There is no doubt that legalizing sports betting is a good thing and the American Gaming Association has the facts to show it.
AGA announced the results of a research on the topic, ordered by Nielsen Sports, in a statement to the press.
The research reports that the recent expansion of legal wagering like NJ sports betting will lead to a combined income growth of $1.7 billion for NBA and MLB
If we add the other 2 major sports leagues – NHL and NFL, the annual revenue rise will be even bigger.
AGA’s vice president of public affairs, Sara Slane stated that NBA, MLB, NHL, NFL will collect a total of $4.2 billion from the increased availability of regulated sports betting. This clearly demonstrates that legalizing sports wagers across more states, like the recent expansion of NJ sports betting, will generate a solid profit for all interested parties.
What’s even more important – it will produce significant advantages for the economy, such as creating new jobs opportunities, collecting more money from taxes and helping small businesses development.
About The Study On NBA, MLB and Legal Wagers Like NJ Sports Betting
More than 1,000 people over 18 years old participated in the study commissioned by Nielsen Sports. It was held among sports fans аnd bettors all over the country in May this year. Its goal was to determine how the legislation of sports betting would affect the behavior of 3 groups of people – non-players, casual players and devoted bettors. The study researched if they’ll play more often and the possible change in sports betting revenue.
According to the survey, MLB’s income might grow with more than $1 billion per year. At the same time, NBA’s annual revenue will improve with $585 million, as it’s аlready under regulation in more states. To recall, NJ sports betting on NBA games became legal earlier this year.
The research analyzed the amount of money accumulated from regulated sports wagering. Elements taken into consideration included total revenue from taxes and merchandise, sponsorship, data, and advertising costs,
The Role of Fan Commitment In The Major Sports Leagues
Nielsen Sports’ study proved that legal sports betting will increase the overall audience and the level of fan commitment. Тhis will increase the revenue of both major sports leagues. MLB can earn about $952 million and NBA – $425 from selling branded goods, media rights and sponsorships.
Possible profits from legislated sports betting, revealed by the research:
- $3.28 billion in revenue from game ticket sales, sponsorship, media rights, merchandise, and branded goods
- $596 million in revenue from TV commercials of gaming services
- $267 million in revenue from gaming services’ sponsorship
- $89 million in revenue from data and video
Research Uncovers Past Discoveries On Legal Sports Betting
Тhis isn’t the first study commissioned by Nielsen Sports. AGA has released projections on the revenue of NHL and NFL. According to them, thanks to legal sports betting NHL’s revenue can grow to $216 million and NFL will harvest up to $2.3 billion.
The latest discoveries contribute to the AGA’s reasoning that that major sports leagues will only benefit from regulated sports betting. MLB can reap $154 million from gaming operators and data providers and NBA can harvest even more – around $160 million.
According to the study, sponsorship revenues will bring $78 million for the NBA and $62 million for the MLB. Betting operators will spend $57 million for the NBA and around $64 million for the MLB оn advertising alone. The two major sports leagues combined will gain $53 million from data rights.