A Dark Day for Sports Bettors
(PRWeb) January 13, 2007 -- Paul Bovi and Panorama Sports comment on Pinnacle Sport's internet sports betting website and their decision to pull out of the US market.
It's a dark day for many sports bettors throughout the land, for the great Oz has spoken, in this case Pinnacle Sports.
Like a roulette dealer that bellows 'no more bets', Pinnacle's decision to voluntarily exit the US market abruptly ceases wagering action for thousands of bettors throughout the country. Candy stores meets may be replaced by coffee house sit downs, but rest assured the corner bookmaker is about to be resurrected.
But for many sports bettors, life may never be the same, at least for now. Over the past 5 years, Pinnacle has built its' reputation as the premier sports book in the world by extending their betting limits to accommodate wagers that were previously unthinkable, along with offering 'reduced juice', or what is commonly known in the industry as vigorish. Along with that, Pinnacle's betting options covered not only the world of sports and a vast array of proposition wagers, but also encompassed events such as the Golden Globes, Dancing with the Stars, and American Idol. You could even wager on the box office take of a movie premier
What happens in Vegas may stay in Vegas, but those bettors that reside in the city of lights do their business elsewhere. As Las Vegas casinos have gone the way of corporate ownership, the sports book is viewed by management along the lines of a loss leader rather than a profit center. From the prospective of adding to the bottom line, a typical sports book generates less than 1/3 of the revenue per square foot as that of the same real estate that is dedicated to slot machines and table games.
With that, the 'I am doing you a favor attitude' has taken hold, and the house operates from the prospective of preventing losses in an area of the casino that many of them would just as soon as do away with if they could without alienating their customer base. The presence of a book is a necessary ingredient to the retention and attraction of the green felt player and slot machine junkie, and in the eyes of many senior executives, little more.
The result is that Sin City's wagering limits have gotten skinnier and the odds have deteriorated sending the sophisticated bettor offshore, where they are actually allowed to place a sizable wager without getting thrown a cross eyed stare over the counter, or have the betting line change as they are counting their money out. Yes, that does happen.
Pinnacle revolutionized the betting world by offering -04 'juice', which broke tradition from the 60 year old format of laying 110 to win 100, or 10 cent 'vig'. Vegas books, except in rare instances, never tried to compete, preferring instead to exploit the captive nature of their audience that makes their way through town for business or pleasure, or in many cases a little of both.
'Exploit' may define the Las Vegas' attitude with respect to offering odds on a future proposition. A future wager involves betting on a team or person to win a particular event, such as the Super Bowl, World Series, or a Nascar race. While the difference between laying .04 versus laying .10 is quantifiable, those odds offered on a future payoff are not. The hold is transparent unless you happen to be a mathematician or scored 800 on the math portion of your SAT. Las Vegas is well aware of that fact which affords them the opportunity to write their own ticket and post odds that are designed to put the customer at a huge disadvantage
In many cases, the retention factor on a future wager placed in Las Vegas ranges upwards of 40 to 50%. In other words, unlike a horse race in which the retention is regulated by the state, usually at between 16 to 18 percent on a straight wager, the future payoffs are set so that the house reaps a windfall from those patrons who are often looking for an economic rooting interest in their favorite team
Las Vegas may argue that they assume a great deal of risk in offering these types of wagers, thus they are entitled to protect themselves. After all, their case may be that one sizable future bet on an underdog may put them at great degree of risk which in theory is correct, except for that fact that books will limit a wager of this type, and promptly reduce the odds which would effectively dissuade further action on that team. There have been select instances, though rare, in which a casino has left future odds up of a team that has been mathematically eliminated.
Aside from offering -04, holds on future wagers at Pinnacle came in at what could be estimated at 20%, which was extremely fair given industry norms. Like Vegas, action was limited so as to avoid a catastrophic occurrence, as odds were continually reset in accordance with money that came in on a particular team, person, or event.
Sports bettors that have been accustomed to using Pinnacle are today mourning the loss of an industry icon, a direct result of The Unlawful Internet Gambling Enforcement Act of 2006, a bill that made its' way through Congress late last year, immediately prior to the then forthcoming election recess. It is specifically geared towards prosecuting those responsible for providing 'designated payment systems' and/or 'money transfer systems', which include providers such as 'Neteller', and other mechanisms that facilitate the transfer of funds that promote internet gambling.
Pinnacles' decision to exit the US market comes on the heels of several recent and well publicized closings of offshore sports books, notably Bet on Sports, who ceased operations after the Department of Justice placed a restraining order against the Costa Rican based company. Those with remaining balances at BOS have, to this point, not been paid, unlike Pinnacle who has given their American clients assurances that their funds are readily available for withdrawal and that any pending plays, including futures bets, will be honored
Well placed sources estimate that of Pinnacle's approximately 250 million dollars in profits last year, 60% was derived from the US market. Pinnacle's decision to opt out can only leave one with the distinct impression that the government will be vigilant in the enforcement of the law targeted specifically at eliminating Internet gambling.
All said, the governments' exertion of pressure on offshore gambling establishments appears to taking place without a back up plan in place. Common sense would have the government licensing a handful of these organizations in allowing them to continue operations while imposing a fee for the granting of that privilege while capturing a percentage of the handle. Bettors will seek out other alternatives in their quest for a fix, and as prohibition has already proved, man will not live without his vices, no matter where he has to go to get it, which in this case will no doubt send us down a path that leads us to those Tuesday morning meetings at the coffee shop.
