Daily Business Report: Thursday, April 28, 2022
California sports betting initiative backed by
FanDuel, DraftKing would block small competitors
In Summary:
Of the different efforts to legalize sports betting in California, one would require over $100 million in fees — a move experts say limits competition in what is forecasted to be a multi-billion dollar industry;
by Grace Gedye | CalMatters
One of the measures Californians will likely get to vote on this fall does more than just allow betting on sports: Critics are concerned it will effectively block smaller gaming companies and startups from operating in the state.
Those are high stakes for an industry that could rake in over $3.5 billion each year from California bettors — and for a state that prefers to see itself as the startup capital of the world.
Of the four sports betting initiatives competing to make November’s ballot, one, paid for by online sports betting giants FanDuel, DraftKings and BetMGM, would allow gaming companies and Native American tribes to provide sports betting online across the state.
But embedded in the initiative are requirements that would be very difficult — if not impossible — for the companies’ smaller competitors to meet, experts say.
If the initiative passes, gaming companies would have to pay a $100 million licensing fee to do business in the state, as well as already be licensed in 10 states, or be operating in five states and running 12 casinos.
“I think it’s absolute nonsense,” said John Holden, a professor at Oklahoma State University who studies sports gambling policy. “I think what’s effectively happening is, basically, the 5 to 10 frontrunners in the market have decided ‘Alright, let’s ensure that there’s no one else who can compete by agreeing to pay these exorbitant license fees.’”
Top Photo: Betting odds are displayed on a board in the sports book at a hotel casino in Las Vegas on May 14, 2018. Sports betting isn’t legal in California, but there are efforts to legalize it. (Photo by John Locher, AP Photo)
California has more billionaires than any other state
The Golden State is generating a lot of green for a select group of individuals.
This month, Forbes reported that California has more billionaires than any other state in the U.S. — 186, to be exact. At the top of the outlet’s list of the state’s wealthiest are Google co-founders Larry Page and Sergey Brin. They are followed by co-founder and CEO of Meta Platforms (formerly Facebook) Mark Zuckerberg, former Google CEO Eric Schmidt and Nvidia Chief Executive Jensen Huang.
Why does the Golden State have so many wealthy people? Forbes reported that half of California’s billionaires obtained their fortune through the tech industry. That also means that many of those dollars are in the Bay Area, which is where 116 of the billionaires live.
In total, the U.S. has 735 billionaires. A decade ago, Forbes counted 424 billionaires in America, the New York Times pointed out. And a decade before that, 243.
Board of Supervisors pave way for
new supportive housing complex
The County Board of Supervisors paved the way for a new supportive housing complex in the El Cerrito neighborhood.The board’s vote Tuesday will allow the County Health and Human Services Agency to enter a public-private partnership with PATH Ventures, the City of San Diego and the San Diego Housing Commission and apply for $12 million, made available through the state’s Homekey Program.
The Homekey Program provides funding to public agencies to quickly expand permanent supportive housing options for persons experiencing homelessness and people at risk of becoming homeless.
If the state approves the application, the county and its partners will build 41 housing units above a new multicultural family counseling center at the intersection of El Cajon Blvd. and 55th St. The complex would include studio units, as well as one- and two-bedroom apartments, and house up to 75 at-risk San Diegans.
Leidos announces new San Diego
Campus Point facility
Leidos, a FORTUNE 500 science and technology leader, held its groundbreaking ceremony recently to mark the start of construction for its new facility at the Campus Point location in San Diego. This new project will bring a state-of-the-art facility that will provide a more efficient footprint of Leidos corporate real estate for both employees and customers.
Construction of the new building is targeted for a mid-year 2024 completion, with development beginning officially this May. Alexandria Real Estate Equities is serving as the primary developer.
The Leidos Campus Point location in San Diego hosts primarily the Leidos Innovations Center (LInC), the heart of research and development in advancing technologies at Leidos. Development of the new building will include seating for 400-plus employees and includes multiple floor levels for secure classified spaces and programs. It will also include the redevelopment of the surrounding area for amenities.
