Would Sports Betting Save US Newspapers?

from the there's-a-gamble dept

This one is from a few weeks back, but I just saw it. Apparently, Mort Zuckerman, owner of the NY Daily News has an interesting (and somewhat different) idea on how to save newspapers: have them be able to take sports bets via their websites. This isn't currently legal, but he thinks it would work:
There is something that can be done, and the federal government ought to do it: allow sports betting on newspaper Web sites. That would save every newspaper in America. The New York Times.com could do it. Plenty of British papers do this; for them it's a crucial part of their net revenue stream. I know a major newspaper in London that makes $15 million a year from sports betting alone.
I think it's a lot better of an idea than a paywall (though, Zuckerman likes the paywall idea, but tellingly notes, "I'll be the second or third to do it. Not the first."), but I'm not sure why a newspaper is any better at doing it than other sites. Perhaps because they have the sports reporting, but it's not clear how that's really unique to them. On top of that, given the way the US gov't treats online gambling as being something somewhat close to pure evil, combined with the powerful casino lobby, it's difficult to see this actually getting anywhere.
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Filed Under: business models, mort zuckerman, newspapers, sports betting


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  • icon
    PrometheeFeu (profile), 27 Aug 2009 @ 10:50pm

    They might not have a monopoly on sports reporting, but they do have a tradition of providing sports reporting which draws a lot of readers to the sports section.
    That's why they would have a good shot at sports betting in my opinion.

    link to this | view in chronology ]

  • icon
    Designerfx (profile), 27 Aug 2009 @ 10:59pm

    hmm?

    I thought the reasoning behind banning online gambling (even beyond the bogus reasons) was that it was considered preying on the disadvantaged? So why would we suddenly want to allow that again?

    I mean hey, I think the online ban is ridiculous, but this isn't a solution either really.

    I'd read paper newspapers again if they started fact-checking, reporting on events without bias, and actually doing things the right way (you know, using their freedom of speech, fighting for the people, etc). However, that'll never happen and hasn't for years, so good riddance.

    link to this | view in chronology ]

  • identicon
    Anonymous Coward, 27 Aug 2009 @ 11:50pm

    no. if the news media is allowed to be a sports book then you will no longer be able to take the journalism seriously. The reporters have locker room access and with locker room access comes the ability to see the athletes up close and truly understand injuries, clubhouse dynamics, etc. They would have an unfair advantage in setting spreads and controlling the lines by who they hype up in big matchups.

    link to this | view in chronology ]

  • identicon
    fogbugzd, 28 Aug 2009 @ 12:29am

    Would only work if...

    This would only work to save newspapers if they managed to do a better job of taking bets than other sources.

    I can't imagine how this could be enforced as newspapers being the only ones allowed to take bets. If that was tried, other sites would spring up that barely meet whatever requirements need to be met to be considered a newspaper.

    Newspapers have a natural advantage in that they are a traditional source of news about sports. However, do they have the ability to build and hold a community? History suggests that this is not something that they are good at.

    In addition, if one area is generating most of the revenue, management is going to shift its resources into supporting that area. In the long term newspapers would become little more than sports rags, and they probably would spend even less than they do now on investigative reporting and local news.

    link to this | view in chronology ]

  • identicon
    Doctor Strange, 28 Aug 2009 @ 1:13am

    It's as much of a viable business model as any other option where they become something that's not a newspaper. Like a T-shirt sales company, or an online community/social hub, or a vendor of smoked salmon that uses some of the profits to subsidize their journalism hobby.

    They're not going to be any better at these things than anybody else, and probably worse since they'd have to shed their existing organizational inertia.

    link to this | view in chronology ]

    • icon
      ChurchHatesTucker (profile), 28 Aug 2009 @ 7:47am

      Re:

      "It's as much of a viable business model as any other option where they become something that's not a newspaper."

