During a panel discussion on July 19 at the National Council of Legislators from Gaming States (NCLGS) summer meeting in Pittsburgh, renowned sports bettors Billy Walters and Gadoon "Spanky" Kyrollos shared their insights on the future of sports betting. Both emphasized that sustainability in this industry hinges on fair treatment for sports bettors, advocating for an equal playing field for all customers.
Richard Schuetz, an experienced casino executive and former Las Vegas sportsbook operator, moderated the discussion. He recounted how he once hosted Walters while managing the sportsbook at the Stardust.
One major issue threatening the long-term viability of legal sports betting is the presence of operators lacking adequate knowledge. "The (legal) industry is new in this country and no one with knowledge of betting was involved in this process," Walters observed. He stressed the necessity for bettors to have a voice in the evolving landscape of legal wagering.
Walters pointed out concerns surrounding transparency in betting odds and the troubling practice of adjusting betting limits based on a bettor's experience. "If you qualify for a sports betting account, you should be treated equally," he insisted, highlighting the importance of transparency regarding minimum and maximum bets as well as true odds.
Reflecting on his long history with sports betting, Walters mentioned, "I made my first sports bet 69 years ago. I never thought about sports betting becoming legal. When it happened, I may have been the happiest person in the US. I wanted to see it legalized, see the criminal element taken out and have people engage in betting on sports, enjoying it and doing it in a legal fashion."
He expressed concern for the future, noting that millions of new bettors might not understand the risks involved before placing bets. Walters estimated that around 95% of legal sportsbooks’ customers are losing bettors because the books often fail to adjust betting lines in response to unexpected events like player injuries.
Kyrollos echoed similar concerns, criticizing the mindset of certain operators who adhere to a "ban or bankrupt" philosophy reminiscent of some European sportsbooks. He explained, "They’ll either limit the player severely or increase the limit according to their sophistication," suggesting this approach can alienate knowledgeable bettors while taking advantage of inexperienced ones.
Walters reinforced this notion, recalling that Las Vegas was once built on the belief that people can win. Kyrollos noted, "This is not just a professional bettor problem; it’s a nationwide problem," revealing plans to create a nonprofit organization aimed at giving bettors a voice. He believes that listening to consumers is essential for operators to make informed decisions about managing their books.
Schuetz posited that successful sportsbook operators will thrive not by banning skilled bettors but by learning from them. Recalling his time at the Stardust, he shared, "We were in a continuous effort to collect data. Billy was smarter than us. In business, you should surround yourself with people smarter than you. It’s all about managing risk."
He further highlighted an issue with many online sportsbooks, which often complicate the process of withdrawing significant winnings, effectively disadvantaging winners. "Too many make it difficult to take your money out, with terms and conditions aimed at the winners," he lamented.
For the legal sports betting market to succeed, Walters argued, it’s imperative that all bettors are treated fairly. "I want to see states realize income [and] sportsbooks to be successful. It’s not about me, it’s about the other 40-50 million people out there betting sports."
He advocated for posted limits that ensure equal treatment and mentioned how disparities in limits based on a bettor's experience could lead to problem gambling. "At a $500 limit, a (novice customer) is a sports bettor. At $5,000, he’s a problem gambler," Kyrollos stated.
Schuetz emphasized the need for legislators to be informed about these issues to foster an environment conducive to transparency and equitable practices. "We have an opportunity to do a reset," Walters concluded, advocating for the industry’s improvement and stressing the need for consideration of the sports bettor in future developments.
