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AGA’s New Report Promises the NFL Untold Riches for Service AgreementsPublished September 14, 2018 by Lee R
A new report from the US gaming industry organisation trumpets monumental gains for the NFL, with revenue streams from betting remaining the final decision of each state.
Premier US national trade group American Gaming Association represents the $261 billion U.S. casino industry and supports 1.8 million jobs nationwide, bringing together commercial and tribal casino operators, gaming suppliers and other entities affiliated with the gaming industry.
What Does the AGA Do?
The AGA seeks to achieve sound policies and regulations consistent with current regulation landscapes and climate.
To this end, the American Gaming Association conducts studies and presents industry reports periodically about various aspects of gaming in America. The latest report the AGA has conducted is on the impact of gaming revenue on the NFL now that sports betting has been legalized. Released last Wednesday, the study was conducted by Nielsen Sports to assess the full capability of sports betting revenue streams for the American football league.
The study’s key finding predicts that NFL annual revenue has the potential to increase by $2.3bn (£1.78bn/€1.98bn) per year through the availability of regulated US sports betting.
Added revenues would be brought in from the increased spending on advertising, data and sponsorship; and revenue resulting from increased consumption that sports betting would reportedly provide.
First States to Regulate
The first states to offer betting on NFL games after PASPA repeal are New Jersey, Mississippi and West Virginia.
It is important to note that the repeal of PASPA does not mean that all states will offer gambling, but that the federal government no longer forbids states from offering sports betting: it is left to each state to legislate their own sports betting systems and taxation revenue collections.
Nielsen further reports that sports betting could increase fan engagement and viewership, boosting the NFL’s total annual revenue from media rights, sponsorships, merchandise and ticket sales by 13.4%, for a total production in new revenue of $1.75bn.
Further contributors to potential gains include betting operators and data providers, whom are projected to gain some $573m in revenue, while projecting that gaming operators may spend $451m on advertising to increase rights fees by the same amount.
A further $92m in sponsorship revenue and $30m in data is also projected after an ESPN report of an NFL policy that any casino brand that advertises with a team buys official league data.
All About the Benjamins
These gains sound promising for gambling industry professionals, but the extent to which American professional sports leagues are so readily prepared to sign contracts with an industry that was seen to challenge the integrity of the game until PASPA was repealed stands as a still curious though revealing phenomenon.