Rovell’s 2012 Sports Business Predictions Include Mobile Spin

Darren Rovell > Tebow

Powerhouse CNBC Sports Business reporter Darren Rovell today published his 2012 predictions for the sports industry.

Three of Rovell’s 2012 predictions are most relevant to the mobile sports business community:

1. The sale of game start times and final minutes will drive sports sponsorship.

MSR says: This plays into the hands of mobile sports application developers. If you own the last five minutes of a Knicks game, and there’s a lengthy television timeout, what do you do? Look for game-time sponsors to promote branded games and contests during those valuable time periods. That’s good for sports social media application developers, who today find chief marketing officers and advertising agencies are a tough sell. That won’t remain the case if Rovell’s prediction comes to pass.

2. Sponsorship and trademark will continue to thrive in the college sports arena

MSR says: In 2011, college sports emerged as proving ground for the most innovative uses of sports social media applications tied to live sporting events, and continued health of NCAA sports will foster continued advancement.

3. Teams will spend money to adequately wire stadiums and arenas

MSR says: Rovell’s comment marks one of the first times a mainstream business reporter has identified that live sporting events will need to have connectivity equal or better than the sports bar or home in order to remain competitive. In addition, for connectivity companies like Verizon, Sprint and AT&T, the stadium and arena will continue to evolve as the primary place where a large percentage of its customer base will decide whether they will keep their carrier when their service contract comes up for renewal.  Ten years from now, if mobile applications and sports information services continue to grow in importance and efficacy, the stadium or arena may be THE place where consumers decide whether their carrier has the chops to win your business the next time it comes time for the consumer to commit.

Rovell’s predictions are a must read.

 

Jersey Voters Overwhelmingly Support Sports Betting

LeRoy's Sports Book in Las Vegas has a mobile sports betting application ready to go if Federal laws are relaxed

New Jersey voters overwhelmingly supported sports betting at Atlantic City Casinos and state racetracks, paving the way for a legal challenge to Federal restrictions against legal sports betting on mobile devices.

According to a Philadelphia Media Network report, the ballot initiative passed by greater than a two-to-one ratio. Republican Gov. Chris Christie says the initiative provides him ammunition to challenge the Unlawful Gambling Enforcement Act, passed by Congress in 2006, which prohibits all states except those that already allowed sports wagering to implement sports betting systems.

“With this referendum, we have an opportunity that gives the state more solid footing to challenge the federal ban on sports wagering outside of a few select places,” Christie said before he voted in favor of Public Question 1, according to Philadelphia Media Network.

The move is significant because reform to the Unlawful Gambling Enforcement Act and The Professional and Amateur Sports Protection Act, passed by Congress in 1992, are needed in order to allow legal sports betting on mobile devices across the United States. Today, because of Federal law, an estimated $380 billion annually in illegal sports betting is conducted in the United States annually, according to National Gambling Impact Study Commission. Much of that is conducted through the online portals of offshore casinos, which are widely known to provide poor customer service and slow payouts.

New law would prove a boom for mobile device application developers. To date, Cantor Gaming, which operates the race and sports books of such Las Vegas casino powerhouses as the Hard Rock Hotel & Casino, the Tropicana Las Vegas, the Cosmopolitan of Las Vegas and The Palazzo, and American Wagering, which operates a chain of race and sports books called Leroy’s, have released sports wagering applications that work in the state of Nevada. In addition, leading sports social media application developer PlayUp USA has similar capabilities through sister companies in international markets. Numerous other mobile sports application developers are also preparing sports wagering applications.

Research firm Gartner Group estimated that global mobile gaming revenues reached $5.6 billion in 2010, and predicted the market would grow to $11.4 billion dollars by 2014.

Cantor Gaming goes live with Android sports betting app

 Cantor Gaming, which operates the race and sports books of such Las Vegas casino powerhouses as the Hard Rock Hotel & Casino, the Tropicana Las Vegas, the Cosmopolitan of Las Vegas and The Palazzo, said Wednesday that it has released an Android sports wagering application.

Approved by the Nevada Gaming Control Board, Cantor’s Android application works in the state of Nevada. GPS in mobile devices will prevent consumers from placing action in other states. Cantor is a leader in “in-running,” which is the ability to place proposition bets on sporting events on an on-going basis. In-running means that you can bet not only on the outcome of a game, but on individual plays. In-running is the fastest growing segment of the $2.76 billion legal sports betting industry in the United States. According to the American Gaming Association, legal sports wagering represents less than 1 percent of all sports betting in the United States.

Cantor Gaming customers currently use this device to place in-running bets at casinos. A new Android smartphone application enables them to place similar bets anywhere in the state of Nevada.

Advocates have called for reform of U.S. laws, which they say unfairly prohibit U.S.-based companies from providing sports betting services to mobile devices. Billions of dollars in illegal betting activity flows through offshore casinos, they say. If U.S. gaming laws are reformed, Cantor Gaming and other innovators will be positioned to capitalize on legalized gaming at NFL, NBA, MLB, NHL and college sports events in the United States. Research firm Gartner Group estimated that global mobile gaming revenues reached $5.6 billion in 2010, and predicted the market would grow to $11.4 billion dollars by 2014.

An In-running Super Bowl Scenario

What does in-running on smartphones mean for the average sports fan?

Imagine it is Super Bowl Sunday. Your favorite team is the New York Jets, and Rex Ryan finally made good on his promise to LaDainian Tomlinson to get the Jets to the big game. They are playing the Green Bay Packers. It is third and seven yards to go, and Aaron Rodgers has his team in the huddle. The Jets are on defense, and Darrelle Revis looks confident out on the island.

In-running means you might get an offer of seven-to-one that Rodgers will make a completion of Greg Jennings, and an offer of 157-to-one that Revis will make a pick six.

