Sports books show first decline in the 90s

CARSON CITY -- For the first time this decade, action in the state's sports books is declining.

In fiscal 1998, which ended June 30, wagering in Nevada sports books was down 3.7 percent from 1997 to $2.4 billion.

Nevertheless, the sports books won $87 million last fiscal year compared to $61.3 million in fiscal 1997. Gross win, figured before taxes and business expenses, jumped 41.9 percent.

"But the handle is the alarming part and of the most concern," says Art Manteris, director of race and sports betting at the Las Vegas Hilton. The "handle" in gaming parlance is the amount wagered.

Figures compiled by the state Gaming Control Board show sports betting in fiscal year 1990 reached $1.5 billion. Board spokesman Russell Guindon said it increased annually until it reached a high of $2.5 billion in 1997 and then dropped in 1998.

Everything from offshore bookmakers to tougher regulations is being blamed.

Vic Salerno, who runs a string of sports and race books across the state out of his Leroy's business in Las Vegas, says books in the Caribbean are siphoning off players. Bettors can telephone an 800 number or place a wager over the Internet.

In addition, he says, there's been a "dramatic effect on the handle" by the tougher regulations in Nevada. "A lot of race or sports players don't like to be tracked. They find other places to place bets."

These players, he said, don't want to reveal their names and they are "now betting illegally or with offshore bookmakers."

Manteris agrees the major concern is competition from outside Nevada. "Our objective should be to see that it comes here and not elsewhere," he says.

A bill banning Internet betting passed the U.S. Senate and is awaiting action in the House.

Some states have taken enforcement action against Internet or telephone betting with off-shore bookies.

"Florida has gone against companies that help transmit these funds." Bill Bible, chairman of the state Gaming Control Board, said. Minnesota and Missouri have also moved against Internet wagering, he said.

In Nevada, enforcement agents have arrested several messengers who place wagers for big bettors. Some casinos "won't take the action of known professional sports bettors," said Las Vegas gaming consultant Ray Koon. So these individuals may use messengers to place the bets.

Big bettors from other states may be using these messengers to make wagers in Nevada casinos.

"(But) the crackdown might be reaching the ones (big bettors) outside Nevada. They may be scared off Nevada and going somewhere else."

And players can deposit money or use their credit cards with off-shore sports books.

"You can call toll free to make a bet via the telephone or a computer on the Internet," said Koon. "Most of these operations are outside Nevada."

Salerno and Manteris agree the drop off isn't due to waning public interests. Nor is the drop off necessarily seen as a continuing condition.

More television stations devoted to sports are coming online. The race to break the home run record of Roger Maris is being watched closely and Michael Jordan gained wide attention in leading the Bulls to another championship and possibly his last game.

The World Cup in France focused new attention in soccer.

"The interest is high and continuing to grow," Manteris says. Salerno says the home-run battle between Mark McGuire, Sammy Sosa and Ken Griffey Jr. "has been a great elixir for this sport. There is much more overall interest."

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