Oregon Sports Propose Breakout of Monopoly in Sports Wagering 

Oregon Sports Propose Breakout of Monopoly in Sports Wagering 

  • LSR reported that Sports Oregon, an economic development organization with a wider sports industry representation, including sportswear brands Adidas and Nike and the NBA’s Portland Trail Blazers, is pushing for the expansion of sports betting in the state of Oregon.
  • Sports Members of Oregon want the state to replace its monopolistic sports betting model with a competitive one. The organization believes that opening the market will increase revenues and state revenue.
  • Sports Oregon is prepared to collaborate with state policymakers throughout the duration of the process.

 

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Oregon sports betting

Monopoly vs Open Betting Market

During Friday’s meeting of the Oregon Joint Interim Committee on Gambling Regulation, Sports Oregon’s external affairs and special projects specialist Nathan Nayman presented the case for a sports betting model change by arguing that Oregon’s monopoly model is “outdated and deprives the state of millions of dollars in revenue.”

The presentation in front of the committee members revealed that Sports Oregon had retained the services of Innovation Group to determine the full potential of the state’s sports betting market, which generated $31.8 million in revenue over the past year ending March 31, 2022, from a single operator – Boston-based DraftKings, which runs the Oregon Lottery’s sports betting operations through the Scoreboard brand following the acquisition of SBTech.

According to Sports Oregon’s estimates, the state sports betting market could generate up to $289 million in license fees and state taxes by the fifth year if the current monopoly model is replaced with an open and competitive one. 

If the last twelve-month revenue rate of $31.8 million is maintained, the current monopoly model will generate $159 million in revenue by the fifth year. In addition, Nayman believed that the revenue share agreement dividing sports betting revenue equally between the Oregon Lottery and the state brought in approximately $16 million for the state, whereas an open model applying between 15% and 20% tax would bring in up to $62 million by the fifth year.

Significant Increase in Revenue

What Nayman did not inform committee members is that if the monopoly model for sports betting is maintained, the rate from the previous twelve months should account for $90 million in state taxes by the fifth year, which is 45 percent more than what the free market will generate.

If Oregon’s sports betting model opens to competition, it “could generate a significant increase in revenue,” according to Nayman. He also considered a number of other factors that play a role in Sports Oregon’s and its members’ push for opening the market, such as fan engagement, sports integrity, problem gambling, tribal inclusion, and technological advancements and their application in the sports industry.

At the conclusion of the informative presentation, Nayman drew the committee members’ attention to the sports betting models implemented by Arizona and Ohio as examples of how an open model in Oregon would operate and outlined Sports Oregon’s commitment to continue working with legislators on the issue.

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About Lou De Aguila

Lou Ramon Aguila is a contributor for Golden Casino News. He has a degree in BSBA Legal Management with great interest in high-profile legal cases involving sports personalities. An ultimate sports junkie, he covers just about everything in the sporting world with an emphasis on the NBA, NFL, and MLB. In his past time, Lou loves to read manga, watch anime and critique pro-wrestling matches.