NFL Could Make Over $2bn After Legalisation of Sports Betting
September 14, 2018
Research commissioned by the American Gaming Association (AGA) suggests that following the legalisation of sports betting in the US this May, the NFL’s annual revenue could be elevated by $2.3Bn.
The study performed an in-depth analysis of the various sources of revenue that the NFL could generate from a widely available sports betting market in the US. Contributing factors to the multi-billion dollar windfall include partnerships, data and sponsorship and purchasing of franchised products, as well as revenue generated through advertising as a result of more consumption of the league’s media as sports fans engage more with the games they love to check on the status of their bets.
However the AGA’s senior vice president of public affairs Sara Slane believes that $2.3bn is quite a tempered estimate.
“So much time has been spent on talk over integrity fees,” said Slane. “We think these numbers are conservative and show that the league is frankly tripping over dollars to pick up pennies.”
According to industry analysts at Nielsen Sports, the American league’s total annual revenue from media rights, merchandising, sponsorships and ticket sales are already rising with a significant increase of 13.4% to $1.75bn. This is due to greater fan engagement and viewership.
Moreover, the report also supposes that legalised sports betting could see the NFL generate an extra $573m in revenue from spending by data providers and betting operators.
In an effort to quantify the newly legalised sports betting market’s value to the NFL, Nielsen Sports surveyed over 1,000 adult NFL fans and other sports fans as well as self-identified sports bettors all over the world.
This allowed them to form a model for how a legal national sports betting market would affect the sports consumption habits of not only casual and avid sports bettors but non-gamblers too, to ascertain how the change in sports media consumption would translate to increased revenue.