Leonsis gambling on the future of sports
Capitals owner aims to open sportsbook in arena so fans can place bets during games
In Ted Leonsis’ entrepreneurial dreams, Capital One year-round palace for 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.
That’s his vision. In navigating this wild and unstable new terrain, most influential sports figures have tiptoed since the gate-opening 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’s 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 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, and mobile wagering from seats.
In making the announcement, Leonsis characterized William Hill as “no different than McDonalds 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. 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 is also the likelihood of a significant alteration in the interaction between spectators and athletes. Most of us desire to watch pro sports live because we appreciate the competition, the displays of athleticism and the drama. Now the doors will be open, in theory, to 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. 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.
Until recently, gambling had always been considered detrimental to sports. But Leonsis sees something, even if you don’t, and he’s proceeding to follow that vision.
Let’s just hope he does so with ample caution.