U.S. sports leagues split on how to monetize sports betting

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By Wayne Parry (Associated Press)

ATLANTIC CITY, N.J. (AP) — America’s major professional sports leagues are split on how to get a piece of the action from legal sports betting after failing to get early adopting states to cut them in.

But they are back in the game this year with several state legislatures considering granting them fees from sports bets.

The National Football League, Major League Baseball, National Basketball Association and the National Hockey League uniformly fought to stop the spread of sports gambling for years, but retrenched in their positions after a key loss – a U.S. Supreme Court ruling last year that granted New Jersey and other states the option to allow wagering.

That shift from the courts to statehouses, Congress and the open market has revealed divisions among the leagues in how to approach the inevitability of expanded legal betting.

Some are lobbying individual states to include a 0.25 percent cut of all sports bets placed in their states. Others are concentrating on making free-market deals with individual gambling companies. Some are doing both those things and others say they don’t want or need payments from sportsbooks.

The U.S. Supreme Court ruled last May that all states are free to legalize sports betting. Eight states currently accept bets with many more expected to follow suit – some soon, others in future years. None of the laws passed in 2018 gave leagues what they’d hoped for.

But at least six states have included fees for the leagues in sports betting bills they are considering this year, with more bills expected.

The NBA, MLB and golf’s PGA Tour began lobbying individual states for direct payments, an idea widely known among legislators and lobbyists as an ”integrity fee” but that the leagues prefer to call a royalty. The leagues say they deserve to be reimbursed for costs to make sure their games are free from scandal and manipulation. They also feel that outside companies making money from games should share profits with those organizing the sports.

”It obviously helps the leagues in providing compensation to us for our product,” said Bryan Seeley, a senior vice president of Major League Baseball. ”It also helps defray the costs for us for integrity and regulatory costs.”

Those costs include hiring additional people to monitor games and betting activity, training players, referees and other league employees on integrity measures, developing special software and hiring outside consultants, said Dan Spillane, an NBA senior vice president. But neither of those leagues would quantify exactly how much integrity measures are costing them or how much is new spending, given that illegal sports betting has been popular in America for a long time and other countries offer legal wagering on their games.

Seeley said gambling companies need to partner with leagues so both sides have incentives to grow appeal and profitability, he said.

”I can’t think of another industry where a class of people is able to make hundreds of millions of dollars off someone else’s product, put risk on that party, and pay them nothing,” Seeley said. ”Some of the revenue that’s going to be made by the gambling companies needs to be shared.”

The NFL – even with the most popular betting sport in the United States – says it never sought such payments.

”Rather, we are focused on game integrity and consumer protection,” NFL spokesman Brian McCarthy said.

The National Hockey League has put most of its energy into reaching direct deals with gambling companies, including gambling giant MGM Resorts International, one of a flurry of deals the leagues made last year. These pacts have included sportsbooks licensing official league data as well as using league and team logos in marketing and advertising.

”Instead of seeking legislation at the federal level or even at the state level, our approach has been to work directly with the industry,” NHL Commissioner Gary Bettman said. ”We believe that, whether it’s our intellectual property, our data, whether it’s video of our game, we have important assets, and if somebody is going to avail themselves or want to avail themselves of those assets in order to conduct their business, then we’re going to need to have a negotiation.”

MLB and the NBA say they are pursuing state-by-state fees and deals with private companies as parallel but independent efforts. David Schwartz, director of the Center for Gaming Research at the University of Nevada-Las Vegas, sees that as ”an adjustment by the leagues to the political reality of the situation.”

”I imagine that as the market grows, they will seek various ways to monetize public interest in sports betting, perhaps even some they haven’t thought of yet,” Schwartz said.

At least five states considered royalties to leagues last year before deciding against paying them. The leagues think they’ll do better this year with more lobbying. So far this year, Missouri, New York, Kansas, Illinois, Iowa and Massachusetts have introduced bills providing fees of between 0.2 percent and 1 percent for the leagues.

That doesn’t necessarily mean there’s strong support for the fees in those states. Lawmakers in several of those jurisdictions say they included the fee in bills for the purposes of discussion, but say they’re not convinced it should be adopted.

New York state Sen. Joseph Addabbo Jr. said the bill he sponsored is basically a reintroduction of last year’s unsuccessful bill. He’s not sold on the 0.2 percent fee it would provide to the leagues, noting that Nevada, where sports betting has been legal for years, does not share its revenue with the leagues.

