May 11, 2021
Sports Gambling is Legal in AZ & Beyond w/ Adam Candee
- BRT S02 EP19 (66) 05-09-2021
What We Learned This Week
Guest: Adam Candee w/ Legal Sports Report
AZ has just legalized sports gambling, and it is due to go live in the Fall of 2021
Adam Candee is a radio host and journalist who runs the top sports gambling info websites / podcast - Legal Sports Report (.com). He joins the show to talk all things sports gambling. We cover AZ and all of the other states (like NY) who just passed the initiative also, and potential tax revenues.
We talk the big players (Draft Kings, Barstool Sports) and the casinos who have thrown their hat in – Caesars, MGM.
Adam tells of the history of sports gambling in the US, the growth of offshore books in the 1990s, and what we can learn from Europe’s sports betting market the last 20 years.
Bio – NAU grad and worked in AZ sports, Covered AZ Cardinals, Gambling & fantasy sports & podcasts
Develop regulations and roll out to public
AZ legalized 4/2021 and develop rules to start in the fall of 2021
AZ has FAQ – gaming department and tax rate of 6.75% like NV
Many states copy rules from other states, Language is the same in many states
State – 6.75% to 20% high end, Operate through state lottery
‘Vig’ of current sports gambling would make mobsters jealous
Low margin business – lots of data from NV, 55% win rate by sports book and then taxes
NJ legal battle, Supreme Court in 2018 - ‘Pasba’ struck down Federal ban, now a state matter, and states can legalize sports gambling (vs Federal law 1992 – only in Vegas)
Daily fantasy sports on Fan Duel and Draft Kings
MD,LA,NY,AZ,SD – all legalizing, OH, FL moving forward
ID, UT and a few others may not legalize.
European and UK market – Legal for long time.
Sports / biz in Europe
OTB – off track betting – site where races air on TV and people can place bets
Betting windows inside football arena in Europe
Backlash – gambling addiction – bombarding people with gambling ads
Regulators cracked down in 2020 in UK
European operators moved to US
Betfair, Bet 365 ‘in play betting’ in NJ
Betfair – Andrew Black – Rich Koch invested
Flooder – Sky Bet Post Bet (Australian)
Patty Power owns Fan Duel
Fan Duel partners with Phx Suns – Sports book in Suns arena in Fall 2021
Vegas – casinos, Caesars & MGM – growth with sports betting
Growth by acquisition (M&A) Caesars buys William Hill
Leagues need engagement and gambling helps lots of comp. with internet
Appointment TV - Multi bill money deals with TV and Amazon
NBA – Tim Donaghy scandal, NBA ref fixing games
NFL / NBA etc – How dependent TV audience b/c gambling.
Estimates of market size - 2020 numbers – pandemic $ wagered in NJ
NJ - 95% bet on a phone vs. 60% in Vegas
Legal in 2018 to go nationwide.
$55 billion market in U.S. estimated, Oct. 20 $3 billion / month, global $465 billion
Draft Kings - $57 / stock
Betfair bet 365
Barstool sports book, Penn National Gaming (owns 36%)
25 states legalized - future states
U.S. future – betting at football or B-ball stadiums
How does Pete Rose feel about this?
1919 Black Sox – baseball scandal, threw World Series
Jimmy the Greek – smooth Jimmy Apollo – ‘Lock of the week’
Brent Musberger – Coded calls during the game ref. gambling
VSPN Network in Vegas
Casinos – sports book – status and future / MGM
Off shore casinos – (5 Dimes, My Bookie, Caesars, Ovada)
No taxes, No recourse, No regulations – issues with getting money.
1992 Congress / Supreme Court tried to halt sports gambling growth – moved it off shore - $150 billion annual black market
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