US sport could be about to enter an era of growth, thanks to increased sponsorship and higher value media rights resulting from the newly legal sports betting market, according to a new report.
The research was conducted by Pricewaterhousecoopers and concludes that increased revenue will be derived from a range of factors including directly through gambling, and indirectly through uniform rights, in-venue signage and naming rights.
According to the report, the total value of US sports betting will rise to $80.3 billion by 2022, while at the same time, the sponsorship value and media rights value of the main US leagues will also grow significantly. Media rights in particular is set to remain the biggest asset for US sports, with an annual growth forecast of 4.5 percent, which is larger than any other factor.
The evidence gathered by Pricewaterhousecoopers indicated that the liberalisation of sports betting in the US as a result of the May 2018 Supreme Court decision, will result in growing levels of fan engagement of up to 13.4%, with the NFL in particular set to benefit. The report suggests that sports betting could benefit the NFL by as much as $2.326 billion.
In September, the NFL eased its long-standing policies on casino advertising and now permits sponsorship and advertising from casinos that provide sports betting. There are still restrictions in place, which prevent casinos that run sportsbooks from mentioning the sportsbook in their NFL advertising, and revenue sharing between sportsbooks and teams is not permitted.
But the new rules do establish the principle of accepting new sources of revenue from sports betting companies, and this is likely to be the beginning of a trend as US leagues develop their understanding of the revenue opportunities that are available.
Andie Hughes is a UK-based freelance betting and gambling writer with over a decade of experience in the industry, having written for Betfair, ESPN, Boylesports, Sporting Life and various other popular betting sites. Contact Andie at firstname.lastname@example.org.