Sports betting is up and running in 6 states, and the lobbying battle across the country over how the industry will take shape is still heating up.
Next year is expected to feature significant legislative movement with regards to sports betting. More than a dozen states have began the process of considering the new casino offering, made available thanks to a mid-May Supreme Court ruling.
The casino industry opposes new federal mandates, while the major sports leagues are asking Congress to get involved. According to the casino industry, the major sports leagues will benefit to the tune of $4.2 billion collectively from widely available and legal sports betting. That’s without the so-called integrity fee. The leagues also want the casino industry to be required to purchase their data, but critics point out that such a mandate would create a monopoly.
After previously saying that the National Football League and the National Hockey League will stand to gain $2.3 billion and $216 million, respectively, the American Gaming Association (AGA) recently published new findings that show the annual revenues for Major League Baseball and the National Basketball Association may increase by $1.1 billion and $585 million, respectively.
The projections come from a new Nielsen Sports study commissioned by the AGA.
The study analyzed the revenue streams that legal sports betting could generate as a result of spending from betting operators on advertising, data and sponsorship, and revenue generated as a result of increased consumption of the leagues’ media and products.
According to Nielsen Sports, greater fan engagement could boost the two leagues’ total annual revenue from media rights, sponsorships, merchandise and ticket sales, producing $952 million for MLB and $425 million for the NBA from increased consumption of the leagues’ products.
“The four major sports leagues will earn a collective $4.2 billion from widely available legal sports betting, further proving that working together with the gaming industry will pay dividends for all sports stakeholders,” said Sara Slane, senior vice president of public affairs for the American Gaming Association. “Legal sports betting will also create substantial opportunities for state and local economies, generating tax revenue, jobs and supporting small businesses across the country.”