Live in New Jersey and want to have a stake in the game? Check out the DraftKings Sportsbook mobile app!
A new study commissioned by the American Gaming Association (AGA) shows Major League Baseball (MLB) and the National Basketball Association (NBA) could see a combined $1.7 billion from legal sports betting.
The Nielsen Sports Study analyzes several different revenue streams including data rights, sponsorships and advertising dollars that legal sports betting could generate for both professional leagues.
Sara Slane, senior vice president of public relations for the AGA said, collectively all four major sports leagues will earn upwards of $4.2 billion from legalized sports betting.
“Legal sports betting will also create substantial opportunities for state and local economies, generating tax revenue, jobs and supporting small businesses across the country.”
Benefits for professional sports
Results found that MLB could see $1.1 billion in increased revenue while the NBA stands to gain $585 million.
According to the study, $952 million for MLB and $452 million for the NBA will come by way of increased fan engagement and viewership boosting the two leagues total annual revenue.
A breakdown of the new Nielsen Sports study shows the following:
- $64 million on MLB advertising by betting operators
- $57 million on NBA advertising by betting operators
- $62 million for MLB from sponsorship revenues
- $78 million for NBA from sponsorship revenues
- $28 million for MLB earned from data rights
- $25 million for NBA earned from data rights
Past findings on sports betting and fandom
In September, Nielsen Sports determined the National Football League (NFL) could see an annual revenue increase of $2.3 billion from legal sports betting.
Analyzing the same streams of revenue, results showed fan engagement and increased viewership could contribute to a 13.4 percent boost in revenue.
Additionally, the National Hockey League (NHL) stands to generate $216 million annually from sports betting.
Big picture for regulated US sports betting
Following the May 14 ruling by the US Supreme Court which found the Professional and Amateur Sports Protection Act to be unconstitutional, several states quickly moved to legalize sports betting.
Earlier this week, New Mexico became the sixth state with legal sports betting. The Tamaya Nation at the Pueblo of Santa Ana launched a sportsbook at their Santa Ana Star Casino and Hotel outside Albuquerque.
Other states looking to pass wagering bill’s next year include:
- Indiana sports betting
- Illinois sports betting
- Iowa sports betting
- Kentucky sports betting
- Ohio sports betting
- District of Columbia.
All of which, could bolster annual revenue for all major sports leagues substantially.
“Working together with the gaming industry will pay dividends for all sports stakeholders,” Slane said.