Someday sports fans and team owners may have New Jersey Governor Chris Christie to thank for games that are more engaging and for a revenue source that does not yet exist in the United States. Christie this past week continued his strong push to challenge the Federal Law that does not allow sports betting anywhere other than the five states that were grandfathered into the existing legislation, maintaining that the limit restricts New Jersey’s business growth despite the fact that its casinos have long been regulated and established legal centers for all other forms of gambling. The challenge, Christie believes, will open up new areas of commerce and tourism not just for Atlantic City, but for the horse tracks that are currently struggling to stay afloat throughout the state.
Naturally the NFL continues to publicly back the law in place, continuing, along with other sports leagues, to distance themselves from any form of professional wagering expansion outside of the States where it is current legal (the biggest being Nevada). However the battle will only last as long as the legislation currently in place holds. Cantor Gaming, the company managed by Wall Street giant Cantor Fitzgerald, continues to be more bullish with their Las Vegas-based sports book, pushing out…what else…the betting lines for the opening weekend of September’s NFL season two weeks ago, the earliest ever. Now the lines never appear in NFL properties, but the league certainly won’t fret about the talk generated on places like ESPN’s highly rated “Mike and Mike” radio show the morning the lines came out. A multi-state sports legal book would generate even more interest in the major, and some minor sports, and keep fans even more engaged.
Away from the gambling for dollars, the advances in mobile and hand-held devices can make for lots of fan engagement for virtual betting or other forms of activation in even the biggest blowout. Acceptance of regulated wagering in-arena would have fans more engaged in the action on the floor or the diamond or the ice, and again would create a huge, legal opportunity for teams to bring in increased revenue through new and innovative sponsorship.
Now none of this is unique the world over. Soccer and other sports have had legalized onsite gambling, especially in the mobile space, for years. Have there been issues in places (Italian soccer, Indian cricket, men’s tennis) with match fixing and player issues? Yes. However those issues have happened in North America as well, and with regulation on digital gambling and more sports books the transparency in the industry would make incidences less, not more. While some view regulated gambling as a scourge, the rest of the world seems to be doing all right, and regulating at the Federal level is the key.
As we have said before, the regulation of sports gambling and the establishment of a sports book is becoming more and more a certainty. It fits with the growth of casual and competitive gaming, and is still one of the largest revenue streams not yet tapped by professional sport in North America. Other streams…hard liquor, condoms, even casinos…were once on the banned list that also includes tobacco these days, and all are seen as OK now. Where would sports business be today without ads for Viagra or Cialis ads? The stigma and worry with those categories came and went, and so in all probability will be the issues with regulated gambling at some point down the road. It won’t be the main reason people will flock to games, but it won’t detract either. The industry knows gambling exists and it is an enhancement to viewers and the fan experience. It just cannot acknowledge or engage in the space yet.
When it does happen, all owners should send a thank you note to the current governor of The Garden State, as he will be helping them improve the fan experience and bring in more dollars via sponsorship in one fell swoop.
