Would a betting ban hurt TV ratings?
Tuesday, Feb. 1, 2000 | 10:54 a.m.
If you subscribe to the theory that many people watch college sporting events only because they have a wager on the outcome, it would not seem to be in the best interests of the major networks that have spent billions of dollars on rights fees to have college sports betting outlawed in Nevada.
Fewer viewers mean lower ad rates. And lower ad rates mean lost revenue.
If you're at CBS, which recently agreed to a $6.2 billion, 11-year extension to televise the NCAA men's basketball tournament starting in 2003, it would seem every little percentage of a TV ratings point would count.
Could the network secretly be rooting against the NCAA's lobbying efforts to outlaw college sports betting in Nevada?
A CBS official said the network preferred not to comment on the matter.
Dean Bonham, a respected sports consultant who heads the Denver-based The Bonham Group, which specializes in the valuation and regulations of sports sponsorships, believes such legislation would have very little effect on TV ratings if enacted.
"I doubt it," Bonham said. "I would guess that as smart as these TV network people are, they knew a movement was afoot (by the NCAA) to outlaw gambling when they negotiated their deal, and that if such a law did go through, it wouldn't affect their ratings.
"It's always been a gray area trying to figure out how much gambling affects TV ratings. One school of thought is that some people only watch certain games because they gamble and they wouldn't watch those games if they couldn't. But another school of thought is that those same people would still watch because they have a strong interest in a certain sport to begin with."
Bonham sides with the latter viewpoint.
"Personally, I think if such a law did get passed, I don't think it would have much effect on TV ratings," he said.
Bonham's reasoning is simple. Although the NCAA's bill might look good to some on the surface, it probably will do little to curtail college sports betting.
"My prediction is most of the fans who bet would continue to find a way to bet, be it on the Internet with offshore books, or with illegal bookies," Bonham said.
"Outlawing college sports betting in Nevada would probably have very little effect overall. In fact, what it may very well do is increase illegal betting activities."
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