• About Us / Contact
  • Responsible Gambling
This site contains commercial content
SportsHandle
  • US Sports Betting
    • Arizona
    • Arkansas
    • Colorado
    • Connecticut
    • Delaware
    • Illinois
    • Indiana
    • Iowa
    • Kansas
    • Louisiana
    • Maine
    • Maryland
    • Massachusetts
    • Michigan
    • Mississippi
    • New Jersey
    • New Mexico
    • New York
    • Ohio
    • Oregon
    • Pennsylvania
    • Tennessee
    • Virginia
    • West Virginia
    • Wyoming
  • Pending States
    • California
    • Florida
    • Georgia
    • Missouri
    • North Carolina
  • Canada
    • Ontario
    • British Columbia
    • Alberta
  • Sportsbook Apps
    • FanDuel
    • BetMGM
    • Caesars
    • PointsBet
    • BetRivers
  • Tools
    • Sportsbook Bonuses Explained
    • Sports Betting Revenue Tracker
    • Sports Betting Podcasts
    • Partnership Tracker
    • Expected Value
    • Sports Scores And Odds Apps
    • Sports Betting Twitter
  • News
No Result
View All Result
SportsHandle
  • US Sports Betting
    • Arizona
    • Arkansas
    • Colorado
    • Connecticut
    • Delaware
    • Illinois
    • Indiana
    • Iowa
    • Kansas
    • Louisiana
    • Maine
    • Maryland
    • Massachusetts
    • Michigan
    • Mississippi
    • New Jersey
    • New Mexico
    • New York
    • Ohio
    • Oregon
    • Pennsylvania
    • Tennessee
    • Virginia
    • West Virginia
    • Wyoming
  • Pending States
    • California
    • Florida
    • Georgia
    • Missouri
    • North Carolina
  • Canada
    • Ontario
    • British Columbia
    • Alberta
  • Sportsbook Apps
    • FanDuel
    • BetMGM
    • Caesars
    • PointsBet
    • BetRivers
  • Tools
    • Sportsbook Bonuses Explained
    • Sports Betting Revenue Tracker
    • Sports Betting Podcasts
    • Partnership Tracker
    • Expected Value
    • Sports Scores And Odds Apps
    • Sports Betting Twitter
  • News
No Result
View All Result
SportsHandle
No Result
View All Result

How Much Is New York’s Proposed Sports Betting ’Integrity Fee’ Worth to Leagues?

Brett Smiley by Brett Smiley
March 8, 2018
in Industry, Regulation
MLB Commissioner Rob Manfred

MLB Commissioner Rob Manfred

Share on FacebookShare on Twitter

On Wednesday, New York state senator John Bonacic introduced a New York sports betting bill (S 7900) that looks like a serious effort to advance legislation that would legalize sports wagering in New York. (Pending a change in federal law through Congress or through the repeal of the federal ban, PASPA, via Murphy v NCAA in the Supreme Court of the United States.)

We called the bill a “win” for the sports leagues. That’s because S7900 would give them some money as an “integrity fee,” which the NBA and MLB lobbyists, league officials and even commissioners have referred to as a royalty or intellectual property fee. But in light of reactions to this fee and a desired “monopoly” on sporting event data, getting some of their asks written into a serious piece of legislation is a win. Bonacic is chairman of the Senate’s Racing, Gaming and Wagering Commission and has the clout to move this bill along. 

But let’s focus on this quasi- “Integrity Fee,” which would be one-quarter of one-percent of all wagers placed on games, capped at no more than 2% of an operator’s gross gaming revenue. This won’t be a windfall by any stretch. But let’s take a look at what it might be.

In a Recently Proposed New York Sports Betting Bill, The Capped ‘Integrity Fee’ Gives the Leagues Something, But Just How Much?

In a Recently Proposed New York Sports Betting Bill, The Capped ‘Integrity Fee’ Gives the Leagues Something, But Just How Much?
Sen. John Bonacic

Here’s the breakdown for one for one month of prospective New York sports betting, making some assumptions/projections.

(1) Let’s says the total handle (volume of wagers) in New York in Month One of full-fledged sports betting is $500 million, which is about what Nevada has recently achieved recently. We can debate this number but let’s say it gets there as a by- product of a much larger population and the novelty of it. 

(2) Let’s say that all the operators finish the month with a 5% hold (the amount the books keep after paying out winners). The operator revenue for this month is $25 million.

(3) At 0.25% for the “integrity fee,” that’s $1.25 million of the total handle for the leagues (to divvy up based on which wagers came on which leagues’ events). Not a ton of money considering Yankees relief pitcher Tommy Kahnle is earning $1.31 million in 2018.

(4) But the leagues would not get $1.25 million — because 2% of the $25M operator revenue (the cap) would be $500,000.

(5) So the leagues would come away with $500,000 in what’s a pretty good month for the books.

[Related: New York State’s New Sports Betting Bill Is A Win For Sports Leagues]


Clearly, this is not a windfall for the leagues. And that sum is directly tied to, and compensate leagues for, integrity monitoring services, investigations, even public relations efforts in connection with integrity issues.

