Bet on Sox fans being engaged

Last Monday, it became legal to wager on sports in Rhode Island. The next day, MGM Resorts International became Major League Baseball’s first-ever “Official Gaming Partner.” And in case those back-toback developments do not point to enough of a trend for you, baseball’s annual Winter Meetings begin a week from today in the bettor’s mecca of Las Vegas. Betting’s coming to baseball in a big way, and even though the Commonwealth of Massachusetts has yet to formally address legislation to legalize it here, the arrival of betting in one of the six New England states is a strong indicator that it likely is a matter of when and not if sports betting will become legal in Massachusetts. Given that MLB, with its notorious association with Shoeless Joe Jackson and Pete Rose, now embraces legal betting, it’s safe for all 30 of its properties to get in on the action as well. And the Red Sox certainly stand ready to greet betting on baseball and betting on baseball in Massachusetts with open arms. Even before the vig officially disappears, the Red Sox are jockeying into position to receive their slice of the new, legal pie. “Yes, there will be a positive revenue impact for the team – how much I don’t know – but that is absolutely secondary in my opinion to the (increased) engagement, to people following, paying attention, being engaged with the Boston Red Sox, Patriots, Bruins and Celtics as a result of betting on that sport and betting on in-game activities” Red Sox president and CEO Sam Kennedy told the Herald last week. The Red Sox already have a sponsorship deal in place with Foxwoods Resort Casino in Connecticut, but the competition to capture the attention of Red Sox fans will only increase. Twin Rivers Casino in Lincoln, R.I., already has its sports book up and running, the MGM Springfield hotel and casino is open for business and next year, Everett’s Encore Boston Harbor hotel and casino is slated to open. MLB’s deal with MGM does not prevent the 30 teams from striking their own business arrangements with casinos or sports books – including a company like Bostonbased DraftKings, which is using its already in-place mobile platform in addition to land-based sports books to become a major player on the sports betting front. Each of these companies, as well as others, offer an opportunity for the Red Sox to increase revenues from advertising, signage and sponsorship deals. But the key word Kennedy returns to over and over when discussing sports betting and the Red Sox is “engagement,” which is another way of saying that betting increases the chances that the Red Sox can keep the eyes and ears of New England sports fans tuned into Red Sox games. When it comes to content offerings in the entertainment (sports) business, nothing beats live content. The Red Sox play 162 games a season and there are 2,430 MLB baseball games played between April and September, which adds up to more than 7,300 hours of live programming. And that’s not including postseason baseball in October. Bettors will be able to bet on outcomes and the standard fare of lines and odds but baseball’s deliberate pace of play – suddenly, it may not be that pressing of an issue after all! – allows it to feature a near limitless list of in-game prop bets. Even a rout that may normally cause TV channels and radio stations to be switched and apps to close could maintain viewership because there’s money on the line for action up to and including the final out. The league and teams won’t get juice from each bet, nor are any of the other sports – NBA and NHL but not the NFL – who are striking sports gaming deals likely to ever see an “integrity fee” from sports books. But Kennedy said he has heard estimates that the current illegal sports betting scene is a $75 to $150 billion a year business. It’s no wonder sports leagues cannot pretend to ignore an interest in having some of that business when it moves out of the shadows and into law. The idea is that betting should only increase interest in the Red Sox’ brand. In theory, ratings will go up, ticket sales will increase and with that increase in interest, the Red Sox will be able to maintain or even up their advertising and sponsorship rates. Then the Red Sox, who already “boast” the highest payroll in baseball, can divert and invest as much of that increased revenue – which is not subject to revenue sharing – as they deem prudent to their payroll, improving Fenway Park, making new real estate deals in the Fenway area or otherwise expand the Fenway Sports Group empire. “It’s more overall interest in watching games, being connected to the game,” said Kennedy about how the Red Sox see a chance to benefit from betting. “What’s going to happen between a pitcher a batter at this very moment, what will this outcome be – you can see in the future where that all can happen very fast in real time. If there’s a game that’s 10-1 in the seventh inning, people might tune out but the thought is now that you’ll stay in, watching, because you’re engaging in betting on the outcome of what may happen. That’s happening today, it’s just in illegal fashion with non-licensed, nonregulated betting providers – off-shore or in other countries. The regulation is important, there is nothing more important to the Commissioner and the leagues than the integrity of the game. Players, front office members will not be allowed to engage in these activities. The general public will.” Major League Baseball is handling lobbying efforts state-by-state, so outside of making introductions to a few key members at the State House, Kennedy said “there’s not a huge lobby effort by the team.” The Red Sox are hopeful that Massachusetts will begin debating sports betting legislation sometime in 2019. If it passes, Kennedy does not foresee Fenway Park ever having a window where a patron can place a bet. But to have a fan place a bet from a stadium seat at Fenway or from a couch in Medford with a mobile device or stepping up to an actual sports book located in the state of Massachusetts -that’s what the Red Sox want to see. “Yes, clearly,” said Kennedy. “It’s happening all over the country. It’s a great source of revenue for the states and from our perspective it’s a great source of engagement in our product.”