Taking a Quick Side trip on the Money Angle
In the first detail article we took a trip down memory lane and dug though some major court decisions and fan misperceptions to get a look at the landscape of college athletics as they stand in 2024.
Judging from the reaction, its still not gaining a whole lot of traction from the readership as seen in the Facebook numbers. Hopefully, as this series grows a bit, more of the readers will visit the baseline detail article to better understand the current situation.
As the first article was developing, and the money related section was being researched, items kept popping up in the source search that started to refocus some attention regarding an entirely different, but admittedly very old, source of secondary monetary influence on college sports, namely gaming and/or gambling.
Before we get into this, lets make the parameters of the discussion plain. There is no advocacy intent, one way or the other as to gambling, sports betting, or sports gaming (fantasy football, baseball, etc.). The purpose here is to illuminate an economy that has become a major secondary factor in the monetary posture of collegiate athletics. We are here to observe, not judge, and attempt to digest their potential impact on the audience motivations that drive the media revenues. An additional note must be given in full disclosure, several online gaming and gambling sites advertise on SB Nation sites including Gobbler Country and that includes a live link to DraftKings Sports Book. We arent scolds, here. However, it is undeniable that the sports gaming and gambling industry has made a major change in the interest, appeal, and viewership of college sports events.
The influence of money and audience on college sports is obvious, but how does the gambling theme fit in with the remainder of the more direct influences involved? Gambling or Gaming on sports has been around for as long has humans have engaged in competitive events. Bored soldiers would bet on boxing matches, cockroach races, and the like in the field probably far before the Mycenean Greeks formed the army to visit Troy. There would be no surprise generated to realize that the ancient Greeks probably bet on the original Olympic game contests. Even when life was at stake, there is a better than even chance (wink here) that someone was betting on the outcome of the contest.
In some cultures, the wagering was completely legitimate and open. For much of modern (late 19th and all of the 20th centuries) American history its been limited, heavily regulated, or prohibited altogether. Well, at least legal gaming, anyway. Who hasnt put a few bucks on some squares for the World Series, or March Madness (which is actually an oblique reference to the immense sums gambled on the tournament, under the table so to speak)?
Everyday gambling habits on sporting contests have their darker sides, however, bookies and broken knees, illicit favors for illegal gambling debts riddle the past, and provide rich fodder for many a detective novel, or police procedural. Those stories ring true because they are a functional part of human and more recently American cultural interchange.
Well, sports gambling was pretty much entirely a no-go zone at every level until the advent of three things: the Internet, Fantasy Sports, and the Federal Court System. Remember the dodges and semi-sort-of-denials about the most popular fantasy sports setups? Well, most people really dont because basically they werent completely true, and the Supreme Court of the United States made all of that moot anyway. It all changed in a May 2018 instant.
The court ruled in favor of the state of New Jersey and struck down the Professional and Amateur Sports Protection Act of 1992. The move effectively legalized betting on all sporting events both amateur and professional. The Act had been a response to the growing trend of Internet gambling, and in particular the wagering on NCAA contests, in particular the NCAA Mens Basketball Tournament. ESPN has a pretty good summary of the event in its archives.
As with many court decisions, and frankly almost all of this massive change in the reality and the perception of collegiate athletics, the end result of the outcome has national impact, and virtually no regulation or legislatively derived law behind it. Suddenly, overnight, what was illicit and under the table became licit, and there was a certain understanding that what was under the table was untaxed as well as unregulated as interstate commerce. Teams are even signing deals with legal sports book entities where it is allowed by state law. Inside the Rise of Sports Betting on College Sports (businessofcollegesports.com)
The brutal truth is, for the government, in this case the state of New Jersey, gambling on sporting events was a black market sort of affair. The entire thing was done behind closed doors, or in shady areas in the backs of bars, or off of foreign web sites on the internet. You are supposed to report winnings as other income, even if there were no Form W-2Gs (see: Taxes on Gambling Winnings & Losses: Gambling Taxes Explained | Kiplinger for a good summary of the rules.) But all of us know that no local bookie is going to take your tax information and file a payout report to the IRS. Of course, legal gambling sites, parlors, and the like actually must and do that for the state as well.
