PGA Tour Supports Legalization of Sports Betting
The PGA Tour commissioner has placed his support for the legalisation of online sports betting in the United States of America. Though the Supreme Court is currently evaluating the case of online sports gambling in New Jersey, a large number of states and sports leagues are prepared for the possibility of sports betting being banned in the whole of America.
PGA Tour May Also Support Integrity Fee
The chances are high that the PGA Tour will also be in support of the integrity fee that NBA and MLB have both been requesting in various states. An integrity fee is a tax that is charged on legalised sports betting sites. The fee would be transferred from the sportsbooks directly to the leagues themselves.
Initially, the integrity fee was proposed by the NBA because the sports betting industry in the USA is considered to be a multi-billion dollar market. More so, the NBA further argues that the fee is more like a royalty payment as the leagues are the ones that host the events that sports betters place wagers on.
Regardless of these shaky arguments, the NBA does have a point. The leagues are the ones that host the sporting events thereby making sports betting a possible activity for US players. So looking at it from their point of view, they do deserve the integrity fee but the fee is very expensive, and that is where the problem is.
The sports leagues are requesting an integrity fee of 1%. It doesn’t sound much just by looking at the percentage they are asking for, but most legal sports betting sites keep about 5% of their total betting revenue after paying out the winners. They also put aside a portion of the money that will cater for all other costs so as to keep the operation running.
So, asking for an integrity fee of 1% when the sportsbooks are only keeping 5% is more like charging 20% tax on returns. That is a lot of money that will be going to the sports leagues. The legalisation of sports betting in America is still a grey area, but we will do all we can to keep you updated on this matter.