During the ceremony, the Leidos team had the opportunity to present a $25,000 check to the San Diego Salvation Army, Adult Rehabilitation Center.
Mary Beth Kastan name superintendent
of Grossmont Union High School District
The Grossmont Union High School District (GUHSD) Governing Board voted unanimously to name Mary Beth Kastan as GUHSD’s next superintendent at its April 26 meeting.
Kastan has dedicated her entire 35-year career in education to serving the students, families, and staff of GUHSD.
Before assuming her current role as assistant superintendent of educational services —responsible for all educational programs districtwide — Kastan served for 13 years as the principal of Valhalla High School, three years as a director of curriculum, and six years as an assistant principal at Valhalla.
She began her career as a social studies teacher at Mount Miguel High School where she served for 11 years before starting a career in administration as an administrative intern at West Hills High School.
Kastan earned a Bachelor of Arts in Social Science from San Diego State University and completed her credential work at SDSU as well.
She also received a master’s degree in Educational Administration from National University.
Kastan will assume her duties as Superintendent when Theresa Kemper officially retires on June 30, 2022, after 33 years of service to the district.
Kiersten L. Riedler joins La Jolla Cosmetic staff
La Jolla Cosmetic has added Kiersten L. Riedler, M.D., to its staff. Riedler is a board-certified and fellowship-trained facial plastic and reconstructive surgeon.
She was born and raised in San Diego and graduated from Harvard College with honors in neurobiology.
After receiving her M.D. from the University of Southern California Keck School of Medicine, she completed a rigorous internship and residency in Otolaryngology – Head and Neck Surgery at LAC+USC Medical Center in Los Angeles, during which she performed nearly 3,000 procedures, earned awards for research on head and neck cancer, cartilage grafting in rhinoplasty, and facial paralysis surgery, and was appointed chief resident in her final year.
After residency, Riedler completed a one-year fellowship in facial plastic and reconstructive surgery under the direction of Dr. Jonathan Sykes, former president of the American Academy of Facial Plastic and Reconstructive Surgery.
Four attorneys join Seltzer Caplan
McMahon Vitek law firm as associates
Attorneys Michael Hervey, Lauren Wood, Jake Sesti and Allyson Werner have joined the San Diego-based law firm Seltzer Caplan McMahon Vitek as associates.
Hervey joined SCMV’s Business Department as a law clerk in 2020. Also a member of the Estate Planning & Administration Department, he represents a wide range of clientsincluding high-net worth individuals. Prior to joining SCMV, Hervey served as a legal intern at Children’s Legal Services and Citizen’s Climate Lobb and worked as a law clerk at Moore, Schulman & Moore.
Sesti joins SCMV’s Litigation Department, where he assists clients in a wide range of complex litigation disputes. Before joining SCMV, Sesti was an associate with Grant & Kessler and an intern at Higgs, Fletcher & Mack. Prior to that, he served as a summer associate for Dentons Munich and worked as an intern for the United States Attorney’s Office for the Southern District of California.
Werner also joins SCMV’s Litigation Department, where she represents individual clients and diverse businesses on a wide range of litigation and appellate matters. Prior to joining SCMV, she was an associate at Sidley Austin LLP in New York City. She also served as a summer intern in the Civil Division of the United States Attorney’s Office for the District of Columbia.
Wood joins SCMV’s Business Department. Her practice focuses on employee benefits and compliance, investment and taw law, international finance and tax planning and controversy. Before joining SCMV, she was an associate in International Tax Services at PwC. Prior to that, she was a law clerk and then an associate with Milikowsky Tax Law.
San Diego Press Club to present panel on
resources available to independent journalists
The San Diego Press Club will host a virtual panel discussion on the tools and resources available to independent journalists on Tuesday, May 3 from 6 to 7 p.m. The “Powerhouse Panel: Going Independent” event is part of the ongoing Press Club “Nuts and Bolts” professional development series and is designed to present learning opportunities based on industry trends.
The panel event will feature freelance journalists Jackie Bryant, Jodi Ettenberg and Mike Sowden who will share how they are complementing their publishing careers with, among other things, email newsletters. They will provide tips on building a paid following with new and emerging tools available online, including Substack, Patreon and other newsletters, all of which have allowed them the freedom to take the assignments and follow the stories they want.
