Lower expectations for a big windfall from sports betting, and only consider legalizing it for the right reasons: that’s advice lawmakers got at last week’s National Council of Legislators from Gaming States (NCLGS) in San Diego.
Nevada attorney John Maloney, who also represents California gaming tribes, noted that Nevada’s casino take from sports betting last month was $31 million, which is about 3 percent of its total gaming profits of $937.4 million.
Maloney added that sports betting revenues are typically about 5 percent of the total wagered.
Kate Lowenhar-Fisher, a gaming attorney who practices in Las Vegas said that sports betting revenues are often viewed as meaningless and that it is principally seen as an amenity to attract customers. She added, “The margins for sports betting are really, really small. Make sure you’re not killing the industry before it gets off the ground by virtue of your taxing structures.”
The conference was attended by 40 lawmakers from 20 states and about 200 vendors, executives, attorneys, regulators, gaming operators—all with the shared interest of gaming.
Fennemore Craig gaming attorney Dan Reaser, who was also on the panel, said the market for sports betting has plenty of room left to grow because California and Florida, two of the largest states, have yet to legalize it.
Reaser said legislators should be cautious about getting into sports betting without a good reason. He and Maloney talked up mobile sports betting, now offered in nine states.
“Money is mobile. Money is mobile,” said Maloney. “That’s where sports betting is going.”
