Sports Gambling Exam 1 with Complete
Solutions
early history of gambling - correct answer-has been characterized by swings between
legalization and criminalization, characterized by geographic movement
John Davis - correct answer-opened the first real casino in the united states in 1828 in
New Orleans
regulation of gambling - correct answer-by 1960s Nevada had an exemplary regulatory
environment, by 1980s last organized crime was eliminated from Vegas... tighter
legislation ensured state would receive proper amt in taxes, improved and protected the
reputation of the industry, allowed Vega stocks grow into the premiere gaming market
benefits of gambling - correct answer-tax revenue and economic development
costs of gambling - correct answer-social costs - suicide rates, bankruptcy, child neglect
and abuse, criminal activity, pathological gambling
appreciation - correct answer-pro team franchises experience ____, growing in value
every year
taxes - correct answer-reduce overall ____ liability, only NFL team that has lost money
in recent years is the lions, Astros worst team but most profitable
depreciation - correct answer-assets such ass equipment and tools have a limited life
expectancy, and the annual decreases in their business value is referred to as _____
(also includes players)
sport and the economy - correct answer-o Conditions that supported rapid expansion:
Industrialization gave leisure time
Good economic environment
Living in relatively concentrated areas
Media outlets
Facilities
sport as a monopoly - correct answer-Sherman Antitrust Laws, used this ruling to
operate as monopolies, team owners formed leagues like the NFL to control how teams
compete, leagues work together to eliminate potential competition, using a draft system
and forcing players to negotiate only with team that drafts them, need or expansion
teams can't join the league without paying fees and owner can't relocate without
, approval from other owners, owners of individual teams can't sell merchandise
associated with their team
collegiate sport as a moneymaker - correct answer-o 2012-13: total estimated
reeveenue from college sport in all divisions of the ncaa was $913M
o Amateur sport has become such a big business for several reasons
Student body enjoys high profile athletic teams for entertainment and recreation
Free publicity
Recruit more applicants through sport publicity
Alumni identify through sport
Alumni will donate more
Revenue can support a full athletic program
o Uconn's achievements
o Tv rights
o Ticket sales, concessions, parking fees, souvenirs, luxury boxes
o Licensing fees for merchandise
o Corporate sponsors
o 4 schools in SEC top 10 led forbes list on valued college football programs, 3 from big
ten, 2 from big 12
o 23/120 division 1 football collegees reported positive net revenue in 2012
o Only women's sport to show a profit is basketball
o 50-60% of football and men's basketball makes profit
o Top 5 schools who profited from their football team in 2013: Texas, Michigan, florida,
Louisiana state, and alabama
indiana university - correct answer-Big Ten #9
NCAA #25
sport - correct answer-institutionalized competitive activity that involves physical skill
and specialized facilities or equipment and is conducted according to rules in order to
determine a winner
sports - correct answer-
how are sport businesses financed - correct answer-
1919 world series - correct answer-the Cincinnati reds beat the chicago white sox in a
disputed set of games. investigations revealed that eight white sox players were guilty
of dumping the series in return for a financial payoff from gamblers who bet heavily on
the reds to win. the players were frustrated by what they considered unfair salaries.
Free agency was not an option back then
college basketball scandal - correct answer-in the early 1950s, investigations revealed
players at eight colleges had fixed some 86 games over a period of 3 years. 32 players
were involved in the point-shaving scandal
Solutions
early history of gambling - correct answer-has been characterized by swings between
legalization and criminalization, characterized by geographic movement
John Davis - correct answer-opened the first real casino in the united states in 1828 in
New Orleans
regulation of gambling - correct answer-by 1960s Nevada had an exemplary regulatory
environment, by 1980s last organized crime was eliminated from Vegas... tighter
legislation ensured state would receive proper amt in taxes, improved and protected the
reputation of the industry, allowed Vega stocks grow into the premiere gaming market
benefits of gambling - correct answer-tax revenue and economic development
costs of gambling - correct answer-social costs - suicide rates, bankruptcy, child neglect
and abuse, criminal activity, pathological gambling
appreciation - correct answer-pro team franchises experience ____, growing in value
every year
taxes - correct answer-reduce overall ____ liability, only NFL team that has lost money
in recent years is the lions, Astros worst team but most profitable
depreciation - correct answer-assets such ass equipment and tools have a limited life
expectancy, and the annual decreases in their business value is referred to as _____
(also includes players)
sport and the economy - correct answer-o Conditions that supported rapid expansion:
Industrialization gave leisure time
Good economic environment
Living in relatively concentrated areas
Media outlets
Facilities
sport as a monopoly - correct answer-Sherman Antitrust Laws, used this ruling to
operate as monopolies, team owners formed leagues like the NFL to control how teams
compete, leagues work together to eliminate potential competition, using a draft system
and forcing players to negotiate only with team that drafts them, need or expansion
teams can't join the league without paying fees and owner can't relocate without
, approval from other owners, owners of individual teams can't sell merchandise
associated with their team
collegiate sport as a moneymaker - correct answer-o 2012-13: total estimated
reeveenue from college sport in all divisions of the ncaa was $913M
o Amateur sport has become such a big business for several reasons
Student body enjoys high profile athletic teams for entertainment and recreation
Free publicity
Recruit more applicants through sport publicity
Alumni identify through sport
Alumni will donate more
Revenue can support a full athletic program
o Uconn's achievements
o Tv rights
o Ticket sales, concessions, parking fees, souvenirs, luxury boxes
o Licensing fees for merchandise
o Corporate sponsors
o 4 schools in SEC top 10 led forbes list on valued college football programs, 3 from big
ten, 2 from big 12
o 23/120 division 1 football collegees reported positive net revenue in 2012
o Only women's sport to show a profit is basketball
o 50-60% of football and men's basketball makes profit
o Top 5 schools who profited from their football team in 2013: Texas, Michigan, florida,
Louisiana state, and alabama
indiana university - correct answer-Big Ten #9
NCAA #25
sport - correct answer-institutionalized competitive activity that involves physical skill
and specialized facilities or equipment and is conducted according to rules in order to
determine a winner
sports - correct answer-
how are sport businesses financed - correct answer-
1919 world series - correct answer-the Cincinnati reds beat the chicago white sox in a
disputed set of games. investigations revealed that eight white sox players were guilty
of dumping the series in return for a financial payoff from gamblers who bet heavily on
the reds to win. the players were frustrated by what they considered unfair salaries.
Free agency was not an option back then
college basketball scandal - correct answer-in the early 1950s, investigations revealed
players at eight colleges had fixed some 86 games over a period of 3 years. 32 players
were involved in the point-shaving scandal