However! The federal government has done little to stabilize and standardize the regulatory environment for gambling and gaming. It has remained in state hands and state control with various rules for various jurisdictions. Washington seems to only care about law enforcement when malfeasance is involved, or the limited rules in place are violated. It also only cares that the line on the 1040 form, and the W-2G is filed along with the 24% federal gambling tax paid. It has little interest in the possible and probable influences on the conduct of the sports being wagered upon.
The advent of legalized sports gambling has pulled the hidden issue out from under the table, the nature of being a fan, and in particular a fan of college sports. The reality of collegiate athletics is that there are only a few sports that garner any real fan and betting attention: football and basketball (mostly still mens). These are considered the revenue generating sports and all other collegiate athletics are subsidized by those revenue generating sports.
If you want to get an idea of the scale of the amount of money in the sports gambling industry, take a look at the numbers from CBS on how much How much money is bet on March Madness? The 2024 NCAA tournament is expected to generate billions. - CBS News Now realize thats combined for both mens and womens basketball, but thats a staggering legally gambled $2.7B (Thats B for billion. Folks).
Those revenues depend upon the nature of collegiate fan participation, whether through direct gate attendance, club contributions, and/or advertising viewership and response. Those revenue flows are largely proportionally tied to the size of the interested alumni base, family, and friends. There is an additional regional appeal. As someone once noted in a discussion, [T]he Cornhuskers ARE Nebraskas professional football team. That is a totally accurate evaluation on many fronts. Though there are quite a few Kansas City Chief or Royals fans in mostly Eastern Nebraska, and maybe a few Denver fans in the west, for the most part the Nebraska Cornhuskers serve as the states favored spectator sport team. The same goes for quite a few states including Oklahoma, West Virginia, (even Virginia to a degree), etc. The list gets long, but the point is that the fan bases are niche affairs with local or regional appeal.
Gambling changes that equation. Suddenly a team that might not have much in the way of potential viewer ratings becomes a huge draw because there is some gaming reason altering the viewership and ratings patterns. What happens if the betting action on a Boise State vs. Air Force football game drives the viewership numbers into the stratosphere because of some betting action?
Do the conferences and participating teams get ratings related benefits from the increased viewership? When does that fluidity get accounted for in the re-negotiation of their media rights contracts?
And finally, are fundamentally disinterested gambling observers really fans? And do they or their betting enablers have any influence over the conditions of betting? Do they end up involved in NIL deals with individual players?
If you look at the sports gaming industry from a more high-altitude angle, you begin to see the holes and pitfalls of the rapidly growing phenomenon. College Sports Gambling Data Market Cools as Negotiations Persist (sportico.com) Its an erratic market, and often pinned to seemingly unrelated events, activities, and personalities. It is still largely the wild west with the NCAA scrambling to keep up, the pressures mounting on NIL contracts and involvement, superstar status for various individual athletes. The Caitlin Clarke/Angel Reese effect on womens college basketball cannot be discounted. Personalities can drive interest, which drives potential betting action.
How does a legal gambling environment affect the way players participate in it? How do the Athletic Departments and NCAA handle the pressures, govern the activity, and discipline players for participating? From where does the authority come? Who writes and maintains the regulations? What sort of due process is provided for accusations? Who investigates charges? There are some newish attempts to begin to answer these things, but the entire phenomenon is court created and not legislated. The regulations that come out of the process might end up erased by further individually based court decisions.
The NCAA is beginning to track the issue and has published NCAA releases sports wagering survey data - NCAA.org for interested parties to peruse. Please read it and follow the study link. The results, and this was from mid-2023, are something that can rock folks back on their heels. The main part of the conclusion of the report summary is eyepopping:
Overall, the present survey found that sports wagering is pervasive among 18- to 22-year-olds, with 58% having engaged in at least one sports betting activity.
Sports wagering activity is widespread on college campuses 67% of students living on campus are bettors and tend to bet at a higher frequency. 41% of college students who bet on sports have placed a bet on their schools teams and 35% have used a student bookmaker.
There just are no answers here. That is the hardest part of writing this particular side piece to the money section of the first article. There are only further questions, and more problematic facts begging even more difficult questions.
