• 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
    • Guide To ‘Risk-Free’ Bets
  • 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
    • Guide To ‘Risk-Free’ Bets
  • News
No Result
View All Result
SportsHandle
No Result
View All Result

Exclusive: Here’s the ‘Model’ Sports Betting Playbook From NBA, MLB

Brett Smiley by Brett Smiley
February 20, 2018
in Industry, Regulation
NBA MLB Sports Betting integrity monitoring
Share on FacebookShare on Twitter

Since the start of legislative sessions across the U.S. at the turn of ‘18, we have seen an avalanche of state bills creating rules for legal sports betting, pending a change in the federal law known as PASPA that effectively bans sports betting outside Nevada. But a somewhat surprising development has been the qualified support that the NBA and MLB have offered for New York sports betting, Illinois sports betting, Iowa sports betting and beyond. 

League officials and lobbyists support legal sports betting, but only bills that would grant them a number of beneficial clauses, most notably a 1% “integrity fee” on all sports wagers, as well as rights to control betting operator data and a right to limit which wagers a sportsbook can offer. (Read here why 1% is actually about 20% of sportsbook operator revenue.)

In support of these measures, leagues and their lobbyists have testified to their necessity, wined and dined lawmakers, and circulated a one-page memo. But they’ve done more behind the scenes: They have drafted an eight-page “Model Sports Wagering Act” for “gaming states,” which SportsHandle has obtained from sources in multiple states where sports betting legislation is on the table. This explains why we have seen almost identical language cropping up in bills across the U.S. A decision in Murphy v NCAA, the Supreme Court Sports Betting case, will come as soon as March 5. In the interim, we’ll see if more officials will oblige the leagues.

Take a look at the full document below, followed by a breakdown.

Here’s the ‘Model’ Legal Sports Betting Playbook From NBA, MLB: The ‘Model Sports Wagering Act’ for Gaming States, Which Contains the Leagues’ Wish List

Click the document below to view in full size in your browser (use arrow keys to flip pages) or PDF here.

Focusing on the major clauses, not the definitions or other reasonable suggested elements, let’s cross-reference this language with HB 1325 in Indiana, the recently-proposed SB 3432 “Sports Wagering Act” in Illinois, and a Senate draft bill in Missouri that does not yet have a sponsor.

Indiana

In HB 1325, much of the of the Model Act’s Section 5 (integrity requirements) and almost the entirety of Section 6 (record keeping; information sharing; fees”) appears.

These clauses appear in Indiana’s Chapter 8, Sec 3., and Chapter 9, Secs. 1, 2, 3 and 4. Those clauses grant leagues:

(a) The right to “restrict or limit wagering on a sporting event” after providing notice;

(b) The right to impose “restrictions on the sources of data and associated video upon which an operator may rely in paying wagers;”

(c) The right to restrict the types of bets that may be offered;

(d) The right to collect real-time information on operators’ wagers; and

(e) The 1% “integrity fee” remitted at least once per quarter.

[Stay tuned at our Facebook page and Twitter @sports_handle for the latest]

Illinois

The Illinois sports betting bill SB 3432, Section 35 (“record keeping, information sharing),” is nearly a carbon copy of the Model Act Section 6. The leagues are granted:

(a) The right to collect real-time information on operators’ wagers; and

(b) The 1% “integrity fee” remitted at least once per quarter.

In Section 30 (“integrity requirements”), we see more identical language from Section 5 of the Model Act, granting leagues:

(a) The right to “restrict or limit wagering on a sporting event” after providing notice;

(b) The right to impose “restrictions on the sources of data and associated video upon which an operator may rely in paying wagers; and

(c) The right to restrict the types of bets that may be offered.

Kansas and Missouri

HB 2752 in Kansas introduced this week and a Missouri draft bill not yet introduced both contain the same Model Act wording. We need not walk through it line by line.

