It’s Time to Legalize Sports Betting

Sports Betting

There is a tendency to use euphemisms when talking about gambling. Being in the business for nearly fifty years, I have seen almost everything, but lately some have been trying to say some activities are not gambling when they clearly are. I like to call a spade a spade. I will dissect a couple of myths about gambling below.

Daily Fantasy Sports IS Gambling

DFS Is Gambling

The first myth is Daily Fantasy Sports (DFS) is not gambling. Let me start by saying it is gambling, and in reality there is about as much skill involved as there is in a lottery. When nine things have to line up just right for you to win, it’s no different than a parlay or lottery.

You can study all you want and call it skill if that makes regulators and the major sports leagues feel better, but it is still gambling. And if DFS is going to be legalized, then all sports betting should legal.

I’m going to come right out and say it: The time has come to legalize sports betting.

If skill is going to be the standard by which you legalize an activity, I can confidently state that when sports betting is done properly, it has more skill than DFS. An article from Harvard’s Institute of Politics (IOP) called “Should Sports Gambling Be Legal?” begins with the following lines that capture the essence of the debate:

“Few things are as American as laying down a few dollars on a football game. But oddly enough, sports gambling is illegal in all but four states—Delaware, Montana, Nevada, and Oregon.”

Why is that?

The Professional and Amateur Sports Protection Act

Christie

In 1992 the Professional and Amateur Sports Protection Act (PASPA), also known as the “Bradley Act,” was passed which outlawed sports betting nationwide with a few exceptions for the licensed sports books in Nevada and the sports lotteries conducted in Oregon, Delaware and Montana. Congress provided one year from the act’s effective date of January 1, 1993 for states which operated licensed casino gaming for the previous ten years to pass laws permitting sports wagering.

In the February 2013 the New Yorker ran a piece called “A Call to Action” by James Surowiecki about New Jersey’s efforts to legalize sports betting. He starts the article by stating the obvious: billions of dollars are being waged in states where sports gambling is against the law.

Surowiecki then goes on to detail New Jersey’s battle with the federal government and major professional sports leagues to change the law. The first step was New Jersey voters approving an amendment to the state constitution legalizing sports betting in 2011.

In his article, Surowiecki quotes I. Nelson Rose, an expert on gambling law at Whittier Law School, describing the law as arbitrary. “It’s as if in 1929 Congress had decreed that a dozen states would be allowed to have sound in the their movie theatres and all the other states would only be allowed to show only silent films,” Rose says.

Surowiecki notes that though “all the states except Utah and Hawaii have commercial gambling in some form,” sports betting which involves more skill than a lottery, is restricted to only four states.

A major obstacle to the legalization of sports betting is that the major professional sports leagues state that wagering on sports harms their brands while at the same endorsing daily fantasy sports. It seems they want it both ways, but I believe the tide is turning.

In November 2014 NBA Commissioner Adam Silver wrote a New York Times op-ed called “Legalize and Regulate Sports Betting.” He calls a spade a spade and acknowledges that sports betting is “a thriving underground business that operates free from regulation or oversight.”

We all know what is going on. As Silver states, though “there is no solid data on the volume of illegal sports betting activity in the United States…some estimate that nearly $400 billion is illegally wagered on sports each year.”

Silver continues, “Times have changed since PAPSA was enacted. Gambling has increasingly become a popular and accepted form of entertainment in the United States.”

I agree wholeheartedly.

The time is now to legalize sports betting. And the same arguments can be used to legalize online gambling. With proper regulation and consumer protections, Americans can be free to spend their entertainment dollars as they choose.

In August 2015 the Third Circuit Court of Appeals in Philadelphia denied New Jersey’s bid to legalize sports betting saying it violated the PASPA, which came as no surprise. What did surprise me however was New Jersey’s tenacity.

On February 17 New Jersey appealed the decision of the three-judge panel and argued its case to the full court. They face formidable foes—the professional sports leagues—but I think we will see sports betting legalized throughout the country.

I never thought I’d live to see the day.

Robert Turner is a legendary poker player and casino/billiard marketing expert. Robert is most well-known for creating the game of Omaha poker and introducing it to Nevada in 1982 and to California in 1986. He created Legends of Poker for the Bicycle Casino in 1995. He also helped create Live at the Bike, the first live gaming site broadcast on the Internet in 2002.

He has spent over 30 years in casino marketing and player development. He has served as an executive host at the Bicycle Casino and MGM. He is currently working as a casino consultant.

