- SBTech has contracts with Churchill Downs, the Golden Nugget, and Resorts Casino.
- The Oregon Lottery would permit wagering online and in person.
- The contract allows for a sliding revenue scale over the next three to five years.
SALEM, Ore. – In a memo sent to the Oregon Lottery Commissioners last week, some of the details surround legal Oregon sports betting came into light.
The state has not yet enacted any new laws approving a regulated industry; however, that isn’t stopping the state from finalizing the bidding process for their online betting platform.
With the mindset of a three-to-five year contract, including a tiered revenue-sharing agreement, the Oregon lottery and SBTech would be partnered for the launch of the industry.
The memo, which was delivered last week, explained how the terms and conditions of the deal have not been officially set, but are expected to be before the end of this month.
As it stands, anywhere from 9 – 11 % of the sports wagering revenue would be granted to SBTech, who was granted the license on a unanimous vote.
The bidding process claimed SBTech to be the leader amongst the other competitors such as Playtech and SG Digital. The main reason for the state choosing SBTech was their ability to offer a “turn-key, sports-betting platform and sportsbook for digital and on-property wagering.”
Though they are a European entity, SBTech has already established its footprint in the American sports betting market. With licenses in Mississippi and New Jersey, the company is already offering its services to state-licensed sportsbooks that are in operation.
“SBTech is consistent with our principles of fairness, integrity, security, and honesty,” said Farshad Allahdadi, the Chief Gaming Operations Officer of the Oregon Lottery, and author of the memo.
With only approval of the contract being awarded to SBTech from the Oregon Lottery, sports betting in Oregon would consist of both online and on location sportsbooks.
“We still have a goal of rolling something out to Oregonians in time for the 2019 NFL season,” said Oregon Lottery spokesman, Matthew Shelby.
At the end of 2018, estimations were reported from the Oregon Lottery that the state could see sports betting revenue reach $100 million after being established. Early market estimations see revenue reaching over $35 million in the first year.
One thing to keep an eye on moving forward is the regulations set forth about collegiate wagering. The state has a history of beef with the NCAA, as their grandfathered-in sports wagering parlay game drew major scrutiny from the league in the 1990s.
Now that sports betting is no longer federally illegal under PASPA, it will be interesting to see if Oregon restricts wagering options in any way.