David Stern is the boss of the NBA and like many sports czars, has taken a hard line on sporting wagering on team sports. He was particularly affronted by former referee Tim Donaghy revelations of betting on games he worked, which was in strict violation of the rules of conduct in the league.At that point, print and television commentators coast to coast suggested the NBA was about to go the way of the Arena Football League, because its public trust had been comprised. And while many wondered what would happen to the NBA, something unexpected occurred that Stern’s minions and most other supposed “know it all’s” didn’t see coming, nothing.
All the presumed outrage, people thinking the NBA was going to become the WWE with predetermined winners (enough people believed that already), however once they started playing basketball, it was business as usual and television ratings have gone up, with attendance hurt by the recession, not by wagering allegations.
Stern recently sat down with Sports Illustrated’s Ian Thomsen and betting on the NBA was brought up during the interview.
During this conversation, it was clear Stern has changed his views on people betting on the NBA for a variety of reasons.
With many country’s worldwide accepting wagers on team or individual sports, Stern was asked about potential for scandals.
"We used [the Donaghy revelations] as an opportunity to get better, to coordinate with law enforcement and go through a variety of processes that I don't necessarily want to detail publicly, but you are on ready alert," he said. "And we're mindful of what can happen, because we're more-than-interested bystanders in the European football scandal. Two-hundred [soccer] games are being looked at by law enforcement across the continent. It's fascinating to see what's happening. And we're mindful of the cricket [2007 World Cup match-fixing] issues, of the football referees in Germany -- there's a lot going on."
He then spoke as someone with a greater understanding of the marketplace and where our country is in general. "The betting issues are actually going to become more intense as states in the U.S. and governments in the world decide that the answers to all of their monetary shortfalls are the tax that is gambling."
While Stern stopped short of saying he would approve of such activity openly at this time, when asked if it were in the best interests of the league to seek legalization of sports wagering in the NBA, Thomsen observed a shift in body language of someone who was going to make a point that could later be used against him, but believed his own words.
"It has been a matter of league policy to answer that question, 'No,' " he said."But I think that that league policy was formulated at a time when gambling was far less widespread -- even legally."
In looking at the landscape, where most states have lotteries, Indian casinos and Delaware presently above revenue expectations just allowing NFL parlays, Stern has absorbed all this information and reformulated his thought process. “Considering the fact that so many state governments -- probably between 40 and 50 -- don't consider it immoral, I don't think that anyone [else] should," Stern went on. "It may be a little immoral, because it really is a tax on the poor, the lotteries. But having said that, it's now a matter of national policy: Gambling is good.
"So we have morphed considerably in our corporate view where we say, Look, Las Vegas is not evil. Las Vegas is a vacation and destination resort, and they have sports gambling and, in fact, there's a federal statute that gives them a monopoly of types [on sports betting]. And we actually supported that statute back in '92."
While Stern has often been considered stubborn and bullish, the whole Donaghy experience has brought out a different side of Stern, one more enlightened and not as close-minded in his beliefs. He sees the popularity of the NFL and has widely varied figures on something related to his sport, basketball, with March Madness, which fills Vegas hotels annually for the opening weekend, and also seemingly everyone filling out a pool sheets and making a bet amongst friends. He understands the revenue potential.
“Gambling, however it may have moved closer to the line [of becoming acceptable], is still viewed on the threat side," he said. "Although we understand fully why, buried within that threat there may be a huge opportunity as well."Of course Stern will have opposition, but will also have those on side like the Maloof brothers who own the Sacramento Kings and the Palms Hotel and Casino just off the Vegas Strip.
Originally when the Palms was opened, they were allowed to have a sportsbook, but not able to take action on NBA games. The Maloof’s later stated their case after the city hosted the NBA All-Star game, wanting to take wagering action on all NBA games, except those involving the Kings and it was approved.
Stern’s latest comments were music the Sacramento owners’ ears.
“I’m thrilled to hear him say that,” Joe Maloof told Yahoo! Sports on Monday. “I think it does two things: First, it legitimizes gambling. It regulates it. That’s the most important thing. It’s clean. It’s honest. It’s fair.
“And then it creates a tremendous excitement for your product. People react differently when they have a bet on a game versus when they don’t. This is going to bring in great interest. If it’s regulated properly, this can be a tremendous revenue source for the league.”
Nationally, there is too much opposition from groups that want a sanitized world more reminiscent of the 1950’s and early 60’s. However, as individual states look to hang on to government programs and continue to see shortfalls, sports gambling will eventually be pursued more actively as another revenue source that will be taxed and monitored and be enjoyed more openly, as sports leagues like the NBA admit the world won’t end if people bet on sports.
Separate articles from Sports Illustrated.com and Yahoo.com provided the quotes for this piece.
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