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 by Elvis
6 years 2 months ago
 Total posts:   38376  
 Joined:  Mar 28 2015
United States of America   Los Angeles
Administrator

http://www.espn.com/nba/story/_/id/2219 ... d-wagering

NBA outlines plan for nationwide sports betting

5:32 PM PT
Brian Windhorst
ESPN Senior Writer

In what could end up being a seminal moment for sports gambling in America, the NBA on Wednesday formally requested a set of laws that could be the basis for professional sports leagues pushing for national legalized wagering on games.

Dan Spillane, an attorney for the NBA, testified in front of a New York State Senate committee and for the first time made it clear what the league's price would be to become a partner in legalizing the multibillion-dollar industry.

The NBA wants 1 percent of every bet made on its games in addition to other regulations, a request that could create massive revenue for the NBA and other sports leagues in the future.

Spillane also said the NBA wants more widespread access to gambling for its fans, pushing for bets to be made legal on smartphones and kiosks and not just inside casinos and racetracks. That would increase the amount of wagering and, in turn, create more revenue for the league under its desired plan.

"We have studied these issues at length," Spillane said in his statement to lawmakers. "Our conclusion is that the time has come for a different approach that gives sports fans a safe and legal way to wager on sporting events while protecting the integrity of the underlying competitions."

The U.S. Supreme Court is considering a New Jersey-based case that could clear the way for individual states to legalize sports betting at casinos and racetracks. Oral arguments took place last month, and a decision is expected in the spring. As that process plays out, a number of states are putting legislation in place to act if the Supreme Court's ruling overturns the federal ban on widespread sports betting outside Nevada.

In 2016, Nevada had $4.5 billion in sports wagers. When the numbers come in for 2017, they could be over $5 billion for the first time. Though much of that betting is on sports like horse racing and boxing, it is not hard to see how a 1 percent cut of all bets would be highly lucrative for sports leagues in states like New York -- and could increase exponentially if betting is legalized across the country.

The NBA, NFL, MLB, NHL and NCAA have spent millions in legal fees fighting that case and others over the past decade to prevent expanded sports gambling. But with the NBA as the tip of the spear, the leagues could be preparing to flip their positions and begin to fight instead what could be a costly lobbying effort to get gambling laws they want.

"States like New York and others have reacted by moving forward to discuss and advance new laws that could immediately thereafter permit legal sports betting," Spillane said. "We cannot sit on the sidelines while this activity is occurring."

The NBA had indicated that it wants to eventually lobby Congress to get a national bill passed, regardless of how the Supreme Court rules. The requests Spillane made Wednesday appear to be the basis of how that lobbying effort may go.

The American Gaming Association issued a statement Wednesday that while it was pleased the NBA supported "vigorously regulated sports wagering," it also said that the role of government "most certainly does not include transferring money from bettors to multi-billion dollar sports leagues."

This led to the NBA releasing its own statement.

"Sports leagues provide the foundation for sports betting while bearing the risks it imposes, even when regulated," league spokesman Michael Bass said. "If sports betting is legalized federally or state by state, we will need to invest more in compliance and enforcement, and believe it is reasonable for operators to pay each league 1% of the total amount bet on its games to help compensate for the risk and expense created and the commercial value our product provides them. This is a similar approach to legally-regulated sports betting in other international jurisdictions."

No one knows how much is wagered illegally on sports each year, with estimates reaching into the hundreds of billions.

Pro leagues in Australia and France receive a small percentage of bets made on their sports. The NBA has studied Australia's laws closely in forming a position on the matter.

To this point, the NFL has publicly remained mostly on the sidelines in gambling matters. Last week, ESPN reported the NBA and MLB consulted with Indiana lawmakers to insert a 1 percent "integrity fee" into a sports gambling bill introduced in that state.

These integrity fees could be used to pay for other regulations. The NBA wants real-time monitoring on wagering to detect any unusual activity or insider trading. The leagues already do this and have for years.

Spillane wants to limit action on certain types of bets that could be more easily manipulated. He used the example of prop bets Wednesday, such as placing a wager on who may draw the game's first foul.

