THE AGENDA
BY ROGER GROS , PUBLISHER
Promoting Parlays
Vol . 23 • No . 10 • OCTOBER 2024
Roger Gros , Publisher | rgros @ ggbmagazine . com X : @ GlobalGamingBiz
Frank Legato , Editor | flegato @ ggbmagazine . com X : @ FranklySpeakn
Jess Marquez , Managing Editor jmarquez @ ggbmagazine . com
Monica Cooley , Art Director mcooley @ ggbmagazine . com
O ne of the issues with the legal North
American sportsbooks is the way they push parlays . A straight-up bet at the best pays at -110 , meaning the player must bet $ 11 to win $ 10 . For some people that ’ s just not enough . They want a better payoff . Some of us , like me for example , love to bet the underdogs so I can get a better payoff . But in the end , when you add the 11-10 equation to it , you ’ re still giving the operator that advantage .
So that ’ s where parlays come in . If you can bet on two games , your payback is better because it ’ s harder to predict the results of two games versus just one . Let ’ s say you ’ ve got a feeling , or have done some research that shows two teams are likely to win . If you bet them both , you ’ ll get more than the -110 . Not much more depending upon the odds , but enough to get your blood pumping .
Operators love this kind of action . Just like casino games , the more bets ( decisions ) a player makes , the more money the casino or sportsbook operator will make , because most of us , like me again , just go on our feelings and not solid research . That leads to more revenue for the operators .
But what happens if you do a three- , four- , or five-leg parlay ? That ’ s right , those of us dummies who salivate over the potential payoff get slaughtered . And hearing about players who win five or more leg parlays sucks us in even further , even though the odds are lottery-like for those who win .
I ’ ve been getting a lot of “ profit boost ” emails from some of the sportsbooks where I ’ m active . Not really sure how this works , but I ’ m being peppered with them every day , encouraging me to bet more and bet more often .
Granted , I ’ m far from a frequent bettor . For years , I stood behind gaming tables watching people lose much more than they win . Sure , you ’ ll get an occasional gambler who is either highly educated to the numbers of the game or just gets lucky , but the vast majority of them are losers over the long run .
I can attest that my sports betting activity falls into the latter territory . In fact , a couple of years ago , I found the perfect system . Bet the opposite of what I bet because I lost almost every bet I made throughout that football season . Sadly , I could not cash in on that system because well , you know .
Anyone who has been in the gaming business for a few years knows that sports betting is a lowmargin endeavor for casino operators . Before online sports betting , casinos offered a sportsbook as an amenity . They never expected it to be a profit center ; it was just another attraction that would bring gamblers to the property who would hopefully play other games with a much higher house edge .
When online sports betting was legalized , it suddenly became a stand-alone business that had to make a profit , particularly given the high licensing fees and high tax rates in the individual jurisdictions . One state even demanded that the sportsbooks hold a minimum of 10 percent — this in an operation where a 5 percent hold was considered good .
So along with jiggering with the -110 / 11 to 10 ratio , online sportsbooks must promote things like parlays , bonus bets and profit boosts to reap the great profits that the stakeholders expect — and that includes state officials who want to get those tax numbers up . Operators want more players to bet more money , and that sometimes results in slightly unethical marketing campaigns and then negative feedback from the very state officials who want more tax revenues . Yes , it ’ s a vicious circle .
Truth be told , sports betting works best when paired with casino betting , just like it did in the Nevada casinos before online became a thing . In the states where iGaming is legal , sports betting apps are just a portal to a casino app where the operator — and the state — make more money . In those states , there is much more action on casinostyle games than on sports , and subsequently more profit .
So rather than ramping up silly parlays or cute bonus promotions , put your efforts into convincing public officials that online casino gaming will make everything better . No more deceptive marketing practices , no more complaints from losers , and a system that rewards operators and states alike with a better product and a transparent process .
Terri Brady , Sales & Marketing Director tbrady @ ggbmagazine . com
Beck Kingman-Gros , Associate Publisher & COO bkingros @ ggbmagazine . com
Lisa Johnson , Communications Advisor lisa @ lisajohnsoncommunications . com X : @ LisaJohnsonPR
Columnists Julia Carcamo | Frank Fantini | Joe Maloney
Contributing Editors Jill R . Dorson | Jeff Hwang Oliver Lovat | Cole Rush ______________
EDITORIAL ADVISORY BOARD Rino Armeni , President , Armeni Enterprises
• Dike Bacon , Principal / Partner , HBG Design
• Lauren Bates , President , Global Gaming Women
• Mark A . Birtha , Senior Vice President & General Manager , Hard Rock International
• Brendan Bussmann , Principal , BGlobal Advisors
• Alex Dixon , CEO , DRA / Q Casino
• Daron Dorsey , Executive Director , Association of Gaming Equipment Manufacturers
• Sally Gainsbury , Director at Gambling Treatment & Research Clinic & Professor of Psychology , University of Sydney
• Stephen Martino , Vice President & Chief Compliance Officer , MGM Resorts International
• Bill Miller , President and CEO , American Gaming Association
• Walt Power , CEO , Grand Ho Tram
• Rob Russell , Senior Gaming Analyst , Regulatory Management Counselors PC
• James Siva , Chairman , California Nations Indian Gaming Association / Vice Chairman , Morongo Band of Mission Indians
• Michael Soll , President , The Innovation Group
• Kresimir Spajic , Chief Executive Officer , Betfred Sportsbook
• Katherine Spilde , Executive Director , Sycuan Gaming Institute , San Diego State University —————— GGB Magazine 1000 Nevada Way • Suite 204 • Boulder City , NV 89005 702-248-1565 • 702-248-1567 ( fax ) www . ggbmagazine . com
The views and opinions expressed by the writers and columnists of GLOBAL GAMING BUSINESS are not necessarily the views of the publisher or editor .
Copyright 2024 Clarion Digital Media LLC
GLOBAL GAMING BUSINESS is published monthly by Clarion Gaming International , LLC . Printed in Nevada , USA . Postmaster : Send Change of Address forms to : 1000 Nevada Way , Suite 204 , Boulder City , NV 89005 Email : subscriptions @ ggbmagazine . com
Official Publication
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Global Gaming Business OCTOBER 2024