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— Twenty-four, Twenty-five, Twenty-six.... ?

Monday, April 09, 2007

The Yankees and MLB: Penny wise and Pound foolish…

... and taxing the poor too.

Now, fair warning, I’m getting on my high horse here, and not about the sorry state of the Yankees starting pitchers (plenty of other folks are already taking note, but I’m not that concerned given: its April and the games were apparently played inside a snow globe above the arctic circle).

I was sort of knocking around the office and saw a press release tinkle across the wires titled: “Scientific Games and 12 State Lotteries Launch Major League Baseball Instant Games.”

Now, leaving aside they aren’t launching, they are expanding (after a pilot last year) this abomination, I have to ask? Why aren’t more people coming out and saying “What the hell?”

Let me be upfront, I have nothing against lotteries - they are a fine thing for some people, but they are a “tax” on people who usually can ill afford it - especially the type of lotteries these games will be: instant scratchers.

So, there’s that unsavoriness, but there’s the larger picture to think of as well. Baseball posts Rule 21(d) in every clubhouse. We wag fingers about stories A-Rod and his poker. We shake our heads at what might have been with, and what is, with Pete Rose. Recently departed commissioner Bowie Kuhn “banned” Willie Mays and Mickey Mantle for getting paid to play golf with gamblers. Gambling is not baseball’s Original Sin - that’s baseball’s history pre-1947 - but it is first among the “thou shalt nots” in baseball’s commandments (yes, moreso than PEDs). So why do we not raise outrage about this, about baseball aligning itself with gamblers, albeit state-sanctioned gamblers, but gamblers nonetheless.

Given how fiercely MLB defends its trademarks (ask rotisserie outfits around the country and anyone who is subject to the whims of MLB’s inane blackout rules), why would they hand over the logos of a dozen teams to state lotteries?

It’s like the Spider-Man bases thing - appearances and perceptions be damned, where’s my cash?

Now, I’d like to think the Yankees would be above that sort of nonsense - but then I hear Waldling from the “Lowe’s Broadcast Booth,” dropping a sponsor name every third or fourth pitch, so it’s not that. So I’m past the point of thinking these guys don’t have bills to pay, but they do have a choice in who they take money from.

Would the Yankees and MLB take cash from BetOnSports.com? Harrah’s? Other Casinos? I doubt it.

It just appears unseemly and upsets me. Does that make me an oversensitive jackass, probably, but generally this move cheapens the game, reducing it to level of “Lucky Sevens/Shamrocks” or whatever goofy games these states offer at the counters of convenience stores everywhere.

Putting a team logo or the MLB logo on it comes with an implicit, if not explicit endorsement, and it just seems that a sport with a checkered gambling history wouldn’t want to endorse gambling in any form.

The Yankees are not alone here - New Jersey will put the Yankees, Mets and Phillies on one ticket, California is having separate tickets for each of its teams (Padres, Dodgers, Angels, A’s and Giants), Massachusetts will put the Red Sox on what the company says is a ticket “at the highest price point to date - $10,” Texas will put the ‘Stros and Rangers on their own tickets, and Missouri will let you scratch Cardinal and Royal tickets and the Reds and Indians will share a ticket in Ohio.

What irked me in reading all this, were these line from the press release:

Some teams are even featuring a Lottery Night, and selling lottery tickets in their stadiums throughout the season.

“These games exemplify two major trends in lottery marketing, the use of licensed properties and the adoption—and popularity—of non-cash
prizes,” said Lorne Weil, Chairman and CEO of Scientific Games. “Major League Baseball has great fans, who will appreciate some of the best prizes
around.”

The Major League Baseball instant games will feature prizes like season tickets, special team merchandise not generally available, road trips, pre-
game batting practice, throwing out the first ball, trips to spring training and many other fan-friendly prizes.

So, I’ll be able to get my hot dog and Coke… and a $5 scratcher in between innings?

That may appeal to people - but I suspect it doesn’t appeal to many around here. To me it just seems like taking the money without fully considering what taking the money means. In other words, par for the course.


Reader Comments and Retorts

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   1. Sean McNally Posted: April 09, 2007 at 12:04 PM (#2329883)
For those curious - Here's the release... and there will be a CTR/BTF Preview coming up as well as a major announcement in the near future.
   2. Insert clever/punny handle here (oi!) Posted: April 09, 2007 at 01:00 PM (#2329937)
It's not mentioned in the press release, but the Georgia Lottery has a Braves game as well...

