Oregon officially joined the list of states with legal sports betting back in August of 2019. A month later, the first sportsbook in the state officially opened at the Chinook Winds tribal gaming facility. While Chinook Winds is currently the only tribal casino with a physical sportsbook, legal sports betting is available statewide via one mobile app. The Oregon Lottery operates the Scoreboard app, the state’s only legal online sportsbook, which launched in October of 2019.
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How Sports Betting Became Legal in Oregon
Oregon was one of the four states (Delaware, Nevada and Montana) that were exempt from the PASPA decision back in 1992. The state had a parlay form of sports betting, called Sports Action, available from 1989 until 2007 that the Oregon Lottery offered. In 2007, Oregon stopped all state-regulated sports betting after the NCAA threatened to withhold championship sports events from taking place in the state.
After the PASPA ruling in 2018 that gave states the power to decide on whether or not to legalize sports betting, Oregon started to bring sports betting back. As sports betting began to grow in popularity across the country, Oregon followed suit. The first, and currently only, retail sportsbook opened at Chinook Winds Casino Resort in August of 2019. Just two months later, the Oregon Lottery launched the state’s only legal and regulated mobile sportsbook called Scoreboard.
Sports betting was technically never “illegal” in Oregon. However, once the PASPA ruling in 2018 happened and sports betting came out of the dark, Oregon went back to embracing the previously taboo version of gambling.
Oregon Lottery and SBTech
The Oregon Lottery chose SBTech as its partner to help operate the Scoreboard sports betting app. With the Oregon Lottery having a monopoly over the mobile sports betting market in the state, SBTech was granted a very coveted partnership. However, Oregon ended up shooting itself in the foot with the contract they agreed to with SBTech.
According to Willameete Week, the state of Oregon is actually losing money thanks to their contract with SBTech. It turns out, the state is losing over half of the revenue they gain to their operators. To make matters worse, Oregon is already invested in a multi-year contract with SBTech, meaning this financial nightmare isn’t going to end any time soon.
Oregon agreed to a very bad contract with SBTech. The Oregon Lottery originally said that SBTech was receiving 9 to 11 percent of revenue from net profits on sports betting. After three years, that number would increase to 12 percent. However, it turns out that the number was a little higher than what the Lottery revealed.
After the release of the low profit margins, the public began to question what exactly the contract with SBTech entailed. After requests from the Oregon Lottery to release the details of the contract, SBTech began to fight back. SBTech filed a lawsuit due to confidentiality reasons in an effort for them to conceal specific trade secrets that they didn’t want their competitors to know about. In January, SBTech attempted to sue the Oregon Lottery because the lottery was going to release the contract details to the public.
SBTech originally released what was essentially a censored version of the contract with the Oregon Lottery. However, the courts decided to force SBTech to release the full original contract and its documents in full. Once that happened, the public finally saw just how bad this contract between the Oregon Lottery and SBTech really was.
What Was Really in the Contract Between SBTech and the Oregon Lottery?
SBTech stands to gain more from the contract with the Oregon Lottery than the lottery itself does. The lack of profits that Oregon has been seeing from sports betting was finally realized by the public when the full contract between SBTech and the Oregon Lottery was finally released.
That 9 to 11 percent of sports betting revenue that the Lottery claimed SBTech was receiving turned out to be 16 percent with a jump to 17% after three years. Not only that but SBTech also receives a minimum payment of $300,000 per month until April 2020. Then, that payment will jump to $350,000. All of this falls under what the contract calls “Managed Service Fees”.
With all of the combined fees, SBTech stands to gain up to 29 percent of profits with an extra $350,000 a month in bonus payments. Add those fees in with the rest of the fees associated with the Scoreboard app and the Oregon Lottery is losing as much as 51 percent to SBTech and other companies. That means that Oregon stands to make less than half of the revenue it actually earns from sports betting during this contract. Half of the $6 million in revenue has been lost in payments in the five months that the Scoreboard app has been operational.
To make matters worse, SBTech was granted the lone contract with the Oregon Lottery to operate its sportsbook back in May of 2019. SBTech won the contract despite some backlash. Some believed that the company shouldn’t have even been allowed to apply for a contract due to their illegal operations in some countries where gambling is banned. However, even after an investigation by the Oregon Lottery in which they claim they couldn’t find anything worthy of a disqualification, they still chose to partner with SBTech to operate their lone sportsbook. Despite concerns from other parties, the Oregon Lottery still chose a questionable operator and they, as well as the state of Oregon as a whole, are now paying for it financially.
