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Oddsmakers cry foul over NBA’s proposed ‘integrity fee’

If a federal ban on sports betting is lifted in the coming months, the NBA wants sports books to pay the league 1 percent of the money wagered on its games as an “integrity fee.” An NBA official, assistant general counsel Dan Spillane, made the request in written testimony submitted Wednesday in support of the passage of a sports betting bill at New York’s Senate Racing, Gaming and Wagering Committee hearing. For sports books, the “integrity fee” could be costly. The 1 percent fee amounts to more than 20 percent of sports book revenues, William Hill sports book CEO Joe Asher told the committee. “It’s a red herring when you call it an integrity fee. They want to be partners but they don’t want to appear to be partners. They’re saying they want to protect the integrity of the game by not having bookmaking. Now they want to be part of it. It doesn’t work both ways.” – Vic Salerno, a Las Vegas sports betting pioneer. Prices of straight bets could also be increased in order for sports books to turn a profit. The price on straight bets from the traditional $11 to make $10 could jump to $12 or $13 to make $10. “It has to go up or they can’t make money. I don’t know if they’ll be successful,” he said. “If the tax rate is on the handle, forget it. Kentucky wants 20 percent of the handle. We don’t hold 20 percent. It’s a very thin margin.” – Vic Salerno, a Las Vegas sports betting pioneer.

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