The league also wants to protect consumers, including age restrictions and a "rigorous licensing program" for operators.

 by kayfabe
6 years 2 months ago
 Total posts:   128  
 Joined:  Jun 16 2015
United States of America   LA Coliseum
Practice Squad

And here's the rebuttal argument from the gaming industry --

https://www.reviewjournal.com/sports/sp ... grity-fee/

Oddsmakers cry foul over NBA’s proposed ‘integrity fee’


By Todd Dewey Las Vegas Review-Journal
January 25, 2018 - 9:41 am


For years, the NBA and other major pro sports leagues claimed they wanted to stop the spread of legal sports betting in order to protect the integrity of their games.

Now, the NBA wants a piece of the action. To protect the integrity of the game.

If, as expected, a federal ban on sports betting is lifted in the coming months, the NBA wants sports books to pay the league 1 percent of the money wagered on its games as an “integrity fee.”

An NBA official, assistant general counsel Dan Spillane, made the request in written testimony submitted Wednesday in support of the passage of a sports betting bill at New York’s Senate Racing, Gaming and Wagering Committee hearing.

Integrity fee costly for books

The 1 percent fee amounts to more than 20 percent of sports book revenues, William Hill sports book CEO Joe Asher told the committee. In 2016, 1 percent of Nevada’s $4.5 billion sports betting handle amounted to $45 million. With the state’s sports books winning $219 million — 4.86 percent of the handle — the leagues would’ve taken 20.5 percent of their revenue.

“I guess the NBA wants to be bookmakers. This is so hypocritical, it’s unbelievable,” said Vic Salerno, a Las Vegas sports betting pioneer. “It’s a red herring when you call it an integrity fee. They want to be partners but they don’t want to appear to be partners.

“They’re saying they want to protect the integrity of the game by not having bookmaking. Now they want to be part of it. It doesn’t work both ways.”

A similar 1 percent integrity fee was included in Indiana’s House Bill 1325.

American Gaming Association president Geoff Freeman praised the NBA in a statement for supporting regulated sports wagering, but criticized the integrity fee:

“Now, let’s get real about eliminating the illegal market, protecting consumers and determining the role of government — a role that most certainly does not include transferring money from bettors to multi-billion dollar sports leagues.”

Nevada sports books already pay a 0.25 percent federal tax on handle and about 6 percent of their revenue in state taxes. Salerno said adding an integrity fee of 1 percent — or more, depending on what the NFL requests — will make it difficult for legal books to thrive.

“We’d make less than the NBA will (from their fee),” he said.

Bettors will feel pinch

The fee also might adversely affect the odds for bettors.

In 1983, U.S. Sen. Howard Cannon helped get the federal tax on Nevada’s race and sports handle reduced from 2 percent to 0.25 percent. The reduction resulted in improved parlay odds for bettors.

“As 2 percent went away, we could be more competitive, like 800-1 on a 10-teamer,” Salerno said. “When I started, it was 150-1 on a 10-teamer.”

Casino amenity

Nevada’s total annual sports betting revenue is slightly less than 2 percent of the total revenue for slots and table games.

“The sports book is an amenity to the casino. In sports betting in general, there’s not a lot (of money) to go around,” Wynn Las Vegas sports book director Johnny Avello said. “Now you start putting on all these fees and start cutting the pie up even thinner?

“For some reason, they think the sports book is a money-making cash cow. That’s just not the way it is. It’s the lowest hold of any of the casino games.”

Increased juice

The tax rate is friendly to legal bookmakers in Nevada. But Salerno said some outrageous rates being proposed in other states will make it virtually impossible for books to turn a profit. To compensate, he expects them to increase the price on straight bets from the traditional $11 to make $10 to $12 or $13 to make $10.

“It has to go up or they can’t make money. I don’t know if they’ll be successful,” he said. “If the tax rate is on the handle, forget it. Kentucky wants 20 percent of the handle. We don’t hold 20 percent. It’s a very thin margin.”

Black market will thrive

High tax rates and integrity fees for national legal sports betting might inadvertently enrich illegal bookmakers, who’ll be able to offer better odds and prices.

“If you’re going to charge $12 to make $10 or $13 to make $10, consumers are not going to pay that if they can pay $11 to make $10 with their bookies back home or in the islands,” Salerno said.

Leagues should pay books

Some in the sports betting industry believe the leagues should be the ones giving them a piece of the pie.

