Legal betting to lead to $1.7bn boost for NBA and MLB

Legal betting to lead to $1.7bn boost for NBA and MLB

Friday, October 19, 2018 Posted by News Team
Baseball
Four major US sports leagues could collectively earn $4.2bn in additional revenue from legalised betting, AGA claims

The latest American Gaming Association-commissioned study on the impact of legal betting on sports league revenues has concluded that Major League Baseball (MLB) and the National Basketball Association (NBA) could together see revenue increase by $1.7bn. 

The American Gaming Association (AGA) study, conducted by Nielsen Sports, claims that the MLB could see revenue boosted by $1.1bn, while the NBA was likely to enjoy a $585m increase. 

The study, which follows similar research projects focused on the National Football League (NFL) and National Hockey League (NHL), analyses the new revenue streams that legal sports betting could generate for each league. 

It looks at potential spending from betting operators on advertising, data rights and sponsorship agreements, as well as increased consumer consumption of the leagues’ media and products. 

Greater fan engagement alone could boost annual revenue from media rights, sponsorship, merchandise and ticket sales by $952m for the MLB and $425m for the NBA, the AGA said. 

The MLB could generate an additional $154m from betting operator and data provider spending, as well as $64m in advertising spend and $62m from sponsorship deals. It could also earn $28m from data rights. 

The NBA, meanwhile, could generate $160m from operator and data provider spending, alongside $57m from gaming operator advertising, with a further $78m coming from sponsorship and $25m from data rights sales. 

Coupled with the projected $2.3bn revenue increase for the NFL and $216m boost for the NHL, the AGA believes that the four major US sports leagues could earn a collective $4.2bn from widely-available sports betting. 

"The four major sports leagues will earn a collective $4.2bn from widely available legal sports betting, further proving that working together with the gaming industry will pay dividends for all sports stakeholders," AGA senior vice president of public affairs Sara Slane said. 

"Legal sports betting will also create substantial opportunities for state and local economies, generating tax revenue, jobs and supporting small businesses across the country."

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