Nielsen Study: Legalized Betting Will Add More Than $4B in Annual Revenue for Four Major U.S. Leagues By Jason Dachman, Chief Editor
Friday, October 19, 2018 - 11:48 am
Print This Story
Story Highlights
According to a new study, annual revenues MLB and the NBA may increase by $1.1 billion and $585 million, respectively, due to widely available, legal, regulated sports betting. The Nielsen Sports study, which was commissioned by the American Gaming Association (AGA), comes the heels of similar Nielsen studies projecting revenue increases of $2.3 billion a year for the NFL and $216 million for the NHL. In total, the four main U.S. sports leagues stand to increase their annual revenues by $4.23 billion, according to the studies.
The respective studies analyze the revenue streams that legal sports betting could generate for the four professional leagues: revenue as a result of spending from betting operators on advertising, data and sponsorship, and revenue generated as a result of increased consumption of the leagues' media and products.
MLB and NBA: Betting To Add $1.1 Billion and $585 Million to Respective Coffers
According to Nielsen Sports, greater fan engagement and viewership could boost the two leagues' total annual revenue from media rights, sponsorships, merchandise and ticket sales, producing $952 million for MLB and $425 million for the NBA from increased consumption of the leagues' products.
The four major sports leagues will earn a collective $4.2 billion from widely available legal sports betting, further proving that working together with the gaming industry will pay dividends for all sports stakeholders, said Sara Slane, SVP of public affairs for the American Gaming Association. Legal sports betting will also create substantial opportunities for state and local economies, generating tax revenue, jobs and supporting small businesses across the country.
The research shows that legal sports betting could help generate additional revenues of $160 million for the NBA and $154 million for MLB as a result of spending by betting operators and data providers. The study projects that gaming operators may spend $64 million on MLB advertising and $57 million on the NBA - which may directly increase the leagues' rights fees by the same amount. Sponsorship revenues from gaming operators would provide an additional $78 million for the NBA and $62 million for MLB. The NBA and MLB are also projected to earn $25 million and $28 million from data rights, respectively.
NFL Stands to Benefit the Most With $2.3 billion a Year Increase
According to Nielsen Sports, greater fan engagement and viewership could boost the NFL's total annual revenue from media rights, sponsorships, merchandise and ticket sales by 13.4 percent, producing $1.75 billion in new revenue from increased consumption of the league's products.
Legal sports betting could help the NFL generate an additional $573 million in revenue as a result of spending by betting operators and data providers. The study projects that gaming operators may spend $451 million on advertising, which will directly increase the league's rights fees by the same amount. An additional $92 million in sponsorship revenue and $30 million in data is also projected for the league and its teams.
Legal, regulated sports betting will create huge new revenue opportunities for sports leagues - and the NFL could be the biggest winner of all, said Slane. Once legal sports betting expands across the country, the NFL could take in more than $2 billion a year, reinforcing how much sports leagues stand to gain from increased viewership and private partnerships with sports betting operators.
NHL: $216 Million in New Revenue on the Way
According to Nielsen Sports, greater fan engagement and viewership could boost the NHL's total annual revenue from media rights, sponsorships, merchandise and ticket sales by 3.5 percent, producing $151 million in new revenue from increased consumption of the league's products.
Legal sports betting could help the NHL generate an additional $65 million in revenue as a result of spending by betting operators and data providers. The study projects that gaming operators may spend $24 million on advertising, which will directly increase the league's rights fees by the same amount. An additional $35 million in sponsorship revenue and $6 million in data is also projected for the league and its teams.
[This] announcement reaffirms that legal, regulated sports betting will create significant new revenue opportunities for sports leagues, said Slane. Much like the NHL's recent successful expansion into Las Vegas, legal sports betting will continue to expand across the country, bringing with it a $216 million opportunity for the league.
To quantify the value of a legal sports betting market to the NHL, Nielsen Sports surveyed more than 1,000 adult sports fans - including NHL fans - and self-identified sports bettors nationwide to model how a national, legal sports betting market would affect the sports consumption habits of non-bettors, casual bettors and avid bettors, and how this change in consumption would translate to increased revenue.