Next up we get back to the main series with a look at The End: the Svengali Coach, Transfer Portal, and the Effect of Free Agency. There will be another sidebar article that will dive back into the money element as it affects both the Portal and virtual Free Agency and that will be: The End: The Name, Image, and Likeness Fiasco.
View original post here:
The End: The Money Picture Changes with Legalized Gambling - Gobbler Country
- Gambling Addiction and Problem Gambling: Learn How to Stop ... [Last Updated On: December 12th, 2016] [Originally Added On: December 12th, 2016]
- Remote Gambling Association (RGA) [Last Updated On: December 16th, 2016] [Originally Added On: December 16th, 2016]
- William Hill Casino Club - Up To 150 Casino Bonus [Last Updated On: December 19th, 2016] [Originally Added On: December 19th, 2016]
- Gambling - The New York Times [Last Updated On: December 31st, 2016] [Originally Added On: December 31st, 2016]
- Trusted Online Gambling Sites Since 1996 - Online.Gambling.org [Last Updated On: January 7th, 2017] [Originally Added On: January 7th, 2017]
- Casino Gambling Web | Best Online Gambling News and Casinos ... [Last Updated On: January 11th, 2017] [Originally Added On: January 11th, 2017]
- Gambling Addiction and Problem Gambling - helpguide.org [Last Updated On: January 15th, 2017] [Originally Added On: January 15th, 2017]
- Industry: Crackdown on illegal gambling in the Philippines now ... - GamingTodaySlotsToday [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- Military should screen for gambling disorder, GAO says - Virginian-Pilot [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- Gambling with people's autonomy | Liberties | Risk | spiked - Spiked [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- Bill introduced to lower age for legal gambling in Nevada - Las Vegas Review-Journal [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- FIFA YouTuber Pleads Guilty To Gambling Charges [UPDATE] - GameSpot [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- Gambling Stock Roundup: Macau Sales Rise Again in January, Nevada Records a Drop in December - Yahoo Finance [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- Super Bowl sets gambling record at Nevada sports books - Reuters [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- Older gamblers face worse odds for addiction - Times Herald-Record [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- How to Handle Gambling Wins and Losses This Tax Season - TheStreet.com [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- GAO report recommends military members be screened for ... - wtkr.com [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- The Newest Challenge in Gambling: Finding Growth - Motley Fool [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- Raising a question about gambling prohibition - Dothan Eagle [Last Updated On: February 8th, 2017] [Originally Added On: February 8th, 2017]
- A Creepy Dude Is Your Inner Gambling Addict in These Horrifying PSAs From Tom Tagholm - Fishbowl NY (blog) [Last Updated On: February 8th, 2017] [Originally Added On: February 8th, 2017]
- Super Bowl Betting Tally Helps Make the Case for Legalized Sports Gambling - TheStreet.com [Last Updated On: February 8th, 2017] [Originally Added On: February 8th, 2017]
- MLB commissioner admits the league is rethinking its stance on gambling - FOXSports.com [Last Updated On: February 8th, 2017] [Originally Added On: February 8th, 2017]
- Why I love fake gambling and in-game casinos according to a psychologist - PC Gamer [Last Updated On: February 8th, 2017] [Originally Added On: February 8th, 2017]
- YouTubers fined for running illegal FIFA 17 gambling site - Ars Technica [Last Updated On: February 8th, 2017] [Originally Added On: February 8th, 2017]
- Deducting Gambling Losses on Your Taxes - TheStreet.com [Last Updated On: February 9th, 2017] [Originally Added On: February 9th, 2017]
- Gambling pot grows for Madison County - Utica Observer Dispatch [Last Updated On: February 9th, 2017] [Originally Added On: February 9th, 2017]
