The Oregon sports betting system differs from most others. DraftKings is its only sportsbook. The sportsbook giant also runs the Oregon Lottery.
One group, called Sport Oregon, has some issues with the monopoly. It has some heavy hitters in its corner that want change, including Nike and the Portland Trail Blazers, according to Legal Sports Report.
During the Oregon Joint Interim Committee on Gambling Regulation meeting August 28, representatives from Sport Oregon pitched for the expansion of sports betting.
“The monopoly model is outdated and shortchanges the state in millions of dollars of revenue each and every year,” said Nathan Nayman, Sport Oregon external affairs and special projects specialist.
Sport Oregon hired the Innovation Group to assess the potential size of the Oregon market. The current model’s sports betting revenue was $31.8 million during a 12-month period ending March 2022. If Oregon adopted a tax and license structure with an open and competitive market, by the fifth year, the state sportsbooks could generate as much as $290 million.
Through the current 50 percent revenue share with DraftKings, Oregon brought in $16 million in taxes.
The open structure with a 15 percent to 20 percent tax rate, could generate up to $62 million in taxes by year five, Nayman said. “Doing away with the current monopoly could generate a profound increase in revenue,” he said.
Nayman laid out why Sport Oregon and its members want a more open market. For starters, he said a new model should:
- Maximize economic opportunities.
- Encourage full fan engagement.
- Promote the integrity of sporting events.
- Protect consumers from problem gambling.
- Make sure there is equitable treatment of sovereign tribes.
Nayman gave legislators several state models to look at, including Arizona and Ohio sports betting.
“Our organization is poised to work with state policymakers as this process continues,” Nayman said.