Inside the Research
To quantify the value of a legal sports betting market to the MLB, NBA, NFL, and NHL, Nielsen Sports surveyed more than 1,000 adult sports fans and self-identified sports bettors nationwide to model how a national, legal sports betting market would affect the sports consumption habits of non-bettors, casual bettors and avid bettors, and how this change in consumption would translate to increased revenue.
On behalf of the American Gaming Association, Nielsen Sports conducted a custom survey of 1,032 U.S. 18+ adults, representative of census age, gender, geography and ethnicity, from May 15 through May 31, 2018. Nielsen is a
Most recent headlines
04/08/2024
Dalet, a leading technology and service provider for media-rich organizations, is excited to announce Santiago Solanas as its new Chief Executive Officer (CEO)....
03/06/2024
Dalet, a leading technology and service provider for media-rich organizations, a...
01/06/2024
Busy this week catching up from the Memorial Day holiday? Our TV Tech weekly wrap-up of all our coverage of new products, services and deployments will get you ...
01/06/2024
Young Sherlock, with Guy Ritchie directing and executive producing, is a go at Prime Video. Hero Fiennes Tiffin plays Sherlock. Prime Video calls it the origin...
01/06/2024
The Los Angeles Sparks-Indiana Fever game on Friday featuring the top two WNBA draft picks, Caitlin Clark and Cameron Brink, was the most watched WNBA game on I...
01/06/2024
Lionsgate, which increased its majority stake in 3 Arts Entertainment in January, said it named Brian Weinstein co-CEO of 3 Arts....
01/06/2024
Netflix is launching four video games based on unscripted series this year. They...
01/06/2024
ABC, CBS, NBC and Fox affiliates switched from their regular programming to carry live coverage of the verdicts in the porn star hush-money trial of former Pres...
31/05/2024
A U.S. Marine fires an FIM-92 Stinger missile during a training exercise in Yuma...
31/05/2024
NEW YORK The global body that sets technical standards for digital advertising h...
31/05/2024
In a new analysis of what services might make up a good bundle and what services might benefit the most from bundling, Antenna has released new data that highli...
31/05/2024
Global SVOD revenues will increase by $116.6 billion by 2031, a growth rate of 13.3% per year over the next eight years, according to a new report from MIDiA Re...
31/05/2024
WASHINGTON, D.C. The FCC Media Bureau has announced that effective August 1, 2024 the Commission's TVStudy software will incorporate the most recent U.S. Ce...
31/05/2024
NBCUniversal has announced that its FAST channel TNBC will be rebranding to NBC Comedy Vault on June 1 and that the free streaming service will officially launc...
31/05/2024
PARIS Ateme has announced that the Indonesian public broadcaster TVRI is making the transition to 4K UHD OTT streaming using Ateme technologies....
31/05/2024
The proposal had received support from James Cameron, Andy Serkis, Paul Greengrass, Richard Curtis, and Jeremy Irons
By Matthew Corrigan
Published: May 31, 2...
31/05/2024
According to multiple reports, the new bid from Skydance offers a better deal to Paramounts Class B shareholders, who were said to be unhappy with the companys ...
31/05/2024
The awards recognise women and companies who are stand-out performers, innovators and leaders in the broadcast media technology industry
By Matthew Corrigan
...
31/05/2024
NEW YORK The global body that sets technical standards for digital advertising has expanded the reach of its measurement software development kit to include Sam...
31/05/2024
The rise of digital platforms is fundamentally changing the broadcast newsroom and its investment in technology according to Jon Roberts, director of technology...
31/05/2024
In a new analysis of what services might make up a good bundle and what services might benefit the most from bundling, Antenna has released new data that highli...
31/05/2024
WASHINGTON, D.C. Fifty state broadcasters associations, including the District of Columbia and the Commonwealth of Puerto Rico, have sent a letter to Congressio...
31/05/2024
EVS has announced the appointment of Richard Katz as senior vice president of operations for the North and Latin American (NALA) region. This appointment is par...
