NFL Pegged to Rake In Big Bucks As Sports Betting Gets More Takers in the US
America’s National Football League has always been generating massive revenues and capturing larger market shares ever since its founding in 1920. In fact, 2017 saw an increase in revenue by 4.9% as sports teams brought in a massive $255 million in yearly earnings each.
Now experts deem that the inclusion of sports betting will have a two-fold positive impact on the NFL. For one, it will increase games viewership in the United States and second, it will take the league’s earnings to phenomenal heights by the end of 2018. A study of current revenue scales conducted by Nielsen Sports and commissioned by the AGA indicate that by the end of 2018, the NFL can bring in a whopping $2.3 billion in yearly earnings.
Sports betting was legalized in May 2018 by the Supreme Court, replacing the earlier Professional and Amateur Sports Protection Act (PASPA) 1992 federal ban, that prohibited sports betting in most states of the United States. This legalization of the sport has now created a well-regulated and highly-efficient market that has a massive opportunity for growth in the country.
With sports betting now freely available in many casinos, the NFL is experiencing a massive surge in the amount of advertising revenue, data earnings and sponsorship revenue. The Nielsen Sports report indicates that a growth of 13.4% may be seen by the end of the year. Combine this with the increase in consumption of other sports-betting related services and the NFL could generate an additional $1.75 billion in annual earnings.
Although legal across the country, sports betting is actively conducted only in 10 states. But this may soon change if New York Sen. Chuck Schumer’s proposed bill for federal regulatory standards for sports betting gets tabled and passed in Parliament. The proposed bill asks for greater data control over non-league data, ensuring no team gets complete control or monopoly over the sports betting industry. Additionally, the bill asks that sports leagues have a say in the type of bets that can be placed on sports. Regulations like these, if passed, will make the sports betting arena safer, more streamlined and fairer for players and leagues alike. It will also encourage more states to actively provide sports betting services to its residents.
As per the Nielsen Sports report, should everything go according to plan and the right measures are set in place, the NFL could see revenues as high as $25 billion by 2027. For now, the game plan is to achieve a more realistic revenue growth of $4-$6 billion by 2023.