AGA predicts $2.3bn boost for NFL through legal sports betting

AGA predicts $2.3bn boost for NFL through legal sports betting

Thursday, September 6, 2018 Posted by News Team
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Sponsorship, data and media rights and NFL media consumption likely to be boosted by increased consumer interest

The American Gaming Association (AGA) has predicted that the National Football League (NFL) could see revenue rise by as much as $2.3bn as a result of regulated sports betting. 

A new study conducted by Nielsen Sports on behalf of the AGA analysed revenue streams that legal sports betting could generate for the NFL, from sources such as advertising and sponsorship spending, and data partnerships. 

It also predicted that additional revenue could be generated through increased consumption of NFL media and purchasing of related products.

Nielsen said that greater fan engagement and viewership could increase revenue from media rights, sponsorship, merchandise and ticket sales by around 13.4%, or $1.75bn.

This would be boosted further by an additional $573m from spending by betting operators and data providers. The survey also predicted that an additional $451m would be spend by betting operators on advertising, with an additional $451m coming from rights fees.

Finally $92m would come from sponsorship revenue, and $30m from data rights, for the $2.3bn total.

"Legal, regulated sports betting will create huge new revenue opportunities for sports leagues – and the NFL could be the biggest winner of all," AGA senior vice president of public affairs Sara Slane said. 

"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."

The findings are based on a survey of 1,032 US citizens aged 18 and above, including NFL fans and sports bettors. The responses were used to model how consumption habits for avid, casual and non-bettors would change.

Before the repeal of the Professional and Amateur Sports Protection Act (PASPA), the NFL had been a vocal opponent of legal sports betting alongside the other professional US sports leagues. However since the repeal it has attempted to take a more conciliatory tone, arguing for a federal regulatory framework and in favour of integrity fees for allowing bets to be taken on its matches. 

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