31/05/2024
CommScope has announced that it was selected by Casa Systems, Inc. as the highest to acquire Casa's cable business assets and that the two companies have en...
31/05/2024
Robert De Niro won't be receiving the Service to America Leadership Award from the NAB Leadership Foundation after all....
31/05/2024
Viant Technology said it formed an integration with Google Cloud's BigQuery data clean rooms...
31/05/2024
The CW said it will broadcast the 2024 Snoop Dogg Arizona Bowl presented by Gin & Juice by Dre and Snoop Last year, The CW aired the game when it was called Bar...
31/05/2024
Allen Media Group said it made a deal with Amazon's Fire TV Channel that will make content from several of Allen's outlet available via Fire TV and Echo...
31/05/2024
Robert De Niro, announced as the winner of the NAB's Leadership Foundation's Service to America Leadership Award on May 28, will not get the award. The ...
31/05/2024
Comcast Technology Solutions was selected by AccuWeather to create, manage and distribute linear and over-the-top video channels....
31/05/2024
Connected TV is becoming a bigger deal for consumers and advertisers, according to a new report from TVision....
31/05/2024
By Craig Anderton
Let's get right to what this sounds like. It's not quite feedback or tape reverse, it's well, listen to what it does in this blue...
31/05/2024
31 May 2024
VEON discloses April YTD trading update at its AGM Amsterdam, 31 May 2024 07:00 CEST -
VEON April YTD 2024 Highlights
Total revenue of USD 1,278 ...
31/05/2024
31 May 2024
VEON Announces Its New Board, Names Founder Augie Fabela as Chairman Amsterdam, 31 May 2024, 16.00 CET: VEON Ltd. (NASDAQ: VEON, Euronext Amsterdam...
31/05/2024
May 31st, 2024
TRIBECA FESTIVAL AND OPEN AI ANNOUNCE SORA SHORTS'
Five Commissioned Short Films Created Using Sora Debut at 2024 Tribeca Festival
New ...
31/05/2024
In-Venue Technology Wrap-Up: How 4K, IP, and More are Changing the Game Pres Gam...
31/05/2024
UEFA Champions League Final 2024: The host broadcast facts and figures for Real ...
31/05/2024
UEFA Europa Conference League Final 2024: Bringing the broadcast to global TV sc...
31/05/2024
Willow Offers Free 2024 ICC T20 Cricket World Cup Preview via DirecTV, Verizon, ...
31/05/2024
Women's College World Series: ESPN Brings Live Drone, Two-Point Cabled, and ...
31/05/2024
SVG College Summit Brings Video-Production Industry Together in Atlanta in the M...
31/05/2024
UEFA Champions League Final 2024: CBS Sports' UCL Today Studio Show Is Pitch...
31/05/2024
Back to All News
Master of the House' Unveils a Scandalous Tale of Power and Greed on July 18
Entertainment
31 May 2024
GlobalThailand
Link copied to ...
31/05/2024
Back to All News
JEEtu Bhaiya is Back: Kota Factory' Season 3 Arrives on Netflix June 20
Entertainment
31 May 2024
GlobalIndia
Link copied to clipboar...
31/05/2024
Facebook
Twitter
LinkedIn
With around 9,000 employees, Ground Transportation Systems is a global leader in Rail Signaling and Train Control Systems, Telec...
31/05/2024
RT 2FM is the home of music this summer, entertaining listeners across the day and night, with the best music, chat and interviews providing the soundtrack to ...
31/05/2024
After the 2008 financial crisis and increased risk-management regulations that f...
31/05/2024
RT Supporting the Arts: What's On this June
Watch our promo: RT Supporting the Arts | What's on YouTube
This June, RT is delighted to support Lim...
30/05/2024
When to Upgrade Software or Firmware This post is from our blog and news archive. The information may be out of date. Please contact us for further information ...
Nielsen Study: Legalized Betting Will Add More Than $4B in Annual Revenue for Four Major U.S. Leagues By Jason Dachman, Chief Editor 
