Bad bet disrespecting legalized gambling’s anticipated new customers

Bad bet disrespecting legalized gambling’s anticipated new customers

April 26, 2018 10:41 AM
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The NBA and Major League Baseball have proclaimed that a 1-percent “integrity fee” on sports betting is essential to secure fair, legal contests for bettors to wager on.  The PGA Tour recently joined the cause and so too have players’ associations for the four major United States sports leagues, who announced a claim for their “fair share” from the potential expansion of legal U.S. sports wagering.

While these guys are seeking as large a cut of the pie as possible, have they thought about leaving enough for the market to make a profit?  Or about what impact this pie-slicing will have on the sports betting public — the people who consume the games themselves, the people who buy merchandise and TV packages and fill the stands?

In general, the national sports betting conversation in statehouses and beyond has consisted of sparingly little regarding the actual sports bettors, their wants, needs and expectations.  As the gaming, sporting and legislative worlds anxiously awaits the U.S. Supreme Court decision on PASPA (the Professional and Amateur Sports Protection Act of 1992), stakeholders ought to expend more calories thinking about how all their decisions will impact the actual patrons.

 

A Business Plan for U.S. Legalized Sports Wagering

To quote verbiage from The Music Man, “You’ve got to know the territory!”.  Sadly, many legislators don’t know the U.S. sports wagering territory, same as many officials in the sports leagues.  Foremost in writing any business plan for any corporate entity in any industry, there are many common components.  

First, there must be a revenue structure based on specific costs to that industry and most important, it must account for the individual behavior habits of its customers.  Both the leagues and its players are ignoring these crucial components by not considering the current sports wagering market that actually exists.  That is the approximate 97 percent of illegal wagering conducted outside Nevada through offshore sportsbooks and private bookmaking sources. 

Check out sportshandle.com for the full article.