
At least two sports leagues — the NBA and MLB — are attempting to generate revenue off of sports gambling in creative ways.
With the sports betting increasing in popularity, and in some cases, legality, it’s no surprise the leagues are trying to make money on it.
Initially, leagues argued they deserve a cut of the action from the casinos and sportsbooks themselves. As recently as last January, the NBA was reportedly seeking one percent of all money bet on its games.
But that plan — dubbed an “integrity fee” — has yet to come to fruition, with lawmakers in several states declining to pass legislation in favor of the leagues.
However, the leagues have found a different way to make money off sports gambling: data. Sportsbooks were freely using the NBA’s official data feed for a variety of purposes, including to set live betting lines, until some books were cut off earlier this postseason.
As of now, only books who have partnered with the NBA (MGM, FanDuel and The Stars Group) have access to that official data. By doing so, the NBA is ensuring itself a bigger piece of the proverbial pie from the sportsbooks themselves.
According to The Associated Press’ Regina Garcia Cano, Major League Baseball is considering a similar step and could cut off sportsbooks prior to the All-Star Break.
This data will only become more valuable as live wagering becomes more mainstream. The leagues are not locking themselves into exclusive partnerships. NBA senior vice president and head of fantasy and gaming told the Associated Press that the league is “committed to securing additional sports betting partnerships.”
However, some books are choosing to continue without data from the NBA or MLB.
“We respect the leagues; we want to work with the leagues,” Jay Kornegay, vice president of race and sports books operations at the Westgate Las Vegas, told the Associated Press. “There are marketing deals to be made. When it comes to revenue sharing, we just don’t have the room for that.
“If we just pay one league, we are in the red. That’s how it’s so minimal on in-progress betting.”
This battle between the leagues and sports books will be fascinating to watch unfold as the sports gambling landscape continues to develop.