The NFL is positioned for the biggest gambling gains of the four major U.S. leagues, which could see a combined $4.2 billion in additional revenue every year.
In a series of reports commissioned by the American Gaming Association and conducted by Nielsen Sports, the NFL has arisen as the clear winner. Increased viewership tied to real-money wagering and higher spending from betting operators on advertising, media, data rights, and sponsorship fees is expected to significantly boost revenue.
The NFL is projected to make as much as $2.3 billion annually from those sources, while the NBA and MLB are expected to make a combined $1.7 billion the NHL could see only $216 million, according to the AGA, the industry’s largest trade association.
“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, AGA’s senior vice president of public affairs.
The studies, which concluded this week with a combined report on the NBA and MLB, have analyzed the revenue streams that legal sports betting could generate for the U.S.’s top four professional leagues. The NFL and NHL reports were released earlier this fall.
For the NBA and MLB, most of the gains are expected to come from a boost in fan engagement and viewership, which would increase both leagues’ top-line growth to the tune of $425 million and $952 million, respectively.
Legal sports betting could further generate revenues of $160 million for the NBA and $154 million for MLB as a result of spending by betting operators and data providers, according to the report.
Nielsen Sports surveyed more than 1,000 adult sports fans for each study in an attempt to get a read on how their sports consumption might change in light of legalized betting.
SportTechie Takeaway
Both MLB and the NBA have been proponents of legalized sports betting. The NBA recently struck a multi-year deal with Vegas-based MGM Resorts International that makes the casino operator the “official gaming partner” of the NBA and WNBA. However, despite the hype surrounding legalized sports betting after the Supreme Court greenlighted it earlier this year, these ambitious revenue projections will need time to be reached. Only a handful of states have actually legalized sports gambling so far, and regulations designed to ensure the integrity of sports are still being hammered out.