An official publication of Global Gaming Expo

OCTOBER 2002 

EDITORIAL

Sporting Insanity in the U.S.

By Charles Anderer, Publisher 

Wouldn’t it be nice if America woke up one day and decided to do something logical and constructive? Take a deep breath, do the fiscal math, accept the anti-tax culture for what it is, figure out a way to channel a huge amount of existing economic activity for the common good and do the right thing: legalize sports betting across the land.

Oh, no! Not that hopeless cause again! Well, sorry folks, but in addition to waiting for our Internet gaming ship to come in, why don’t we get off our collective butts and start expressing some vision about an unregulated industry that dwarfs Internet gaming in size and potential and is already seen by many as a socially acceptable activity?

In addition to the tens of billions of dollars that a nationally administered sports betting program would raise (illegal handle exceeds $100 billion, by every estimate), the sporting world needs regulated gaming more than it surely realizes.

Here’s why: Mass-market sports such as baseball, basketball and football have been losing share of market steadily for the past decade. The evidence is most striking in declining ratings for the World Series, the NBA finals and the Super Bowl. Kids nowadays in the states are as likely to worship a professional wrestler or Ozzy Osbourne’s sweetly dysfunctional household as they are a professional athlete.

Most observers blame the cable effect and the corresponding decline of the three networks. I think something much deeper is at work: People are starting to despise the athletes and the feeling is mutual.

What used to be seen as innocent, healthy, drama-filled activity is increasingly viewed as a pointless net-worth-building exercise for spoiled brats. Witness the almost-strike in baseball, which pitted players making an average of more than $2 million a year against he-men of the American commercial jungle turned whining team owners.

Against this backdrop, imagine the following: legalized betting on baseball, where all of the proceeds get channeled to public education. We could even take a share and channel it to small-market teams and restore competitive balance. True risk-takers like George Steinbrenner could continue spending to their hearts’ content without paying a luxury tax to tightwads like David Glass and Drayton McLane. The players, for their part, would be identified with a cause other than their own personal greed, even as their average salaries continue to soar. Baseball reconnects with America and everyone benefits. And, oh yes, there’s one less reason to raise taxes.

The same scenario could be applied to other major sports, and the quality of play might actually improve. With basketball, for instance, a portion of the sports betting proceeds could be channeled to high school coaches around America. They could be instructed to force their charges to watch tapes of the ’70 Knicks, the ’72 Lakers and the ’86 Celtics. This way, Americans, who came in sixth in the recent world championships, could learn how to play their one true team sport before knowledge of how to share the ball on offense and play team defense vanishes forever.

If you’re wondering whether these ramblings have a basis in reality, the happy answer is yes. Trendsetter Delaware, which was exempted from a 1990s federal ban on sports betting because it once allowed wagering on professional football, is currently revisiting the issue. A state-mandated study of legalized sports gambling at the state’s racetracks is under way. The impetus for the study is the prospect of new, competitive forms of gaming in Pennsylvania and Maryland.

Delaware feels the need to differentiate and protect its revenue base. Let’s say it does. Then it’s only a matter of time before neighboring states cry foul and the whole issue of sports betting is re-addressed.

If the time comes, as an industry, let’s swing from our heels and play offense: Legalized sports betting is a winner. Wanna bet?

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