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

The Buzzer: Kane’s hat trick; Staal’s milestone night

Patrick Kane #88 of the Chicago Blackhawks celebrates with Jonathan Toews
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Three Stars

1) Patrick Kane, Chicago Blackhawks

Kane surpassed Sidney Crosby for the scoring lead this decade with 16 days left in the 2010s. Since Jan. 1, 2010, Kane has 791 points (311G, 480A), while Crosby has 788 points (296G, 492A). No. 88 recorded his sixth NHL hat trick in Chicago’s 5-3 victory over Minnesota. The Blackhawks have a long way to go if they want to have a realistic shot at the Stanley Cup Playoffs, but a victory against a surging division rival is a good place to start.

2) Mark Scheifele, Winnipeg Jets

On a football Sunday, the Jets scored a touchdown in their 7-3 victory over the Philadelphia Flyers. Scheifele played a huge part with his three-point performance featuring a goal and two assists as he extended his individual point streak to six games. Neal Pionk added three assists, including two power-play helpers. The top four teams in the Western Conference (Blues, Avalanche, Jets, Stars) currently reside in the Central Division and playoff positioning will be crucial as each team eyes a lengthy postseason run.

3) Eric Staal, Minnesota Wild

Staal became the 89th player in NHL history to have 1,000 career points when he tallied a power-play goal against Chicago Sunday. After a dreadful 4-9 start to the season, the Wild have climbed up the standings with a 12-4-5 record in their past 21 games. The alternate captain leads Minnesota with 26 points, including four goals in the previous three games.

Other notable performances from Sunday:

  • Anze Kopitar’s two-goal performance in the Kings’ 4-2 victory against the Red Wings helped him surpass the iconic Wayne Gretzky for fourth place on the franchise’s all-time scoring list. Kopitar picked up his 918th and 919th point in his 1038th game.
  • Blake Wheeler finished with three points, including a goal and an assist during a four-goal barrage spanning 4:17.

Highlights of the Night

Staal etched his name in the NHL record books with this one-time blast

William Karlsson won an important foot race before Reilly Smith slid a cross-ice pass over to Jonathan Marchessault

Factoids

  • A total of 33 goals were scored across four contests Sunday for an average of 8.25 per game [NHL PR].
  • The Jets scored four goals in a span of five minutes or less for the fourth time in franchise history [NHL PR].
  • The Jets’ four goals in a span of 4:17 are their second-fastest scored in a game in franchise history, behind the mark of 3:50 set on Nov. 18, 2017 [NHL PR].
  • Canucks’ Bo Horvat has won an NHL-high 414 faceoffs this season [Sportsnet Stats].

NHL Scores

Winnipeg Jets 7, Philadelphia Flyers 3

Chicago Blackhawks 5, Minnesota Wild 3

Los Angeles Kings 4, Detroit Red Wings 2

Vegas Golden Knights 6, Vancouver Canucks 3

Sabres demote under-performing center Mittelstadt to minors

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BUFFALO, N.Y. — The Buffalo Sabres have assigned under-performing second-year center Casey Mittelstadt to the minors.

The demotion to Rochester of the AHL was made Sunday, coming a day following a 3-2 overtime loss at the New York Islanders in which Mittelstadt was a healthy scratch for the third time in four games.

The 21-year-old has four goals and five assists in 31 games this season, and limited to just a goal and an assist in his past 21. Buffalo selected the play-making center with the eighth pick in the 2017 draft following his senior year in high school.

He then signed with Buffalo and jumped directly to the NHL in making his Sabres debut immediately following his freshman college season at Minnesota.

Mittelstadt has failed to play up to early projections of developing into Buffalo’s second-line center. He has 17 goals and 22 assists for 39 points in 114 career NHL games.

Players hope U.S.-Canada rivalry game helps spawn pro league

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HARTFORD, Conn. — The United States women’s hockey team beat Canada 4-1 on Saturday night, with players hoping the first in a series of five games between the international rivals will help kindle the public’s interest in both their sport and their fight off the ice for better professional opportunities.

Canada’s Victoria Bach and the Megan Keller of the U.S. traded power-play goals in the first period, before Amanda Kessel put the U.S. on top for good with a player advantage in the second. Abbe Roque’s backhand in the period gave the US a 3-1 lead and Alex Carpenter beat Genevieve Lacasse for the final goal 1:15 seconds later.

