NFL Could Reap $2.3 Billion Annually Due to Legalized Sports Betting

League to benefit from increased viewership, advertising, media and data rights fees

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Sep 05, 2018, 08:00 ET

WASHINGTON, Sept. 5, 2018 /PRNewswire/ -- The National Football League's (NFL) annual revenue may increase by $2.3 billion a year due to widely available, legal, regulated sports betting, according to a new Nielsen Sports study commissioned by the American Gaming Association (AGA).

The study analyzes the revenue streams that legal sports betting could generate for the NFL: 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 league's media and purchasing of products.

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 Sara Slane, senior vice president of public affairs for the American Gaming Association. "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."

To quantify the value of a legal sports betting market to the NFL, Nielsen Sports surveyed more than 1,000 adult sports fans – including NFL 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.

About the research: 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 an independent measurement organization. Nielsen does not guarantee any results or performance, or endorse, rank, approve or recommend any products or services. All names and marks are the property of their respective owners and no sponsorship, affiliation or endorsement in expressed or implied.

About AGA: The American Gaming Association is the premier national trade group representing the $261 billion U.S. casino industry, which supports 1.8 million jobs nationwide. AGA members include commercial and tribal casino operators, gaming suppliers and other entities affiliated with the gaming industry. It is the mission of the AGA to achieve sound policies and regulations consistent with casino gaming's modern appeal and vast economic contributions.

SOURCE American Gaming Association