In the meantime, let the mourning period begin, and may the weekend pass quickly.
It's a sad day for sports bettors.
Reproduction of this article in whole or part may be used provided credit is given to the author Paul Bovi and/or Paul Bovi/PanormaSports.com
###
Related Articles:
ESPN Founder Launches CollegeFanz.com: Web 2.0 Site Provides the Ultimate Interactive Experience for
College Sports Fan
Twenty-eight years to the day after launching ESPN, the Founder of ESPN, Bill Rasmussen, today launched CollegeFanz.com, a compelling interactive online experience. The site is rich in sports content and information, providing a rewarding experience for collegiate fans, their friends and alumni. Rasmussen has taken the art of distributing sports information to a new level with a layered business model supported by great content, a high degree of creativity and sophisticated technology. CollegeFanz.com offers every college and university an interactive online presence to highlight a virtually unlimited variety of programs designed specifically for their fans.
Soccer and Other Foot-Intensive Sports Can Lead to Unsightly Feet Later in Life
C. J. Buck, MIA of Xenna Corporation (www.xenna.com), a distributor of natural foot, skin and hair products, says, "When you play soccer or other contact sports, your feet can start to show signs of nail discoloration and callus, which tends to get worse later in life.”
Sports Car Rental - A Good Transport Alternative
There is no better way is there to see a new place than from the driver?s seat of a classy sports car rental. Considering taxi fares and the hassle of trying to procure transportation, a high quality sports car rental might be just the thing to make your vacation a relaxing, and memorable experience. Sports car rental services can assist you whether you?re in the United States, Europe, Asia or anywhere in the world.
Financial Ratios In Sports
Financial statements both report on a firm's position at a point in time and on its operations over some past period. However, their real usefulness lies in the fact that they can be used to help predict the firm's future earnings and dividends as well as the risk factor of these cash flows. From equity investor's viewpoint, predicting the future is what financial statement analysis is all about. From management's viewpoint, financial statement analysis is useful both as a way to anticipate future conditions and, more important, as a starting point for planning actions that will influence the future course of events for the firm.
Author Of The Roger Federer Story, Quest For Perfection Book Lobbies For Sports Illustrated To Name Federer "SportsMan Of the Year"
The author of the book The Roger Federer Story, Quest for Perfection, lobbies Sports Illustrated to name Federer its Sportsman of the Year after another record breaking year.
The Benefits of Electrolytes in Sports Drinks
It has been 50 years since the sports drink was introduced to athletes in the United States. The first sports drink, Bengal Punch, was given to athletes at Louisiana State University in 1958. Gatorade, the most recognizable name in sports drinks, debuted the following decade at the University of Florida and revolutionized the way athletes energize and re-hydrate themselves during a sporting event.
"Join Our Team!" - Vote for a Local Sports Initiative and Norwich Union will Give it the Chance to Win Funding of up to £50,000
Norwich Union, the team behind UK Athletics, supports athletics in the UK from playground to podium. They are now giving people the chance to vote for a local sports initiative that could win funding of up to £50,000 in their "Join Our Team" campaign. All they need is your vote on who you would like to see receive funding.
Choosing The Right Sports Bra
Finding the right sports bra for a female athlete is just as important as a baseball player finding the right protective cup. However, there is less out there about sports bras. Before you go to purchase your sports bras, it?s best to research the different types of sports bras and what?s available to you as far as types available. Whether you?re a shapely woman or a small woman, finding your comfort zone is vital when playing a sport.
Business Coaching: Coaches Are Not Just For Sports
Do you remember when you were a small child and you would watch an older child play a sport, and you would think how amazing they were? Then as you got older you would play sports and try to do everything just like the pros. However for some reason you were never able to do things just like they were able to do them.
Sports Bras Needed For Marathon Runners
A sports bra is as essential to women who exercise as a decent pair of running trainers, and no more so than in the ultimate running event -- the marathon. Women of all cup sizes should wear a sports bra for any distance of running, especially longer distances such as the London Marathon.
Dave Lukow's NFL Daily Dish Places Men's Fantasy Sports Web Site at the Top of the Fantasy League Heap; Site Offers Free Membership for Sign
Mensfantasysports.com sets the pace with expert fantasy football picks as the NFL draft approaches. Celebrity handicapper Cindy Margolis has joined the MSF team.
Autographed Sports Memorabilia And Collecting Them
The two factors which you have to take in to account for the collection of sports memorabilia is space and money.
Sports Radio Jobs ? A New Horizon To Explore
With advent of Radio broadcasting system and its amazing growth, primarily due to the exploded growth in the audiences, made Radio broadcasting as a major field in Media industry The renewed interest in sports activities world over, brings cheers to Radio broadcasting services as they can offer pretty nice sports programs through Radio broadcasting, term it as sports casting
Coaching Sports For All The Right Reasons
The GloveIt was during a March evening in 2002 that I received word that my grandfather was dying. I drove the four and a half hours to Ironwood, Michigan in a snowstorm to say goodbye.
Where To Find Great Broadband Quality Sports Clips & Sports News Online For Free
A fantastic place to find cool broadband quality sports video and audio clips to view online for free is the BBC sports website which you can find at http://news.bbc.co.uk/sport They also have lots of great sports content for you to enjoy including the latest sports news, the latest sports results, photo galleries, scores & fixtures information and lots more besides. The BBC sports website also has dedicated sections on their website for football, cricket, tennis, golf, rugby union, rugby league, motorsport, boxing, athletics, cycling, snooker and horse racing.