Tag: Losing

Why Is Oregon The Only State Losing Money On Sports Betting?

[ad_1]

Few expected Oregon sports betting to wow the world with its lone online sportsbook.

The Scoreboard app, produced by Oregon Lottery and powered by SBTech, enjoys a mobile monopoly in the state. It launched in fall 2019 following months of delays. Plus, it prohibits wagering on college sports — not just in-state college sports but all college sports.

Yet the lottery maintained a rosy outlook, one that included a revenue projection of $6.3 million from sports betting in its first year.

That optimism has since taken quite a hit. According to a memo from lottery director Barry Pack to the Oregon Lottery Commissioners, after “examining contracts and reviewing expenses” since Scoreboard launched “and establishing revenue run-rates and based on actual results,” the lottery expects to suffer a loss of $5.3 million for the first nine months of the 2020 fiscal year.

Oregon Lottery analyzes sources of setbacks

During the lottery’s Board of Commissioners meeting near the end of February, Pack cited several reasons as to why Scoreboard has vastly underperformed.

For one, Pack noted that “a new sales channel and a new product” needs ample time to reach profitability. “So, there is no big surprise here that we aren’t at profitability at four months. We did a three-year forecast (in summer 2019) because we weren’t sure exactly where in that first three years we’d hit profitability.”

That forecast estimated a $6.3 million net profit in the first year of Scoreboard’s existence, a total that would increase to $13.9 million and $23.4 million over the next two years.

However, costs apparently became insurmountable for the Oregon Lottery: some $16 million in direct and indirect expenses. A bulk of that, Pack explained, could be attributed to start-up costs that “were higher than we anticipated.” Add in legal fees, “fairly significant” testing costs and higher-than-anticipated geolocation fees. Not to mention increased labor costs because of issues relating to the app’s launch.

Because of these costs, in essence, Scoreboard has operated out of a hole from the start.

The Scoreboard hold percentage

This is all without mentioning Scoreboard’s less-than-ideal take on bets placed. That margin, as Pack described, has drastically fallen short of expectations.

“We built that original forecast on an 8% margin and actuals for the first four months are more around 7 percent,” Pack said. “And that 1% actually makes a fairly significant difference in terms of profitability.”

Of the $66.2 million wagered via Scoreboard through January, the lottery netted $4.5 million in revenue, reflecting a less-than 7% hold. Further, the state has lost $2.3 million during that time.

Pack closed by emphasizing his dissatisfaction with the deficit and how he and his team are committed to keeping costs down and “finding creative ways to boost the margin” to help reverse the app’s fate.

Oregon sports betting has issues to address

Certainly, the Oregon Lottery faces myriad obstacles in its attempt to turn things around with the Scoreboard app.

Chief among them, however, are two issues that seem insurmountable but would assuredly get Scoreboard on the right track.

Monopoly sportsbook does not pay off

Of the 15 states with legalized sports betting, 10 offer mobile wagering in some form. Of those 14 states, only four are monopolized aka lottery-run: Oregon, New Hampshire, Rhode Island (all three of which have authorized online betting) and Delaware.

And of those 14 states, only one would end its first fiscal year in the red: Oregon.

While complete control of the market allows for Scoreboard to capture 100% of all legal online wagers made in Oregon, the positives essentially stop there.

Without competition, Scoreboard does not truly need to worry itself with friendly prices or even frequent bonuses or promotions. Arguably the lottery is not pressured to fix any technical issues users face — at least not as quickly. On a larger scale, fewer operators equates to fewer platforms that can potentially lure bettors away from offshore sites, or attract new bettors.

The goal of state-sanctioned wagering, lawmakers across the country have agreed, is to take business away from and ultimately shut down illegal sports betting. In a monopoly, Oregon cannot do enough to acquire customers and accomplish that feat.

For the record, the state could have other online sportsbooks active via partnerships with tribal casinos. It’s likely, though, those apps would only be accessible while on site.

It could also just open up a more open model of competition, something the lottery is tasked with in Tennessee.

Adding college sports betting would help

In the call with the Board of Commissioners, Pack noted how Scoreboard could gain more traction.

The availability of collegiate wagering,” he said, “is still up in the air … which would bring that margin up fairly substantially because of the interest in college sports and the fact that we could turn it on with really no costs.”

Oregon launched Scoreboard with the stipulation of only accepting wagers on professional sports. Some states, such as New Jersey, have prohibited betting on college events staged within respective state lines or on colleges located within the borders. Oregon outlawed college betting altogether.

That means taking away college football (up there with the NFL for most popular sport to wager on) and betting on March Madness, among others. That’s quite a lot of money left on the table.

An Oregon Lottery spokesman has indicated that lottery officials are working toward integrating collegiate betting.

