Roundup: Knicks Owner Using Facial Recognition Software in Terrifying Ways

Welcome to our new weekly cadence -- to your inbox Monday-Wednesday-Friday morning with news and updates in sports, gambling, and media. On Thursday, takes directly from our text threads.

Santa did not, in fact, bring us the sacks of cash we asked for. We are starting to think it's never going to happen... just like our Southwest flight.

Let's cover some of what you may have missed over the holidays.

In the email today:     

1) Big Brother is watching, and his name is James Dolan 😱

2) New York Jets receivers coach Miles Austin suspended by National Football League for gambling on sports 🏈

3) Apple reportedly pulled out of negotiations for the NFL Sunday Ticket because they wanted future virtual reality rights that don't even exist yet 🍎

Only 362 shopping days left until Christmas.

1) KNICKS OWNER JAMES DOLAN IS USING FACIAL RECOGNITION TECHNOLOGY TO BAN HIS ENEMIES FROM VENUES 😳

Leave it to Knicks owner and MSG Entertainment CEO James Dolan, an evergreen jerk, to take technology intended to keep people safe and use it to press a petty agenda.

Kelly Conlon was barred from entering Radio City Music Hall with her daughter's Girl Scout troop. The group was there to see the Rockettes' "Christmas Spectacular" when facial recognition software identified Conlon as a threat.

It turns out Conlon works for a law firm that currently represents a plaintiff in a suit against an MSG Entertainment restaurant... and she is not involved in the suit.

Per a New York Times story:

• MSG Entertainment has been using a facial recognition system to enforce an "attorney exclusion list" that bans all attorneys at certain law firms from entering its venues in New York City

• The list applies to attorneys representing people suing MSG Entertainment, as well as all attorneys at their firms

• MSG Entertainment has defended the use of the technology, saying it is a useful and widely used safety tool at many sports and entertainment venues

• Lawyers have sued MSG Entertainment, arguing that the exclusion list and the use of facial recognition technology to enforce it are forbidden

• Civil liberties advocates have raised concerns about the use of the technology, calling it a "dystopian, shocking act of repression" and a "major jump forward" that needs to be regulated by the federal government

The incident has sparked a national debate about the potential for a privatized surveillance state — many corporations eschew use of this technology on privacy rights grounds — and some civil rights voices are calling for federal regulation of the use of the technology.

Suits are already underway against MSG Entertainment seeking court orders compelling the company to stop using the technology for non-safety-based reasons. Additionally, the New York State Liquor Authority has warned MSG Entertainment that MSG Entertainment's practices here may be in violation of liquor laws.

Our take: 

The use of facial recognition technology in prominent venues raises concerns about its potential abuse, such as targeting individuals or groups for exclusion. It's one thing to use it on lawyers against whom Dolan has an axe to grind, or even media members who rip the Knicks. But the ease with which the technology can be deployed can have much farther reaching implications.

The widespread availability of personal information online, combined with the increasing accuracy of facial recognition technology, means that there is potential for almost anyone to be added to future exclusion lists.

Guess we're not going to any Knicks games for a while.

2) JETS COACH MILES AUSTIN SUSPENDED BY THE NFL FOR GAMBLING 💵

Uh oh:

• Austin has been suspended for at least one year for violating the NFL's gambling policy.

• He is appealing the suspension and must serve it before applying for reinstatement.

• Austin, who played in the NFL from 2006 to 2015, has been accused of gambling on sports (not NFL or college football games) and making online bets while at the team's facility, both of which violate NFL rules.

Austin's lawyer thinks this is all just a big misunderstanding.

"Austin's attorney and agent, William P. Deni, Jr., told multiple media outlets that Austin did not wager on NFL Games." Unfortunately for Austin, that's not the only prohibition the NFL has in place for its teams and their personnel. 

The NFL's policy holds as follows: "All NFL Personnel other than Players are further prohibited from placing, soliciting, or facilitating bets on any other professional (e.g., NBA, MLB, NHL, PGA, USTA, MLS), college (e.g. NCAA basketball), international (e.g. World Baseball Classic, World Cup), or Olympic sports competition, tournament or event."

