Oregon Lottery’s sports betting ops to lose $5.3m in first year

Oregon’s state-run sports betting operation is currently generating a larger amount of revenue for its technology partner than it is for the state government.

On Monday, Wilamette Week reported that the Oregon Lottery was preparing to admit publicly what many had suspected for some time; its Scoreboard digital betting product is on pace to lose $5.3m in the the state’s current fiscal year, a far cry from the $6.3m profit that Lottery officials had projected the betting app would bring when it launched the product last October.

Lottery Director Barry Pack revealed figures that show Scoreboard now expects to generate revenue of just $10.8m while expenses will total $16.1m. In January, Pack said the Lottery had “revised downward” its original revenue projections due in part to Scoreboard’s inability to convince bettors who were already wagering with unapproved options to check out the Lottery’s product (which some critics have consistently derided as buggy as hell).

Another problem is the state’s blanket prohibition of wagering on college sports, which differs from many other states that approved betting legislation that only barred wagering on college sports involving a local team. Efforts to convince Oregon legislators to relax this prohibition have so far gone nowhere.