Research Findings: NFL Projected to Accumulate Massive Earnings with Legalized Sports Gambling
Let's Talk Sports Betting and NFL Revenue
If you've been wondering whether the professional sports leagues, particularly the NFL, will profit from legal sports betting, the answer is a resounding yes!
According to a study by Neilsen, commissioned by the American Gaming Association, the NFL stands to take in a whopping $2.3 billion increase in revenue from legalized sports betting. Approximately $1.8 billion of this windfall will come from increased fan engagement, with the remaining $573 million coming directly from sports betting itself.
The American Gaming Association senior vice president of public affairs, Sara Slane, refers to this financial boost as "a great upside for all stakeholders," noting "massive economic" increases for the professional sports leagues.
To Cash In, Sports Leagues Need Legal Sports Betting to Reach Its Full Potential
In order for the NFL and other professional leagues to reap the benefits outlined in the study, legal sports betting must reach its full potential across the country. Slane emphasizes, "Widely available, legal, regulated sports betting will create huge new revenue opportunities for sports leagues."
As the spread of legal sports betting continues, the AGA is ready to assist states in establishing legal markets that align with best practices. By doing so, all parties can take advantage of the significant financial opportunities that exist, while safeguarding the consumer and maintaining the integrity of the games.
Breaking Down the NFL's Increased Revenue
The study indicates that the NFL will benefit most indirectly through increased consumption and engagement with the league, its contents, and products. In simpler terms, the NFL can expect a boost in viewership, sales of merchandise, and ticketing revenue due to media rights, sponsorship, and merchandising deals. According to the study, this nearly $1.8 billion in new revenue equates to a 13.4% increase for the league. Media rights, which are expected to increase by 17.9 percent, will account for the largest portion of the increase.
Direct Revenue for the NFL and other Pro Leagues
Despite the NFL and other pro leagues not receiving a royalty or "integrity fee" from sportsbooks, they will still reap benefits from additional spending in sports betting operations and data providers. Operators are projected to invest $451 million in advertising in the legal betting states, a significant chunk of which will flow directly to the NFL. Additionally, the study projects $92 million in sponsorship revenue and $30 million in data for the NFL and other professional leagues.
The AGA's Stance on the 'Integrity Fee'
The AGA is vocal in its opposition to the 'integrity fee,' as such a fee would hinder the expansion of sports betting and the associated revenue increases. Slane emphasizes that "if there is a fee for data, for example, then you are hampering the casino operator from offering a favorable product."
Which Leagues Will Benefit Most?
Slane points out that the NFL will likely see the most gains due to its status as the largest of the "Big 4" (NFL, NBA, MLB, and NHL). However, the key focus is not so much which league benefits the most, but rather how the new revenue streams will evolve. All leagues are expected to see initial revenue growth from fan engagement and advertising fees, with additional revenue coming later from in-play betting, according to Slane.
"The next frontier is in-play betting," she states, emphasizing that this feature will help keep fans engaged throughout the game.
The Neilsen study surveyed more than 1,000 adult sports fans, including NFL fans and sports bettors, across the country to gauge how a national, legal sports betting market would impact sports consumption habits. The results suggest that we can look forward to ongoing revenue growth for the professional sports leagues as the market for legalized sports betting expands both in states and in terms of accessibility.
- The NFL, among other professional sports leagues, will significantly increase their revenue from legal sports betting, with a projected gain of $2.3 billion, according to a study by Neilsen.
- Approximately $1.8 billion of the NFL's revenue increase will come from enhanced fan engagement, while the remaining $573 million will directly result from sports betting itself.
- Sara Slane, senior vice president of public affairs at the American Gaming Association, claims this financial boost is a "great upside for all stakeholders," offering massive economic benefits for the professional sports leagues.
- To fully capitalize on this potential revenue, legal sports betting needs to reach its full potential across the nation, as stated by Sara Slane.
- The AGA is prepared to help states establish legal markets in alignment with best practices, ensuring advantageous financial opportunities for all parties and consumer protection.
- The NFL will primarily benefit indirectly through increased consumption and engagement with the league, leading to boosts in viewership, merchandise sales, and ticketing revenue.
- Operators are projected to invest $451 million in advertising in legal betting states, with a substantial portion flowing directly to the NFL.
- Despite not receiving a royalty or "integrity fee" from sportsbooks, the NFL will still profits from additional spending in sports betting operations and data providers, with $92 million in sponsorship revenue and $30 million in data projected for the league.
