With legal sports betting now in its 7th year in the US, there are many who have concerns over the sustainability of the existing wagering model.
In a panel discussion held Friday, 19 July at the National Council of Legislators from Gaming States Summer Meeting in Pittsburgh, legendary sports bettors Billy Walters (left) and Gadoon Kyrollos (right) shared their views. Walters and Kyrollos both said that treating bettors fairly is essential to ensuring sustainability.
They said that this means a level playing field for customers.
Richard Schuetz moderated this panel. He is a casino executive and former Las Vegas sportsbook owner. Schuetz was Walters’ host when he ran the Stardust sportsbook.
The transparency of betting limits is a concern
Panelists agreed that a shortage of experienced operators is one of the biggest threats to long-term viability of legalized sports betting. Walters stated that the (Iegal industry) is a new one in this country and there was no betting expert involved in the process. Walters said that “the bettors need to speak up.”
He said that transparency in the betting odds is another major concern. It is also concerning that bettors are allowed to adjust their limits if they want to place large bets but do not have the necessary knowledge of how sports betting works.
Walters stated that “if you are eligible for a sports bet account, then you deserve to receive the same treatment.” We need transparency, you deserve it. What is the maximum and minimum bet? What is the real odds? Most people will say 11-10. Some people are betting 2-1 for these props. “You have a right to know what the odds are on the wager you make.”
Walters says he placed his first bet on sports 69 years earlier. He said, “I had no idea that sports betting would become legal.” When it finally happened, I was probably the happiest American. “I wanted it to be legalized and the criminal elements removed, so that people could enjoy betting on sports and do it legally.
I’m here due to my deep concern about the future sports betting. Many people who bet don’t understand the risks involved.
He said that he estimated 95% of the legal betting books lose bettors, because they do not adjust their lines to reflect unexpected events such as player injuries.
Ban or go bankrupt
Kyrollos believes that the main problem of many operators is their desire to always win. He noted that the attitude of “ban or go bankrupt” is sometimes seen in European bookmakers, but has also been observed in US sportsbooks.
This term is used to describe the act of manipulating betting limits in order to exclude knowledgeable players and take advantage of novices. Kyrollos explained that they would either severely limit a player or raise the limits according to his sophistication.
As a player you expect to be treated with fairness. Operators have their teams focusing on who to limit or kick out. This is a bookmaker’s mentality. “You have to be able to move the line and have people who are knowledgeable.”
Walters said: “Las Vegas is built on the belief that people can win.
Kyrollos said, “This problem isn’t just for professional bettors; it affects the entire country.” We’re creating a non-profit organization to give bettors voice. Listening to the consumers’ opinions will help you make better decisions about how you manage your book.
Smart Play
Schuetz says that sportsbook operators won’t succeed if they ban sophisticated bettors. Operators should instead learn from sophisticated bettors.
Schuetz: “When I worked at Stardust I used to take Billy Walters action.” In those days we used to bet in briefcases on the big games. Billy got very high limits and sometimes he beat us.
We were constantly collecting data. Billy was more intelligent than we were. You should always surround yourself in business with smarter people than you. “It’s about managing risks.”
Schuetz said that many sportsbooks make it hard to withdraw large winnings. He said that too many sportsbooks make it hard to withdraw your winnings, and have terms and conditions that are geared towards the winners. Sportsbooks must offer easy withdrawals.
All sports betting customers receive the same treatment
Walters stated that the long-term viability of legalized sports betting depends on everyone being treated equally. He said, “I’d like to see sportsbooks and states make money. I want them to succeed.” It’s not just about me. There are 40-50 millions people who bet on sports.
Everyone should have the same rights. We all deserve to be treated the same in this country as long as everyone follows the rules. You shouldn’t run a sportsbook if you can’t treat all players equally.
Kyrollos said that adjusting limits based on the level of sophistication of the sports bettors leads to gambling addiction. At a limit of $500, (novice customers) are sports bettors. He’s now a “problem gambler” at $5,000.
He said that the problem with many newly-legal online sportsbooks is “problem gamblers” are often their best clients, while knowledgeable bettors have limited options.
Schuetz also said that legislators should be informed about these betting concerns. They can then create an environment where data and transparency are used to level out the playing field.
Walters stated, “We now have the opportunity to reset.” Walters said, “We are advocating for industry in general, but for it to be successful you need to take into account the sports gambler.”
