The Integrity Fee

The Integrity Fee

We wanna have the business succeed, you can create an account, you can fund your account from here. Just when you flip the switch to gamble on one of the sports sites or on the other sites, you’ll be blocked. – David, that is the most anti-tourism message I have ever heard. – Casinos will not be happy with me, FanDuel will not– – Not signing up as a spokesperson any time soon. – The reality is, in this generation that I’m looking at, you all have a cell phone, and you are as engaged as anybody is in the United States on the internet and mobile devices. – I guess I’ve taken my last trip to MetLife Stadium. Okay, we promised we would come to you. Questions, comments, sir? Wait, wait, we’ve gotta get a mike to you, so that you can be reported to Oncasinogames Canada. I was wondering, with the talk of these massive data sets, what’s the conversation around restricting usage, such as, you know, we see people betting on a particular day of the month, so they probably get paycheck the week before, so we should send them a bunch of messages reminding them to bet based on that trend, so I was wondering if you could speak to a conversation around restrictions such as that?

– Sure, so I’ve never thought of it as target this person because they’re getting their paycheck tomorrow, but we certainly locate trends in data to try to optimize for our business. I think they are usually more a combination of event-based, obviously, Sunday is a big day, Sunday at 12 is our busiest time. I’ll point out as we’re talking about responsible gaming, as you’re talking about someone getting their paycheck, I just wanna dispel the notion that as an operator, you just wanna take all of someone’s money. There’s no real value to us to have someone lose their house playing on our site. Again, there’s our handle, our revenue is five percent of that, like, we don’t want five percent of someone’s life for them to be miserable, we want users to come back and enjoy and play repeatedly. So there’s no advantage to the business, really, to put people in a position where they are no longer able to play, that’s not what we do, and so, I think it’s a fair question, but we have a strong amount of responsible play controls in place, designed to look at patterns of people’s behavior that could be a red flag, but otherwise, in terms of looking for behavior to encourage betting, it’s more about optimizing around events that we know people like to play. – Over here, Michael?

Yes, you had said that the integrity fee might be deserved because the NBA is supplying the product that’s being wagered on, but in the prop market, you could possibly argue that last night if Jason Tatum had 20 points, that was partially his product that he put onto the table, if I bet on that proposition, so why do the players not deserve the integrity fee if the prop market exists, or, even, you could extend it to the Super Bowl anthem taking longer than a certain amount of time, does that singer deserve a fee for creating that product? So with such a varied betting market, why do only the leagues deserve the integrity fee? – So, I used the word league as a shorthand for the league and its players. The way our system works is revenue that comes into the league is shared 50/50 with our players. And so, here, if we were to receive a fee on a royalty basis for this activity, the players would get half of it. – Isn’t it in the CBA already, the BRI includes gambling revenue? – Correct. – I’ve never had a law student who said, I should tithe to you, because you taught me procedure.  Thank you. On that topic about the salary cap, so the salary cap is a function of the BRI, and taking into account the floodgates opening with gambling, do you foresee the salary cap going up in steady spikes through the next few years, or do you foresee a huge spike in the salary cap?