”Somebody is going to have to justify an integrity fee, credibly,” he said. ”The leagues say there’s more work involved in ensuring the integrity of their games; I get it. But I need to maximize the funding for our state. There’s a pie, and everyone wants their little slice. And the state wants the biggest slice.”

Iowa state Rep. Bobby Kaufmann included a 0.25 percent fee in one of his state’s bills because, ”I wanted to give every one of the stakeholders – the casinos, the leagues, the lottery and the horsemen – their ‘dream bill.’ But I don’t believe right now (the fee) has the votes.

”Iowa doesn’t have any pro sports leagues, but our casinos are in 19 different locations,” he said. ”An integrity fee would just direct money away from Iowa to out-of-state entities.”

Missouri state Sen. Paul Wieland opposes such fees, which are in one of his state’s bills.

”I don’t think that the leagues have any rights to fees,” he said. ”The leagues are in the sports and entertainment business, and the casinos are in the gaming business. If the leagues feel they should get something, they should work out individual deals with casinos to be the ‘official sports book of,’ just like beer companies do.”

Illinois state Rep. Mike Zalewski won’t commit to supporting an integrity fee, but is sympathetic to the position of the leagues.

”It’s their product,” Zalewski said. ”They want to have a say in this.”

Some state lawmakers and gambling companies object to the proposed fee taking the form of a percentage of all bets made, as opposed to a percentage of gambling companies’ profits, which is a far smaller number.

One thing the leagues have agreed on with one another is the idea of federal regulation, preferring a single set of uniform rules than different laws in each state. A bill introduced late last year that would have the U.S. Justice Department set minimum standards for states to meet in offering sports betting does not include royalties. But it does not explicitly forbid them, either, and whether such payments are ultimately added is expected to be a central focus or negotiations as it makes its way through Congress.

Associated Press writer Geoff Mulvihill in Philadelphia contributed to this report.

Follow Wayne Parry at http://twitter.com/WayneParryAC

More AP sports: https://apnews.com/apf-sports and https://twitter.com/AP-Sports

Inside the NHL bubble: testing, what could cause postponement

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Now we wait.

After the NHL and NHLPA agreed to the Return to Play protocols and to a four-year extension to the Collective Bargaining Agreement, voting by the Board of Governors and full union membership comes next. Once ratified, we can officially say hockey will be back with training camps opening up next week.

The two hub cities will likely be Edmonton and Toronto with Rogers Place hosting the Western Conference and Scotiabank Arena the home for the Eastern Conference. As the two sides agreed to the RTP protocols, we know just how they plan to keep everyone in those “bubbles” safe amid the COVID-19 pandemic.

For starters, there will be a lot of testing, which we’ll get to. Safety will come first and there are mechanisms on both sides to pull the plug.

Training camps should open Monday, July 13 and the Stanley Cup Qualifiers will begin August 1. Before we get there, here’s how the league will run the “bubbles” in Edmonton and Toronto.

Who can come?

According to the Phase 4 document sent out Monday evening, teams can bring a maximum 52 people, which includes no more than 31 players. Teams must submit their traveling party to the league by July 13, the expected start of training camps. As part of the traveling party, teams must include three coaches, two trainers, one doctor, one security rep, one equipment manager, one massage therapist, one ART therapist/chiropractor, a compliance officer, and one content creator/social media person.

The compliance officer will have the job to “certify, in writing, by 10 p.m. local time each day, to the League Facility Hygiene Officer, that all members of the Club’s Traveling Party remain compliant with all necessary aspects of the Phase 4 Protocol. They also report any noncompliance, and how it will be remedied.”

Tests, tests, and more tests

There will be daily COVID-19 tests for every team’s traveling party. These will be done via nasal swab and there will be temperature checks and symptom screens. That’s a whopping 1,248 daily tests across the 24 teams, not including arena and hotel workers who will also require tests.

What if someone tests positive?

Anyone who shows COVID-19 symptoms must self-isolated and consult with their team’s physician. If that person tests positive, they cannot return to their team’s facilities until they test negative twice in a 24-hour period after their symptoms have subsided.

“The individual can also return to team facilities after a minimum of 10 days in self-isolation following the onset of symptoms if they have had no fever or respiratory symptoms for more than 72 hours.”

