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

PHT Morning Skate: Maroon’s future uncertain; Gillis wants NHL return

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

Patrick Maroon isn’t sure if he’ll be back in St. Louis this season. (NHL.com)

• NHL commentators with rave reviews for Edmonton Oilers GM Ken Holland on Milan Lucic trade. (Edmonton Journal)

• After fives years away traveling the world and expanding his hockey mind, Mike Gillis is ready to return to the NHL — just not as a general manager. (Sportsnet)

John Tavares knows Mitch Marner will play for the Maple Leafs this season. (NHL.com)

• Jets could find great value in acquiring Stars’ Honka. (Winnipeg Sun)

• The Vancouver Canucks have improved more than any team in the Pacific. (The Canuck Way)

James Neal is feeling re-invigorated after move to Edmonton. (Global News)

• Colorado Avalanche star forward Mikko Rantanen isn’t going to the KHL. (Mile High Hockey)

• Flyers need impact from Hayes, Vigneault. (NHL.com)

• After years of stunted talks, Calgary may be ready to build a new hockey arena. (Globe and Mail)

• What it may take for a player to reach 50 goals or 100 points this season with the New Jersey Devils. (All About the Jersey)

• Predicting how long the Penguins’ Stanley Cup window will stay open. (Pensburgh)

• The Predators should make a push for Nikita Gusev. (Predlines)

• Why Peter DeBoer is confident Sharks can fill Joe Pavelski‘s scoring void. (NBC Sports Bay Area)

• Coyotes need more offense from well-paid blue line. (The Athletic)


Scott Billeck is a writer for Pro Hockey Talk on NBC Sports. Drop him a line at phtblog@nbcsports.com or follow him on Twitter @scottbilleck

Blues, Sundqvist avoid arbitration with four-year, $11 million contract

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The St. Louis Blues locked up another piece of their Stanley Cup winning team on Sunday when they re-signed restricted free agent forward Oskar Sundqvist to a four-year contract.

Sundqvist, 25, had filed for salary arbitration and a hearing scheduled for this week.

That will no longer be necessary thanks to this new deal.

According to the Blues the contract will pay Sundqvist a total of $11 million, averaging out to a salary cap hit of $2.75 million per season.

The Blues acquired Sundqvist, as well as a first-round draft pick that was used to select forward Klim Kostin, prior to the 2017-18 season in the trade that sent Ryan Reaves and a second-round pick to the Pittsburgh Penguins. After managing just a single goal and four assists in in 42 games in his debut season with the Blues, Sundqvist had a breakout season in 2018-19 with 14 goals and 17 assists in 74 regular season games.

He also played a big depth role in the playoffs by adding four goals and five assists in 25 playoff games.

With Sundqvist back in the mix the Blues now have two more restricted free agents to sign in forward Ivan Barbashev and defender Joel Edmundson. Edmundson has an arbitration hearing scheduled for August 4. The Blues have already successfully avoided arbitration hearings with starting goalie Jordan Binnington, forward Zach Sanford, and now Sundqvist, so it seems reasonable to assume they will be able to settle with Edmundson as well.

The Blues still have around $5 million in salary cap space to work with this summer.

More Blues content

• Binnington signs two-year, $8.8 million deal
Fabbri gets one-year deal from Blues
• PHT Stanley Cup Tracker: Maroon takes Cup back to St. Louis for some toasted ravioli

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.

Why Rangers should consider trading Chris Kreider right now

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The New York Rangers have undergone one of the most significant transformations in the league this offseason with the additions of Artemi Panarin, Jacob Trouba, Adam Fox, and the good fortune that saw them move to No. 2 in the draft lottery where they selected Kaapo Kakko.

It has drastically changed the look of the team on the ice, both for the long-term and the short-term, and also significantly altered their salary cap structure.

With the new contracts for Panarin and Trouba adding $19.6 million to their salary cap number (for the next seven years) it currently has the Rangers over the cap for this season while still needing to re-sign three restricted free agents, including Pavel Buchnevich who is coming off of a 21-goal performance in only 64 games.

