Oregon’s state-run sports betting company is currently aiming to boost its revenue for technology partner instead of state govt. Rather than focusing on generating revenue for the state government, the Oregon sports betting operation is ready to create larger amount of revenue for its tech partner.
Far from the expected profit of $6.3 million when the betting app launched the app, which was projected by the Lottery officials, the Oregon Scoreboard digital betting product’s is on pace to lose $5.3 million in the current state’s fiscal years.
Only $10.8 M increased profit for total $16.1 M expenses
In the recent figures revealed by the Lottery operator director Barry Pack, the Scoreboard is now expected to generate revenue of only $10.8 million while the total expenses will be around $16.1 million. Barry in January said that its original revenue projection “revised downward” due to Scoreboard’s inability to convince bettors who were already wagering with unapproved options to check out the Lottery’s product.
Apart from the above disadvantage, another problem is that the state’s blanket prohibition of wagering on college sports, which vary from various other states that approved betting legislation that only barred wagering on college sports involving a local team.
From the beginning the state’s deal with SBTech was controversial. Due to SBTech involvement in international markets, mainly places where betting is not entirely legal, but the fact that the part is always reluctant to make its detail public also plays somehow a negative role.
However, SBTech tried to justify its actions and efforts to prevent the contract’s release by claiming that it includes “trade secrets”, the revelation of which could cause company an “irreparable harm” and an further do “public harm” by discouraging other companies form entering into details with state agencies lest their secrets.
Now, even the though the state between these two is still pending in the courts, the news of Scoreboard’s losing bet on first-year profits will certainly spark interest in determining what secrets are lurking behind that TRO.