The American Gaming Association on Thursday released the results of two more Nielsen studies, showing how America’s professional sports leagues stand to benefit from legal, regulated sports betting. The latest studies indicate that Major League Baseball will see a revenue increase of $1.106 billion, and the NBA is look at a $585 million bump. Combined with research from previous studies on the NFL and NHL, U.S. professional sports leagues can expect an overall combined revenue boost of $4.23 billion.
The increased revenue won’t come from the “integrity fee” or “royalty” that some of the professional sports leagues have been lobbying for, but rather from increased fan engagement (media rights, sponsorships, merchandise, tickets) and through gaming (TV advertising, sponsorships, data packages).
According to the studies, MLB will net $952 million from increased fan engagement and $154 million from gaming-related revenue. The NBA should see increases of $425 million and $160 million, respectively. Results of previous studies showed that the NFL will see the biggest benefit, an overall increase in revenue of $2.33 billion, and the NHL can expect an increase of $216 million.
Read more Study: MLB, NBA to Yield Combined $1.7 Billion From Legal Sports Betting on SportsHandle.
If there was ever any question about whether or not professional sports leagues would benefit from legal sports betting, it was answered Wednesday.
According to a Neilson study commissioned by the American Gaming Association, the NFL stands to see a $2.3 billion increase in revenue from legalized sports betting. The study projects that the NFL will gain about $1.8 billion in revenue from increased fan engagement, and $573 million directly from sports betting.
American Gaming Association senior vice president of public affairs Sara Slane used phrases like “great upside for all stakeholders” and “massive economic” increases when describing how sports betting would impact the professional sports leagues during a conference call with media on Tuesday.
Legal Sports Betting Must Reach ‘Full Potential’ for NFL and Other Pro Leagues to See Benefits Described in Study.
Where will the money come from? According to the study results, the NFL will benefit the most from indirect means, including “increased consumption and engagement with the league and its contents/products.” In simpler terms, the NFL will get more viewers and sell more gear creating an increased revenue stream through media rights, sponsorship, merchandise and ticket sales. According to the study, the nearly $1.8 billion in new revenue represents a 13.4 increase for the league. The NFL will see the biggest increase in revenue from media rights, which spending is expected to increase by 17.9 percent.
Read the complete post – Study: NFL Will Make Billions From Legal Sports Betting on SportsHandle.