Sports pari-mutuel betting planned

Gary Thompson

Thursday, May 15, 1997 | 11:59 a.m.

A sports-betting revolution may be in the offing.

Multi-million-dollar weekly sports-betting jackpots could become the norm this fall under a pari-mutuel betting system developed by an American Wagering Inc. and International Game Technology joint venture.

The system has enormous potential for sports books, long viewed as more of a convenience for hard-core sports fans than a profit center for casinos.

And it could be almost as profitable for bettors lucky or smart enough to beat the astronomical odds of picking 18 to 22 winners on a variety of sporting propositions.

Pending regulatory approvals, the so-called "Mega$ports" system will be offered at four Hilton Hotels Corp. casinos, five Station Casino Inc. properties and 41 Leroy's Sports Place books in casinos throughout the state beginning sometime late this summer.

The system uses the same theory behind exotic wagering in horse betting and multisite progressive slot machines -- pooling bets to build huge jackpots.

"Exotics" such as Pick-6 wagering call for race bettors to pick the winners of six races -- a daunting task that allows prize pools to reach hundreds of thousands of dollars.

Linking slot machines from casinos throughout the state helps IGT's Megabucks jackpots rise from a minimum $5 million to as much as $10 million or more.

Mega$ports will accept wagering on daily and weekly events, with the latter offering prize pools starting at $1 million, according to American Wagering marketing director Steve Holden.

"The weekly Megacards will be similar to traditional parlay cards," Holden said. "For example, we'd have all 16 NFL games, maybe some college games or NBA games. You'd have to pick 18 to 22 games.

"All casinos that participate in Mega$sports will be linked together and the progressive prize will be determined by the volume of betting. But we'll seed it at $1 million and let it grow from there.

"If nobody wins for three or four weeks, the prize could be huge."

No decision has been made yet on whether the top prizes will be paid instantly or over several years, as is done with Megabucks and big state lotteries, he said.

Holden said daily sports parlays will also be available.

"Our marketing studies have shown there's a large group of people -- including an enormous number of well-educated women -- who'd like to bet sports but who are uncomfortable with money lines or points spreads.

"Yet they might have an opinion on whether Dan Marino will throw for more than 200 yards next Sunday, whether Michael Jordan will score the most points in the NBA tonight, whether Tiger Woods will break 68. And they're willing to bet on their opinions."

American Wagering expects more casinos to sign contracts for Mega$ports, lured by the lucrative pari-mutuel takeout percentage. While the final figure hasn't been set, it's expected to be similar to that of horse racing pari-mutuels, where the books and tracks keep about 17 cents of each dollar wagered.

That could have a huge impact on casino operations. Over the past 12 months, sports books averaged a statewide win percentage of just 2.41 percent, compared with win rates of 13.93 percent for blackjack, 14.28 percent for craps and 24.21 percent for roulette.

Holden said sports books will get "the bulk" of the revenue from the Mega$ports takeout.

If pari-mutuel sports wagering becomes as big as American Wagering expects, it could bulk up the bottom line for casino bookmakers.