More than 7,000 fans showed up for the international competition, which comes after more than 200 members of what has since become the Professional Women’s Hockey Players’ Association announced in May they would not play professionally in North America during the 2019-2020 season.

“I think it’s important for people to watch us play and see the level of talent and entertainment that’s out there,” Kessel said. “It’s getting that understanding that we need to help get us a place to play year-round so that people can see us more than five times a year.”

The women are seeking a professional league that provides a living wage, health insurance, infrastructure and support for training. The Canadian Women’s Hockey League shut down in the spring after 12 years of operation, leaving only the five-team National Women’s Hockey League, where most players make less than $10,000 a season.

“The product is there,” Kessel said. “The people to watch it are there. We just need a structure set in place.”

Sarah Nurse, a forward for Team Canada, whose cousin Kia Nurse plays for New York in the WNBA, said players are hoping to get support from the NHL, which has, so far, expressed little interest in investing in a women’s league.

“We can look at (the WNBA) and see that women’s sports have value and they have a place in this world,” said Nurse, who made $2,000 last season playing in the CWHL. “That is definitely a model that we look to.”

The rivalry series was created after the Four Nations Cup in Sweden was canceled when top Swedish players pulled out of national team events due to concerns over their salary and working conditions.

Without a viable pro league, players who are out of college have been training on their own at random rinks across North America in between gatherings of the national teams or training sessions and exhibitions sponsored by the players association.

Canada won two of those over the US in Pittsburgh last month.

But the lack of consistent competition can stunt the players’ development, especially when it comes to be being prepared for world and Olympic competitions, the players said.

“It’s very unfortunate,” Nurse said. “Games are when we truly get better and test out our skills, so it’s unfortunate that we don’t have more games to play.”

Cayla Barnes, who plays defense for the U.S. team and Boston College, said she and the other college players on the national teams understand what is going on and appreciate what the older players are doing.

“They are putting so much on the line for the younger generations,” she said. “Not just for us college kids who are coming up, but for U-8, U-10 girls who are coming up so they have opportunities later on. So I think all of us who are younger are trying to support them in whatever way we can.”

Hundreds of girls wearing their youth hockey jerseys attended the game, chanting “U-S-A” as the final seconds ticked off the clock.

“I want to be like them, like in the Olympics when I get older,” said 14-year-old Leila Espirito Santo, of Glastonbury “I started playing when I was in fourth grade and I wasn’t the best, but watching them play made me want to be better. It showed me I could do it.”

The teams will meet again on Tuesday in Moncton, New Brunswick. Other games part of the 2019-20 Rivalry Series are slated for Feb. 3 and Feb. 5 in Vancouver, British Columbia, and Feb. 8 in Anaheim, California.

The Buzzer: Hats off to Duclair; Staal one point away from 1,000

NHL Scores Eric Staal Minnesota Wild
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Three Stars

1. Anthony Duclair, Ottawa Senators. This had to be a satisfying game for Duclair. He showed John Tortorella and the Columbus Blue Jackets that he does, in fact, know how to play the game by scoring three goals in a 4-3 win for the Ottawa Senators. That performance includes the game-winning goal in overtime. The 24-year-old Duclair now has 18 goals in 33 games this season and is on pace for more than 40 goals this season. Read all about his day here.

2. Bryan Rust, Pittsburgh Penguins. With Sidney Crosby, Evgeni Malkin, Brian Dumoulin, Nick Bjugstad, and Patric Hornqvist out of the lineup the Penguins have more than $35 million in salary cap space sitting in the press box at the moment. They still keep finding ways to win. They picked up a 5-4 shootout win over the Los Angeles Kings in Saturday thanks to another huge game from Rust. He scored two goals and picked up an assist in regulation, then scored the game-winning goal in the shootout. Rust now has 12 goals and 22 total points in only 19 games this season for the Penguins. He has always been one of their most versatile — and valuable — players, and he is showing why this season.

3. Eric Staal, Minnesota Wild. Staal has been on a roll for the Wild and thanks to his two-goal effort in Saturday’s 4-1 win over the Philadelphia Flyers, he now has six points in his past five games and is up to 999 for his career. That means with one more point he would become only the 89th player in NHL history to hit the 1,000 point milestone. The Wild are one of the league’s hottest teams since the start of November with a 12-3-5 record in their past 20 games. They were 4-9-0 before in October.

