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NFL Could Benefit from $2 Billion from Sports Betting

NFL Could Benefit from $2 Billion from Sports BettingAccording to a report by Nielsen Sport, the National Football League could benefit from a revenue increase of over $2 billion dollars.

The report, which was commissioned by the American Gaming Association, stated that revenue stream from legalized sports betting and other regulated markets could result in a massive cash injection.

It has been stated in the report that not all the additional funds generated would be as a result of betting, but that complimentary markets would contribute a large percentage.

Multiple Revenue Streams

The regulation of the market means that increased revenue would come from advertising rights, sponsorship fees and retail sales of associated products. In addition, an increase in supporters both local and across the globe, primarily due to media coverage and marketing, would contribute an additional 13%. An estimated $1.5 billion would also be generated from the increased ticket sales and merchandise purchases.

The report also suggests that the NFL would be able to increase its sponsorship fees by over $4 million, as operators and providers jump on the advertising opportunities the regulation of the industry would provide.

The American Gaming Associations Senior Vice President stated that the NFL would greatly benefit from this revenue increase. The regulation and accompanying revenue increases would help toward the promotion and development of the sport. The report findings show that working in partnership with established sportsbooks can be highly beneficial to the league.

Information Accuracy

To calculate the value that legal sports betting would contribute to the NFL, Nielson interviewed 1000 people. The respondents where a mix of NFL fans, non-supporters, self-identified bettors and non-bettors to gain an accurate view of the potential market.

Nielsen incorporated the potential effect on viewer number the increased coverage would have, the increase in punters once the industry was regulated and consumption habits.

The Final Report

The American Gambling Association has said: the report still needs to be analysed further to gauge accuracy and the actual impact it could have on decision making in the future. However, the increased revenue projections are encouraging especially in the face of the recent Supreme Court Ruling.

Earlier this year the US Supreme Court ruled that individual states might legalize sports betting, as they feel fit. The ramifications of this ruling and the potential for revenue to the state could see the sector benefitting from what up till now has been $150 billion in illegal betting.

The NFL will be able to look forward to a fresh cash injection of amounts too large to ignore.

Source:

https://www.gamblinginsider.com