as it offers the opportunity for renewed competition between August and Handle19 in the realm of sports betting, should voters legalize it.

He stated that Maryland serves as the final piece to complete the DMV triangle for us.

Although it may appear to be an ambitious plan for an individual new to a highly competitive industry, August stated that his experience on the gridiron has equipped him for the battle.

He stated that in his opinion, sports is the ultimate catalyst for personal growth and character development. According to him, engaging in sports equips individuals with essential intangible qualities that are crucial in the professional realm. He believes that success in the business world is not solely determined by academic intelligence, but rather by qualities such as determination, ambition, and a strong work ethic. These are precisely the virtues that sports instill in individuals. Consequently, he seamlessly applied all the valuable lessons he acquired from his athletic experiences to excel in the business world.

He claimed that Handle19 possesses the necessary resources, both financial and otherwise, to ensure a prosperous year ahead. And now, it’s time to step up and play the game.

He stated, “Our main objectives are threefold: firstly, to achieve the top position and secure a chance to take part. Secondly, to demonstrate to the regulators, the residents of Virginia, and the entire nation that a small store, a small business is capable of accomplishing this. Lastly, to prove that we possess the necessary resources and determination to successfully carry out this endeavor. Ultimately, our aim is to serve as an inspiration and set a precedent for others.”

However, the top priority is to address the DMV region.