Operator News

US – AGA critical of NBA’s ‘fee’ for betting on basketball

By Phil - 25 January 2018

The American Gaming Association has slammed suggestions by the National Basketball Association that it should be awarded a fee from every bet placed on basket ball describing it as an attempt to ‘skim money from American taxpayers.’

The NBA wants a national betting regulatory system to be legalised, allowing for sports betting across the country. It also wants, however, a one per cent fee for every bet placed on the NBA.

The US is currently waiting for the Supreme Court’s decision on whether to allow legal sports gambling in New Jersey, which many officials believe will lead to the abolition of the 1992 federal gambling ban.

The suggestion came from NBA attorney Dan Spillane, who said to the New York Senate Committee on Racing, Gaming and Wagering: “We have studied these issues at length. 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.”

“There are different ways to implement legal sports betting. One approach, which we would prefer, is for Congress to adopt a federal framework that would allow New York and other states to authorize betting on sports, subject to strict regulatory requirements and technological safeguards.”

“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,” Mr Spillane explained.

“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 percent of the total amount bet on its games,” he added. “This approach draws from how sports betting is legally regulated in some other international jurisdictions, like Australia and France.”

“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.”

Whilst welcoming the NBA’s stance on sports betting, the American Gaming Association was sceptical at the suggestion of a fee.

It calculated that a one per cent ‘integrity fee’ on all money wagered legally by Americans, as proposed by the NBA, amounts to 20 to 29 per cent of total revenue.

“Money that leagues skim off the top decreases the total amount of money taxable by state/other governments,” it explained. “These dollars fund vital community services. Money that goes directly to the leagues distorts the odds that legal bookmakers are able to provide and encourages Americans to continue to operate criminally in the illegal market.”

AGA President and CEO Geoff Freeman, pictured, added: “We are pleased that the National Basketball Association (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. 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.”