You place the longshot $5 wager on your man, Revis.

After Rodgers gets pressured from the Jets’ Aaron Maybin, he gets too much air under his pass. Revis reacts, taking the ball back seventy-four yards for a score.

There’s a flag, and you sweat.

Holding…Green Bay.

Moments later, $785 appears in your Cantor betting account.   

Cantor promotion, CEO quote

To promote its application, Cantor is giving away Android devices to its highest-rolling customers, and offering discounts on smartphones to others.  

“Cantor Gaming’s primary goal and focus is to constantly enhance our customers’ experience through innovative, superior technology,” said Cantor Gaming president and CEO Lee Amaitis. “Our team has developed an application that is real-time, convenient and enjoyable, while incorporating the most advanced and reliable security.”

Cantor is the second Nevada-based gaming company to offer a mobile wagering application, according to a Las Vegas Review-Journal report. American Wagering, which operates a chain of race and sports books called Leroy’s, released Blackberry- and Android-compatible apps earlier this year.

Cantor Gaming is a unit of Cantor Fitzgerald, a Wall Street investment firm that was devastated by the 9-11 attacks. It uses the same technology used to manage Wall Street hedge funds to set fair odds for in-running propositions.

Big dollars flow offshore

An estimated $380 billion annually in illegal sports betting is conducted in the United States annually, according to National Gambling Impact Study Commission. Much of that is conducted through the online portals of offshore casinos, which are widely known to provide poor customer service and slow payouts. Illegal sports transactions conducted through offshore casinos generate no tax revenue for the federal government or U.S. States.

As the Nevada economy and the United States economy have floundered, proponents of legal sports betting using mobile devices have argued that federal law hamstrings domestic competition and channels gambler dollars’ offshore.

The Professional and Amateur Sports Protection Act, passed by Congress in 1992, and the Unlawful Gambling Enforcement Act, passed by Congress in 2006, are currently among the impediments to legal sports gaming on mobile devices and iPads throughout the United States.

 

Consumers slamming NBA mobile sports app downloads during playoffs

NBA Game Time app downloads up 250%

 There have been more than 680,000 downloads of the 2010-2011 National Basketball Association’s NBA Game Time free mobile application since the beginning of the playoffs, according to a report by Mashable.

The NBA Game Time surge marks another example of exponential growth in watching sports on iPads and smartphones when games really start to count. As reported, the NCAA’s March Madness on Demand (MMOD) application generated not only record downloads, but heavier than expected video downloads and longer user sessions then anticipated.

 

Turner Sports continues to lead in mobile sports production

In total, the NBA Game Time has exceeded 2.5 million downloads during its 82 regular-game season and playoffs, a 250 percent increase from the 2009-2010 campaign. NBA’s numbers were confirmed to Mashable by Turner Sports, which is in its third year managing digital properties for The Association.

The NBA's digital leader, Bryan Perez

Bryan Perez confirms NBA apps surging

NBA Digital senior vice president and general manager Bryan Perez told Mashable that NBA Basketball’s lightning-fast pace creates difficult production problems for a broadcaster, but the point has come where the games can be rendered quickly enough to provide consumers with a fulfilling experience.

 NBA Game Time is available for iPhone, BlackBerry and Android, as well as such connected device platforms as Apple TV, Google TV and Vizio Internet apps.

‘Way harder, intense look’ at Mobile Sports Production Underway at Turner Sports, exec says


Picture of mobile sports broadcast visionary Michael AdamsonThere’s a large enough audience for mobile sports to spark Turner Sports to take a “way harder, more intense” look at mobile sports production, according to a recently posted Beet.TV video.

According to Michael Adamson, VP of Sports New Products, Turner Sports, the proof is the 2011 NCAA Men’s Basketball Championship Tournament, which saw a 17 percent increase in online sports video consumption and a 63 percent increase in total viewership for March Madness on Demand (MMOD).

More mobile sports viewers “than we thought”

“For the first time, we saw a significant enough portion of our audience consume live games on mobile (to cause Turner) to take a way harder, more intense look at mobile video production,” said Adamson in the Beet.TV video. “It really pushed our numbers higher on mobile than we thought was going to happen this year.”

The “take” numbers across all of Turner Sports, CBS Sports and NCAA online, online streaming and mobile application rates are now large enough to warrant exploration into broadcasts tailored to mobile sports consumers, said Adamson.

“Most of our video streaming experiences that we’ve done for sports have been simulcasts or experiments with alternate-angle live streams,” said Adamson. “Now, we’re starting to think more about how to make sure we sync mobile video with broadcast, or how we sync syncing mobile video with mobile data. How do we make mobile video available as both companion (viewing) and primary (viewing) experience, and tie advertising in?”

Adamson’s comments are good news for the mobile sports consumer. In addition to March Madness, Turner Sports broadcasts NBA on TNT, Major League Baseball on TBS, NASCAR on TNT and PGA Championship and PGA Grand Slam golf.

iPad for sports extraordinary

Adamson said Turner Sports was wowed by the iPad viewership of March Madness, as well as the behavior patterns of mobile sports consumers watching hoops on the device.

“People were using the iPad more like a TV than a mobile device,” he said. “I don’t know that we would have expected that but we definitely saw it.”

Before March Madness, Turner Sports saw the iPad much more as a companion device for people watching sports on television, Adamson said. iPad viewers told Turner Sports through their behavior that iPad is ready for more intense mobile sports programming that embeds video inside a data-rich environment, he added. Watch for broadcasters to begin using iPad applications as a way to show people the games they want to see alongside a rich set of social media and location-based applications in the future, said Adamson.

Adamson made his comments to Beet.TV at paidContent Mobile 2011, held May 18, 2011 in New York.

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