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The morning of May 14 Jake Williams at Sportradar US
Hours later, following the US Supreme Court decision legalizing sports gambling nationwide, he felt like a fourth round National Football League pick draft – happy for the
Williams is the general legal counsel for the US branch of Sportradar, a European-based company that provides sports data to bookmakers, sports federations, and media companies worldwide. He called the court ruling "a landmark moment for our business."
"It was really a time when we had everything changed, and it's going to be an interesting six to 12 months of age and a scramble – a mad scramble , "Williams said.
That scramble has states, sports leagues, and some businesses racing to grab a seat at the table, while the rest of the nation
Why the hurry? Billions of dollars are up for grabs.
The American Gaming Association estimates about $ 150 billion is illegally wagered on US sports every year
In 2017, betters placed $ 4.7 billion on the Super Bowl , according to AGA estimates, with a whopping 97 percent of that – or $ 4.5 billion – illegal wagers. NCAA Basketball Tournament.
"The US market, besides China, is probably the biggest untapped market in the world," Williams told CNHI.
The Supreme Court ruled that The law and the law of the United States of America – the Professional and Amateur Sports Protection Act (PASPA) – Unconstitutional en Delaware. Mississippi, West Virginia and Rhode Island are soon to follow. Lawmakers from many other states are in a rush to get started.
"Everyone is going to eat our lunch" if New York does not act soon, said State Sen. John Boracic, chairman of the New York Senate Racing, Gaming and Wagering Committee.
Meanwhile, Congress may also play a role.
Utah Sen. Orrin Hatch, an original sponsor of the overturned federal law restricting sports gambling, said he would unveil a proposal to establish minimum standards targeting issues such as underage gambling and the participation of players, referees and coaches.
Congress may also be professional sports leagues' best shot at receiving gambling proceeds.
"What Congress really needs to be made and what is it? , "Said Steven Silver, an attorney who is teaching a clbad on sports betting law at the University of Maine.
A few days after the ruling Supreme Court, the NCAA made it clear in a statement from President Mark Emmert that
"While we recognize the critical role of state governments, we believe that it is important to o play these games at all levels, "Emmert said.
Who's next?
For nearly 30 years, Nevada dominated legal sports gambling. In 2017 alone, Nevada sportsbooks had a $ 248 million win, and a 5.1 percent profit margin on a record $ 4.8 billion bet, according to the Nevada Gaming Control Board.
That stranglehold, at least part of it, changed for good in early June when Delaware and New Jersey, became the first states to open their doors for sports gambling.
Mississippi and West Virginia approved sports gambling regulations June 21, and Rhode Island joined the game on June 22. Mississippi can implement sports gambling 30 West Virginia Lottery Commissioner Alan Larrick told reporters. Connecticut pbaded legislation in 2017. An additional 14 states have recently introduced sports gambling legislation, according to an ESPN tracker.
"It's going to be a revenue producer for the casinos," said Larrick. "
Sara Slane, senior vice president of public affairs at the American Gaming Association," It will bring more people to the casinos, who will spend more nights there. , next year's predicts. Five years from now, she expects that number to balloon to 30, with the sports gambling marketplace eventually mirroring the 40-plus states.
Based on economic projections, the AGA anticipates the evolving sports gambling market could Las Vegas – $ 8.5 trillion industry.
"That's going to take a toll and it's going to take place to sportsbook operators, "Slane said. "But it's certainly a great opportunity for the industry to take advantage of."
Of the two new sports betting states, the Delaware Lottery regulates sportsbooks at three casinos. New Jersey's Division of Gaming Enforcement oversees that state's sports betting.
New Jersey's law permits, at casinos and racetracks. Gross revenue from on-site wagers are taxed at 8.5 percent. Online bets, which can be placed anywhere in the state, are taxed at 13 percent. In addition, the law permits a 1.25 percent local area to be licensed for sale.
Not all states will be in the market and mobile phone market. Rhode Island and Delaware do not have those options in their legislative bills. Mississippi's proposed regulations restrict mobile gaming to casinos. Williams said he would readjust their stanzas to "teething" period.
"That's the norm globally. We expect that to happen, "Williams said of mobile and online gaming, noting expansive markets in Europe and Asia. "It's growing out of a growing season, where is it going to happen? "
Tax rates vary from Nevada 6.75 percent of gross gambling win up to 51 percent in Rhode Island law. Mississippi and West Virginia feature tax rates of 12 percent and 10 percent, respectively, where they have adjusted their sportsbook recepts (defined as gross receipts paid to wagerers) to their open sportsbooks. New York has proposed an 8.25 percent fee. Pennsylvania's proposal would include a sports wagering license fee of $ 10 million, with a 34 percent tax rate on winnings. A proposed bill in Kentucky calls for a 3 percent excise tax on the handle (total amount wagered).