- How Vietnam Is Changing Its Gambling Rules To Win Foreign Investment - Forbes [Last Updated On: February 9th, 2017] [Originally Added On: February 9th, 2017]
- No truth to alleged link between missing Spencerport teen, illegal gambling - 13WHAM-TV [Last Updated On: February 9th, 2017] [Originally Added On: February 9th, 2017]
- The world's biggest gamblers - The Economist (blog) [Last Updated On: February 9th, 2017] [Originally Added On: February 9th, 2017]
- Idaho House Panel Introduces Bill Limiting Indian Gambling - Boise State Public Radio [Last Updated On: February 9th, 2017] [Originally Added On: February 9th, 2017]
- Pennsylvania Omnibus Gambling Bill Presented to House - Casino.Org News [Last Updated On: February 10th, 2017] [Originally Added On: February 10th, 2017]
- Gamblers caught in Hat Yai open-air casino bust | Bangkok Post: news - Bangkok Post [Last Updated On: February 10th, 2017] [Originally Added On: February 10th, 2017]
- Men Fined Over FIFA Gambling Operation - Card Player - CardPlayer.com [Last Updated On: February 10th, 2017] [Originally Added On: February 10th, 2017]
- Rob Manfred may change MLB's stance on gambling - SB Nation [Last Updated On: February 10th, 2017] [Originally Added On: February 10th, 2017]
- Do you have a mobile gambling/gaming problem? - KMTV [Last Updated On: February 10th, 2017] [Originally Added On: February 10th, 2017]
- OUR VIEW: Transparency needed in gambling operations - Pacific Daily News [Last Updated On: February 11th, 2017] [Originally Added On: February 11th, 2017]
- New York State transformation into the gambling big leagues nearly complete with opening of newest casino - The Daily Freeman [Last Updated On: February 11th, 2017] [Originally Added On: February 11th, 2017]
- Kenya: Gambling in Kenya Gets Out of Hand - AllAfrica.com [Last Updated On: February 11th, 2017] [Originally Added On: February 11th, 2017]
- Gambling Responsibly - New York Times [Last Updated On: February 11th, 2017] [Originally Added On: February 11th, 2017]
- Duterte targets illegal gambling in the Philippines - Yahoo News [Last Updated On: February 12th, 2017] [Originally Added On: February 12th, 2017]
- US Grabs Biggest Global Gambling Industry Win Share in 2016 - Casino News Daily [Last Updated On: February 12th, 2017] [Originally Added On: February 12th, 2017]
- UFC 208 odds, gambling guide - MMA Fighting [Last Updated On: February 12th, 2017] [Originally Added On: February 12th, 2017]
- Calendar urges gamblers to cut their losses l Dayton, Ohio - Dayton Daily News [Last Updated On: February 12th, 2017] [Originally Added On: February 12th, 2017]
- Gambling Manga "Akagi" Begins Countdown to Conclusion - Crunchyroll News [Last Updated On: February 12th, 2017] [Originally Added On: February 12th, 2017]
- Football's gambling problem: You better, you better, you bet - Football365.com [Last Updated On: February 13th, 2017] [Originally Added On: February 13th, 2017]
- States are gambling with law enforcement safety - The Hill (blog) [Last Updated On: February 13th, 2017] [Originally Added On: February 13th, 2017]
- AFL's gambling ads concern for Cats star - Wide World of Sports [Last Updated On: February 13th, 2017] [Originally Added On: February 13th, 2017]
- Celeb Gambling Ring Members Fear They've Been CAUGHT On Wiretaps Making Illegal Bets, Source Claims - Radar Online [Last Updated On: February 13th, 2017] [Originally Added On: February 13th, 2017]
- Highway Patrol: Raid of Warren bar uncovers illegal gambling - WKBN.com [Last Updated On: February 13th, 2017] [Originally Added On: February 13th, 2017]
- Scary graph shows how Australians are the biggest losers - NEWS.com.au [Last Updated On: February 13th, 2017] [Originally Added On: February 13th, 2017]
- Bato: War on illegal gambling won't be bloody - Philippine Star [Last Updated On: February 13th, 2017] [Originally Added On: February 13th, 2017]
- Last holdout Lakewood to vote on repealing video gambling ban - Northwest Herald [Last Updated On: February 14th, 2017] [Originally Added On: February 14th, 2017]
- AFL's gambling ads a concern for Geelong Cats star Harry Taylor - The Age [Last Updated On: February 14th, 2017] [Originally Added On: February 14th, 2017]
