PITTSBURGH – Billy Walters was in the spotlight earlier this month. The Kentucky native and legendary sports bettor was part of the main event at the National Council of Legislators from Gaming States’ summer conference held at the Rivers Casino in the Pennsylvania city. In front of him were lawmakers, regulators, gaming industry executives and insiders. All the players across Kentucky sports betting.
Walters, whose memoir was a New York Times bestseller last fall, wasn’t there to talk about his story – although parts of that came out during the session. Instead, he was on the stage with Gadoon “Spanky” Kyrollos, another well-known sports bettor, and Richard Schuetz, a longtime executive and regulator in the industry. They were at NCLGS to discuss a new endeavor they were launching called American Bettors’ Voice, a nonprofit group meant to be a voice for the public when it comes to legislating, operating and regulating sports betting.
“Although we’ve passed the legalization of sports betting, I have some very deep concerns about the future of sports betting,” Walters explained.
Walters and his partners’ concerns about the current state of the industry include operators that arbitrarily limit successful bettors, tax schemes at the state and federal levels that penalize winning gamblers and the need to better educate bettors on the true odds and risks behind their wagers. Accomplishing that and other objectives would be a “win-win-win” scenario for all parties.
Missed Opportunities In Post-PASPA Market
There are some in the gaming industry who say that the U.S. sports betting industry has been wildly successful since the Supreme Court’s PASPA ruling allowed all states to legalize wagering. More than three-quarters of the states now allow some form of the product. The Kentucky sports betting market is one of 30 that permit online operators, such as bet365 Kentucky and Caesars Sportsbook.
Most states are also seeing higher-than-expected tax revenues flowing into their coffers. Kentucky is one of those. When lawmakers passed the sports betting bill a year ago, they expected Kentucky to receive about $23 million in the first year through taxes from operator revenues. Brick-and-mortar sportsbooks and online apps like BetMGM launched in the Bluegrass State last September. Through May, the state has already received $32.5 million out of the $1.96 billion wagered.
Keep tabs on our Kentucky Sports Betting Handle And Revenue tracker here.
However, while some see a success story in states across the country, Walters told the NCLGS crowd he sees missed opportunities. For starters, he points out that gamblers must pay income taxes on their winnings, and unlike businesses that are allowed to carryover losses for tax purposes, bettors cannot.
“No real smart person that understands finance and risk are going to bet on sports… for any amount of money,” Walters said.
Reforming the personal tax codes would make wagering through licensed sports betting operators a more enticing proposition to people who make their living on Wall Street or in other financial sectors. Taxing winnings like investment earnings, he said, would expand the market substantially to a population that would be willing to wager larger sums.
“If sports were taxed like dividend income, at 20%, the federal government would make a lot more money. Twenty percent of something is something. Fifty percent of nothing is nothing,” Walters said.
Billy Walters’ Tips For Beginning Sports Bettors
While Walters has made millions and millions through sports betting over the years, he told BetKentucky.com after his NCLGS talk that he has yet to make a wager in his home state through one of the licensed sportsbooks. Still, he was able to offer some tips on how Kentuckians should get involved if they want.
Walters encouraged people to treat sports betting like any other recreational activity or hobby, especially those who are just getting started.
“As long as you approach it that way, it’s going to be fun. It’s going to be something you enjoy doing,” he said. “That doesn’t mean you’re not trying to win.”
Bettors should also make sure they’re getting the best odds for their wager. He encourages people to sign up for as many apps as possible and shop around. There are eight Kentucky online sportsbooks currently available in the Bluegrass State. When starting out, bettors should set aside an amount they feel comfortable losing, but Walters stressed they must start small by betting only a small fraction of their bankroll.
“Put together a money management system and stick with that money management system,” he said. “And don’t get yourself hooked into believing that you’re going to get rich quick by gambling on sports. That’s where people get in trouble.”
USA Today photo by Adam Cairns.