And I agree with everything you said, Sean.
   3. The Jerry Royster Experience Posted: April 09, 2007 at 01:08 PM (#2329950)
So why do we not raise outrage about this, about baseball aligning itself with gamblers, albeit state-sanctioned gamblers, but gamblers nonetheless.

Well, because you don't bet on baseball games through state-run lotteries. I'd bet that MLB would have no problem with marketing deals with casinos if they didn't have sports books.

I have deep philosophical problems with state-sponsored gambling, but that has little or nothing to do with MLB. I also don't appreciate the proliferation of advertisements and sponsorship deals in baseball, but that horse left the barn a long time ago. I don't see a Boston Red Sox scratcher as more egregious than, say, a Boston Red Sox Visa/Mastercard.
   4. The Yankee Clapper Posted: April 09, 2007 at 01:28 PM (#2329981)
I suppose one can make the argument that state lotteries soften society's resistance to other forms of gambling, but that's a judgment for the politicians to make. In any case, these lotteries aren't based on the outcome of any games. Even Pete Rose could play without getting into trouble.

While some regard lotteries as regressive forms of taxation, Thomas Jefferson reportedly thought they were the best tax because they were entirely voluntary.
   5. Steve Treder Posted: April 09, 2007 at 01:36 PM (#2330000)
I have deep philosophical problems with state-sponsored gambling, but that has little or nothing to do with MLB.

Me too.

While some regard lotteries as regressive forms of taxation, Thomas Jefferson reportedly thought they were the best tax because they were entirely voluntary.

While Jefferson was amazingly right about a lot of things, he was entirely wrong about this one. Taxes shouldn't be voluntary, they should be compulsory. And a state-run lottery is a regressive tax of the worst sort. The only way they could make it worse would be for the state to sell heroin as a revenue-raiser, spending millions to aggressively market it, and having it available at every gas station and convenience store.
   6. Shooty misses Bill King Posted: April 09, 2007 at 01:48 PM (#2330025)
While Jefferson was amazingly right about a lot of things, he was entirely wrong about this one. Taxes shouldn't be voluntary, they should be compulsory. And a state-run lottery is a regressive tax of the worst sort. The only way they could make it worse would be for the state to sell heroin as a revenue-raiser, spending millions to aggressively market it, and having it available at every gas station and convenience store.

Naw, the government should only sell drugs when they need to illegally fund "rebel" groups to war against democratically elected governments that don't do what they're told.
   7. Raskolnikov Posted: April 09, 2007 at 01:56 PM (#2330043)
And a state-run lottery is a regressive tax of the worst sort. The only way they could make it worse would be for the state to sell heroin as a revenue-raiser, spending millions to aggressively market it, and having it available at every gas station and convenience store.

Actually, I've always felt that state run lotteries are fine so long as we know that the profits are reserved for progressive causes - funding for low socioeconomic areas, underfunded schools, health care for the uninsured. I'd think of it as "social security" for the poor.

It's when the revenues are pocketed away to unknown places that I think it's wrong.
   8. Steve Treder Posted: April 09, 2007 at 01:57 PM (#2330049)
Naw, the government should only sell drugs when they need to illegally fund "rebel" groups to war against democratically elected governments that don't do what they're told.

I guess that's a lot more reasonable.

How about then if the state pimped hookers as a fund-raiser, marketing their services on TV, radio, and print, and had them standing around in hot pants in front of every gas station and convenience store? More appropriate?
   9. The Jerry Royster Experience Posted: April 09, 2007 at 02:03 PM (#2330059)
I've always felt that state run lotteries are fine so long as we know that the profits are reserved for progressive causes - funding for low socioeconomic areas, underfunded schools, health care for the uninsured. I'd think of it as "social security" for the poor.

The problem for progressives is that lotteries don't actually add any new money for those causes - it simply replaces the traditional revenue stream (taxes) with an alternative revenue stream. the net gain for poor people is zero.

Once the revenue stream is in place, the tax money traditionally earmarked towards those things is either cut off in the form of tax cuts or re-routed to other purposes.
   10. Raskolnikov Posted: April 09, 2007 at 02:04 PM (#2330061)
How about then if the state pimped hookers as a fund-raiser, marketing their services on TV, radio, and print, and had them standing around in hot pants in front of every gas station and convenience store? More appropriate?

