Usually, it’s good for the house when bettors bet with their hearts.
Sometimes, it isn’t.
Via Chris Altruda on Twitter, the New York State Gaming Commission announced a mobile betting loss of more than $48 million for the week ending in June 14.
On June 13, the New York Knicks beat the San Antonio Spurs to win the NBA title. On June 10, the Knicks erased a 29-point deficit to take a 3-1 series lead.
It wasn’t just the biggest loss New York has absorbed in a given week. It was the first time ever that a week ended with New York in the red.
While that may look like bad news for the sportsbooks on the surface, periodic losses become valuable marketing tools. They create the impression that gamblers can win. Which lures them back to gamble some more.
The reality is that, over time, the house wins. Big. That’s how the sportsbooks end up being worth so much money, and it’s why so many states have taken the plunge to impose what Warren Buffett calls a “tax on stupidity.”
They’re hoping people will respond to the news of a $48 million loss by thinking, “Maybe we can win.”
Ultimately, the house wins. The industry wouldn’t exist if it wasn’t highly profitable. And those profits always come from the pockets of the people who bet.
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