If a person tests positive and asymptomatic, they will take a confirmatory test to verify the first positive. Asymptomatic individuals who have their initial tests confirmed by a second test will have to self-isolate until they produce two negative tests within 24 hours or have 10 days pass since the first positive test. Should the confirmatory test come back negative, the asymptomatic person will stay isolated and take another test after 24 hours. If that test comes back negative they will be able to return to their team once cleared by the team physician.

Players who test positive or develop symptoms will not be publicly identified unless approved by the league and union. Expect plenty of speculation each time a player misses practice or a game.

[MORE: NHL, NHLPA agree on protocols to resume season]

Opting out

As we’ve seen in baseball and basketball, players will have the ability to opt-out of participating, penalty-free. They just need to notify their teams in writing within three days of the agreement’s ratification.

What could cause a delay or postponement?

The league and union have the power to cancel, delay or postpone games if there are health and safety risks to players that could affect the “integrity of the competition.”

It’s unknown the specific number of positive tests that could cause a postponement or what would define an “uncontrolled outbreak of COVID-19,” according to the agreement. The union has the ability to contest any ruling coming from Commissioner Gary Bettman by way of an “expedited arbitration of a grievance” in front of an impartial arbitrator.

Not playing by the rules

Violating the protocol could lead to “significant penalties, potentially including fines and/or loss of draft picks.” If a player refuses to be tested he will be forbidden to play and could also be removed from the tournament. Once inside the “bubble” you must be tested.

Players will have their own rooms on designated floors and cannot enter the room of someone else. The bars and restaurants will be open as long as everyone follows social distancing guidelines. There will also be contactless room service and delivery/pick up available from local restaurants.

Up for a round of golf? The NHL will also have trips inside and outside the “bubble” arranged for players with transportation provided. Masks are mandatory.

Speaking of masks…

Masks must be worn at all times except when exercising, eating, or on the ice. Coaches and referees do not have to wear masks during games.

Emergencies and family situations

A number of players could become fathers during the RTP. Once authorized, a person can leave the “bubble” for medical or personal reasons. When they return they must quarantine and cannot rejoin their team until testing negative four times over a  four-day period. 

Players will not be able to have their families visit until the conference finals and Stanley Cup Final. Families can stay in their room after quarantining and undergoing testing once inside the “bubble.”

Disinfecting everything

Arena workers will disinfect benches, dasher boards, water bottle areas, and floors while players are in the dressing room. There will be dividers separating the individual water bottles.

MORE:
A look at the Eastern Conference matchups
Final standings for 2019-20 NHL season, NHL draft lottery results
A look at the Western Conference matchups

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Sean Leahy is a writer for Pro Hockey Talk on NBC Sports. Drop him a line at phtblog@nbcsports.com or follow him on Twitter @Sean_Leahy.

PHT Morning Skate: Safety inside the NHL bubbles; impact of no home ice

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Welcome to the PHT Morning Skate, a collection of links from the NHL and around the hockey world. Have a link you want to submit for the PHT Morning Skate? Email us at phtblog@nbcsports.com.

• In case you missed it: The NHL and NHLPA have reached a tentative four-year CBA extension. Now we wait for the agreement to be ratified by the NHL’s Board of Governors, the NHLPA’s Executive Board, and then the full union membership. [PHT]

• On safety inside the NHL’s bubbles. [National Post]

• Examining how the loss of home-ice advantage will impact teams for the 2020 playoffs. [TSN]

• The four-plus months off will do wonders for Elias Pettersson. [Canucks Army]

• There are still some questions about the Canucks’ depth at center. [PiTB]

• Why the Gold Plan would be an ideal solution to replace the NHL draft lottery. [HockeyViz]

• They didn’t win the No. 1 overall pick, but later draft rounds could be where the Red Wings build a future core. [Detroit News]

• If the salary cap ceiling does not increase over the next few seasons, that will cause plenty of issues for the Blackhawks. [Second City Hockey]

• How new Sabres GM Kevyn Adams had future success lined up during his time at Miami University. [Buffalo Hockey Beat]

• Arizona State University forward Dominic Garcia opens up about the racist abuse he’s faced. [NHL.com]

• Taking a look at the most patriotic logos in American hockey. [Hockey by Design]

• Finally, here’s a look at Robin Lehner‘s sweet new Golden Knights pads:

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Sean Leahy is a writer for Pro Hockey Talk on NBC Sports. Drop him a line at phtblog@nbcsports.com or follow him on Twitter @Sean_Leahy.