Other States Have Balked at These Terms, Limitations and ‘Integrity Fee’

Comprehensive West Virginia Sports Betting Bill Advances as State Looks to Get Out Ahead of Neighbors If Supreme Court Lifts Federal Ban
The West Virginia State Capitol

The West Virginia sports betting bill (SB 415), the Iowa sports betting bill (HSB 592) and the Pennsylvania sports betting bills are the main examples. In their final forms, should they advance and ultimately pass (Pennsylvania has passed its bill but it contains prohibitive taxation and fees; SB 415 just passed the West Virginia senate), the bills might contain some league-approved information sharing clauses, but not the other Model Act provisions.

In New York, Connecticut, Massachusetts, Rhode Island, Michigan, the contents of the legislation remains to be seen. Those states are holding hearings on sports betting or have passed legislation tasking gaming boards with creating rules and regulations. There are lobbyists registered in those states, and it seems likely that some have seen the Model Act. But not all.

“We were unaware of this model legislation,” Mark Sternman, media relations representative for Massachusetts state senator Eileen Donoghue, sponsor for an act to regulate online sports betting said via e-mail Tuesday. “There’s no [model] sports betting bill about which I know.”

NBA Adam Silver’s Recent Remarks Muddies the Waters

Adam Silver

Through lobbying efforts, the NBA and MLB have offered a cornucopia of justifications for the “integrity fee” and other components of the Model Act. But mainly the arguments have pointed to the leagues’ purported need to institute greater and costly integrity monitoring, or oversight of wagers to detect any malfeasance or irregularities.

[Also See: The NBA Has Zero Legal Claim to One Percent of Sports Bets]

But running through the public remarks and one-sheets is the subtext that it’s really an intellectual property tax. The idea that without their games, there would be no sports betting. NBA commissioner Adam Silver just came out and said it this weekend.

“This notion that as the intellectual property creators that we should receive a 1% fee seems very fair to me” Silver said of levying a fee on potential operators. “Call it integrity fee, call it a royalty to the league.”

In ongoing league lobbying efforts at hearings and in conversations, will they begin to call it what it is? In any case, many state lawmakers already know.


Also Check out From SportsHandle:

New Illinois Sports Betting Bill Includes MLB, NBA’s ‘Integrity Fee’

MLB Concocts Ridiculous New Argument for Cut of Sports Betting Wagers

West Virginia Official Discusses State’s Sports Betting Bill and Future of Wagering

Share3TweetShare
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

nbc skyline
Analysis

New York Poised For $2 Billion Sports Wagering Handle In January

January 27, 2023
seneca niagara
Industry

New York Tribes Could Finally Get A Seat At The Mobile Sports Betting Table

January 25, 2023
Load More

Top Stories

patrick mahomes

Mahomes’ Ankle Speculation Twists Line Movement In Chiefs-Bengals Rematch

January 27, 2023
fanatics-grand-opening

Fanatics Sportsbook At FedEx Field Offers Unique Retail Option In Maryland

January 23, 2023
Shutterstock

Missouri Legislators Lament Exodus Of Bettors To Neighboring States

January 27, 2023
rob gronkowski adam vinatieri

Rob Gronkowski Goes Training Montage Route In Latest FanDuel Spot

January 17, 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
January 25, 2023

Downtown Detroit at twilight (Shutterstock)

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

by Brett Smiley
January 27, 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
October 20, 2022

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

gambling therapy
ncpg
igaming ontario
If you or someone you know has a gambling problem, crisis counseling and referral services can be accessed by calling 1-800-GAMBLER (1-800-426-2537) (IL). Gambling problem? Call 1-800-GAMBLER (MI/NJ/OH/PA/WV), 1-800-9-WITH-IT (IN), 1-800-522-4700 (CO), 1-800-BETS OFF (IA), 1-888-532-3500 (VA) or call/text TN REDLINE 1-800-889-9789 (TN).
19+. Please play responsibly. Terms and conditions apply. 
Individuals must be 19 years of age or older to participate in igaming in Ontario. Gambling can be addictive, please play responsibly. If you, or someone you know, has a gambling problem in Ontario and wants help, please visit ConnexOntario or call their helpline at 1-866-531-2600. Operators on this website operate pursuant to an Operating Agreement with iGaming Ontario.

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
    • Guide To ‘Risk-Free’ Bets
  • News

loading

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

Please share your location to continue.

Check our help guide for more info.

share your location