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Big revenue increase potential from legalized sports betting in the US

7 Sep 2018

nflUS sports leagues were not particularly happy with the PASPA repeal earlier in 2018. However, a recent Nielsen Sports study endorsed by the American Gaming Association (AGA) indicated that the National Football League (NFL) has much to benefit from this new development in US gambling legislation. Specifically, the study showed that the NFL's annual revenue is bound to go up by $2.3 billion a year thanks to the introduction of a framework that makes legal sports betting accessible to everyone. Further insights shed light on concrete revenue sources for the NFL, such as ad spend and sponsorships of betting operators, as well as revenue generated from media and products associated with the league.

Breakdown of Estimated NFL Revenue

Nielsen Sports highlighted additional potential revenue sources for the NFL. $1.75 billion increase will be attributed to media rights, ticket sales and merchandise revenue due to an expected rise in viewership. On top of that, a great financial boost of $573 million will likely take place due to bookmaker and data providers' spending.

Projections made by the study indicate that bookmakers will invest $451 million on advertising, making the league profit a great deal from that. Sponsorship revenue for the NFL is likely to reach $92 million, while $30 million is an estimate for data provider-generated revenue. Sara Slane, senior vice president of public affairs for AGA, showed great enthusiasm for revenue attributed to legalized sports betting. She also emphasized that A nationwide framework for legalized sports betting could see the NFL generating a revenue increase of approximately $2 billion a year.

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