Online gambling beating Las Vegas Sportsbooks

wilheim · Apr 27, 2004

Internet sports betting has overtaken Las Vegas-based sports books. A 2002 US Congressional Report said global online gambling revenues were over $4 billion, with over $2 billion bet by US residents. Bear Stearns estimated the global online gambling market would have been worth over $5 billion if credit card issuers had not blocked transactions with offshore betting and gambling sites. Nevada, where sports betting is legal, took under $2 billion in 2002, a ten-year low.

This can be partially explained by the fact that slots are squeezing other types of gambling from Las Vegas casino floorspace. Slots account for 70% of Nevada casinos’ profits. Another reason is that, apparently, Nevada bookmakers are referring business to the offshore sports betting sites. Also, the online sports books tend to offer better odds than Las Vegas, as well as generous sign up bonuses unavailable in Nevada.

The report found that US online gamblers and heavy internet users share many of the same demographics: According to David Lee of Mandalay Bay casino, 77% of online sports bettors are male. The are also typically single, educated, 25-34 years old, and with incomes in the $40,000 - $80,000 range. Other findings of the report include players’ preference for recognized names, rather than internet-only sports books.

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Fishhead · Apr 27, 2004

Interesting........thanks Wil.

WildBill · Apr 27, 2004

Can you believe we probably spent hundreds of thousands of dollars, if not millions, on this insanely stupid study??? I mean who DOESN'T know this stuff? Besides I think their numbers are bad, I am certain it has more than overtaken Nevada, but more to the point has completely blasted by it. With virtually no big bettors left, how could it not have?

Fezzik · Apr 27, 2004

77% male?

More like 97% THAT could be the worst number I've ever seen in any study, anywhere.

WildBill · Apr 28, 2004

I just re-read that one, good point Fezzik. Not to mention why would you go to a Vegas sportsbook employee for numbers about the offshores? Chances are he is just regurgitating something he "thought" he read. There are good studies on the offshore industry as a whole, but they usually don't break it out by category such as sports, poker, or casino.

ChuckSims · Apr 28, 2004

Nice to know my tax dollars are hard at work. What is the next study going to be, whether or not off-shore books turn a profit?

jaypaw · Apr 28, 2004

If you guys are interested our company breaks it out

they probably got some of those numbers from our co. or at least they started with our #s

out of curiousity bill how much do you think the nevada books would have increased by now if it werent for the offshore drain?

Dante · Apr 28, 2004

Typically single I would disagree...

drewzie · Apr 28, 2004

Where do they get these numbers?

jaypaw · Apr 28, 2004

Noone has hard numbers obviously because there is no one overall regulatory agency that tracks the numbers...

we estimate by getting the best info we can from the top books, which gives us a good idea of the range that different books fall into

it is really a numbers game but our numbers are the best out there

WildBill · Apr 28, 2004

I don't think Vegas is terribly hurt by offshore as much as they and their regulators have hurt themselves. I think a lot of the big bettors would still have most of their money in Nevada if they didn't come up with all the stupid things in the last 5 years or so, the phone limits and the ID forms mostly. Add to that the slow loss of any risk taken by a bookmaker and that chased off a lot of action. It is so bad now that even if a square wants to bet a lot of money when he is in town most books won't take it. A guy could be a 45% winner at sports and most books wouldn't want to take 20 dimes a game from him on anything but football because he might get lucky for a few days. That is how sad the industry has become.

revinax · May 3, 2004

Sad but true, Wild Bill. I was in Vegas a couple of weeks ago, and the "World Renowned" Stardust flashed a 7 on the Kings/Mavs. I raced over there, parked in my favorite handicapped space, and stormed the window to throw down 5k on Sac. They said, "Sorry sir, the limit is $2500." That's right - $2500 on a NBA playoff side (not a Div II Women's NCAA halftime total)at the "world renowned" Stardust. I just had to point out to the supe that Pinnacle is taking 25 dimes at -105 on the Net. But of course, Pinnacle wasn't stupid enough or world-renowned enough to hang a 7 now, were they?

This situation is understandable, though, given that Vegas BMs have been handcuffed by the suits upstairs (probably former actuaries). The suits order them not to lose or else, so they're forced to deal low limits and goofy numbers to try and balance on every game. As a result, the only thing "world renowned" about the Stardust sportsbook is the ugly cocktail waitresses and its homeless shelter clientele.

WildBill · May 3, 2004

Did they call security when you tried to make that bet?

Fishhead · May 3, 2004

revinax-- Right on, so true!

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