“The ability to offer collegiate wagering would speed our progress towards profitability — increasing revenue with very little additional expense,” the spokesman told Willamette Week. “But there doesn’t seem to be much appetite for that in the Legislature.”

Some legislators in the state have backed House Bill 4057, which would ban gambling on college sports for good.

Indeed, much is to be desired with Oregon’s lone online sportsbook. And much work remains to fulfill the lottery’s desire to make Scoreboard profitable.

[ad_2]

Source link

Categories: Gambling News

Tags:

Greyhound Handicapping – Are You on a Losing Streak?

[ad_1]

No matter how good you are at handicapping, sooner or later you end up on a losing streak. It’s really discouraging when you do what’s worked for you before and it doesn’t work now. You begin to question your skill at picking dogs and wonder if you’ll ever pick a winner again. Unless you’ve radically changed what’s worked in the past, you will pick winners again. But it may take a while, and some changes, to get back into your stride.

When I hit a bunch of losing races, the first thing I do is take a break. I’ve said it before and I’ll say it again, you can’t just immerse yourself in the dog races without coming up for some fresh air once in awhile. You get stale if you don’t have some other interests in your life, something to balance the strain of going over programs and the stress of betting money on your own judgment calls.

Sometimes, losing streaks can come about when you move away from logic toward impulse. Are you picking dogs with a good handicapping factors, but then betting other dogs on the spur of the moment? Or, are you betting dogs you pick with a good handicapping method, but then “covering them” with “insurance bets” just in case they don’t come in? This is one fast way to lose money and pick winners, while losing at the same time. That’s not something you want to do, because it makes you feel like a fool.

If you’re spending more money on a race than your bets can reasonably recoup, it’s time to stop and take a look at your methods. Sit down somewhere quiet with a cup of coffee – preferably decaf – and really think about how you’ve been betting lately. Are you spreading your bets all over the place? Are you betting on races you don’t have strong feelings about, just because you want to have something going every race?

Are you aware of how much money you’re spending – and losing – at the track? Or are you kind of glossing over it so you won’t feel so bad about how much you’ve thrown away lately on bad bets that you didn’t think about too thoroughly first? Maybe what you need is a fresh start. Maybe, it’s time to change the way you operate before you blow your whole bankroll.

One good way that I’ve found to do this is to take a break for a few days. Then, go to the track on a day when there’s a good program. Take a smallish amount of CASH with you. No credit or debit cards or any other source of money. Just cash. Pick out the dogs you want to bet on and bet them the minute you walk into the track. Then, get yourself something eat and drink and sit down and watch the races.

Don’t get up except to go to the bathroom or leave the track. No outside bets, insurance bets or bets because “the 7 dog looks really good” and someone tells you it’s a lead pipe cinch. Just watch the races and collect your money and go home. If you lose every bet, at least you didn’t spend more money than you planned to spend. Sometimes, it’s more important to do what you promised yourself you’d do – to show some self-discipline – than it is to win money.

Do this a few times and you might get into a winning frame of mind again, where you’re picking dogs and betting them with smart money management – and winning. Do this as a regular routine and you might just find that – on more trips than not – you go home from the track a winner and losing streaks are few and far between.

[ad_2]

Source by Eb Netr

Categories: Sports Betting

Tags:

Sports Betting Sucks – Why Do I Keep Losing?

[ad_1]

If you find yourself saying that sports betting sucks, then you really need to learn sports betting secret #3.

Sports Betting Secret #3: Keep Your Emotions In Check

Like I said above, this is something that is much easier said than done. This is the part that kills most sports bettors. Sports betting, in theory, should be 100% logical. You set up some rules and you follow them 100% of the time. However, it can be very difficult to not get upset if you are losing; especially if you are betting a lot of money.

But if you understand the law of averages, you will know that losing streaks sometimes happen just like winning streaks happen. Losing money can be a very emotional thing for people. As much as I advise people not to, they often bet money that they cannot afford to lose. NEVER DO THAT. Then they start making panic bets hoping to get lucky, and that almost never works out.

You have to set up your betting system so that you will not let your emotions get the best of you. This includes proper money management so that you are not betting with money that you cannot afford to lose. This also includes sticking to the system and commit to only taking the bets that the system tells you to take. That way you will be able to set your emotions about the games aside. You want to run your sports betting as if it was a business, not entertainment.

I have found that merely starting to view my sports betting objectively as a business, has helped me completely detach my emotions from the betting. And right at the time that I was able to realize this, I really started having a lot more success as a sports bettor. I firmly believe that mastering your emotions so that you can effectively handle the ups and downs really separates the sports bettors that make big bucks and those that do not.

[ad_2]

Source by Donnie Diamond

Categories: Sports Betting

Tags: