Originally posted on 01/24/2018:

Quote Originally Posted by Lago View Post
Can you elaborate why this would be absurd? The public (and the state for that matter) generally perceives potential sports betting revenue as a cash cow. 1% sounds oh so small for the unedified.
They are proposing 1% of "Gross Handle". You can see from the Nevada Gaming Reports that 1% of the handle is equal to about 20% of gross revenue. Again, gross revenue, not net revenue. That is a significant chunk that wold throw current bookmaking models out the window.

Think of it this way - you and a friend each bet an NBA game for $110-100, but on opposite sides. The Sports Book will write $220 in business, keep the money from the losing ticket and pay the winner back $210. The sports book grossed $10 before expenses, and the NBA wants to take $2.20 of that $10 right off the top. It isn't workable.