I have no problem with this at the technical level. Personally, I would be against it because it's against my set of values, and I'd be embarrassed to have a government which were complicit with such a method of gathering revenue. But that's on the personal level.

However, if there were a nation with a given set of values (say, Amsterdam) who chose to increase government revenues by selling sex, and it weren't against that nation's set of values and norms, I don't find any moral qualms with it.
   11. Steve Treder Posted: April 09, 2007 at 02:04 PM (#2330063)
It's when the revenues are pocketed away to unknown places that I think it's wrong.

That just makes it more wrong. To the extent that lottery funds were to be reserved only for good things, all that does is allow the state to siphon other funds away from them (which has happened in spades in California).

And regardless, having the state spend millions to conduct highly sophisticated marketing campaigns designed to persuade its poorest, least financially-savvy citizens to spend their money in a ridiculously foolish, irresponsible manner is the primary problem with state-sponsored lotteries. It's an example of Undermining the Development of a Stable Middle Class 101.
   12. Steve Treder Posted: April 09, 2007 at 02:11 PM (#2330073)
However, if there were a nation with a given set of values (say, Amsterdam) who chose to increase government revenues by selling sex, and it weren't against that nation's set of values and norms, I don't find any moral qualms with it.

I would, if I were a taxpayer there. That would be stupid way for that government to raise revenue, and a stupid way for that government to manage the issue of prostitution.

I think prostitution, drugs, and sex shouldn't be illegal. But that's a million miles from saying the government should actively engage in those businesses, and assertively market and grow them.
   13. spycake Posted: April 09, 2007 at 02:23 PM (#2330107)
Minnesota has a new Twins lottery game too: link.

And they seem to be advertising it quite extensively during broadcasts. I know the Twins already had some advertising tie-ins with the lottery, as certain "fans of the game" on TV broadcasts are given a bunch of lottery tickets as a prize. ("Woo-hoo! I get to scratch off a bunch of tickets and hope to collect the money you folks paid for these in the first place!")

Unfortunately, it doesn't seem like much of a stretch for either the lotteries or MLB, but it really does seem to cheapen what is generally a fine civic institution in Minnesota.
   14. Ignoratio elenchi Posted: April 09, 2007 at 02:33 PM (#2330140)
However, if there were a nation with a given set of values (say, Amsterdam) who chose to increase government revenues by selling sex, and it weren't against that nation's set of values and norms, I don't find any moral qualms with it.

Well, Amsterdam is a city, not a country. But other than that, I am SO moving there.
   15. Bob Dernier Ressort Posted: April 09, 2007 at 02:49 PM (#2330172)
What I often wonder is how much revenue states get from lotteries anyway. It seems that the impulse behind the revival of lotteries back in the 1970s (was New Jersey first?) was to raise money without taxation, with perhaps a side glance at driving numbers operators out of business. But I think that the lottery industry in America quickly became a for-profit growth operation, with companies like Scientific Games vigorously selling products to states and forking back some of the take. After all the promotion and overhead and everything, is there much of a benefit? Or even if there is a modest benefit, shouldn't "our" cut as citizens be 100%, less some nominal overheard to pay state employees (creating solid civil-service jobs) to run the lotteries? Instead of enriching an increasingly bloated lottery industry?
   16. Srul Itza Posted: April 09, 2007 at 02:52 PM (#2330181)
How about then if the state pimped hookers as a fund-raiser, marketing their services on TV, radio, and print, and had them standing around in hot pants in front of every gas station and convenience store? More appropriate?

I think it is very wrong for the Government to be going into private business and competing with independent businesses. That way lies Socialism.
   17. The Yankee Clapper Posted: April 09, 2007 at 02:55 PM (#2330190)
And a state-run lottery is a regressive tax of the worst sort. The only way they could make it worse would be for the state to sell heroin as a revenue-raiser, spending millions to aggressively market it, and having it available at every gas station and convenience store.

While I'm hardly a lottery proponent, even poor people can make decisions about spending their limited recreational funds on lottery participation without the intervention of the nanny-state.
   18. Sometimes it Rains (sj) Posted: April 09, 2007 at 03:03 PM (#2330211)
the Laissez faire attitude governments have toward credit cards is far more dangerous to America's lower income households than the lottery.

I would write a great big long post about MLB aligning with MBNA.
   19. The Jerry Royster Experience Posted: April 09, 2007 at 03:13 PM (#2330239)
the Laissez faire attitude governments have toward credit cards is far more dangerous to America's lower income households than the lottery.

