Brad Cummings can envision when sports fans will buy a quick draw lottery ticket for $5, watch National Football League games, and maybe end up winning $1,000 – all in one day.
For NASCAR, a random-draw ticket might spit out a combination of drivers whose finish could earn players millions, according to Cummings, founder and CEO of EquiLottery, which develops lottery games. Cummings appeared on a panel at GiGse in Miami.
The U.S. Supreme Court’s decision last month to strike down a federal law banning sports betting in most states has paved the way for lottery customers playing games of chance to bet on live sports, Cummings said. It would be a third segment of lottery games after ball drawings and instant lottery tickets.
EquiLottery has introduced a game of chance based on live horse racing called Win Place Show. Next on the drawing board is football, basketball, tennis, baseball, hockey, soccer, auto racing and golf.
“Once PASPA (the Professional and Amateur Sports Protection Act) was repealed, we found ourselves in a position to start to launch new games,” Cummings said. “It’s all conceptual right now.”
Lotteries would be doing a disservice to ignore what Cummings said is “truly its greatest asset in its impressive distribution network.” There are so many gaming dollars to go around and lottery involvement in live sports is vital, he said.
“If you can’t participate in new forms of gaming, you are going to lose dollars,” Cummings said.
State lottery officials across the country have talked about the possibility of allowing traditional sports wagering to be done through their vendors to boost state revenue.
The concept remains controversial. It is opposed by casinos and race tracks that want to be sole proprietors. Sports leagues are against expansion of gambling in states unless they get a cut of the revenue derived from their content.
Cummings said it’s a complex issue because sports books don’t generate a large profit, which is about 5 percent of bets placed. There isn’t “much piece to slice off for a league,” he said.
However, he understands the need for leagues to want compensation and that happens under his concept.
“We see it as the next big growth category in lottery as a generator of revenue for good causes supported by lottery and the revenue opportunity for sports leagues and associations,” Cummings said. “Sports betting is for people who like games of skill, and that’s a reasonable conclusion because that’s the only way it’s been offered in the past. Evidence points that a game of chance player loves sports, or a sports game based on chance.”
Cummings said the idea would also appeal to millennials, who could follow events on their phones.
Conceptually, a player can buy a $5 ticket with 10 NFL matchups with the winners pre-selected. If they matched 10, the player wins $1,000. There would also be payouts for hitting fewer games.
As for NASCAR, a $5 ticket with random drivers would be purchased. Have the top three in order and the player wins $50,000. Multiple combinations could also constitute winning tickets. Having just the winning car would get back $20, he said.
A jackpot game where the top five in the race are matched could pay $50 million.
Cummings said the possibilities were endless.
“There’s a lot of exciting things you can do with a live sports category connected with the lottery than would be different with sports gaming,” Cummings said. “The leagues would realize new revenue and marketing opportunities, and it would take the heat off sports books for not giving the leagues any revenue.”
May Scheve-Reardon, director of Missouri Lottery for the last 10 years, said state lotteries also need to be included in traditional sports betting as legislators consider regulations.
Scheve-Reardon said lotteries need a plan because “grandma buys lottery tickets, and lotteries are dying.” Missouri didn’t pass any gambling-related measures in the latest legislative session. She said Missouri doesn’t want the federal government involved as the leagues and fears President Donald Trump could issue an executive order on sports betting.
Missouri has 13 casinos and 5,000 locations where lottery tickets are sold. Scheve-Reardon said the state already partners with its sports teams.
“Where would you rather offer a product to the consumer that can get more traction and get more money for the state?” she asked. “We are definitely embedded with the sports community. It’s a natural for us.”
Missouri’s lottery earns $305 million in annual profits. Scheve-Reardon said sports wagering is projected to earn $23 million in revenue if done just through casinos, and $113 million through the lottery and online. The figure would total $136 million if all three are combined, she said.
“That would be most beneficial to secondary, elementary and higher education,” Scheve-Reardon said. “Casinos need to work with lotteries. (Missouri) would have to change our constitution and if not, we should partner with other gaming operators. We need to take advantage of this historic decision, and we need to see where we can go.”
Scheve-Reardon said education backers and lottery vendors are pushing for the inclusion, but it’s a challenge.
“The lottery hands out checks to players, and casinos hand out checks to people who run for office,” Scheve-Reardon said. “It’s an unlevel playing field.”