Deni said "the NFL suspended Miles Austin for wagering from a legal mobile account on table games and non-NFL professional sports." That's not an admission, but it the league can prove that Austin made such wagers, it is difficult to see where the suspension would be deemed improper or illegal.

As a quick aside, the NFL isn't the only major professional sports league dealing with this issue. The English Premier League's third-leading goal scorer this season, Ivan Toney, has been charged by the FA for multiple breaches of its betting rules from February 2017 to January 2021. 

Our main takeaway here is that anyone fortunate enough to either play or coach a child's game and make a very good living at it should be disciplined enough to follow their league's anti-gambling rules until such time as they leave the job.

Or, failing that, maybe be smart enough to have a third party place your bets for you.

3) APPLE REPORTEDLY PULLED OUT OF SUNDAY TICKET TALKS WITH THE NFL BECAUSE ... OF VIRTUAL REALITY? 🍎

It turns out Apple's negotiations for NFL Sunday Ticket rights may have been derailed by Apple's desire to broadcast the games in virtual reality:

• At one point, it was believed that Apple had reached an agreement for the rights.

• However, negotiations between Apple and the NFL eventually fell apart.

• It may be due to Apple's interest in distributing Sunday Ticket on virtual reality platforms.

• The NFL may view virtual reality as a separate media category that warrants a separate deal.

• It is unclear if virtual reality will be an issue in negotiations between the NFL and Google, which is expected to distribute Sunday Ticket as an add-on to its YouTube TV service.

On the surface, seems silly that Apple would let what appears to be such a fringe use case derail a major deal like this. But on the other hand, rights like this can serve as top-of-funnel promotion or lead gen for future products like VR and AR headsets for a company like Apple. 

Once again, we're reminded the tech giants are not your parents' network broadcaster.

JOB LEAD OF THE DAY 💰

This one is only for the attorneys. We aren't going to limit most of our job leads this way, but when you see this listing you'll know why we had to run it here.

Associate Counsel for UFC in Las Vegas? YES PLEASE. Even the job pitch has us fired up.

"Just like the way our fighters prepare with their training partners to be the very best, here at the Ultimate Fighting Championship (UFC) we encourage that type of teamwork. A UFC employee, like a mixed martial artist, is well-rounded and willing to put in the time necessary to be world-class. Come join us as we progress at a rate never before seen in the professional sports world."

Dana White, you sweet bastard, where do we sign?

WHAT ELSE IS GOING ON? 😎

• OG Chicago sports blog Bleacher Nation was sold to Chicago sports betting start-up Betsperts Media & Technology Group. "Betsperts?" Um...OK. 💻

• Predictably, as more states legalized online sports betting, the handle went up. As it turns out, way up -- over $80 billion in 2022. 💵

• Online sportsbooks took a bath on the Christmas Eve clash between the Philadelphia Eagles and the Dallas Cowboys when sharp money sniffed out Eagles quarterback Jalen Hurts' injury status before the books could adjust the line. 🏈

• The Jackpot lottery application is up and running in Texas as that state continues to dither about making online sports betting legal. 📱

• PointsBet quickly dumped Drew Brees as a brand ambassador after the stunt commercial Brees featured in was roundly excoriated and Brees took a job as a college coach.

• Fanatics CEO Michael Rubin's non-profit organization, the Reform Alliance (which Rubin co-founded with Meek Mill), gave 33 children negatively impacted by the criminal justice system the status of "Eagle for a day." 🦅

• The NBA fought the NFL on Christmas Day, and held its ground as its ratings improved over last year. 🏀

WHAT TO KEEP AN EYE OUT FOR BEFORE THE NEXT SEND 👁️

• Washington Commanders owner Daniel Snyder, already no stranger to lawsuits, is potentially facing new action by the legendary "Hogs" Redskins offensive linemen over the Commanders' forthcoming mascot reveal. 🐷

• A Needham analyst thinks DraftKings stock is still worth a buy and sees growth potential for 2023, particularly if heavy favorites would just stop covering. "Buy low" on sportsbook stocks seems to be a trend of late. 💰

• The NFL is considering replacing artificial turf with real grass fields in all 32 stadiums that hold the league's games. How that will work in, say, Ford Field in Detroit (which does not have a retractable roof), we gotta see that. 🏈