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Q: Sports Betting / Wagering ( No Answer,   5 Comments )
Question  
Subject: Sports Betting / Wagering
Category: Sports and Recreation
Asked by: davidbishop-ga
List Price: $50.00
Posted: 21 Jun 2005 06:16 PDT
Expires: 28 Jun 2005 18:30 PDT
Question ID: 535423
I am interested in finding examples of arrangements where Sports
bodies (e.g. FIFA, Soccer USA) directly receive a share of the money
that is wagered on their sports with licensed wagering operators (e.g.
Betfair, Totalizators, Bookmakers).

e.g. [hypothetical only] Betfair pays 0.1% of all betting/wagering
turnover on Soccer to FIFA. Such that if I bet $1000 on a soccer game
with betfair, FIFA will get a dollar as a result


Desired information
- Parties to the arrangements?
- Basis of arrangements: Legislative? Agreement?
- Structure of arrangements: % of Turnover Based? % of Gambling Yield
(gambler's loss)? Other?
- Detail of how the arrangements came about?
- Suggestions of changes to the arrangements in the future?
- Other relevant information

Please Note: I am familiar with the New Zealand and Australian
markets, so please exclude them from your search
Answer  
There is no answer at this time.

Comments  
Subject: Re: Sports Betting / Wagering
From: badger75-ga on 21 Jun 2005 14:23 PDT
 
Fascinating question. In the US, betting has been the biggest problem
for American sports. In MLB, the 1919 White Sox were proven to have
rigged the outcome of the World Series throwing it to the opponent (a
NY mobster made the arrangements). This led to the creation of a
Commissioner to govern the outcome of the two leagues. Point shaving
scandals in the 1950's in college basketball brought the integrity of
the games into question. There have been rumors, officially unproven,
that major NFL games have been rigged over the years for reasons of
sports betting. Over the years, stars in every sport have been
suspended or banned for life as a result of gambling on games they
played in.
If MLB, NBA, NFL were actually receiving a % of legal gambling that
would be sensational news.
Subject: Re: Sports Betting / Wagering
From: davidbishop-ga on 21 Jun 2005 21:32 PDT
 
Agreed. The most obvious example of this type of arrangement is in New
Zealand, where the state TAB (totalizator) pays a portion of the
profits from wagering on each sport back to the national sporting body
concerned.
Subject: Re: Sports Betting / Wagering
From: badger75-ga on 22 Jun 2005 06:19 PDT
 
Fascinating idea. Serves as a revenue stream and as a regulator of
illegal activity. If news estimates are to be believed, the NFL Super
Bowl alone generates $2 billion + in gambling legally (casino/on-line)
as well as illegal book making, office pools etc. The MLB World
Series, college basketball Final Four tournament, NBA Finals, major
horse racing, golf and tennis majors generate a great deal more. The
IRS would be keenly interested in an accurate estimate of gambling
proceeds.

The bylaws of the major sports leagues prohibit a team owner from
having an interest in casinos and in cross-ownerships in other
leagues. Since American casinos are frequently owned by larger
entertainment corporations (Disney?), an NFL/MLB owner could dodge
restrictions by owning stock. And the issue of Malcolm Glazer, owner
of the NFL Buccaneers and English football Manchester United becomes
very complicated.
Subject: Re: Sports Betting / Wagering
From: myoarin-ga on 26 Jun 2005 15:37 PDT
 
"Fascinating question", but there seems no logical reason for private
licensed wagering operators to give a cut to the sporting
organization, especially as there are several operators so that if one
of them did, it would be at a disadvantage.
State run operators could, of course, be required to do so (NZ,
Australia) and also in Germany, where proceeds from state lotteries
and totalisator wagering support sports, culture, preservation of
historic monuments and social activities.

Unless the US passed a law requiring operators to pass on a cut as
part of the licensing, it seems most unlikely that one or all the
private operators could be induced to do so.  The sporting leagues
have no leverage to make them do so.
Subject: myoarin
From: badger75-ga on 27 Jun 2005 09:11 PDT
 
Your points are well taken. The structure of sports in the US differs
substantially from any other nation. Not only do four sporting leagues
thrive: NFL, NBA, MLB, NHL, but an entire college tier of athletics
that are a feeder system to pro sports. Another tier of secondary
sports such as soccer and lacrosse have pro leagues now.

The casino industry, previously centralized in Las Vegas and Atlantic
City is now decentralized into suburban and rural entertainment
centers that support gambling. On-line gambling is another venue
entirely. As a legal arrangement the sports leagues and the casino
industry would face too many political/legal barriers and they really
don't need it. The existence of legal gambling and pro/college sports
reinforce each other by drawing from the same population groups.

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