Obviously somebody is going to have to go at some point over the next year, and it remains entirely possible that “somebody” could be veteran forward Chris Kreider given his contract situation and the team’s new salary cap outlook.

Perhaps even as soon as this summer by way of a trade.

What makes it so complicated for Kreider and the Rangers is that he will be an unrestricted free agent after this season and will be in line for a significant pay raise from his current $4.6 million salary cap number.

It is a tough situation for general manager Jeff Gorton and new team president John Davidson to tackle.

If you are looking at things in a more short-term window there is at least a decent argument for trying to keep Kreider this season, and perhaps even beyond. For one, he is still a really good player. He scored 28 goals this past season, still brings a ton of speed to the lineup, and is still an important part of the roster.

Even though the Rangers missed the playoffs by a significant margin this past season (20 points back) they are not that far away from being able to return to the postseason. Maybe even as early as this season if everything goes absolutely perfect. They added a top-10 offensive player in the league (Panarin), a top-pairing defender (Trouba), another promising young defender with potential (Fox), a potential superstar (Kakko), and still have a goalie (Henrik Lundqvist) that can change a season if he is on top of his game. It is not a given, and not even likely, but the window is at least starting to open.

Even if they do not make it this season they are not so far away that Kreider could not still be a potentially productive member of that next playoff team.

The salary cap situation will be complicated, but the Rangers can easily trim elsewhere in a variety of ways, whether it be utilizing the second buyout window or trading another, less significant part of the roster. As we just saw this past week, there is no contract in the NHL that is completely unmovable.

They COULD do it.

But just because you can do something doesn’t necessarily mean that you should, and that is the big issue the Rangers have to face with one of their most important players.

Should they keep him and try to sign him to a new long-term contract?

For as good as Kreider still is, and for as much as the Rangers have improved this summer, they still have to think about the big-picture outlook.

That means separating what a player has done for you from what that player will do for you in the future. For a team like the Rangers that is still building for something beyond this season, the latter part is the only thing that matters.

The reality of Kreider’s situation is that he is going to be 29 years old when his next contract begins, will be making significantly more than his current salary, and is almost certainly going to be on the threshold of a significant decline in his production (assuming it has not already started).

Let’s try to look at this as objectively as possible.

Kreider just completed his age 27 season, has played 470 games in the NHL, and averaged 0.29 goals per game and 0.59 points per game for his career.

There were 12 forwards in the NHL this past season that had similar numbers through the same point in their careers (at least 400 games played, at least 0.25 goals per game, and between 0.50 and 0.60 points per game). That list included Adam Henrique, Ryan Callahan, Wayne Simmonds, Ryan Kesler, Dustin Brown, Drew Stafford, Andrew Ladd, Tomas Tatar, Jordan Staal, David Perron, Lee Stempniak, and Kyle Turris.

This is not a perfect apples to apples comparison here because a lot of the players in that group play different styles and have different skillsets. They will not all age the exact same way or see their talents deteriorate in the same way. But what should concern the Rangers is that almost every one of the players on that list that is currently over the age of 30 has seen their production fall off a cliff. Some of them now carry contracts that look regrettable for their respective teams.

It is pretty much a given that as a player gets closer to 30 and plays beyond that their production is going to decline. Teams can get away with paying elite players into their 30s because even if they decline their production is still probably going to be better than a significant part of the league. Maybe Panarin isn’t an 80-point player at age 30 or 31, but it is a good bet he is still a 65-or 70-point player and a legitimate top-line winger.

Players like Kreider that aren’t starting at that level don’t have as much wiggle room, and when they decline from their current level they start to lose some (or even a lot) of their value.

Given the Rangers’ salary cap outlook, that is probably a risk they can not afford to take with Kreider long-term because it is far more likely that a new contract becomes an albatross on their cap than a good value.

You also have to consider that the Rangers have long-term options at wing that will quickly push Kreider down the depth chart.

Panarin is one of the best wingers in the league. Over the past two years they used top-10 picks in potential impact wingers (Kaako this year and Vitali Kravtsov a year ago). Buchnevich just turned 24 and has already shown 20-goal potential in the NHL.

