The fairness of allocating a portion of sports betting revenue to Major League Baseball and the NBA is supported by these organizations, but is met with opposition from various lawmakers, such as those in West Virginia.
During a panel at the Global Gaming Expo in Las Vegas last week, representatives from opposing sides were given the opportunity to express their opinions on the integrity fee.
What happened in Las Vegas
The ongoing dispute between professional sports leagues and the casino industry persists as they debate the implementation of a fee for the sports leagues following the lifting of PASPA, the federal prohibition on sports betting, earlier this year. Major League Baseball (MLB) and other professional leagues have requested a share of the bets placed, while casinos vehemently oppose what they refer to as a royalty or integrity fee.
During a speech to casino executives, Kenny Gersh, MLB’s executive vice president of gaming, emphasized that the suggested 0.25 percent fee should be considered a royalty payment that casino companies ought to remit when profiting from the sport.
Additionally, according to the ESPN report:
Gersh stated that the state intends to choose a select few licensed entities who will have the privilege of profiting from sports betting. He emphasized the importance of fairness, as these entities would be making money from events and sports that ultimately belong to the state. Gersh argued that since the public’s interest in betting is directly related to specific teams and events, the state should have a say in the matter.
Many argue that if Nevada has been offering sports betting for years without paying any fees, other states should not be compelled to do so either. MLB and other professional sports leagues have been unsuccessful in persuading states to incorporate these fees into their laws.
WV on integrity fees
The stance on sports betting in West Virginia has remained unchanged. Despite input from major sports leagues, the final rules filed by West Virginia Lottery officials on Oct. 3 did not incorporate any of the proposed changes. One such change suggested was the addition of an integrity fee.
West Virginia state lawmakers recently reaffirmed their decision to dismiss the sports leagues’ requests for a fee. This decision aligns with their previous actions when they passed a sports betting bill without allocating any funds to the leagues. Despite the leagues’ continued efforts to secure an integrity fee, the state has remained steadfast in its stance and has not shown any willingness to compromise.
However, the matter remains unresolved in West Virginia. Governor Jim Justice, who is arguably the most influential figure in West Virginia politics, has been a staunch supporter of the sports leagues. He has previously aligned himself with the leagues and allegedly attempted to exert pressure on the state’s casino industry to reach an agreement with them in May 2018.
Despite the absence of an integrity fee, West Virginia remains committed to advancing sports betting. However, it is undeniable that the issue is far from being resolved and more developments are expected in the future.
Despite the ongoing battle among leagues to claim a share of the sports betting industry, states such as West Virginia have remained resilient, not yielding to the pressure… at least, not yet.