Brown University’s Sports Betting Initiative Falls Short of Projections
Brown University’s ambitious venture into sports betting has not met expectations, leading to significant financial shortfalls. The initiative, launched with the aim of generating substantial revenue, has instead resulted in underperformance and budgetary challenges.
In 2018, the Rhode Island government projected that sports betting would generate $23.5 million in its first year. However, the actual revenue was approximately $900,000, leaving a $20 million gap in the fiscal year and a potential $20 million shortfall in the following year’s budget. (golocalprov.com)
Critics have pointed out fundamental flaws in the state’s projections. The American Gaming Association (AGA) highlighted that Rhode Island’s estimates were based on a fully mature market, which typically takes 3 to 5 years to stabilize, rather than a startup initiative. Additionally, the AGA noted that the state’s projections were based on outdated data from 2018, while more recent estimates from 2021 were available. (golocalprov.com)
Former bookmakers have also criticized the initiative. One individual, referred to as "Carmine," stated that the state’s numbers were "fraudulent" and that Rhode Island would have to "win more than a million a week—never lose a bet to get to their projections." (golocalprov.com)
The underperformance of the sports betting program has raised questions about the accuracy of revenue projections and the effectiveness of the state’s implementation strategy. As the program continues to operate, stakeholders are closely monitoring its financial impact and considering adjustments to align with more realistic expectations.
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