As Adam Herman at Blueshirt Banter argued immediately after the signing of Panarin, committing more than $6 million per year to a winger that, in the very near future, may only be the fourth or fifth best winger on the team is a very questionable (at best) move in a salary cap league and gives them almost zero margin for error elsewhere on the roster.

Right now Kreider still has a lot of value to the Rangers for this season. He is probably making less than his market value, is still one of their best players, and still makes them better right now.

But when you look at the situation beyond this season his greatest value to them probably comes in the form of a trade chip because it not only means they can acquire an asset (or two) whose career better aligns with their next best chance to compete for a championship, but it also means they do not have to pay a soon-to-be declining, non-elite player a long-term contract into their 30s, a situation that almost never works out favorably for the team.

The Rangers have had to trade some key players and make some tough decisions during this rebuild.

They should be strongly considering making the same decision with Kreider.

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.

PHT Stanley Cup Tracker: Pat Maroon takes Cup back to St. Louis for some toasted ravioli

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The PHT Stanley Cup tracker will keep tabs on how the St. Louis Blues spend their summer celebrating.

Patrick Maroon probably could have had bigger contract offers last summer, while the one-year deal he ended up signing with the St. Louis Blues was a slight pay cut from his previous contract.

But he took a little less to get an opportunity to play for his hometown team and try to bring the city its first ever Stanley Cup. He helped the Blues do just that during the 2018-19 season, and even scored a couple of massive goals during the playoffs, including a double overtime Game 7 goal in Round 2 to clinch their series against the Dallas Stars.

This past week he had his opportunity to spend the day with the Stanley Cup and, naturally, took it back to St. Louis for the first time since the Blues’ initial Stanley Cup celebration.

It was quite a journey.


On Friday night the Stanley Cup made a surprise appearance The Muny, America’s largest and oldest outdoor musical theatre, to surprise the crowd that was there to watch a performance of Footloose.

It made quite an entrance!

From there, it went to the Maroon residence on Saturday morning for a special photo opportunity, 20 years after he had his picture taken with it at the Hockey Hall of Fame.

Keeping with the tradition of using the Stanley Cup as a cereal bowl, Cinnamon Toast Crunch was consumed out of it with Maroon cleaning it out afterwards himself, according to Philip Pritchard, the keeper of the Cup.

Maroon then took it to the All-American Sports Mall in South St. Louis — where he played inline hockey as a kid — to share the experience with 250 family and friends.

Included among the friends were former teammates and coaches from his time as a youth roller hockey player.

Via the St. Louis Post-Dispatch:

“Everyone makes fun of me playing roller hockey, but this is where I grew up playing,” he said. “To bring it back here is a very special day for me. To cherish these moments with the 250 people I invited, it’s a really private event that I feel like I know everyone here. To share that day with everyone, it really is amazing. It’s a big reunion for all of us to see each other and smile.

“It’s been one of the coolest memories I’ll ever have. It really doesn’t get full circle until you actually leave it, and wow, the Stanley Cup was just at All-American, the rink where I used to come from 9 in the morning to 5 o’clock and just sit and be a rink rat. It’s awesome.”

After that, it was off for a St. Louis speciality and some toasted ravioli at Charlie Gitto’s for lunch.

It was there that Maroon was joined by Blues super fan Laila Anderson.

Maroon ended his day at a nearby lake for private time with family and friends.


Before the Stanley Cup made its way back to St. Louis this past week, defender Robert Bortuzzo also had his day with the cup and took it to his hometown of Thunder Bay, Ontario.

“I’ll never be able to truly repay what this community has meant for me and my career in terms of growing up playing hockey as a young kid here,” Bortuzzo said, via the TBNewswatch.com. “It meant a lot for me to come and give the chance for some people to see it and put some smiles on faces at George Jeffrey. It was an easy decision to share it with a great community.”

While boating, Bortuzzo decided to help himself to a snack of assorted meats and cheeses.

The PHT Stanley Cup tracker

 Week 1: Cup heads to the Canadian prairies
• Week 2: Stanley Cup heads east to Ontario

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.