Robert can be reached at robertturnerpoker@gmail.com for consulting, marketing and coaching. Find Robert on Facebook at http://www.facebook.com/thechipburner and on Twitter @thechipburner. Subscribe to Robert’s blog “Beyond the Numbers” to receive notifications of new posts by email.

Advertisements

2015 Year in Review: Trends and Forecasts in Gaming

The-Bicycle-Hotel--Casino

As I reflect back on this year and look forward to the next, I see great things for the gaming industry. This year saw a trend in poker that will change the way tournaments are run; tournament directors are moving away from multiple rebuys and re-entry events. For example, the Bicycle Hotel & Casino held a tournament with a $100,000 guarantee for a $150 buy-in last Friday, Dec. 4, that drew over 1,000 players and packed the casino. I introduced the re-buy concept years ago at the Normandie Casino and regret it to this day. In the old days, I was dealing with a limited amount of players in a small casino and had to get the numbers up. The concept served its purpose years ago, but it is not necessary today because the fields are so much bigger.

Another trend is the smaller buy-in tournament with a large guarantee, such as the so-called Colossus event held for the first time at the World Series of Poker (WSOP) this year. This tournament drew a record 22,374 players. Events like this are a great introduction for new tournament players. Though there was some controversy over first-place paying only $638,880 for the biggest live tournament in history, I am sure this year first place will be a million dollars if the WSOP holds this event again.

Speaking of the WSOP, Joe McKeehen, 24, this year’s winner of the WSOP Main Event, really put on a dominating performance. McKeehen had a great game plan, and it worked to perfection. Joe’s performance reminded me of Jerry Wang and his perfect play and decision making in the 2007 WSOP Main Event.

The Bicycle Casino in Los Angeles opened a great hotel addition to their casino that rivals any property in Las Vegas and sets the stage for Los Angeles becoming the poker capital of the world. Several new casinos will open in 2016. The Garden in Hawaiian Gardens, California, will open its brand-new casino in late December or early January. According to David Moskowitz, CEO of the Gardens Casino, it will feature the largest event center for tournaments in Los Angeles. The new Hollywood Park casino is slated to open in September 2016 with an entertainment complex that will be a showplace for both poker and football. The NFL plans to build a new stadium at Hollywood Park that will host future Super Bowls. It’s a very exciting time for gaming in Los Angeles.

In 2015 we saw daily fantasy sports (DFS) explode on the gaming scene and will meet court challenges moving forward. DFS is gambling. It’s time to make sports betting legal like they have done in Europe and regulate and tax it. NBA Commissioner Adam Silver admitted it’s time to legalize it. Speaking of the NBA, fans are seeing a great show in MVP Stephen Curry of the Golden State Warriors, who are currently undefeated and are on track for a record-breaking season. Curry is currently the best basketball player on the planet and is changing the game. He may be the best ever in NBA history if he can stay healthy.

The new millennials are the future of gaming and are changing the way casinos market themselves. The millennials grew up with social media and playing video games. Traditional gambling does not appeal to them as much as it did to their parents. They are used to a more fast-paced, finger-tipped technology, and e-sports fits them perfectly. The e-sports industry is moving at warp speed and could provide players for Las Vegas for the next twenty years.

It’s time for casinos to rethink their marketing budgets and allocate more dollars to e-sports and poker. My hope for the upcoming year is that Las Vegas takes another look at how valuable poker players are to their property and use poker as a marketing tool. It’s time they look beyond the numbers and not worry so much about the bottom line.

In closing, as someone who has been in gaming for almost fifty years, I have seen a lot of exciting things this year. Watching American Pharoah win the Triple Crown was the best adrenaline rush I have had in years. I am also fortunate to watch the game of Omaha continue to grow in popularity. I will continue to promote it as I have for 45 years.

2016 will be an exciting year with casinos being planned across America. The future of gaming has never looked brighter. I’m proud and fortunate to still be a part of it. I wish everyone a happy and prosperous New Year.

Robert Turner is a legendary poker player and casino/billiard marketing expert. Robert is most well-known for creating the game of Omaha poker and introducing it to Nevada in 1982 and to California in 1986. He created Legends of Poker for the Bicycle Casino in 1995. He also helped create Live at the Bike, the first live gaming site broadcast on the Internet in 2002.

He has spent over 30 years in casino marketing and player development. He has served as an executive host at the Bicycle Casino and MGM. He is currently working as a casino consultant.