NHL, NHLPA agree to four-year CBA extension, Return to Play MOU

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We’re another step closer to hockey resuming after the NHL and NHLPA reached a tentative agreement on a Return to Play Plan and a Memorandum of Understanding regarding the Collecting Bargaining Agreement.

The deal adds four years to the current CBA and updates the league’s off-season critical dates calendar. A four-year extension means the new CBA would expire Sept. 15, 2026. The current agreement was scheduled to expire Sept. 15, 2022.

The next step is the approval process, which means the NHL’s Board of Governors, the NHLPA’s Executive Board, and then the full union membership need to sign off on it.

[MORE: NHL, NHLPA agree on protocols to resume season]

Once all approvals are in order, training camps for the 24-team tournament will begin Monday, July 13 in their home cities. On July 26 teams will then travel to their respective hub cities — likely Toronto or Edmonton — and the Qualifying Round will begin on August 1.

While the hub cities have yet to be officially announced, it’s expected that Edmonton will host the Western Conference and Toronto will serve as the main site for the Eastern Conference. Rogers Place (Edmonton) will likely be the site of the conference finals and 2020 Stanley Cup Final.

WEST
• Blues
• Avalanche
• Golden Knights
• Stars

QUALIFYING ROUND
No. 5 Oilers vs. No. 12 Blackhawks
No. 6 Predators vs. No. 11 Coyotes
No. 7 Canucks vs. No. 10 Wild
No. 8 Flames vs. No. 9 Jets

EAST
• Capitals
• Flyers
• Bruins
• Lightning

QUALIFYING ROUND
No. 5 Penguins vs. No. 12 Canadiens
No. 6 Hurricanes vs. No. 11 Rangers
No. 7 Islanders vs. No. 10 Panthers
No. 8 Maple Leafs vs. No. 9 Blue Jackets

The Qualifying Round series will be best-of-five, while the top four teams in each conference will play three games with points percentage used as a tiebreaker to determine seeds Nos. 1-4 in the East and West. All series beginning with the First Round will be best-of-seven and teams will be re-seeded.

MORE:
A look at the Eastern Conference matchups
Final standings for 2019-20 NHL season, NHL draft lottery results
A look at the Western Conference matchups

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Sean Leahy is a writer for Pro Hockey Talk on NBC Sports. Drop him a line at phtblog@nbcsports.com or follow him on Twitter @Sean_Leahy.

NHL Power Rankings: Fun ways the free agent frenzy could go

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With at least some of the NHL future getting less muddy, it sure looks like the next “Free Agent Frenzy” will take place on or around Nov. 1. Unfortunately, an expected flat $81.5M salary cap could make the NHL “Free Agent Frenzy” more of a flurry.

But managing a flat salary cap — likely by shedding players they didn’t want to expel — is a job for overwhelmed GMs, particularly of big-market teams. For the rest of us, we can fill some time by daydreaming about different NHL free agent scenarios. (Some more realistic than others.)

Back in April, Adam Gretz ranked the top 20 (possible) NHL Free Agents. Being that Sean Leahy recently looked at the best destinations for assumed top 2020 NHL Draft pick Alexis Lafreniere, how about we combine those ideas?

In other words, what are the best destinations for some of the NHL’s top free agents? Actually, scratch that. Let’s go with the most fun NHL free agent situations. They occasionally might even make sense!

1. Avalanche go on one-year NHL Free Agent Frenzy with Alex Pietrangelo and Taylor Hall

(Photo by Jim McIsaac/Getty Images)

NHL fans have watched too many “super teams” form in the NBA. In some of those cases, said NBA stars flexed their leverage by agreeing to shorter deals. LeBron James left Cleveland after getting a hometown ring. Kawhi Leonard can eat apples elsewhere if the whole Clippers thing doesn’t work out.

In the case of this hypothetical scenario with the Avalanche, it would be more of an “everybody wins” scenario — except maybe Colorado’s competition. Consider these factors:

  • Pietrangelo would just block promising young defensemen like Bowen Byram working into the mix with Cale Makar if Pietrangelo signed a long-term deal. But if it was short? He buys Colorado time and can maybe hand down some life lessons to those kiddos.
  • Taylor Hall has suffered enough. Let’s get him on a good team, which Colorado … at least has a good chance of being for the foreseeable future. Right? Possibly?
  • Let’s be honest, with all of the financial turmoil going on, Pietrangelo and Hall might not enjoy much of a market. Truly, Pietrangelo might be better off taking a one-year deal to stay in St. Louis. But that’s not as fun (unless you’re a Blues fan).
  • The Avalanche figure to have a lot of money to burn, but I’m not sure that it would be wise to risk Hall and Pietrangelo hitting the aging curve. This scenario basically buys everyone some time for longer-term solutions, while taking a big swing at a 2020-21 Stanley Cup.

