Betting the House at Home: Stadiums Begin to Host Sportsbooks & Mobile Betting During Competitions

Over the past year, the COVID-19 pandemic has forced fans across the United States to experience their favorite sports from home. Once public health conditions permit, fans in select states and stadiums will return to their traditional game day experience with the possibility of a new, previously unthinkable addition: fully operational sportsbooks and betting lounges inside of stadiums.¹[1]David Purdum, New CBA allows owners, players to cash in on stadium sportsbooks, ESPN (Mar. 20, 2020), https://www.espn.com/chalk/story/_/id/28930507/new-cba-allows-owners-players-cash-stadium-sportsbooks. Only three years ago, wagering on professional and amateur sports was outlawed by federal legislation.²[2]28 U.S.C. § 3702 (1992) Now, within the next year, sports betting will be legal in over half the states, bringing it back into the limelight of the sports world where it will generate countless new revenue opportunities within the industry.³[3]Ryan Butler, Where is Sports Betting Legal? Projections for All 50 States, Action Network (Feb 4, 2021), https://www.actionnetwork.com/news/legal-sports-betting-united-states-projections#LegalAccepting. In 2020 alone, New Jersey brought in a betting handle of over $5 billion.⁴[4]Matthew Waters, New Jersey Again Crushes US Sports Betting Monthly Record with $930M in Wagers, Legal Sports Report (Dec. 14, 2020), https://www.legalsportsreport.com/46502/nj-sports-betting-record-november-2020/#:~:text=That’s%20the%20third%2Dhighest%20total,2019’s%20%244.58%20billion%20total. Considering that the four major American sports (football, basketball, baseball and hockey) were shut down from March 2020 until mid-July 2020, this figure is likely to grow quickly as the sports world returns to normalcy and more states begin to welcome sports wagering inside of their borders.⁵[5]Id.

Despite the success that New Jersey saw this past year in sports betting participation, legal wagering on sports competitions is a fairly new development. Since the Murphy decision, legal sports wagering has spread rapidly, with twenty-one states plus Washington D.C. having legalized sports betting in some fashion, whether it be through in-person betting at sportsbooks or through online and mobile apps.⁶[6]Ryan Butler, Where is Sports Betting Legal? Projections for All 50 States, Action Network (Feb 4, 2021), https://www.actionnetwork.com/news/legal-sports-betting-united-states-projections#LegalAccepting. As of March 2021, mobile betting has been the most popular mode of legalized betting, as seventeen states have adopted a mode of mobile betting, ranging from full scale, free range mobile betting to “in-person” mobile betting, which requires being at a specific approved geographic location to place mobile wagers.⁷[7]Id. In addition to the twenty-one jurisdictions where sports betting is legal and currently available, five more states are prepared to have legal wagering within the next year.⁸[8]Id.

As legalization spreads, the National Football League (NFL), Major League Baseball (MLB), the National Basketball Association (NBA), and the National Hockey League (NHL) have welcomed the possibility of integrating sports betting into their game day experiences.⁹[9]Ryan Butler, In-Stadium Wagering Could Spark Retail and Mobile Sports Betting Growth, Action Network (Nov. 13, 2020), https://www.actionnetwork.com/general/sports-betting-news-stadium-wagering-capitol-one-arena-wrigley-field. Teams located in states with favorable gambling laws like Pennsylvania, New Jersey, Nevada, Illinois, Indiana, Colorado and Washington D.C. have already entered official partnerships with major entities from the gaming industry.¹⁰[10]Sportsbooks Coming to Stadiums In the US, TicketNews (Jan. 28, 2021), https://www.ticketnews.com/2021/01/sportsbooks-coming-to-stadiums-in-the-us/. Betting providers such as Fanduel, MGM Resorts, DraftKings, William Hill, and Caesars are now partnered with teams like the Chicago Cubs, Denver Broncos, Las Vegas Raiders, and Indiana Pacers to bring sports betting to these franchises’ game day experiences.¹¹[11]Ryan Butler, In-Stadium Wagering Could Spark Retail and Mobile Sports Betting Growth, Action Network (Nov. 13, 2020), https://www.actionnetwork.com/general/sports-betting-news-stadium-wagering-capitol-one-arena-wrigley-field.

The integration of sports betting to a team’s game day experience could materialize in a few different forms. Since mobile betting is currently the most widespread legal form of sports betting, many stadiums will likely opt to increase their wireless capabilities and promote wagering with their specific betting partner’s mobile app, such as Fanduel or BetMGM. Some stadiums, like the recently opened Allegiant Stadium in Las Vegas, have opted to build “betting lounges” tailored to give fans optimal mobile betting experiences rather than constructing brick-and-mortar sports books.¹²[12]Hikaru Kudo, Unique Gambling Atmosphere at Allegiant Stadium, Sports Illustrated (Jul. 28, 2020), https://www.si.com/nfl/raiders/news/las-vegas-raiders-allegiant-stadium-mgm-resorts-nfl. Allegiant Stadium’s “betting lounge” is not a sportsbook where fans can physically place wagers; rather, Allegiant Stadium’s MGM Club will provide enhanced wireless connection so ticket holders can place mobile wagers from the comfort of the lounge’s full-service bar and premium stadium seating.¹³[13]Id. In other jurisdictions, brick-and-mortar sportsbooks will be constructed to allow ticket holders to walk up to a window and physically place a wager. Ultimately, state and local regulations will dictate which form of betting will be offered under a typical agreement.¹⁴[14]Sportsbooks Coming to Stadiums In the US, TicketNews (Jan. 28, 2021), https://www.ticketnews.com/2021/01/sportsbooks-coming-to-stadiums-in-the-us/. While the form in which fans can place bets will vary amongst states, the promotional opportunities and convenience of sportsbook location will likely continue to induce professional franchises into agreements of this nature.

