Oakland – (Special to ZennieReport.com) Lost in the public talk about how Major League Baseball Owners might vote in the upcoming MLB Owners Meeting on the Oakland A’s Las Vegas Relocation Application is how much money in sports betting Oakland A’s and MLB would gain from being in Las Vegas. Moreover, how does that compare with how much from sports betting Oakland A’s would receive if they remained in Oakland? The answer is like comparing day to night.
When the Oakland A’s complete their move to Las Vegas, the ballpark will most certainly have its own sportsbook. When that happens, the Oakland A’s turned Las Vegas A’s will realize revenue from that new source, the sportsbook. How much revenue from that can be estimated, or if you will, “ballparked” by what MLB teams have received for sportsbook agreements in recent years.
Sportsbetting Oakland A’s Fans In A Sportsbook Is The Key Revenue Driver In Las Vegas
For example, the The Chicago Cubs and DraftKings announced a partnership in September of 2020 that included the construction of a sportsbook adjacent to Wrigley Field. According to Marquee Development Company “DraftKings Sportsbook at Wrigley Field is part of a multi-year partnership between the Chicago Cubs and DraftKings. Marquee Development Company provides strategic advisory for the sports bar and wagering facility and serves as the owners’ representative on the 17,000 square foot project. The sportsbook will be open year round both on gamedays and non-gamedays, with a premier food and beverage experience to complement its amenities.”
Now, DraftKings Sportsbook at Wrigley Field is open for eating and drinking, but not sports betting, as applications for approval are winding their way through the Illinois Gaming Board, which will grant a license when the process is complete. But that has not stopped the Cubs from already realizing part of what is expected to be a net $100 million in revenue over the course of the next decade. That’s $10 million annually, and compares to the value of a naming rights agreement.
Given that deal is in Chicago, and we’re talking Las Vegas, the gambling center of the World, the growth in the trend of in-stadium sportsbooks, and what would be part of a new Las Vegas ballpark, it’s not outlandish to think the A’s could fetch double the value of that deal, or $20 million annually, $200 million over ten years after its opened.
That would be far in excess of anything the Oakland A’s could realize via sportsbetting in Oakland, or anywhere in California – and that amount would be zero. Why? Because sports betting is not legal in California, that’s why.
Here’s the Zennie62 YouTube interview with California Senator Bill Dodd from three years ago, on his then proposed legislation to make sports gambling legal. The political complexity that delays legalization is discussed here:
So, the score: Las Vegas, $200 million for the A’s, Oakland, nothing. And given the MLB revenue sharing policy, it’s a fair bet that MLB will want a percentage of that sportsbook revenue, even if it’s off the A’s books because the team would not own the facility. The bottom line is that MLB already sees sports betting as a cash cow, and so is not at all likely to favor anti-sports-betting California over pro-sports-betting Nevada. And that’s not even considering the revenue potential of “microbets”.
Microbetting Via Simplebet Will Be Sports Betting Oakland A’s Fans Edge In Las Vegas
Microbetting is a new concept in sports betting where you can wager on “every moment of every sporting event” making that occurence a betting opportunity. It’s the brainchild of a startup company called Simplebet, a New York firm that’s raised $20 million. YES Network already has a live prediction feature on its app thanks to its partnership with Simplebet. So, what’s to stop Simplebet from working a deal with the Las Vegas-bound Oakland A’s? Then, a portion of the betting transactions revenue would go to the Oakland A’s in Las Vegas. Again, none of this is possible in California, because sports betting is illegal.
Oakland, the San Francisco Bay Area, and California need to have a giant talk (especially after the way the WNBA San Francisco vs Oakland matter went down) and agree to work to remove the impediment that stands in the way of sports betting. And that’s the California Legislature, which can’t seem to bring itself to take this not-so-giant leap into the 21st Century of sports business. California may turn around and see its professional sports teams all leave for the surrounding states of Oregon, Nevada, and Arzona, where sports betting is legal, over the next 30 years.
Stay tuned