Other notable performances from Saturday

  • David Pastrnak extended his lead in the NHL goal-scoring race with a pair of goals in the Boston Bruins’ 4-2 win over the Florida Panthers. He now has 28 goals on the season and is five ahead of Jack Eichel.
  • Warren Foegele scored two goals for the Carolina Hurricanes, James Reimer stopped all 32 shots he faced and Dougie Hamilton scored against his former team in a 4-0 win over the Calgary Flames.
  • Anthony Beauvillier was the overtime hero for the New York Islanders as they topped the Buffalo Sabres.
  • The New Jersey Devils gave Alain Nasreddine his first NHL win as a head coach while the Taylor Hall watch continues. Read all about it here.
  • Frederik Andersen stopped 36 out of 37 shots as the Toronto Maple Leafs sent the fading Edmonton Oilers to their fourth consecutive defeat. It is the 200th win of Andersen’s career.
  • Jonathan Bernier backstopped the Detroit Red Wings to their second consecutive win as they hold off the Montreal Canadiens.
  • Mika Zibanejad‘s two goals are not enough for the New York Rangers as they drop a 4-3 shootout decision to the Anaheim Ducks.
  • Ben Bishop turned aside 37 out of 38 shots to help the Dallas Stars crush the Nashville Predators.
  • Evander Kane and Logan Couture both record two points as the San Jose Sharks get a much-needed win over the Vancouver Canucks. It is the first win for Bob Boughner as head coach of the Sharks.
  • Tyler Bozak scored two goals as the St. Louis Blues stunned the Chicago Blackhawks. Read all about it here.

Highlights of the Night

Timo Meier finishes a great passing play for the San Jose Sharks with an absolute rocket of a shot to beat Jacob Markstrom.

Jonathan Quick has really struggled the past two years, and it came in a losing effort in Pittsburgh on Saturday, but this series of saves in overtime is pretty ridiculous.

Garnet Hathaway score with some style for the Capitals.

Give this fan a contract

This is a $50,000 shot between periods in Montreal.

Factoids

  • The Blues’ comeback is just the second time in franchise history they erased a three-goal third period deficit to win. [NHL PR]
  • Zibanejad’s first goal for the Rangers came just 10 seconds into the game, the fastest goal for the Rangers since the 1985 season. [NHL PR]
  • Jack Eichel extended his point streak to 16 consecutive games, making it the fourth longest in Buffalo Sabres franchise history. [NHL PR]
  • The Wild have earned a point in 12 consecutive home games, the second-longest streak in franchise history. [NHL PR]
  • Brad Marchand hit the 50-point mark for the season, the first Bruins player since Adam Oates during the 1995-96 season to reach that mark in 34 or fewer games. [NHL PR]
  • Marc-Edouard Vlasic played in his 1,000th career game on Saturday night, making him the 340th player in NHL history to reach that milestone. [San Jose Sharks]
  • Foegele’s two goals for the Hurricanes both came while shorthanded, making him the fifth Hurricanes player to ever accomplish that in a game. [NHL PR]

Scores

Ottawa Senators 4, Columbus Blue Jackets 3 (OT)
New York Islanders 3, Buffalo Sabres 2 (OT)
Anaheim Ducks 4, New York Rangers 3 (SO)
Carolina Hurricanes 4, Calgary Flames 0
Dallas Stars 4, Nashville Predators 1
Toronto Maple Leafs 4, Edmonton Oilers 1
Minnesota Wild 4, Philadelphia Flyers 1
Detroit Red Wings 2, Montreal Canadiens 1
Washington Capitals 5, Tampa Bay Lightning 2
Boston Bruins 4, Florida Panthers 2
Pittsburgh Penguins 5, Los Angeles Kings 4 (SO)
New Jersey Devils 2, Arizona Coyotes 1
St. Louis Blues 4, Chicago Blackhawks 3
San Jose Sharks 4, Vancouver Canucks 2

Adam Gretz is a writer for Pro Hockey Talk on NBC Sports. Drop him a line at phtblog@nbcsports.com or follow him on Twitter @AGretz.