Robert can be reached at robertturnerpoker@gmail.com for consulting, marketing and coaching. Find Robert on Facebook at https://www.facebook.com/thechipburner and on Twitter @thechipburner. Subscribe to Robert’s blog “Beyond the Numbers” to receive notifications of new posts by email.

Daily Fantasy Sports: Where Are the Regulators?

DFS2

The daily fantasy sports (DFS) industry was rocked by a scandal last week when it was revealed that Ethan Haskell, DraftKings’ written content manager, had mistakenly leaked player ownership percentages for his site’s Millionaire Maker prior to the start of some of that week’s NFL games. Haskell then went on to win second place and $350,000 in the NFL Sunday Million at rival site FanDuel that same week.

This incident has led to speculation that Haskell’s success may be attributed to his improper use of insider information. Though DraftKings bans employees from playing on their own site, there were no prohibitions from playing on rival sites—until the scandal broke.

As of Monday, October 5, both DraftKings and rival FanDuel released a joint statement which says in part, “We are temporarily restricting employees from participating in DFS contests as an interim measure while we work with the fantasy industry to develop and implement a more formal policy.” The key words here are “fantasy industry,” which points to the glaring fact that there is no outside oversight of this fledgling industry.

Even before this story broke, many were asking, “Where are the regulators?”

Fantasy sports benefitted from a special carve-out in the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA), which essentially sounded the death knell for online poker. Unlike online poker, fantasy sports holds a special status as the UIGEA classifies it as a game of skill stating, “All winning outcomes reflect the relative knowledge and skill of the participants.”

Launched only in 2012 during Major League Baseball’s opening day, DraftKings seems omnipresent now due to the fact that you can’t miss being bombarded by ads every time you turn on your television. The massive marketing budget is funded by the money flowing to the site from investors and players alike.

According to an article on Fortune.com called “Fantasy Sports Site DraftKings Takes Bets from More Big Name Investors” dated July 27, 2015, DraftKings announced a new round of funding worth $300 million lead by FOX Sports and the Kraft Group, owners of the New England Patriots. This round also included investment from the National Hockey League (NHL) and Major League Soccer (MLS) as well as the Madison Square Garden Company. Major League Baseball (MLB) also increased their stake in the company after investing an undisclosed amount in April 2013, becoming the first US professional sports organization to invest in DFS.

In addition to the funding, DraftKings has also benefitted from valuable partnering agreements. In April, DraftKings and Major League Baseball announced a multi-year deal making DraftKings the league’s “Official Daily Fantasy Game.” The agreement allowed individual teams to offer in-stadium fantasy-related experiences. And in July, DraftKings entered into a three-year advertising deal with ESPN Inc. valued at $250 million.

DraftKings seemed to be on top of the world claiming to have over 1 million registered players, the same position online poker held in 2006 at the peak of the poker boom. And in one fell swoop, the government seized the domain names of the three biggest names in online poker on April 15, 2011, the day dubbed “Black Friday,” and the poker industry has never been the same.

As I write this article, “a federal grand jury focused on DFS has been convened in Florida,” according to legalsportsreport.com. The US Attorney’s office in Tampa, Florida, is investigating whether DFS operators are acting in violation of the Illegal Gambling Business Act (IGBA). And the New York State Attorney General Eric Schneiderman has sent a letter to both DraftKings and FanDuel requesting the names of employees who had access to data that could have been used gain a personal advantage. The parallels to “Black Friday” are eerily similar.

This story is evolving with new developments seemingly every day. I have no idea how it’s going to end, but I do know one thing: It’s time for the gaming regulators finally to step up and regulate this new industry.

Regulators have a duty of care to protect the industry and public alike. It seems in this case they were asleep at the wheel. DFS is hindered by a lack of regulation and transparency. Players deserve a fair game. Like anything else in life, without trust, you have nothing.

Robert Turner is a legendary poker player and casino/billiard marketing expert. Robert is most well-known for creating the game of Omaha poker and introducing it to Nevada in 1982 and to California in 1986. He created Legends of Poker for the Bicycle Casino in 1995. He also helped create Live at the Bike, the first live gaming site broadcast on the Internet in 2002.

He has spent over 30 years in casino marketing and player development. He has served as an executive host at the Bicycle Casino and MGM. He is currently working as a casino consultant.

Robert can be reached at robertturnerpoker@gmail.com for consulting, marketing and coaching. Find Robert on Facebook at https://www.facebook.com/thechipburner and on Twitter @thechipburner. Subscribe to receive Robert’s articles as soon as they are published.