Washington D.C.’s Capital One Arena, home to the NBA’s Wizards and the NHL’s Capitals, became the first stadium to officially introduce wagering under its roof, after partnering with William Hill Sportsbook and opening a brick-and-mortar sportsbook in July 2020.¹⁵[15]Ryan Butler, In-Stadium Wagering Could Spark Retail and Mobile Sports Betting Growth, Action Network (Nov. 13, 2020), https://www.actionnetwork.com/general/sports-betting-news-stadium-wagering-capitol-one-arena-wrigley-field. Under Capital One Arena’s system, fans can place wagers on William Hill’s mobile app or at betting kiosks, which will soon be replaced by a multi-level, state-of-the-art sportsbook and entertainment facility.¹⁶[16]Id. Although the area currently offers only a few temporary pop-up kiosks, William Hill’s D.C. operation was still able to take in a reported handle of $12.2 million in September 2020 alone, which puts it on pace to be the sportsbook giant’s second-most profitable retail location.¹⁷[17]Id.

Just a few miles away from Capital One Arena’s sportsbook, Nationals Park, home to the Washington Nationals, is set to become the first MLB stadium to open an on-site sportsbook.¹⁸[18]Mike Oz, The first sportsbook is coming to an MLB stadium and fans will be able to place bets from their seats, Yahoo! Sports (Jan. 11, 2021), https://sports.yahoo.com/the-first-sportsbook-is-coming-to-an-mlb-stadium-and-fans-will-be-able-to-place-bets-from-their-seats-185803354.html. Nationals ticket holders will be able to place wagers on the game occurring right in front of their eyes from the comfort of their seats by using the BetMGM app, giving fans a dynamic experience that seemed impossible just a few years ago.¹⁹[19]Id. Teams from Washington D.C. have taken advantage of the opportunities available to them resulting from the District’s swift action in passing sports betting legislation in the early months of 2019.²⁰[20]Legal Washington DC Sports Betting, Legal Sports Betting (Feb. 18, 2021), https://www.legalsportsbetting.com/washington-dc/ D.C. currently has online wagering available throughout the entire District’s territory via the GambetDC app.²¹[21]Id. In addition, D.C. allows certain betting providers like William Hill to offer geolocation-specific mobile betting within two blocks of their sportsbook’s venue.²²[22]Id. As of March 2021, there are no casinos located within the District, so the Capital One Arena sportsbook is the only operational sportsbook in Washington and consequently is the only geolocation to place mobile bets on a platform other than GambetDC.²³[23]Id. Washington D.C.’s creative model could serve as an archetype for future cities as they begin to join the sports betting endeavor.

Athletes will undoubtedly reap the benefits of incorporating sports betting into game day experiences. In the NFL’s 2020 Collective Bargaining Agreement (CBA), “Gambling Revenues” generated by operation of gambling-related businesses located in or in close proximity to stadiums will be included in annual revenue calculations, a portion of which goes directly to the players.²⁴[24]NFL CBA Art. 12 § 1 cl. 10 The CBA defines “Gambling Revenues” to include even sportsbook revenue generated from slot machines and generated during the NFL offseason.²⁵[25]Id. NFL players could subsequently see rises in their average annual salaries, and the NFL as a whole could achieve new highs in future television and advertising deals as a consequence of this addition to their CBA.

The COVID-19 Pandemic may accelerate the league’s partnering with sports gambling entities, as they address budget deficits from cancelled games and empty stadiums. Fans should expect to see more betting-related promotions and advertising as leagues tempt them to spend from home the money they otherwise might have shelled out at the arena. Pandemic-related budget urgency also afflicts the states, which are evolving their sports gambling legislation to maximize revenues. Thus, in January, New York Governor Andrew Cuomo suggested that the State may expand casino-only sports wagering to permit mobile betting and defray the State’s budget deficits caused by the COVID-19 pandemic.²⁶[26]Tommy Beer, Gov. Cuomo Says He Will Push For Mobile Sports Betting In New York, Forbes (Jan. 6, 2021), https://www.forbes.com/sites/tommybeer/2021/01/06/gov-cuomo-says-he-will-push-for-mobile-sports-betting-in-new-york/?sh=56027c2a1d02.

Sports gambling’s evolution in the U.S. from largely prohibited to an encouraged and promoted industry has far ranging implications. As betting continues to be integrated into both the at-home and in-stadium game day experiences for fans, the sports industry will enjoy substantial revenue increases. A major beneficiary will be the players, who will take a cut of the revenue, as already established in the NFL CBA.²⁷[27]NFL CBA Art. 12 § 1 cl. 10 The MLB, NBA, and NHL are likely to follow suit by including a similar provision in their future collective bargaining agreements. At the same time, leagues must be attentive to issues like addictive gambling and betting-related threats to game integrity issues, while continuing to message safe gambling practices to their fans and zero-tolerance policies for wagering on games to their players and personnel.

The future of sports wagering is bright, and the involvement of professional sports franchises will continue to normalize and expand the sector in the coming years. The hope of a venture like the one taking place in Washington’s Capital One Arena is that the safe return of fans to arenas will be paired with fully operational sportsbooks or mobile betting setups. Fans and sports bettors should continue to monitor legislation from their state representatives to stay up to date on any sports-betting related developments.

Written by: Jake Rubinstein
Jake is a 2023 J.D. Candidate at Brooklyn Law School