Major League Baseball believes it's only fair that they should get a cut from wagers placed on the sport following the repeal of a federal ban on sports betting earlier this year.
The casino industry and MLB defended what they believe is their right over the money wagered Wednesday during a panel at the casino industry's top trade show in Las Vegas.
Kenny Gersh, MLB's executive vice president of gaming, told casino executives that a proposed 0.25 percent fee -- which some have dubbed an "integrity fee" -- is essentially a royalty that casino companies should pay if they are going to make money off of the sport.
"The state is going to designate these three, four, five very specific licensed entities: You guys get the right to make money from sports betting," he said. "From a fairness perspective we think, if you are going to designate someone to be able to make money off of what at the end of the day is our sport and our events because if the Yankees weren't playing the Red Sox last night, you are not betting on the Yankees and the Red Sox ... we think we should be involved in that."
A U.S. Supreme Court decision in May allowed states to legalize sports betting. Sportsbooks have since then opened in New Jersey, West Virginia and other states.