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The Indicator

Is gambling the reason we have pro sports?

9 min episode · 2 min read
·
David Bicchino

Episode

9 min

Read time

2 min

Topics

Relationships, Investing, Fundraising & VC

AI-Generated Summary

Key Takeaways

  • Origins of fan engagement: Early baseball crowds in Manhattan wagered nickkel-by-pitch bets on individual at-bats — the same mechanic DraftKings now calls "in-game betting." The MLB's official historian identifies gambling as one of three essential ingredients, alongside statistics and publicity, for a sport to scale professionally.
  • Gambling drives attendance economics: Bettors historically bought more tickets and stayed at games longer than non-bettors, making them the most valuable early customers. This financial dynamic gave leagues a commercial foundation before broadcast rights or merchandise revenue existed as viable income streams.
  • "Integrity" as franchise valuation language: League executives historically opposed gambling not on moral grounds but financial ones — fixed games reduce fan interest, which depresses franchise values. Bicchino reframes "protecting integrity" as protecting asset prices, a distinction useful for evaluating modern league-sportsbook partnership decisions.
  • Scale of current market: US sports betting revenue reached $17 billion in 2025, up 23% year-over-year. Roughly 35% of Division I men's basketball players report social media harassment tied to betting outcomes, signaling measurable player welfare costs alongside revenue growth.

What It Covers

Sport management professor David Bicchino, author of *Over Under*, argues that gambling didn't grow from American sports — professional baseball, football, and basketball emerged specifically because spectators placed bets, creating financial incentive to attend games.

Key Questions Answered

  • Origins of fan engagement: Early baseball crowds in Manhattan wagered nickkel-by-pitch bets on individual at-bats — the same mechanic DraftKings now calls "in-game betting." The MLB's official historian identifies gambling as one of three essential ingredients, alongside statistics and publicity, for a sport to scale professionally.
  • Gambling drives attendance economics: Bettors historically bought more tickets and stayed at games longer than non-bettors, making them the most valuable early customers. This financial dynamic gave leagues a commercial foundation before broadcast rights or merchandise revenue existed as viable income streams.
  • "Integrity" as franchise valuation language: League executives historically opposed gambling not on moral grounds but financial ones — fixed games reduce fan interest, which depresses franchise values. Bicchino reframes "protecting integrity" as protecting asset prices, a distinction useful for evaluating modern league-sportsbook partnership decisions.
  • Scale of current market: US sports betting revenue reached $17 billion in 2025, up 23% year-over-year. Roughly 35% of Division I men's basketball players report social media harassment tied to betting outcomes, signaling measurable player welfare costs alongside revenue growth.

Notable Moment

Bicchino contends that multiple game-fixing scandals since 2018 have produced zero measurable decline in sports popularity, suggesting the long-feared link between corruption and fan abandonment may no longer hold in the current media environment.

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Books, tools, and gear mentioned in this episode

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Books

  • Over UnderBy guest

    by David Bicchino

    Sport management professor David Bicchino, author of *Over Under*, argues that gambling didn't grow from American sports — professional baseball, football, and basketball emerged specifically because spectators placed bets.

Tools

  • by DraftKings

    Early baseball crowds in Manhattan wagered nickkel-by-pitch bets on individual at-bats — the same mechanic DraftKings now calls "in-game betting."

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