The U.S. National Hockey League (NHL) may stand to turn a tidy profit on the legalization of sports betting, the American Gaming Association (AGA) estimates. According to preliminary estimates the figure could reach $216 million in annual proceedings.
The Future of NHL May Be in Sports Betting
Based on a Nielsen Sports study commissioned by the American Gaming Association (AGA), the league is poised to benefit from the May’s repeal of the Professional and Amateur Sports Protection Act of 1992 (PASPA). At first blush, $65 million are expected to come in NHL’s coffers.
The first substantial chunk of extra revenue will come directly from bookmaker operations and data providers. There will be a number of other segments that will contribute to the overall flow of funds towards the NHL. Not least of all, the league will benefit from TV advertising and other data-driven revenue.
A more accurate estimate of the future changes in the NHL project the overall revenue to expand to ca $4.42 billion yearly, constituting a 13% increase over the present. $4.27 billion. Nielsen also reached out to over 1,000 sports fans and bettors to garner a better understanding of how the community envisaged the changes in the sector will affect the NHL in itself. Quite a few predictions have appeared throughout the years, including the August infographics published in Forbes.
Meanwhile, teams are also becoming cognizant that seeking closer ties with bookmakers and gambling operators may yield strong dividends for teams. The Las Vegas Golden Knights and the New Jersey Devils have already been working on similar partnerships.
Reaping the Rewards
Initially pushing for an “integrity fee”, leagues are finally acknowledging that strong-arming money out of bookmakers will not work. Instead, there must be some common middle-ground, which will allow parties on both end of the spectrum to benefit in full.
Now that the idea of an integrity fee has been scrapped, the NHL is looking into ways to monetize on the newly-created channels. Betting is slated to expand further as more casinos continue to submit applications for running dedicated sports books.
At the same time, leagues are trying to strike partnerships with bookmakers. However, in the absence of federal legislation, it means that the industry will be segmented and broken down to a slew of different regulatory norms per state basis.
The shadow of lurking dangerous regulation is even more pronounced now that AGA had to send representatives to a special Committee which purpose was to determine whether a federal regulation is required to better oversee the segment.
Re-introduction of laws that try to bring sports betting under the same roof may prove restrictive as it would require an enormous cross-state effort. Not to mention that local lawmakers may be loath to actually accept legal provisos that favor other states.
It’s in this context that the NHL expects to generate its 13% increase in net revenue occasioned by the spreading of sports betting.
As more opportunities rear their heads to participating teams, business and athletic organizations are looking for the best possible way to advance their revenue streams and build sustainably for the future.