- Online Casinos Generate A Third Of UK Gambling Dollars - CardPlayer.com [Last Updated On: February 14th, 2017] [Originally Added On: February 14th, 2017]
- Darlington deputies bust gambling house in Hartsville | News ... - SCNow [Last Updated On: February 14th, 2017] [Originally Added On: February 14th, 2017]
- Kim Jong Un's gambling half-brother reportedly assassinated - CBS News [Last Updated On: February 14th, 2017] [Originally Added On: February 14th, 2017]
- BitcoinCasino.us Ensures Instant Payouts and Responsible Gambling - newsBTC [Last Updated On: February 15th, 2017] [Originally Added On: February 15th, 2017]
- Gambling operators are cashing in on teens' addiction to online games - The Canberra Times [Last Updated On: February 15th, 2017] [Originally Added On: February 15th, 2017]
- Americans Lost $116.9B Gambling In 2016: Report - CardPlayer.com [Last Updated On: February 15th, 2017] [Originally Added On: February 15th, 2017]
- Levine: Rick Hahn, White Sox Gambling On Right Trades At Right Time - CBS Local [Last Updated On: February 15th, 2017] [Originally Added On: February 15th, 2017]
- Wesfarmers considers pokies exit in bid to tackle problem gambling - ABC Online [Last Updated On: February 15th, 2017] [Originally Added On: February 15th, 2017]
- Massive felony gambling raid in Marietta | WAGA - FOX 5 Atlanta [Last Updated On: February 15th, 2017] [Originally Added On: February 15th, 2017]
- 'War on gambling' starts with small fry - Inquirer.net [Last Updated On: February 16th, 2017] [Originally Added On: February 16th, 2017]
- Edgeless Casino Introduces Revolutionary Transparent 0% House Edge Online Gambling - newsBTC [Last Updated On: February 16th, 2017] [Originally Added On: February 16th, 2017]
- FF12: When is gambling illegal in Kansas? - KWCH [Last Updated On: February 16th, 2017] [Originally Added On: February 16th, 2017]
- Osage woman accused of stealing, gambling mother's money - Waterloo Cedar Falls Courier [Last Updated On: February 16th, 2017] [Originally Added On: February 16th, 2017]
- 'Operation Parlay' Leads To Gambling Raid, Arrest - Patch.com [Last Updated On: February 16th, 2017] [Originally Added On: February 16th, 2017]
- Pete Rose defends legal gambling: 'Who am I hurting?' - Yahoo Sports - Yahoo Sports [Last Updated On: February 16th, 2017] [Originally Added On: February 16th, 2017]
- Cops bust alleged gambling ring being run out of Cobb storefronts - Atlanta Journal Constitution [Last Updated On: February 16th, 2017] [Originally Added On: February 16th, 2017]
- Dunlap: State Rep. Gets It Right With Sports Gambling - CBS Local [Last Updated On: February 16th, 2017] [Originally Added On: February 16th, 2017]
- Gambling Addiction Treatment Center, Rehab - Non Gambler [Last Updated On: February 16th, 2017] [Originally Added On: February 16th, 2017]
- Problem Gambling Online Resources - Drugfreeinfo.org [Last Updated On: February 16th, 2017] [Originally Added On: February 16th, 2017]
- Attleboro seeks gambling grant for new dispatch center - The Sun Chronicle [Last Updated On: February 17th, 2017] [Originally Added On: February 17th, 2017]
- House gambling bill teed up for next week - SaintPetersBlog (blog) [Last Updated On: February 17th, 2017] [Originally Added On: February 17th, 2017]
- Firms oppose Bill regulating gambling - Daily Nation [Last Updated On: February 17th, 2017] [Originally Added On: February 17th, 2017]
- Tim Simona faces NRL deregistration after alleged breaches of gambling rules - The Sydney Morning Herald [Last Updated On: February 17th, 2017] [Originally Added On: February 17th, 2017]
- Washington State Gambling Commission [Last Updated On: February 17th, 2017] [Originally Added On: February 17th, 2017]
- Online Casino USA Friendly Online Casinos for 2017 [Last Updated On: February 17th, 2017] [Originally Added On: February 17th, 2017]
- Records: 70 gambling machines seized, two arrested in Alamo raid ... - KGBT-TV [Last Updated On: February 18th, 2017] [Originally Added On: February 18th, 2017]
- Florida House Goes Conservative on Gambling Expansion with New ... - Casino News Daily [Last Updated On: February 18th, 2017] [Originally Added On: February 18th, 2017]