Wednesday, December 15, 2010

Sports Betting

An article from Business Week estimates that the revenues from sports betting here in the US is greater than the value of the four major US sports leagues. Given that there is so much revenue from betting on sports and without the leagues/teams/owners/players there would be so little to bet on; why do sports leagues shy away from sports betting?

One answer is legitimacy. If sports leagues were in cooperation with sports betting, many fans would question the competitiveness of the games (i.e. think of the world wresting entertainment) in which matches are predetermined. If fans thought that games were already predetermined, the uncertainty of the outcome is no longer in question, and the game ends up like the WWE - or whatever it is called. Demand for sporting events would decrease substantially - think of the demand for watching a game on the old ESPN Classic versus a new game where the outcome of the game is not already known.

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