The Scoreboard Sports Betting App
The Scoreboard is Oregon’s lone mobile sports betting app. The app is available on both Android and iOS. Altogether, the Scoreboard is a solid sportsbook that has everything that a good mobile sportsbook needs.
When it comes to funding your account, Scoreboard allows for both credit cards and online banking deposits, two of the most popular methods. There is even a Play Plus option for those who have or wish to create a Play Plus account. When it comes to withdrawing your money, you can withdraw either through online banking or Play Plus.
The Scoreboard app also has an excellent selection of betting options for its customers. All of the common sporting events are there to bet on but there are also some smaller niche sports available too. Some sports that you will find at the Scoreboard that you may not find at some other books across the country include Snooker, Handball, Table Tennis, Cycling and Volleyball.
Tribal Sports Betting in Oregon
Under compacts with the state of Oregon, tribes are the only ones that are allowed to offer casino gaming. They are also allowed to provide any type of gaming that is available elsewhere in the state and that includes sports betting. Currently, Chinook Winds is the only casino that is offering sports betting in Oregon. Other tribal casinos in Oregon that can offer sports betting include:
– Indian Head Casino
– Kla-Mo-Ya Casino
– Old Camp Casino
– Seven Feathers Hotel & Casino Resort
– Spirit Mountain Casino
– The Mill Casino & Hotel
– Three Rivers Casino – Florence
– Three Rivers Casino – Coos Bay
– Wildhorse Resort & Casino
Oregon Sports Betting FAQ
1. Will sports betting be legal at all lottery retailers across the state?
There is no definitive yes or no if lottery retailers will offer sports betting. However, some form of sports betting will more than likely be offered at some lottery retailers statewide. This could include thousands of convenience stores around the state.
2. Is Scoreboard the only legal mobile sportsbook available in Oregon?
Yes. The Oregon Lottery is the only one that is allowed to offer legal and regulated sports betting via a mobile sportsbook. Operators such as FanDuel and DraftKings are not allowed to operate mobile sportsbooks in the state under the current law.
3. What tribal casinos can I bet at?
As of March 26th, 2020, Chinook Winds is the only tribal casino that has a sportsbook available. However, more tribal casinos are expected to join in soon. As many as 10 tribal sportsbooks could be located statewide if they all decide to open a sportsbook.
4. Who oversees sports betting in Oregon?
The Oregon Lottery in charge of overseeing sports betting in the state. Their duties include oversight of the sports betting contract with SBTech and the Scoreboard app, the state’s only legal mobile sports betting app. More info can be found at the Oregon Lottery website.
5. Do I have to be from Oregon to bet on the Scoreboard?
No. However, you do have to be located within Oregon state lines before any wager can be placed. An account can be created outside of Oregon state lines. Interested users can also access the Scoreboard from anywhere without creating an account.
6. When did legal sports betting begin in Oregon?
Sports betting actually began in Oregon back in 1989. When PASPA passed in 1992, Oregon was one of the few states to be exempt from the ruling. Sports betting ended in Oregon in 2005 before coming back in 2019 when the Scoreboard betting app was launched.
7. What sports can I bet on in Oregon?
A full list of the sports available to bet on can be found on the Scoreboard app. Betting on collegiate sports is currently not allowed. It’s not just local collegiate teams that you can’t bet on, there is no betting on any collegiate sporting events allowed in Oregon.
8. Can anyone apply for a sports betting license in Oregon?
No. At this time nobody can apply for a sports betting license in Oregon. Sports betting is already allowed at tribal casinos via the state compacts. As for lottery retailers, they will not need licensing as they are already allowed to offer lottery products.
9. Will my earnings on the Scoreboard be taxed?
The Lottery will withhold 8% state taxes for any Net Win greater than or equal to $1,500. 24% Federal taxes will be withheld for any Net Win greater than $5000. A W2G will be provided for any Net Win greater than or equal to $600 and at least 300 times the amount of the bet or if the Net Win is greater than $5,000.
10. Why don’t I see the Oregon Lottery Scoreboard app in the Google Play store?
Under its current terms and conditions, the Google Play store does not host gambling apps. You can still download the Android version of the Scoreboard app directly from the Scoreboard website, or at https://sports.oregonlottery.org/android/.