Agreed, which is why I used Visa/Mastercard as an example. The credit industry does a lot more damage than the lottery does.
   20. Sean McNally Posted: April 09, 2007 at 03:20 PM (#2330255)
I don't disagree Jerry and SJ... but MLB also doesn't have rules forbidding its players from owning credit cards.
   21. bunyon Posted: April 09, 2007 at 03:34 PM (#2330290)
the Laissez faire attitude governments have toward credit cards is far more dangerous to America's lower income households than the lottery.

I would write a great big long post about MLB aligning with MBNA.


The Yankee fan has an excellent point.
   22. The Jerry Royster Experience Posted: April 09, 2007 at 03:49 PM (#2330320)
but MLB also doesn't have rules forbidding its players from owning credit cards.

They don't forbid them playing the lottery, either.
   23. Sean McNally Posted: April 09, 2007 at 04:02 PM (#2330342)
Right, but they do forbid them from gambling in some forms - and presumably discourage it in all forms.

I'm not saying whether the credit card thing is right or wrong... its probably shaky though. What I am saying is this lotto thing stinks.
   24. The Jerry Royster Experience Posted: April 09, 2007 at 04:13 PM (#2330378)
Well, there's a reason that they forbid gambling in some forms, and it's not because they shudder at the moral influence on the kiddies. It's because the game has a history of bookmakers influencing the outcome of games. I fail to see how associating with state-run lotteries is even close to equivalent.
   25. Steve Treder Posted: April 09, 2007 at 04:20 PM (#2330398)
While I'm hardly a lottery proponent, even poor people can make decisions about spending their limited recreational funds on lottery participation without the intervention of the nanny-state.

As well they should. But when the state spends millions to actively encourage them to spend those limited recreational funds on lottery participation, it's intervening, and in a manner which is impossible to sensibly reconcile with the proper role of the state.
   26. Steve Treder Posted: April 09, 2007 at 04:21 PM (#2330406)
the Laissez faire attitude governments have toward credit cards is far more dangerous to America's lower income households than the lottery.

Quite likely true. But that doesn't make the state's role in sponsoring and marketing the lottery any less defensible.
   27. Steve Treder Posted: April 09, 2007 at 04:24 PM (#2330415)
Well, there's a reason that they forbid gambling in some forms, and it's not because they shudder at the moral influence on the kiddies. It's because the game has a history of bookmakers influencing the outcome of games. I fail to see how associating with state-run lotteries is even close to equivalent.

Completely agreed.
   28. Steve Treder Posted: April 09, 2007 at 04:29 PM (#2330426)
But that doesn't make the state's role in sponsoring and marketing the lottery any less defensible.

any more defensible
   29. CrosbyBird Posted: April 09, 2007 at 06:10 PM (#2330534)
But when the state spends millions to actively encourage them to spend those limited recreational funds on lottery participation, it's intervening, and in a manner which is impossible to sensibly reconcile with the proper role of the state.

That's a solid point. I'm not with you on the taxes being compulsory deal, but we're in lockstep on the wrongness of having the government actively encourage people to make terrible financial decisions.
   30. Walt Davis Posted: April 10, 2007 at 06:52 AM (#2330918)
Would the Yankees and MLB take cash from BetOnSports.com? Harrah’s? Other Casinos? I doubt it.

Ummm ... at least 2 years ago, there were casino commercials run on NESN during Red Sox games. Granted, I suppose that money's going to NESN, not the Red Sox directly but ...

and the Padres (I think it was) had a rotating behind the plate ad for an Indian-run casino. Again, I suppose the money there goes to the stadium owners, not the Padres directly but...

I assume both of those are still true.

So I was appalled a couple years ago when I discovered this (the things you learn with extra innings). I've been appalled by lotteries for a long time, MLB's involvement doesn't make me significantly more appalled.
   31. RB in NYC (Now with an Apartment!) Posted: April 10, 2007 at 07:25 AM (#2330924)
Ummm ... at least 2 years ago, there were casino commercials run on NESN during Red Sox games. Granted, I suppose that money's going to NESN, not the Red Sox directly but ...
The Yankees were running Foxwood's ads as well, but I'm pretty sure they don't have a sports book.

Of course, this is all a matter of perspective. Some leagues have very different policies
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