      Well, it'd give them a government-protected monopoly, which is all they seem to want.

      link to this | view in chronology ]

  • identicon
    Anonymous Coward, 28 Aug 2009 @ 4:41am

    Why does anyone care to save newspapers anyway (besides newspapers). They are environmentally unfriendly and don't meet the technology expectations of many of their potential readers. If they go away, it isn't like we won't have news and journalists any more... my proposal would be to consolidate newspapers (let capitalism take it's course effectively) and get on with it already.... let's be realistic. How long will we need/want a physical paper and others can do better with enabling the delivery process with technology online.

    link to this | view in chronology ]

  • icon
    Ben Robinson (profile), 28 Aug 2009 @ 6:24am

    Misleading Staw Man

    The UK national newspapers that run online gambling operations are very much the tabloid end of the market like The Sun and The Star. These papers can't really be compared to something like the New York Times. None of the serious newspapers like The Guardian, The Times and The Independent run online gambling websites.

    There is a http://www.sunbingo.co.uk/

    but there's no http://www.guardianbingo.co.uk/

    People who gamble online are largely the same demographic that read the tabloid newspapers, not the demographic that read the New York Times. If the Guardian started an online gambling site it would probably damage it's core reputation as a serious newspaper.

    link to this | view in chronology ]

  • icon
    Dark Helmet (profile), 28 Aug 2009 @ 6:31am

    Nope

    "On top of that, given the way the US gov't treats online gambling as being something somewhat close to pure evil, combined with the powerful casino lobby, it's difficult to see this actually getting anywhere"

    That won't matter. Zuckerman is wining and dining with policy makers as a member of both the CFR and Trilateral Commission. Plus you can see the telltale signs of eventual American adoption of the program by it being tested out in Britain first, somewhat successfully, followed by its use as an example to the American people.

    This isn't a possibility. If Zuckerman is talking about it like this, he's doing the litmus(sp?) test to make sure EVERYONE doesn't freak out at the notion. I give it a year before you see this program piloted after being pushed through by one of the elected or appointed government officials in the same groups as Zuckerman.

    link to this | view in chronology ]

    • icon
      Sean T Henry (profile), 28 Aug 2009 @ 6:51am

      Re: Nope

      I'm for it that way I can set up sports betting with my University newspaper. Surely they will not try to limit this opportunity by requiring the paper to be nationally distributed.

      The other good thing about this if it happens is that it will open the door for allowing online gambling.

      link to this | view in chronology ]

  • icon
    Perry K (profile), 28 Aug 2009 @ 8:04pm

    i know how to save the RIAA

    Their business model is failing too. Why shouldn't they get an on-line gambling franchise? But wait, there's more. My business is failing so I think I should get to run an on-line sports betting/casino operation too. Right?

    link to this | view in chronology ]

  • identicon
    Chris, 14 Dec 2009 @ 8:27pm

    Don't see it

    Unfortunately, I as a sports bettor, do not see the legalization of online sports gambling for at least three or four more years. However, there is more and more traction and it is gaining ground.

    Poker will be the first to become legal, as with the help of ESPN and other media outlets, poker is now viewed as a game of skill and chance, and doesn't include the social outcasts of sports betting. The World Series of Sports Handicapping or the Hilton Contest needs to be placed on TV and viewed to the world, showing a different side of sports bettors. Only then will betting on sports begin to become socially acceptable.

    Chris

    link to this | view in chronology ]

  • identicon
    Sports Fan, 18 May 2012 @ 5:22pm

    Sports Betting is Good For The Environment

    1rst off the U.S. Constitution and The American was Founded on The Principles of Not Interfering in "Personal Liberties" and a Grown Person of Legal age Wanting to Bet On a Sporting Event is a Personal Liberty Issue.So i Don't Know Why They try and Interfere with Internet wager Sites Has Long as People are of Legal Age like it was said above it "saves trees" !!

    link to this | view in chronology ]

  • identicon
    sports betting analyst, 15 May 2013 @ 2:06pm

    not fit to happen anytime soon

    This is a far cry from reality, BUT who knows! This maybe the change we are all looking for in our industry.

    link to this | view in chronology ]


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