"A multi-billion dollar sports betting market has just been unlocked"

What is your opinion on the recently given green light to legalized sports betting across the U.S.? Why do you think the Supreme Court decided to lift the federal ban on sports betting now?

The Supreme Court has historically done a great job of siding with the sentiment of the American people, and sport is ingrained in the fabric of American culture. Judging by the size of the black market for sports betting I think it’s clear that Americans love to have a sports bet. Industry leaders like Dennis Drazin at Monmouth Park and the leaders at the American Gaming Association worked very hard to make this happen. The entire country owes thanks to them, and to New Jersey for stepping up to the plate and fighting for this.

What impact will this new scenario have on the rest of the gambling market in the U.S., as well as the international gambling industry? Will it be viewed as an opportunity or as direct competition to traditional gambling?

It’s a game changer, and it’s highly complementary to other forms of gambling. A multi-billion dollar market has just been unlocked. More broadly speaking, full online gaming is likely to follow next as states realize the opportunity for economic benefit by allowing online sports betting in addition to retail betting, which makes this new opportunity even larger. The US online gaming market is evolving on a state-by-state basis, in most every case tied to existing land-based stakeholders, which creates an interesting wrinkle in how the market will develop. We’re unlikely to see betting shops on every corner like in the UK, and more likely to see beautiful, high-end sports book experiences located in casino properties to complement online operations. Because of the limited number of land-based conglomerates and the fractured regulatory landscape, geographically diverse partnership opportunities are highly limited. This ruling may spur a gold rush for international operators, but it’s more complicated than simply applying for a license and running a B2C online product. In reality, only the best and most ambitious operators that are willing to make serious investments are likely to realize the full potential of this extremely desirable market in the United States. So the questions are “who wants it the most” and “who is willing to adapt their business to fulfill the somewhat unfamiliar requirements of US stakeholders?”

What role will sports leagues play? How do you think sports integrity should be protected?

The leagues are going to benefit wildly from regulated sports betting. After the ruling came down on Monday, Mark Cuban – owner of the Dallas Mavericks – came out and thanked the Supreme Court for doubling the value of his franchise. The leagues have been behind the introduction of “model legislation” in a number of states, but the demands they’re trying to impose - like their so-called “integrity fee” which is really a cash grab - will directly and negatively impact the ability of operators to recapture the existing black market, and is premised on the illogical assumption that it’s harder to assure the integrity of a transparent, legal market than an opaque black market. Everyone seems to forget that we’re not dealing with a sports betting market in this country that is starting from zero; this is a sports betting market that is deeply entrenched because it has thrived illegally for decades. Black market operators have mature products and don’t have to play by the same rules as regulated operators. Putting unnecessary limitations on the ability of regulated operators to do business will, ultimately, directly and negatively impact consumers, and directly and negatively impact the states that are aiming to drive tax revenues to fund public policy initiatives. The leagues should keep running the great entertainment product they’re known and loved for, and sit back and watch their engagement, sales, franchise values, and everything else reach heights they haven’t seen before, instead of continuing to push bad policy on legislators that serve the public. The irony here is that a well-structured betting market without league interference will end up driving the most benefit to the leagues. Any prudent operator will help root out integrity issues; this already happens around the world.