With Vegas expansion, NHL gambling on fantasy sports payday
Major sports leagues slowly drop objections to betting as they seek to cash in
It was one of the first questions NHL Commissioner Gary Bettman was asked after announcing that Las Vegas would get a hockey team.
It's a question he's answered again and again, ever since the idea of a franchise in "Sin City" was first floated. The question, in essence, was this: Isn't it risky to have a team play in an arena nestled between casinos?
"Compared to say basketball or football, our game is less susceptible to gambling, which is why we're a very small per cent of the book or the take," Bettman said.
What he didn't say: For the NHL, sports gambling is no longer a liability, it's an asset.
"All the leagues are pursuing the fantasy market in terms of how to expand it," says Gordon Hendren, the CEO of Toronto-based sports marketing firm Charlton Strategic Research.
According to the Fantasy Sports Trade Association, more than 56 million people play fantasy sports, which let participants bet on athletes' performances. The industry is expected to bring in more than $1.5 billion this year.
And major sports leagues want a piece.
For instance, the NBA has invested in the fantasy site FanDuel, and NFL owners Robert Kraft and Jerry Jones have invested in DraftKings. Now the NHL, Hendren says, is positioning itself in the heart of the action.
"Having a team in Las Vegas gives the NHL a different profile when it comes to wagering," he says.
'It's time to just move on'
It's about time, says Ken Boehlke, as he watches a minor hockey tournament at the Las Vegas Ice Center. After years of blogging about junior hockey for his site The SinBin, he'll soon be making the jump to the pros.
He says all the hand-wringing about the effects of gambling on the game isn't justified.
The NHL's move to Las Vegas isn't just good for his city, he says, it's good for the league. Having a team in the "Entertainment Capital of the World" will help raise the game's profile. More people will bet in NHL fantasy leagues — and the more people play fantasy, the more they'll watch.
"The NFL is as popular as it is in this country because of fantasy sports and because of gambling; it's one of the main reasons people love the NFL," Boehlke says. "A lot of the sports rely on gambling. They're not going to tell you that but it's important.
"The more people that have money or a vested interest in the game, the more people are actually going to watch the game. And for the NHL, this is a market that's untapped," he adds. "People are going to bet on these games. That doesn't necessarily mean that it's taking away from what's actually going on on the ice."
Gambling jitters subsiding
For decades, that was the fear that kept all the pro leagues out of Vegas. But that seems to be eroding.
Two years ago, NBA Commissioner Adam Silver suggested sports betting should be legalized across the country. And NFL Commissioner Roger Goodell admitted his stance — probably the toughest of the major leagues — said his position is evolving.
Since fantasy sports betting is growing and athletes are earning more money, the fear of temptation is slowly diminishing.
"It's always been a concern," Hendren says. "But I think all of the leagues are starting to look at Las Vegas differently because it's becoming mainstream in terms of an entertainment destination. I think they also believe they have the right controls in place and that they don't see it as a huge risk, as they've seen it in the past. So I think there are other leagues like NBA, like the NFL, who are now looking at Las Vegas as a potential site."
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To celebrate his city's first pro sports team, Boehlke hosted a party a Las Vegas bar. T-shirts with an utterly unofficial logo were already being sold … and proudly worn by the dozens who started gathering a couple of hours after the announcement.
"We're going to be insane about the NHL," Boehlke says. "We're going to be like Canada about the NHL because this is our one thing. This is all we got."
At least for now.
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