CAPITALS OWNER ROLLS THE DICE ON SPORTS BETTING IN THE ARENA
Gamblers could reduce the actual game to background noise, writes Jerry Brewer.
In Ted Leonsis’ entrepreneurial dreams, Capital One Arena will transform into a true year-round sanctuary because of legalized sports gambling. On any given day — regardless of whether the Capitals and Wizards are good, bad or just off for the night — the place will be buzzing and creating fresh revenue streams. Within this mecca, he’ll be able to marry two of his great passions — sports and technology — in an innovative, bettor-friendly way and design an unstoppable business model.
That’s his vision. In navigating this wild and unstable new terrain, most influential sports figures have tiptoed since the gate-opening U.S. Supreme Court decision 17 months ago. Leonsis is walking briskly, if not jogging.
Leonsis, who owns the Capitals, Mystics and Wizards, wants to be at the forefront of shaping all of these loose possibilities into a cutting-edge reality.
He was talking openly about ideas until Thursday. Now, he has made his first significant public move in announcing a novel partnership with British bookmaker William Hill. Assuming the deal clears a few hurdles with the city, the NBA and NHL, Capital One Arena soon could be attached to a sportsbook and even function like a vast casino during live events.
Leonsis is sensitive to perception, which is why he mostly describes the partnership with William Hill as a landlord-tenant arrangement. But then he also talks of William Hill putting kiosks inside the arena, mobile wagering from seats and the potential for special proposition bets involving the live events.
In making the announcement, Leonsis characterized William Hill as “no different than Mcdonald’s or Dunkin’ Donuts.” But this relationship is fully dissimilar to other arena tenants because William Hill’s business will be tied to what’s happening on the court or ice in a manner that far exceeds even a Chickfil-a free throw promotion. It makes the partnership much more complicated to manage on many levels, including game integrity and the in-game experience for fans.
If you’re a big fan of the local team who also enjoys gambling, in-arena betting will be an additive effect. But like any smart businessman would, Leonsis wants to use gambling as incentive for new fans to come to the games. That would set up an interesting level of conflict, probably passive-aggressive in nature, between loyalists and gamblers interested in making a few bucks.
People come to games for all kinds of reasons. I won’t wax on about the purity of watching an athletic event, but when you throw hardcore gamblers into the event, you’re talking about new customers with way more personal and financial interests than the average fan. Put too many of these people in the building, and it changes the entire vibe.
There’s also the likelihood of a significant alteration in the interaction between spectators and athletes. Most of us desire to watch professional sports live because we appreciate the competition, the displays of athleticism and the drama. And now the doors will be open, in theory, to a large concentration of people heavily invested in an attempt to forecast the unknown.
It’s the gamification of games. It can be fun when you’re guessing whether Alex Ovechkin will score in the second period, just to guess. But when a gambler bets his rent on it, and Ovechkin doesn’t deliver? Uncomfortable.
If he gets his way, Leonsis must be careful not to allow the game to become background noise while chasing the gambling dollar. The event itself can’t become merely the music at the party.
Leonsis understands the challenges. He understands he has a responsibility to keep sporting events family friendly and enjoyable for children. But he’s also the owner of multiple sports franchises. He wants to make as much money as possible.
And there’s one key factor in how Leonsis views sports gambling: Many of us consider it to be a financially risky game of chance. Leonsis considers it to be much more a game of skill. He often talks about using data to unlock the secrets of sports.
As a creative mind, he likes the idea that gambling could inspire a new viewing experience in which sports leagues partner with tech companies and bookmakers to make special use of all the statistical information tied to athletics. In an ideal world, such collaboration would benefit more than wagers. It would stimulate minds and change the way we watch sports. It would attract more interest and create more revenue possibilities as viewers transition from traditional television to online streaming.
When Leonsis dreams, he can be captivating. He can also inspire skepticism because, until recently, gambling had always been considered detrimental to sports. But he sees something, even if you don’t, and he’s following that vision. Let’s just hope he does so with ample caution.