“They should pay us for putting out the product and taking the risk,” Salerno said. “The NBA and NFL wouldn’t be so popular if it wasn’t for us. We’re the ones who’ve increased the value of the teams, viewership and advertising and everything else.”

 by Elvis
6 years 1 month ago
 Total posts:   38376  
 Joined:  Mar 28 2015
United States of America   Los Angeles
Administrator

https://www.legalsportsreport.com/18085 ... integrity/

NFL Commish Goodell On Sports Betting: ‘We Are Going To Protect The Integrity Of The Game’

Dustin Gouker, Jan 30, 2018 10:37 PST@dustingouker

NFL Commissioner Roger Goodell talked about his league’s stance on sports betting ahead of the Super Bowl and a verdict expected from the US Supreme Court on the federal sports wagering ban this year.

In speaking with ESPN Radio, Goodell’s stance remained much the same as it as historically — that his league is not embracing sports betting. But he did not say that his league actively opposes it, either.

Goodell said his league is primarily concerned with the integrity of the game — the idea that wagering doesn’t impact results — no matter what happens moving forward on the legalization of sports betting.

The comments come as the NBA has said it embraces federal or state-level regulation of sports betting. The NBA has proposed an “integrity fee” — one percent of all sports wagering handle payable to the leagues — in several states.

What Goodell said on sports betting

Goodell spoke on sports gambling while giving an interview to ESPN Radio show Golic and Wingo.

“Where is the relationship or the idea of the separation of the NFL and gambling right now, as we’re going forward?” host Trey Wingo asked.

Most of what Goodell said was the equivalent of a non-answer on what the NFL thinks about the future of sports wagering. But here is what he said:

To me it it’s very clear, which is about the integrity of the game, you don’t want to do anything that’s going to impact negatively on the integrity of our game.

You want to be certain that there are no outside influences on our game and that fans don’t even have any issue with that, they understand, whether there’s a perception or not, that there’s no influence in our game. And that’s something that we stand firmly behind on the integrity of our game.

We see changes going on. Obviously I don’t think ten years ago most people would have looked at having an NFL franchise or an NHL franchise in Las Vegas. Clearly there are changes occurring, the Supreme Court is considering changes potentially in laws with respect to gambling across our country.

And I think we’re going to be prepared as a league to address those, no matter how the Supreme Court comes out, but also how things continue to evolve. I think we have, but we are going to protect the integrity of the game, I assure you of that.

You can listen to his comments here.

What Goodell didn’t say on sports betting

Interestingly, Goodell did not say the league is actively opposed to the legalization of sports gambling, a refrain he’s repeated in recent years. He said when the NFL decided to move the Oakland Raiders to Las Vegas that the league’s position on sports gambling hadn’t changed, despite the fact that sports betting is legal there.

This time around, Goodell certainly had an opportunity to repeat that his league opposes legalization, but he didn’t. That might be in part an acknowledgment that the leagues are going to lose the New Jersey sports betting case in front of the Supreme Court. The court appears likely to rule in favor of New Jersey, perhaps striking down the federal ban — PASPA — entirely.

Of course, the NFL may still oppose legalization, and Goodell simply didn’t say so. If the NFL is not going to actively call for regulation, there’s not much benefit to him saying he opposes it before the Supreme Court rules. Such a stance would be counter-productive given today’s reality, where a variety of states are looking to pass sports betting laws in anticipation of a victory for NJ in SCOTUS.

Goodell’s comments come ahead of Super Bowl

The Super Bowl — this year between the New England Patriots and Philadelphia Eagles — is right around the corner. It is the event that Americans bet most heavily, despite the US “ban” on sports betting.

The American Gaming Association estimates that Americans will wager almost $4.8 billion on the game. The vast majority of the bets will take place via offshore sportsbooks operating illegally in the US.

Betting on the NFL is big business, and the league knows it, whether it says so publicly or not. Whether Goodell and the league will ever come around to saying that legal sports wagering is better than the current black market might be a matter of when, not if.

 by BobCarl
6 years 1 month ago
 Total posts:   4282  
 Joined:  Mar 08 2017
United States of America   LA Coliseum
Superstar

Elvis wrote:NBA outlines plan for nationwide sports betting
this is funny. As whatever happens in the NBA is public knowledge ... imposing a "shakedown" for someone to place a legal bet will only fuel underground betting ... which in turn will fuel paying off officials and players to throw games.

