By Steve Norton
CEO, Norton Management

Connecticut Sports Betting Hinges on Tribes

My comment:

Connecticut is right to develop a form of sports betting, that will effectively compete with illegal overseas sites, and bookmakers. This would ensure fair odds, payment of large winning bets, and working with the various sports leagues to rout out any "Black-Socks" type scandals.

Plus, legal sports betting would provide jobs to CT residents, a small amount of tax revenue to CT, and some income to gaming operators, preferably at live gaming sites, rather than online.

New Jersey's first 9 months of sports betting gives a realistic example of its tax and revenue potential. Sports bets made totaled $2.5 billion, partially benefiting from the late start in Pennsylvania, and the fact New York still has no sports betting. But the operators only earned $125.5 million (4.9%), and the state received only $14.4 million in taxes (0.6%), at an 8% tax rate at AC casinos and 13% online. But the bad news for AC casinos, including 2 new ones, is that only 12.3% of the sports bets made, were transacted at one of the 9 live casinos; 87.7% was bet online or at 2 North Jersey horse tracks.

So, CT needs to consider carefully, the best way to introduce sports betting - hopefully not online where the problem with compulsive gambling will be greatly expanded (including minors, using a parent’s credit card), as several hundred in-game and proposition bets can be made on most sporting events.

Plus, the convenience of betting from home or work on smartphones or computers could easily switch some betting from state lottery games, where the state keeps 37.5% on games played, to a likely 0.5% to 1%, on sports bets made.