Summary: As professional sports teams start to make deals with casinos due to the recent changes in sports betting laws, experts on problem gambling preach caution.
It wasn’t long after sports betting was no longer banned in the United States due to a Supreme Court ruling in May that professional sports teams began to sign deals with gambling companies.
It was inevitable that these types of partnerships would take place as sports betting is now a legalized activity. Several teams have created sponsorship deals as of the past few weeks, with the National Council on Problem Gambling now pushing for responsibility to be more prevalent in the newly regulated US gambling market.
Examples of partnerships that have been created include Caesars teaming up with the New Jersey Devils and the Philadelphia 76ers, along with William Hill working with the Devils as well and the Vegas Golden Knights hockey team.
Caesars has also partnered with the Baltimore Ravens and the Dallas Cowboys will be working with the WinStar World Casino.
Keith Whyte, the executive director of the National Council on Problem Gambling has commented on such partnerships, stating he understands why they are being created to maximize potential for both industries, but he also wants to see responsibility a prevalent factor.
With such deals, casinos would be advertising the sports team within their venue and vice versa for the sports teams. When it comes to sportsbooks, the partnership has to be a bit different. The New York Jets are reportedly set to announce a deal with 888, a major gambling brand. With this deal, it will be the first of its kind involving a team and an actual sportsbook, not a casino.
The NFL actually prohibits their teams from advertising sportsbooks directly. This would include the 888 Sportsbook of New Jersey. The point is to not advertise at games for sportsbooks so that children will not be enticed to gamble.
There is a worry that the kids who go to the professional sports games will be more inclined to see gambling as part of the game rather than a separate activity for adults only.
Casino/Sports Team Deals
The difference with the other casino/sports team deals is that the agreement includes data. The NHL and NFL have seen teams sign deals with casinos where they will be providing real time data for sports betting services.
The deal is lucrative for the casino because it provides them with real time statistics that can be used for betting while the sports teams earns money for providing the info. It’s a win/win situation and doesn’t have to involve any type of promotion or advertising per say.
The National Council on Problem Gambling is hoping that the gambling companies and sports teams will be responsible in their partnerships together. By being responsible, both sides can help to avoid any major issues with the new industry and preserve their new revenue stream.
For now, this industry is new in the US on this large of a scale and there will be things to work through. We shall see over the coming months as the year comes to an end and into next year what measures are taken to ensure safe gambling habits while incorporating this new industry in states that pass legislation.
So far, only a handful of states offer sports betting. However, more are set to get started in the industry and sport teams are increasing their partnership deals with companies in the hopes of seeing a monetary gain from this blossoming industry.