Internet Sites Would Gain from Betting Ban

12 March 2001
By Jeff Simpson
lasvegas.com GAMING WIRE

He'll talk.

Just don't ask him his name or too many questions about his business.

Yes, he operates a sports betting operation in Costa Rica that offers a 1-800 number and an Internet address.

Yes, he can handle millions of dollars daily in wagers.

But you'll make him nervous if you ask him how much he won last year from gamblers.

One other thing.

Call him "Bud."

It's not his real name, but at least he'll discuss the proposed congressional ban against college sports betting at Nevada's casinos, a move that is pushed by the National Collegiate Athletic Association.

"There's no doubt about it," Bud said. "It would be a plus for our business. To say how much, I don't know.

"There are a lot of people who go to Vegas to bet college sports because it's in Vegas, and they wouldn't be interested in betting if it weren't."

If a congressional ban is enacted against college sports betting at Nevada's casinos, Internet sports book operators say they would gain a moderate boost to their business.

But Web betting operators don't think a ban would add big money to their bottom lines.

The reason: The amount of money bet with Internet sports books already dwarfs the amount wagered in Nevada sports books.

Internet sports books won an estimated $1 billion last year, according to one estimate, compared with the $31.1 million won by Nevada sports books.

"All the (college sports betting) business will come here," said Spiro Athanas, who runs Jamaica-based Olympic Sports at www.thegreek.com.

Last year's Internet sports betting take was nearly half of the estimated $2.3 billion lost worldwide by Internet gamblers.

That figure is expected to grow to $3.1 billion this year, $4.5 billion next year, and $6.1 billion in 2003, according to one estimate.

Internet sports books are expected to win $1.4 billion from gamblers this year, $2 billion next year and $2.8 billion in 2003.

"Stop Nevada (college) sports wagering and the Internet sites become much more attractive," said Frank Catania, a former director of New Jersey's Division of Gaming Enforcement.

"Those (without Internet access) wanting to place wagers will be forced to place their bets with the local illegal bookmaker. In my opinion it seems as if organized crime has their lobbyist working overtime to get this legislation passed."

No one is certain exactly what the ban would mean for Nevada's sports casinos, but they agree it would hurt, cutting into foot traffic, cutting into revenue.

The college bowl season is believed to draw tens of thousands of sports-hungry gamblers to town annually.

They're gamblers who place sports bets from $5 to $100 to a couple of thousand dollars, then hit the blackjack or craps tables, pull slot machines, eat some meals, watch a show or two and stay in Strip hotel rooms.

Ditto for the March weekends leading to the early April final for the men's NCAA basketball championship.

"People aren't going to stop betting on college games just because Nevada books can't take the action," Athanas said. "It's like the booze during Prohibition. People wanted it. They got it."

That's not to say concerns are misplaced about betting's impact on the legitimacy of college sports.

"The availability of money from gamblers can be tempting for the athletes who don't have a chance to make it in the pros," Athanas acknowledged. "But making (college) betting illegal in Nevada wouldn't make much of a difference."

His Web site restricts the amount of money customers can bet on college games to minimize the site's exposure to games that might have been fixed.

Olympic Sports accepts bets of $3,000 per game on college football, compared with $5,000 on National Football League games.

Wagers of $2,000 are accepted on college basketball games, compared with $3,000 on National Basketball Association games.

Each pro game generates more revenue for the state's sports books than does each college game, but there are many more college games every year, making the pro and collegiate contests equally profitable for online and Nevada sports books.

Mike Ryan, a retired Las Vegas heavy equipment operator, visits Arizona Charlie's West sports book almost every day, and bets about $60 a day on college basketball during hoops season.

"If college basketball betting was illegal, you'd find someone (a bookmaker) around the corner," Ryan laughed. "Seriously, I'd probably stay home and do a lot more fishing."

Kelvin Helm and Kirk Blake, a pair of Las Vegas waiters who also bet college round ball at Arizona Charlie's, said they'd focus on NBA games or bet college games on the Internet, although they've heard the stories of some online gamblers not receiving their winnings.

"You read about people losing their money," Blake noted. "That's why I like the sports book -- you know you'll get paid."