Yes, the current law is flawed ... a flaw that is easily fixed. I really doubt that the Supreme Court will abolish the commerce clause in the Constitution.

 by Elvis
5 years 10 months ago
 Total posts:   38376  
 Joined:  Mar 28 2015
United States of America   Los Angeles
Administrator

https://www.legalsportsreport.com/20293 ... s-betting/

West Virginia Governor Says State Will Not Pay Integrity Fee for Sports Betting

Adam Candee, May 10, 2018 10:20 PDT@adamcandeeWV sports betting integrity fee
An integrity fee might still find its way into West Virginia’s sports betting law, but the state will not give up its revenue to fund it. State universities, however, might receive their own cut.

ESPN reports that West Virginia and Marshall universities, who sent representatives to yesterday’s meeting, could be the first schools to get a slice of sports betting revenue.



Gov. Jim Justice announced an agreement this morning after a Wednesday meeting of government officials, casino executives and sports league representatives. Justice said in a press release that West Virginia would not pay an integrity fee to the leagues.

“I insisted from day one that no part of an integrity fee for sports betting would be paid by the state,” Justice said. “I demanded that the entire fee be paid by the casinos.”

You cannot pay a fee that does not exist though

Of course, the state law passed in March that authorizes sports betting if PASPA is repealed did not feature an integrity fee. Justice allowed the law to go into effect without his signature because of a family connection to a casino at The Greenbrier. MLB Commissioner Rob Manfred asked Justice to veto the legislation.

Justice did leave open the possibility of reconfiguring the law following the Supreme Court’s decision in the New Jersey case.

“After the U.S. Supreme Court issues its decision on sports wagering, to address any provisions of the legislation that might be in conflict, I will ask the Legislature to look at the advantages of partnering with the major sports leagues,” Justice said. “I believe there could be real value to this partnership. I expect the Supreme Court to rule on this issue in the next few months.

“This approach will allow us to develop a relationship with all the major sports leagues so that it is beneficial to everyone.”

Some kind of an integrity fee remains on the table
Justice’s press release strongly hints that an integrity fee could still revive via an upcoming special session. This line provides the clearest signal:

Lottery director Alan Larrick and his staff will be working on ways to implement the integrity fee and will determine what, if any, legislation is needed for codification.​

The state’s lottery will administer sports betting. The new law lets the state’s five gaming facilities offer sports betting. Each will pay $100,000 for the right to do so. At least $5 million can be expected in first-year tax revenue.

The WV legislature still would need to approve the fee

West Virginia legislators did not buy the leagues’ argument for an integrity fee in passing the law in March. The only change since then is yesterday’s inclusion of athletic directors from West Virginia and Marshall to present collegiate concerns.

Why the legislators would change the law absent any compelling new reason or evidence remains an open question. Justice presented yesterday’s agreement as the path for moving forward, but much discussion remains before the law is changed.

“This was a difficult negotiation between many different parties, but the outcome will be very good for the State of West Virginia as well as the sports leagues,” Justice said. “Additional dollars received by the state from sports betting will be utilized for the benefit of many of our residents.

“However, all of this is a moot issue until the U.S. Supreme Court rules on the legality of sports gaming across the country.”

 by BobCarl
5 years 10 months ago
 Total posts:   4282  
 Joined:  Mar 08 2017
United States of America   LA Coliseum
Superstar

Elvis wrote:
“However, all of this is a moot issue until the U.S. Supreme Court rules on the legality of sports gaming across the country.”
I haven't read anyone write an article on why the SCOTUS will rule that the Commerce Clause doesn't still apply . The Commerce Clause trumps the 10th Amendment. And unless/until the Fed govt writes a law giving up this authority then the issue at the state govt level will remain moot.

 by BuiltRamTough
5 years 10 months ago
 Total posts:   5357  
 Joined:  May 15 2015
Armenia   Los Angeles
Hall of Fame

St. Loser Fan wrote:That crying you are hearing is from the executive offices of the Las Vegas casinos.

Ya man, I’ve go tired of buying bitcoins and using off shore sites and this and that.

Like in NV and the UK, I want to go to the liquor store and put my money on the Rams and buy some beer like a normal human being.

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112 posts Mar 28 2024