Game testing company BMM Testlabs has released a white paper that shines a light on the controversial issue of integrity fees in the US sports betting industry.
Written by the company’s Senior Manager of Marketing and Education Robin Bernhard, the paper is called ‘Sports Betting and the 1% Integrity Fee Explained’ and aims to lay out the main arguments for and against the fee, as well as outlining possible implementation scenarios.
In the abstract to the report, Bernhard points out that the NBA, MLB and PGA have all supported the idea of an integrity fee, but that the idea itself needs to be studied more closely.
Bernhard goes on to break down the implications of a 1 percent integrity fee that is currently being proposed as a deduction from a betting company’s handle, which could amount to a sizeable figure:
“Pundits and politicians everywhere are guessing at the potential size of a mature US sports betting market, but even for the most conservative guesses, the implications of a 1% integrity fee are enormous.”
Bernhard also goes on to address some of the important issues surrounding the integrity fee that are likely to form the basis of future debate, including the question of whether the fee should be applied to the handle or to betting revenue, whether the fee or any part of it would be passed on to consumers, and whether the fee would disincentivise potential new entrants to the US market.
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