NBA’s 1% demand of sports bets could doom the industry before it gets going

While everyone waits, rather impatiently, to see if the Supreme Court will reverse the Professional and Amateur Sports Protection Act of 1992 (PASPA), there has been an ever-increasing level of state interest to participate in the multi-billion-dollar industry.

Several states are ready to pull the trigger on platforms that will open the doors to sports gambling operations if PASPA is repealed. The states, however, aren’t the only ones wanting to get in on the game. Both the NBA and the MLB have demanded 1% of all wagers, and that decision could kill the industry before it even gets warmed up.

According to Jeff Ma, VP of analytics for Twitter, the sports league’s view is short-sighted and could ultimately hinder gamblers from switching from illegal gambling houses and offshore markets to the legal ones. This idea is spawned from the idea that gamblers won’t be willing to give up 1% of their money just to appease the leagues. Many feel Ma could be correct, and a recent poll of New Yorkers showed that almost 70% were opposed to the 1% demand.

Ma isn’t just another fly-by-night analyst. In case the name doesn’t ring a bell, Ma is the man behind the MIT blackjack team that won millions counting cards before being caught. His story was turned into a book, Bringing Down the House, and then a movie, 21, starring Kevin Spacey. He knows sports leagues like Jeff Bezos knows retail. He has held positions as a consultant for both the Portland Trail Blazers and the San Francisco 49ers.