So with this integrity clause, the lawmakers apparently seek to appease the leagues’ concerns over “risk” that legal wagering would pose to their games, as discussed at the January 24 hearing. (And by the way, this concern is a farce because they say illegal wagering is the greater risk).

Do the leagues really want the estimated $500K divided between them for integrity services? No. They do not. That’s roughly in the territory of Yankees backup catcher Erik Kratz, a lifetime Mendoza Line-ish .203 hitter.

While the leagues got other key concessions they want/wanted in this bill, with any fee they want a no-strings attached royalty with many more zeroes that. If the cut were 1 percent of all wagers with no limitation: based on the estimated $200 billion wagered illegally in the U.S. every year, the number would be $2 billion.

In just one year, that would be enough money to finance the to-be Las Vegas Raiders roughly $2 billion stadium in, yep, Nevada – the Mecca of Sports Wagering.

Share7TweetShare
Brett Smiley

Brett Smiley

Brett Smiley is editor-in-chief and co-founder of Sports Handle, which joined forces with the US Bets team in November 2018. He focuses on the sports betting industry and legislation. He's a recreational sports bettor and DFS player himself, focusing on the NFL. In a past life, Smiley practiced commercial litigation in New York City and previously wrote for FOX Sports and SI.com. He lives in New Jersey with his family.

Related Posts

get a grip graphic
Industry

Get A Grip — The Week In Sports Betting: New York Cools Off

March 17, 2023
nyc skyline
Industry

Conference Review: Crackdown On Betting Ads Dominates Conversation In NYC

March 10, 2023
Load More

Top Stories

taylor mathis

Taylor Mathis Got Sacrificed At The Altar Of Responsible Gambling

March 20, 2023
fanduel baseball wall

Premade Same Game Parlays Are Sucker Bets

March 13, 2023
maginfier-over-small-print

Read The Fine Print: A Proposed Federal Rule Could Change Everything For Indian Gaming

March 6, 2023
roman reigns wwe

Colorado Denies Report Stating That It’s Considering WWE Wagering

March 8, 2023

State Sports Betting Guides

Ohio (U.S. state) flag waving against clear blue sky, close up, isolated with clipping path mask alpha channel transparency, perfect for film, news, composition

Ohio Sports Betting – Where To Play, Bonus Offers And Promo Codes

by Brian Pempus
March 23, 2023

Downtown Detroit at twilight (Shutterstock)

Michigan Sports Betting – Where To Play, Online Sportsbooks, And FAQ

by Brett Smiley
March 23, 2023

VA captial

Virginia Sports Betting – Where To Play, Online Sportsbooks And Bonus Offers

by Brett Smiley
January 17, 2023

nj flag

New Jersey Sports Betting — Where To Play, Online Sportsbooks, And FAQ

by Brett Smiley
March 22, 2023

pa online sportsbooks

Pennsylvania Sports Betting – Where To Play, Online Sportsbooks And Bonuses

by Brett Smiley
October 6, 2022

Canada Sports Betting Guides

Canada Sports Betting – Best Sportsbook Apps & Bonus Offers

British Columbia Sports Betting – Legal Update, Available Sportsbooks, and FAQ

Ontario Sports Betting – Legal Status And Where To Play

SportsHandle

  • Analysis
  • Casino
  • Features
  • Horse Racing
  • Industry
  • Legal
  • Legislation
  • Opinion
  • Podcasts
  • Poker
  • Politics
  • Promotions
  • Regulation
  • Sports
  • Uncategorized

Better Collective

This website is owned and operated by Better Collective USA. Trademarks and copyrights referenced on this website are and shall remain the exclusive property of their respective owners and/or licensors. Please be sure to visit the operator’s website(s) to review their terms & conditions. We advise you to read these carefully as they contain important information. Copyright © 2023 USBets.com | Better Collective USA
21 Play Responsibly
Gamble Aware West Virginia
Gambling Problem? Call 1-800-Gambler.
GameSense

Search Sports Handle

No Result
View All Result
  • About Us / Contact
  • Responsible Gambling

No Result
View All Result
  • US Sports Betting
    • Arizona
    • Arkansas
    • Colorado
    • Connecticut
    • Delaware
    • Illinois
    • Indiana
    • Iowa
    • Kansas
    • Louisiana
    • Maine
    • Maryland
    • Massachusetts
    • Michigan
    • Mississippi
    • New Jersey
    • New Mexico
    • New York
    • Ohio
    • Oregon
    • Pennsylvania
    • Tennessee
    • Virginia
    • West Virginia
    • Wyoming
  • Pending States
    • California
    • Florida
    • Georgia
    • Missouri
    • North Carolina
  • Canada
    • Ontario
    • British Columbia
    • Alberta
  • Sportsbook Apps
    • FanDuel
    • BetMGM
    • Caesars
    • PointsBet
    • BetRivers
  • Tools
    • Sportsbook Bonuses Explained
    • Sports Betting Revenue Tracker
    • Sports Betting Podcasts
    • Partnership Tracker
    • Expected Value
    • Sports Scores And Odds Apps
    • Sports Betting Twitter
  • News

loading

Please wait while you are redirected to the right page...