CDC Gaming Reports Quotes Donald Pongrace on Pace of Sports Gambling Launches in States with Tribal Gaming

CDC Gaming Reports, in its article “Sports gambling? Probably not soon, if your state has tribal gaming,” has quoted Akin Gump partner Donald Pongrace, leader of the firm’s American Indian law and policy group.

The article reports that, in the wake of the Supreme Court’s ruling legalizing sports betting, the launch date for states with tribal gaming will not come as quickly as for those without. The reason, the article says, is because the involvement of additional parties makes the negotiations much more difficult.

Once a launch is approved, Pongrace said implementation is going to be a challenge because the margins are so low. Most books make about 5 percent on the action, after taxes.

“It’s not much ado about nothing but it’s a very carefully calibrated equation,” Pongrace said, adding that the number of ways a plan can be divided and shifted is quite high.

Pongrace fears that legislators may view sports betting as a way to boost coffers, despite the fact that casinos often view sports books as an amenity to attract other forms of gambling and types of spending, such as food and entertainment, rather than as a straight money-maker. He pointed to Nevada’s 6.75 percent tax on sports betting as a standard that will be tough for other states to match, which means that other states’ books may not be as good as those in Las Vegas.

“Ultimately, though, someone will find a way to do this,” Pongrace said.