The National Football League could see its revenue increased by $2.3 billion a year due to wide-scale, regulated sports betting, according to a new Nielsen Sports report commissioned by the gaming industry’s leading trade group, the American Gaming Association.
The gains would mostly stem from increased viewership, a trickle-down effect amid a broader interest in sports tied to real-money wagering, as well as higher spending from betting operators related to advertising, media, data rights and sponsorship fees.
Heightened fan engagement and viewership could boost the NFL’s total annual revenue from media rights, sponsorships, merchandise and ticket sales by 13.4 percent each year, which would produce $1.75 billion in additional revenue from the consumption of its branded products, according to the survey of more than 1,000 U.S. adult sports fans and self-identified sports bettors.
Another $573 million in revenue could be generated each year as betting operators and data providers invest in advertising, sponsorships and data, according to the report.
“Legal, regulated sports betting will create huge new revenue opportunities for sports leagues – and the NFL could be the biggest winner of all,” said Sara Slane, senior vice president of public affairs for the American Gaming Association.
The American Gaming Association released this graphic that summarizes the report’s findings.
SportTechie Takeaway
A few years ago, leagues were unsure about throwing their weight behind sports betting regulation. But strong revenue numbers out of the gate, including in states where sports betting was first legalized, such as in New Jersey and Delaware, have started to solidify the market. As legalization spreads on a state-by-state basis, increased interest in real-money wagering might help to increase overall consumption of league products, including official data resources and media products. Enabling fans to place bets from inside NFL stadiums will also have a trickle-down effect on in-stadium purchases and ticket sales. Last month, DraftKings launched a mobile sportsbook at Metlife Stadium in New Jersey, marking the first NFL game in which fans could place bets from inside a professional sports stadium.