Widespread Sports Betting Should Add Almost $2 Billion Annually Combined For MLB And NBA
A new Nielsen Sports survey commissioned by the American Gaming Association (AGA) takes the position that Major League Baseball and the National Basketball Association may increase their revenues by $1.1 billion and $585 million, respectively, if legalized sports betting becomes widespread throughout the United States.
The analysis was provided as part of a business relationship between Nielsen Sports and the AGA that was also responsible for claiming that legal sports betting may add $2.3 billion to National Football League revenues.
Nielsen Sports focused on revenue that could increase as a result of spending by sports betting operators on advertising, data and sponsorship, as well as revenue that should be enhanced based on increased consumption of the MLB’s and NBA’s media and products. It believes that greater fan engagement and viewership could be responsible for an additional $952 million for MLB and $425 million for the NBA.
In total, the MLB, NBA, NFL and NHL should expect an additional stream of annual revenue in the realm of $4.2 billion, according to Sara Slaine, the AGA Senior Vice President of Public Affairs. This should also trickle down to state and local economies that will be able to generate additional tax revenue and job opportunities.
Of course, it must be noted that the AGA is a trade group that represents the U.S. caino industry and thus there is motivation for tapping Nielsen Sports to conduct this type of study. That said, it makes common sense that the spread of legalized sports betting should enhance viewer interest in sporting events, particularly those that otherwise bear no significance to the average viewer, which should then add interest by brands to drive messages to those consumers and enhance the ability for leagues to leverage larger media rights deals.