NBA backs online betting but demands 1% cut
League issues support for sports betting at New York hearing but told to “get real” on tax demands
The NBA has thrown its weight behind the creation of a “comprehensive” sports betting bill in New York that would include online and mobile betting, but would also give sports leagues a 1% slice of turnover from bets on their games.
NBA senior vice president and assistant general counsel Dan Spillane made the pitch yesterday at a hearing in front of the New York Senate Committee on Racing, Gaming and Wagering.
“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,” Spillane said.
He added: “We support the passage of a comprehensive sports betting bill that would serve as a model for a 50-state solution—whether that happens in Congress or on a state-by-state basis.”
The NFL, MLB and NHL all declined to send representatives to the hearing.
Among the NBA’s proposed inclusions in the legislation was a 1% tax on betting turnover to go to the relevant league.
Spillane explained: “The legislation should recognize that sports leagues provide the foundation for sports betting while bearing the risks that sports betting imposes, even when regulated.
“Without our games and fans, there could be no sports betting. And if sports betting becomes legal in New York and other states, sports leagues will need to invest more in compliance and enforcement, including bet monitoring, investigations, and education.
“To compensate leagues for the risk and expense created by betting and the commercial value our product creates for betting operators, we believe it is reasonable for operators to pay each league 1% of the total amount bet on its games. This approach draws from how sports betting is legally regulated in some other international jurisdictions, like Australia and France.”
Spillane does address the fact that sports betting is already a multi-billion dollar business that is not currently creating “risk and expenses” for the leagues.
The NBA also argued for internet and mobile betting, explaining: “If betting were limited to the four land-based casinos that are located miles from New York City or other major population centers in the State, many consumers likely would continue to bet illegally through offshore websites and other illegal channels”.
The proposals were met by considerable backlash from gambling companies, including the AGA, whose chief executive Geoff Freeman said the NBA needed to “get real.”
“We are pleased that the NBA today joined with the gaming industry in support of vigorously regulated sports wagering. We can all agree that the 25-year ban on sports wagering has been a failure in every regard,” Freeman said.
“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.”
In related news, the NY Senate Racing, Gaming and Wagering Committee also passed an online poker bill this week by 10 votes to one, marking the third straight year a bill has advanced out of the gaming committee.