American Gaming Association

AGA Projects Legalized Sports Betting to Bring $4.2B in New Revenue to US Leagues

The four largest United States-based pro sports organizations are likely to enjoy a combined $4.2 billion annually from the spread of legalized sports betting across much of the country, according to new research commissioned by the American Gaming Association (AGA) and conducted by The Nielsen Company, LLC’s Nielsen Sports division. The four leagues — the National Football League (NFL), Major League Baseball (MLB), the National Basketball Association (NBA), and the National Hockey League (NHL) — would gain from either the creation of new revenue streams or the expansion of existing streams as the overall impact of legalized sports betting brings an extra layer of consumer awareness and participation to America’s sporting world.

AGA LogoThe new findings come from a study commissioned by the American Gaming Association. According to the AGA, “Nielsen Sports conducted a custom survey of 1,032 U.S. 18+ adults, representative of census age, gender, geography and ethnicity, from May 15 through May 31, 2018.” Nielsen, a famed research name in the US due to its television-ratings history, is an independent measurement organization, though one of widespread renown in the field.

The AGA, of course, is the largest lobbying group representing the United States’ casino-entertainment industry, including dozens of casino groups and third-party service providers to the industry. The AGA represents the $261 billion U.S. casino industry and the estimated 1.8 million jobs nationwide the industry provides.

NFL Would Receive Largest Benefit

Of the four major sports organizations covered within the study, the National Football League would receive the largest overall benefit. The NFL is estimated to gain $2.3 billion in annual revenue as legalized sports wagering expands across the US. That’s more than half of the $4.2 billion total, with the AGA’s and Nielsen’s breakdowns per league as follows:

  • National Football League (NFL) — $2.3 billion
  • Major League Baseball (MLB) — $952 million
  • National Basketball Association (NBA) — $425 million
  • National Hockey League (NHL) — $216 million

The figures are combined from several categories but specifically do not include the controversial “integrity fees” lobbied for by the sports organizations on both the state and federal levels. The AGA is, overall, a staunch opponent of such fees, which the leagues have sought to have inserted into the text of legalization efforts — largely in failure to date.

The new revenue the leagues will likely enjoy can be split into two generalized categories, fan-engagement revenue and gaming-related revenue. The fan-engagement category, according to the study, includes revenue not incurred directly from betting operators, but rather as a result of increased consumption and engagement with the league and its content and products. These include such categories as media rights, sponsorships, merchandise, and ticket sales.

Then there’s the gaming-related revenue, which includes the fees paid directly from betting operators, in the form of sponsorship, advertising, and product fees. The latter could be construed to include voluntary data-rights deals such as that inked recently by the NBA and MGM, but not mandated “integrity fee” levies.

Research Sought to “Quantify” Typical Fans

According to the AGA and Nielsen, an attempt to quantify the potential spending behavior of likely-to-wager fans was a key component of the study. To do this quantification, “Nielsen Sports surveyed more than 1,000 adult sports fans – including NBA and MLB fans – and self-identified sports bettors nationwide to model how a national, legal sports betting market would affect the sports consumption habits of non-bettors, casual bettors and avid bettors, and how this change in consumption would translate to increased revenue.”

“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.”

A nine-page topline of the study that’s heavy on the visual aids and graphic representations is available here.

COMMENTS

Leave a Comment

*

LATEST NEWS

filter by

Dan Katz

8th February 2020 // Gossip, News, Online Poker Action

Phil Galfond Down €750,000 to VeniVidi1993 in Galfond Challenge

Look, I don’t typically make a habit of feeling bad when people of means lose money, but oh man, I am starting to get...

Dan Katz

2nd February 2020 // News, Online Poker Action

PokerStars, partypoker Launching Dueling Bounty Tourney Series on Super Bowl Sunday

The year 2020 is already one-twelfth gone. It seems like just yesterday that Larry David was arguing that it was too...

Haley Hintze

31st January 2020 // Misc, News, Poker Tournaments

Coronavirus Outbreak Forces Postponement of Triton Jeju Series

The Triton Super High Roller Series scheduled for mid-Februry in Jeju, South Korea has become the first poker event...

Dan Katz

31st January 2020 // News, Poker Tournaments

High Roller Series Schedule Released for 2020 WSOP

The Super Bowl (oh wait, I don’t want to get sued… the “BIG GAME”) is this weekend, but once the offseason...

Haley Hintze

31st January 2020 // Industry, Misc, News, Poker Tournaments

Still a Waiting Game for Michigan Online Poker

Would-be Michigan online poker players are dealing with mixed emotions in the wake of news that fully legalized and...

Dan Katz

26th January 2020 // Industry, Misc, News, Op-ed

PokerStars Founder Isai Scheinberg Finally Surrenders to U.S. Authorities

Couldn’t avoid the inevitable If there was an online poker Mount Rushmore, Isai Scheinberg’s face would almost...