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[toc]Provisions in a new Indiana Sports betting Bill would turn sports leagues into the recipient of funds from legal sports betting.

How much money could that mean for leagues? It goes into the billions, with a “b”.

The Indiana Sports Betting Bill and “Integrity Fees”

During a Senate version of a bill on sports betting was released in Indiana last week, with a house version released on Monday.

In the House version, a previously unseen “integrity fee” that would be paid to sports leagues based on how much money is wagered in the state. This fee would be paid by the sports betting providers. Such a fee is a new development in every state.

The fee is set at one percent of the state’s sports betting handle – not revenue. (Read this on for more Handling vs. sales.)

Taking a percent of the handle could be a pretty big godsend for the leagues – namely, the NFL, NBA, NHL, Major League Baseball and NCAA. (It could potentially impact other sports as well if Indiana offered them, such as sports PGA tour, Major League Soccer, Etc.)

All of this requires a win for New Jersey in the US Supreme Court case of course via the federal sports betting ban.

So how much money is “one percent of the handle”?

How much leeway would there be in the US if states began to largely legalize sports betting?

Eilers & Krecjik Gaming has made an attempt to appreciate the handle when 32 states finally legalize sports betting. (This number comes from the jurisdictions they believe are most likely to give the go-ahead to sports gambling).

Eilers’ report presents a wide range of possible outcomes ranging from $ 150 billion to $ 250 billion per year. For the sake of round numbers, let’s get on $ 200 billion as a possible number for dealing in the USA on the street.

That would mean if the Indiana model were ported to every state, the leagues would make it happen $ 2 billion annually in income.

But how would that be broken down by league?

How much would each league benefit?

Because of numbers from the Sports betting in Nevada In the industry, we have a rough idea of ​​how much we can expect for each sport.

Here is the handle for December 2016 through November 2017 in Nevada:

  • Football: $ 1,745,979,381.44
  • Basketball: $ 1,465,469,026.55
  • Baseball: $ 1,138,962,264.15
  • Parlay: $ 63,743,016.76
  • Other: $ 420,586,666.67

Nevada regulators do not divide the football and basketball trade by pro / college number. But we know it could be anecdotal 60-40 divided for football between professional and college. For basketball, we’re assuming a 50-50 split for this exercise.

With the above numbers and our $ 2 billion numbers going to leagues starting at $ 200 billion, we can make some educated guesses about how much money each league would receive:

  • NCAA (soccer and basketball): $ 600 million
  • MLB: $ 480 million
  • NFL: $ 440 million
  • NBA: $ 300 million
  • Other: $ 160 million

The “other” would include betting on sports such as NHL, soccer and golf, among others.

Parlay betting makes up just over one percent of Nevada trade, or an additional $ 20 million that would have to be split among the leagues, depending on how the parlays would turn out.

Quite simply, the leagues can make a lot of money if “integrity fees” are copied everywhere. And that win would likely far exceed the integrity-related costs that the leagues would incur.


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