OXON HILL, Maryland – Ted Leonsis told a combined audience of executives from the sports and casino industries that they weren’t worlds apart. As the two businesses continue to converge in the nation’s 10-month old legal sports betting universe, he said, history will be the judge.
“Getting out of the gate is very important. Everyone is watching what we do,” Leonsis, the CEO and majority owner of Monumental Sports & Entertainment, which owns the NHL’s Washington Wizards and the NBA’s Washington Capitals, said Wednesday at the American Gaming Association’s Sports Betting Executive Summit at MGM National Harbor.
“We have to be exemplary in what we do,” added Leonsis, whose company also owns and operates Washington D.C.’s Capital One Arena, the home of his two sports franchises.
Lou Jacobs, co-CEO of New York-based casino operator Delaware North, agreed that sports leagues and the gaming industry – which were on opposite sides on the legal battle to legalize sports wagering nationwide – termed the current environment “a watershed moment” for sports and gambling.
“Both industries are coming together,” said Jacobs, whose company also owns and operates TD Garden in Boston, home of the NHL’s Boston Bruins and the NBA’s Boston Celtics. “We’ve all heard the league’s and gaming industry’s arguments, but that’s in the past. We need to focus on the future. That’s a game changer.”
The Leonsis and Jacobs talk kicked off the day-and-a-half executive conference, a dialogue within the sports betting ecosystem on the most pressing topics related to the expansion of legal, regulated sports betting in the U.S.
Last May, the U.S. Supreme Court overturned the 25-year-old Professional and Amateur Sports Protection Act, paving the way for states to legalize sports betting.
In the 10 months since the ruling, seven states – Delaware, New Jersey, Mississippi, West Virginia, Rhode Island, Pennsylvania and New Mexico – have joined Nevada in allowing casinos and racetracks to offer sports betting facilities.
Both Leonsis and Jacobs see opportunities to add sports betting to their respective arenas.
Leonsis purchased a tavern adjacent to his downtown Washington D.C. arena and plans to turn it into a sports bar that would include a sports book. Washington D. C. has legalized sports betting but is still drafting the rules and regulations that will govern the activity.
Jacobs said Delaware North will add 40,000 square feet to TD Garden for a sports bar and entertainment center. The site could include a sports book if Massachusetts legalizes sports betting.
As the worlds of sports and gaming converge, both Leonsis and Jacobs said the increased amount of data the leagues and teams can provide to the gaming industry will increase customer engagement. Leonsis said that, as a team owner, he will turn over the operation of the sports book at his arena to a licensed sportsbook operator.
“I hate the term ‘gambling,’” Leonsis said. “A venture capital business is gambling. When you give people access to real time data, that enhances the fan experience.”
Leonsis saw the interest in the arena’s potential as a sports betting venue during this year’s Stanley Cup Finals, won by the Capitals over the Vegas Golden Knights in five games. The games inside the arena attracted approximately 20,000 fans, while another 50,000 people watched the games outside on large television monitors.
Jacobs said sports venues will become more profitable through increased fan engagement spurred by the advent of sports betting.
Bo Bernhard, executive director of UNLV’s International Gaming Institute, who moderated the discussion, said sports betting is not a “massive money maker” for the casino industry, but a way of drawing customers into a property. He used the opening last weekend of the NCAA Basketball Tournament, which drew thousands of fans to Las Vegas’s sportsbooks – and to newly opened sportsbooks around the U.S. – as an example.
“There’s nothing (better) you can add to the gambling environment of a casino than a sports betting space,” Bernard said. “It’s about the vibe, not just the impact.”
Howard Stutz is the executive editor of CDC Gaming. He can be reached at hstutz@cdcgamingreports.com. Follow @howardstutz on Twitter.