The event is free to attend. To register, visit https://conta.cc/3rR1Hng
City of San Diego to launch ‘Park Social’
public art initiative at 28 city parks
Giving San Diegans more opportunities to experience public art, the City of San Diego next month will launch Park Social, a public art initiative bringing San Diego area artists and park visitors together through temporary projects that intervene and interact in the social spheres of public parks. These projects explore topics ranging from environmental justice to belonging and social cohesion.
The city commissioned dozens of artists and artist groups from the San Diego area to bring their projects, including art installations, interactive events and performances, to 28 different city parks. Most of these projects will be staggered and presented in various stages over a span of six months, from May 21 to Nov. 20, 2022.
Park visitors will have the opportunity to experience the art and meet some artists during Park Social Kickoff Weekend events at various city parks from Saturday, May 21, through Sunday, May 22, 2022. The weekend will include an ice cream social with opening remarks, workshops and performances from artists and collectives.
To learn more about Park Social, the participating artists and their projects, and to view a schedule of upcoming Park Social events, visit sdparksocial.com.
San Diego County bolsters aerial firefighting resources
The County Board of Supervisors voted unanimously Tuesday to strengthen aerial fire protection in the region by approving the purchase of a new twin-engine firefighting helicopter and adding two additional firefighting helicopters to a firefighting response agreement with San Diego Gas & Electric.
The Bell 412 EPX helicopter will be the first twin-engine in the Sheriff’s fleet. A twin-engine helicopter is safer, can fly at night, hoist more weight, carry more water and reach more locations to pick up water.
The San Diego County Sheriff’s Department firefighting and search and rescue helicopter
fleet now consists of three Bell 205 helicopters built in the 1960s and 1970s. During wildfires, CAL FIRE/San Diego County Fire Protection District staff the helicopters, except for the pilot, for water drops. Eventually, all the Sheriff’s helicopters will be replaced with twin-engine models.
Planet Fitness holds grand opening in San Marcos
Planet Fitness, one of the largest franchisors and operators of fitness centers in the United States, celebrated their new San Marcos location with a ribbon-cutting ceremony and official grand opening Tuesday. The new club is located at 641 S. Rancho Santa Fe
One World Fitness donated $1,500 to San Marcos High School’s Athletic Department, demonstrating their commitment to healthy and active kids and to the community.
Planet Fitness strives to provide an accessible, high-quality fitness experience in a welcoming, non-intimidating environment known as the Judgement Free Zone. Whether you’re a first-time gym user or a fitness veteran, Planet Fitness aims to create a community where everyone is accepted and respected.
The new 25,000-square-foot club, fully equipped with COVID safety protocols in place, will feature state-of-the-art cardio machines and strength equipment, 30-Minute Express Circuit, Black Card Spa, equipped locker rooms with day lockers and showers, and more. The club hours will be Monday through Friday 5 a.m. to 10p.m., Saturday and Sunday 7 a.m. to 7 p.m.
San Elijo JPA and fairgrounds enter
pact for stormwater treatment
The San Elijo Joint Powers Authority entered into an agreement this month with the 22nd District Agricultural Association to operate a state-of-the-art stormwater treatment system at the Del Mar Fairgrounds.
The $15 million system is designed to treat stormwater discharged from barn and stable areas. It includes a network of pipelines, lift stations, a treatment plant, settling pond, UV disinfection equipment and manmade wetlands on the infield of the horseracing track.
“Our mission is to protect the environment,” said Mike Thornton, San Elijo JPA general manager. “We are pleased to bring our water treatment expertise to the fairgrounds.”
Developed in cooperation with the San Diego Regional Water Quality Control Board, the treatment system is designed to meet state requirements for treating runoff that could enter Stevens Creek, San Dieguito Lagoon and the nearby Pacific Ocean.
“Being a good neighbor and responsible steward of the environment is part of our culture,” said fairgrounds CEO Carlene Moore. “Working with the team at San Elijo was a natural choice for us.”