The AGA's Slane said between 6 and 15 percent is a reasonable tax rate, adding anything higher is not advantageous to the legal sports gambling market.
Regardless of regulation, there is no overstating the hype surrounding sports gambling. Kenny White, a longtime Las Vegas oddsmaker, now Vice President of Data Integrity at Don Best Sports, told CNHI in Mississippi casino. starting a sportsbook – White said each book should have a bond and the money on the back of the game – the initial venturing into sports gambling for some may not be as rosy as it seems.
"They've just heard These large numbers being thrown around, "said White, who also consults for SportsLine, a division of CBS Sports. "They start hearing billions, and they start thinking this is such a tremendous industry. The bottom line is the state holds a percent year in and year out. If you're not going to do a lot of volume, holding a percent is not going to make a lot of money. "
For example, in Delaware, the state's sports betting contractor, Scientific Games, receives a 15.66 percent and after the winners are paid, and the state takes half of the remaining money, with 40 percent to the casino. Delaware had $ 322,135 in sports bets on the open day, ESPN reported. That averages out to $ 117.6 million over the course of a year. Assuming 5 percent of wagers are held in Nevada, Delaware's cut could be somewhere in the $ 2.5 million range. The casinos would end up with around $ 2 million.
Pro sports leagues want to
With states legislating their take, some professional sports leagues and their players want a share, too. Baccarat gold roulette – recent AGA data from 2016 casinos reached a record $ 38.96 trillion – but Nevada's 2017 figures show there's revenue to gain as states expand gambling. $ 164 million, according to the Nevada Gaming Control Board.
"Can I get rich off that?" Joked New England defensive back Devin McCourty, who serves as the Patriots' player rep for the NFL Players Association
Not exactly. New Brunswick uses the term NBA and MLB as the lawmakers of the United States. The NFL and NCAA do not support such a fee. The NHL, meanwhile, prefers not to use the word "integrity," yet believes it.
Proposed laws in New York, Indiana (HB No. 1325), Illinois (SB 3432) and Kansas (HB 2792) have built-in fees, ranging from 1 percent in Indiana to .25 percent in Kansas and .20 percent in New York. New York's proposal failed to gain traction in this year's legislative session.
In theory, the fee from the handle (total amount wagered) would help organizations finance efforts to prevent corruption.
Not everyone is on board, though. 19659002] AGA would like to work with the leagues, but Slane made it clear AGA does not support an integrity fee, adding business decisions and deals should be done through private contracts and not statutory obligations.
The rationale? A 1 percent fee is "not really 1 percent," Slane said. The NBA and MLB want a 1 percent cut of wagers – a $ 100 bet would produce $ 1 for the leagues. However, sportsbooks generally win about 5 percent of wagers (5.11 percent in Nevada in 2017), thus a $ 100 bet, in this example, would provide $ 5 in revenue to the casino, and the leagues cut to 20 percent.
"When we talk about having sustainable business models in the marketplace, it's an additional 20 percent tax, which is just not going to work," AGA's Slane said.
The debate has also made its way down to college athletics. West Virginia University and Marshall University are vying for a .25 percent integrity fee for all in-state bets wagered on their schools.
West Virginia Athletic Director Shane Lyons said the funds would be used to hire additional staff and educate players. pitfalls of gambling
There are at least a half-dozen high-profile point-shaving scandals in the NCAA history, a one-to-one gambler thinks times.
"Am I going "Too bad for somebody's going to give me $ 2,000 to not win by 20," said Tim Otteman, badistant professor at Central Michigan University, who has researched gambling tendencies. "
More gambling, more problems?
Experts say it's hard to predict what the marketplace will look like for sports gambling will look like in 10 years.
Daily fantasy sports giants DraftKings and FanDuel – New Jersey's Resorts Casino and FanDuel New Jersey's Racetrack and New York's Tioga Downs. Mobile, online and live in-game betting are gaining popularity. Iowa State Athletic Director Jamie Pollard sees a day where kiosks are in stadiums for fans to place bets.
The excitement is clear. Others are not so thrilled.
The multi-billion dollar industry has its downfalls, according to the National Council on Problem Gambling. It is approximately 2 percent (5 million) of US adults experience gambling problems.
Keith Whyte, executive director of the council, fears not only more problem gamblers, but also more severe related issues.
Gambling, gambling, gambling, gambling, gambling, gambling, gambling, gambling, gambling, gambling, etc.
"It's left to be the industry's (tail) in all 50 states as they try and expand betting, "he said.
" Unfortunately, it's kind of like a race to the bottom. to the game. It's not leading to a lot of policy outcomes. "
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