Allow me to start by saying, I am very much interested in squeezing money out of sportsbooks. Would love to take my fair share of that money. The collective group of casino sportsbooks in Nevada made $250 million in revenue over the course of 2017. As of 2017 there were 192 sportsbooks across the state, so that means the average revenue each book made per month is $1,302,083. I get not all months and not all books are the same but you get the point. Doesn’t seem that glamorous now.
Now onto what really got this post going. Not to pick on whoever wrote this, because this is a very popular, uneducated opinion. This just happened to come from my home state and it caught my attention when I was hoping for the latest news of legalization. Feel free to read:
It is pretty harmless. I actually am very much in agreement that racinos and casinos should not be able to monopolize the market. It would make things very inconvenient for everyone involved and is not fair to the people who can provide that convenience. Couldn’t agree more.
BUT… as you read the article, it goes into that integrity fee thing. For those who don’t know, the NBA and MLB were leading the charge on taking, in the writer’s words, a modest 1% from the books. These leagues, worth billions of dollars, want a piece of the action now and labeling it with integrity purposes. You mean give the leagues that have many teams blatantly tanking with 30 games left an extra piece to hold up that moral standard said leagues exude.
Sportsbooks will inevitably makeup that 1% from somewhere which would hurt the publics ROI. The leagues will benefit a significant amount without the chump charge because of how many more viewers they will be getting with the increased action. Most of them could use the boost. NFL has taken a large publicity hit recently. The MLB is a boring product. The NBA is polarizing with NCAAB. All sides could use this. And about that $250 million in revenue all Nevada books took home, that’s off of a wagered $4.8 BILLION. They won more times than not on $4.8 billion and only brought home a quarter of a billion dollars. That means they take home 4-5% and these leagues (again, worth multiple billions) want an “integrity fee” that’s equivalent to 20-25% of their entire revenue. How modest of them. Seems like a squeeze to me, which is incredible coming from leagues who can’t even keep their own teams from trying to lose.
I know the age old argument against it with players betting on games. Yes, that is a possibility… with shady, shadowy, underground figures that are readily available currently. Legalizing sports betting IS monitoring these actions. Books will limit bets to a certain amount, which means no one is risking millions of dollars for a $10k drop in the bucket. And if you think Pete Rose was walking into a public sportsbook to bet, then you and I live in two different worlds. Legalizing would actually help this angle not hurt it. Starting to make sense?
Not trying to pick on the person who wrote this but like I said, completely uneducated. Not everyone is going to be, which is fine. I even agree with one of their points. But I couldn’t help myself when I see that my home state should learn from another’s mistakes, when in fact that state correctly told the leagues to piss off. It’s sort of like when you see a homeless person with the “Need money for beer” sign. I’d respect you much more if you were truthful in the name of the fee.