NHL enters a new era of gambling
‘The world changed and we’re adapting to it,’ says commissioner Bettman
The NHL’s about-face on gambling on hockey games — and it’s an incredible 180-degree turn from as recently as three years ago — could have repercussions which change Canadian betting laws. NHL commissioner Gary Bettman cozied up to MGM Resorts International chair Jim Murren on Monday to announce a partnership in which MGM would access NHL data to help it launch expanded gambling in hockey.
“This is good news,” said Paul Burns, president and chief executive officer of the Canadian Gaming Association. “This is the first betting partnership the league has entertained. It’s a significant move. From a league that was against our efforts a few years ago to where they are today, we welcome that. Thank you. It’s to be celebrated.” The NHL now espouses increased “fan engagement” while eying new revenue streams that could eventually have a significant effect on the salary cap as well as appealing to younger fans, who tend to be the biggest bettors, according to the American Gaming Association.
The revenue from the partnership is considered hockeyrelated and will go 50/50 into the pockets of the owners and players. And there could be more betting partnerships on the way.
There will be an effect on hockey-related revenue — meaning a rise to the salary cap — but by how much is not known. The NHL will not be getting a share of the handle, just revenue from the partnership and selling data. The American Gaming Association says the NHL stands to gain about $151 million (all figures U.S.) from increased fan engagement and another $65 million a year from betting operators and sponsors.
Burns says similar research in Canada is not complete, but he wouldn’t be surprised if the numbers were similar given the passion for the sport in this country. The number of hockey fans is about equal in both countries.
“It’s the most popular sport in the country,” says Burns. “It’s a league everyone in Canada pays attention to. It’s a significant move. This will be a brand new revenue line for teams, which could be significant, but remains to be seen. It is important for fans.”
The U.S. Supreme Court in May struck down a federal law that barred betting on the re- sults of a single game of football, basketball, baseball, hockey and other sports in states other than Nevada. Canadian law has not yet followed suit. The federal government — through the Criminal Code — defines what is and isn’t legal as far as betting goes. The provincial lottery commissions operate legalized gambling.
Canada has had legal sports betting for decades, operated at the provincial level through portals such as Pro-Line. It’s parlay wagering, meaning you have to win a number of bets — guess the correct outcome on three games, for example — to cash in.
For single-game betting — illegal in Canada — Canadians typically use an illegal local bookie, or use the internet and gamble on offshore websites, meaning lost revenue, lost tax dollars and lost jobs.
“Canadians are spending in excess of $4 billion on online offshore sports books, with an addition $10 billion being wagered through illegal bookmaking operations,” says Burns. “Live in-game wagering ... will be a complete winner in this country.”
In his news conference, Bettman said the seven Canadian NHL teams are “working with” provincial authorities regarding single-game betting. In a way, the league’s evolution was inevitable.
The league had long embraced fantasy sports betting and even put a team in Las Vegas — the very heart of legalized betting in the United States.
The Canadian gambling community has been lobbying to repeal the law in Canada which prevents single-game bets.
There have been two recent attempts at appeal. Bill C290 passed in the House of Commons, but died in the Senate during the last election. Another attempt to resurrect the bill didn’t get past first reading when the new Parliament resumed. In opposing Bill C290 in 2015, the NHL once wrote:
“Government sponsored and/ or regulated single-game sports gambling threatens to compromise the reputation and integ- rity of the NHL’s product, and could seriously undermine our fans’ trust and confidence in honest competition. If singlegame sports betting becomes a publicly fostered and sponsored institution, then the very nature of sports in North America (including the National Hockey League) will change, and we fear it will be changed for the worse.” Now Bettman says: “The world changed and we’re adapting to it.”