The American Gaming Association (AGA) recently commissioned a new Nielsen Sports study involving the National Football League (NFL) and sports betting. The study has found that the annual revenue of the NFL could be increased as much as $2.3 billion due to legalized sports betting in the United States.
Analyzing Potential Revenue Streams:
The study analyzed potential revenue streams for the NFL involving sports betting and how more money could be generated for the league. Revenues were considered via betting operators on advertising connected to the NFL, sponsorship and data, along with revenues that would be generated from an increase in media as well as product purchases.
Nielson Sports reported that an increase in viewership and fan engagement could increase the total annual revenue involving ticket sales, merchandise sales, sponsorships and media rights by just over 13%. This would create around $1.75 billion in additional revenues, just from products alone.
An additional $573 million could be generated by the NFL due to spending by operators of sports betting services along with data providers. Gaming operators will be spending money on advertising, of which the study suggests as much as $451 million would be generated. Sponsorship revenues have been estimated at around $92 million a year.
According to SBCAmericas…
American Gaming Association Senior Vice President of Public Affairs commented: “Legal, regulated sports betting will create huge new revenue opportunities for sports leagues—and the NFL could be the biggest winner of all. Once legal sports betting expands across the country, the NFL could take in more than $2 billion a year, reinforcing how much sports leagues stand to gain from increased viewership and private partnerships with sports betting operators.”
Surveying Sports Fans:
To be able to determine the value of the legalized sports betting market to the National Football League, Nielson Sports decided to survey over 1,000 adult sports fans. The goal was to determine the habits of fans who are non-bettors as well as those who wager casually and on a regular basis to see how the betting patterns would result in an increase of revenues.