The latest Massachusetts sports betting bill has a provision for a special relationship between sportsbooks and sports leagues. The proposed bill allows commercial relationship between the two.
Once passed, the state will have a unique clause in its sports betting law. According to the proposal, a sport governing body can sign a deal with a sportsbook. The former can have its share of the wagers or revenue from sports betting. However, the sport governing body can’t get a license or run a sportsbook on its own.
At present, no state allows that type of agreement. A sports league can’t sign a deal with a sportsbook to get a portion of the revenue from bets placed on games of the league. If passed, sports associations can sign agreements that would allow them to collect a percentage of the wagers no matter what the outcome might be.
Proposed Bill Allows Commercial Relationship
In the past, sports leagues supported the federal ban on sports betting. However, things changed at present according to Price Per Head Sportsbook. Leagues are now negotiating for their share of the sports betting revenue.
Some betting software providers believe that some sports leagues are already receiving some type of remuneration via a go-between. The third-party distributes league data and other information to sportsbooks.
Sportsbooks pay third party providers for access to league data. Some proceeds of the fees go to sports leagues, according to sportsbook pay per head experts. However, the provision in the Massachusetts sports betting bill will remove the middleman.
Also, leagues can earn money from sports betting without getting their license. In Massachusetts, licenses cost $250,000. Also, legal bookies gain access to official league data without paying the middleman. They can use league logos and trademarks. However, these deals are already prevalent even without a state mandate.
