Reaping the benefits of sports betting may take a while, but it will definitely be worth the wait. The latest numbers show that the four major sports league in the United States may reap as much as $4.2 billion in fresh proceedings
No Integrity Fees and $4.2bn in the Bank
When the idea of legalizing sports betting was piloted as part of the raging debate surrounding PASPA and New Jersey’s determination to dismantle the legislation in the U.S. Supreme Court, no-one expected that things can actually look up for the leagues that found themselves most vulnerable.
The four major US sporting organization could now rake in as much as $4.2 billion out of an activity they were very wary about just months ago. According to the American Gaming Association (AGA), the body that advises on what legal course the country should pursue in relation to sports betting, these numbers are only slated to grow should the league start looking for partnerships with the industry’s leaders.
In a more detailed analysis of the future revenue of the leagues, Nielsen Sports and AGA estimate that the Major League Baseball (MLB) will rake in as much as $1.1 billion extra whereas the National Basketball Association (NBA) could be looking at $585 million of untapped revenue.
According to analysts from both institutions, the soaring interest in both leagues, correlating directly to legalized sports betting, will lead to better opportunities to monetize on additional revenue for the leagues. This will come in the form of sponsorships and mostly media rights, which have been known to generate the bulk of revenue along with merchandise and ticket sales.
NLH Is Not on Thin Ice at All
According to the latest figures, the National Hockey League (NHL) could potentially rake in extra $200 million every year, which while short of the other league’s results, is still a notable uptick in its revenue relative to the size of the audience.
The clear leader in this case is the National Football League (NFL) which could potentially soar all the way up with $2.3 billion in extra money. The boon to the four major leagues is immense, but analysts expect that the legalization of sports betting will also have other consequences that will stimulate local economies and bring more in the states’ coffers.
Generating tax and opening new jobs will be part of the windfall that experts foresee for all states that follow up on sports betting and start introducing the necessary infrastructure.
The integrity fees have also been put on the backburner, as it has been communicated to the aforementioned bodies that such measures would be mostly unnecessary as they would not bring to any significant improvement in the overall status of the sports betting industry.
However, New York and Kentucky are now considering imposing the said fees in a bid to boost confidence in the segment and make it an easier sell. In light of this influx of opportunities, leagues have been going out of their way to attract new and promising long-term partners in the face of established gambling companies.