Profitable for Massachusetts?
Despite the numerous and obvious plus points of bringing in regulated sports betting, there’s a genuine concern as to whether the industry will enjoy much success financially. And as we know in any walk of life, money talks.
If the state views the financial rewards of sports betting so small that it doesn’t justify the required investment, then they won’t persist.
This is maybe hard to believe but the profit margins are known to be low in sports wagering compared to what can be made through slots for example. It sounds rather warped to dismiss the idea of making tens of millions but it’s the hundreds of millions of dollars that really begin to make heads turn.
Competition already raring to go
By now, the sports betting wagon was supposed to have rolled into more states than it has done. Yet, when you consider neighbouring states and financial competitors like Rhode Island, Connecticut and New York are pretty much ready to run with their sports betting laws, Massachusetts will be behind the eight ball before the law even takes effect.
Dare we mention the same thorny issues that pop up every time a state even breaths the words online sports betting…
Integrity of sports games
The potential for sports betting to seriously harm the integrity of sports games is a hot topic that refuses to go away and arises every time a state begins to move towards the idea of sports betting. Let’s not forget the US major sports leagues had long opposed any movement and were the driving force behind the 1992 federal law that had prevented the industry from existing.
The infamous ‘Black Sox’ scandal which saw the 1919 baseball World Series fixed and the uncovering of a NBA referee betting on games he had officiated in more modern times, serve as two notable examples as to why the leagues resisted the overtures of sports betting for as long as they did.
Reservations still persist; the silence from the NFL on the subject in particular speaks volumes and remains a huge stumbling block given how powerful the league is. But the hard stance the leagues took just a few years ago, has softened quite significantly.
In truth, they haven’t had much choice.
The explosion in technology means it has never been easier to bet on sports, nor has it ever been so popular.
Those heading the major leagues have come to realise that the legalization of sports betting is, eventually, inevitable so why not try and snap up a slice of a very lucrative pie.
Not only would legalization boost revenue potential, an integrity/royalty fee has been proposed by the leagues as compensation for using their content to profit.
As you can imagine, this just throws up another hurdle to jump over with betting operators and leagues having to negotiate a deal fair for all.
Hard to see NCAA budging
Still on the subject of integrity, the NCAA are likely to remain unmoved on their stance that legalizing sports betting will only prove a negative move for collegiate sports.
Professional athletes are paid lucrative salaries and aren’t as susceptible to the lure of rigging matches.
However, this is not the case for students often having to rely on grants and scholarships.
There would be the option of following New Jersey in forbidding sports betting on high school game sand collegiate events within the state. But it’s yet another issue that needs ironing out, if there weren’t enough already!