Now, some will point to that time the Avalanche brought in Paul Kariya and Teemu Selanne, and that was kind of a disaster.

To which I retort: we’d get to talk about that time the Avalanche brought in Paul Kariya and Teemu Selanne. Was it as much of a disaster as we thought? (Sounds like quality content either way.)

2. Buffy to Buffalo

Just imagine the bad puns and headlines that could come from Dustin Byfuglien reviving his career with the Buffalo Sabres.

As much as anything else, the Sabres and their fans need some joy. Adding a much-needed defenseman who’s as flat-out as unusual as Byfuglien would be pretty fun, if you ask me.

Could it be another disaster? Sure, but in that scenario, at least cruel people would have fun? I think it’s worth the risk. (<— Person not signing any of these checks.)

3. Hurricanes and Robin Lehner, an NHL Free Agency story of “Finally”

Despite putting up fantastic numbers for two seasons, Robin Lehner can’t seem to get the sort of stability he wants. Despite putting together deep and talented teams, the Hurricanes are always a few netminding meltdowns from throwing all of that shrewd team-building away.

Frankly, I was a little surprised the Hurricanes shrugged their shoulders at Lehner last summer. Sure, they’re analytics-leaning with Eric Tulsky calling a lot of shots (although I wonder if Don Waddell “went camping” by acquiring Brady Skjei and his not-particularly-fancy-stats?). But Lehner seemed like a buy-low candidate, particularly in signing a low-risk, one-year deal with the Blackhawks during the 2020 offseason.

Maybe it’s finally time for Carolina to take the plunge?

OK, so the smarter move might be to continue going shorter term. Perhaps Corey Crawford would take a shorter deal than what Lehner is clearly seeking. Jacob Markstrom might be the craftier addition, if the Canucks let him walk.

Lehner and the Hurricanes would rank as the more interesting story, though.

4. Can Braden Holtby halt the sinking of the Sharks?

(Photo by Patrick McDermott/NHLI via Getty Images)

Speaking of interesting narratives that might not be as wise as they look on paper, Holtby to the Sharks would be fascinating.

Martin Jones and Aaron Dell have been disastrous for the Sharks lately. Of course, there’s a chicken-and-the-egg argument, though, as the Sharks defense often hangs its goalies out to dry.

In Holtby, you have a Stanley Cup winner whose overall body of work is highly impressive. For a Sharks team tormented by playoff letdowns, Holtby’s postseason resume shines especially bright (Stanley Cup win, .928 save percentage over 89 career playoff games).

Yet, on the other hand, things have been bumpy for Holtby for some time. His game had already been slipping, but it really dipped badly in 2019-20 with a disturbing .897 save percentage. Holtby probably will demand a hefty contract thanks to his prior work, too.

So … there are a lot of red flags here. That said, the Sharks are pretty desperate. At minimum, it would be interesting to see if that gamble would pay off for San Jose.

Assorted fun NHL free agent scenarios of varying realism

  • As interesting as it would be for Joe Thornton to ship back up to Boston, I keep going back to Thornton with the Winnipeg Jets for some reason. The Jets would actually be a sensible landing spot for someone like Torey Krug, but Thornton chasing a Stanley Cup with the Jets just feels right.
  • The Maple Leafs are going to experience an agonizing cap squeeze. If Kevin Shattenkirk took another one-year, low-dollar deal, maybe Toronto would come calling? He’s the sort of double-edged sword defenseman who could help the Maple Leafs more than hurt them. But oh, how that hockey-crazed media and fan base will overreact to those mistakes …
  • The Blackhawks seem pretty deep in a “just try to outscore their problems” phase. Is there a better defenseman for that pursuit than Tyson Barrie? I mean, probably, but that could make for a white-knuckle ride.
  • Let’s get Evgenii Dadonov to a California team. With any luck, Dad would attend a Padres game.

MORE POWER RANKINGS:

James O’Brien is a writer for Pro Hockey Talk on NBC Sports. Drop him a line at phtblog@nbcsports.com or follow him on Twitter @cyclelikesedins.