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Now let¡¯s grapple with the cold, hard reality of trying to turn a profit. Assume a $1 bill represents each vertical ¡ª one for sports wagering, one for casino gaming. The industry standard hold for online sports wagering is 7%, which means our company will gain one nickel and two pennies for every dollar wagered on a sporting event on our site.

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¡°From a marketing perspective, this is a gateway to lure avid sports fans into becoming more regular gamblers,¡± says Rick Horrow, chairman of Horrow Sports Ventures and a visiting expert on sports business at Harvard Law School. ¡°The idea of presenting free bets and bonuses may cut into revenues in the short term, but it adds to the possibility that people will become gamblers long-term.¡±