Slightly more than a decade ago (2012), the state of New Jersey was deliberating on legalizing online gambling. The Department of Justice had already allowed Garden State to legalize online casinos.
However, Governor Chris Christie also wanted sports betting to be legalized. The governor faced a lot of criticism from league commissioners for attempting to legalize sports gambling.
Major League Baseball’s Bud Selig went as far as to call gambling evil and said it would destroy sports. In light of that information, it comes as a surprise that almost every Major League Commissioner, franchise owner, and team manager supports the idea of legal sports betting.
How does sports gambling benefit pro sports? How is legal betting changing sports?
Increased Sports Viewership
One of the most surprising benefits of legal sports betting is that it increases the number of sports fans. Gambling is an exciting pastime. But for you to win bets, you need to be an active sports fan.
Most people getting into sports betting are learning they can’t succeed without engaging in sports. And so, they’re investing more time watching sports on TV or attending live events.
A new report by CRG Global shows that the NFL has benefited the most from gambling-related fan engagement. Up to 67% of people who bet on football games watch sports.
The NBA comes second with an increased viewership of 57%. Other leagues with increased fan engagement because of legal sports betting include the MLB, college football, MLS, and NHL.
Both gambling operators and pro-sports benefit from increased fan engagement. More time spent at the best live casinos means increased engagement with live card games and sports bets.
It also means more time spent watching adverts. Sports franchises and leagues make money through advertising sponsorships. They make even more money through special partnerships with betting companies. This is especially true if a league has a high number of viewers in every game.
Boosting Revenues
As mentioned, a rise in the number of sports viewers also translates to higher revenues for leagues and franchises. Take the NFL as an example. Following the legalization of sports betting in 2018, the Major Football League has increased its annual revenues by an average of 12% every year.
Although the league has sponsorships spread across multiple industries, its gambling partnerships are incredibly huge. In 2021, the NFL made a deal close to $1 billion after partnering with three popular American sportsbooks: FanDuel, DraftKings, and Caesars.
Across the Atlantic Ocean, European soccer clubs have been making millions of euros every year through sports betting endorsements. In the UK, seven of the 20 teams in the Premier League have front-of-jersey sponsors. These teams make an average of $72M every year through the deals.
Now, front-of-jersey advertising is just one of the many ways pro sports make money from the betting industry. Gambling companies also pay to advertise on electronic boards, social media, and athlete endorsements.
Improving the Fan Experience
Sports franchises are working with sportsbooks to give fans an in-stadium betting experience. This is something previously never done. In the past, fan experience involved beer, food, and other drinks. If you were lucky, you could appear in a fan camera to have a spotlight in front of millions of people.
In this era of legal sports gambling, the fan experience also includes the ability to bet on your team while within the stadium. Of course, you could also engage with your fellow fans through social networks.
In-stadium betting not only increases fan engagement but it is also profitable for sports companies. That’s why some of the franchises offering this service are expanding the feature to include online betting.
Almost every Major League sports club now has a betting partner. Franchises endorse these bookmakers in exchange for sponsorship money.
Higher Salaries for Athletes and Staff
When you think about it, the money trickling in from gambling sponsorships will help increase salaries for many people involved with pro sports. First, franchises will have the funds to attract high-value athletes and coaches.
Secondly, they can afford to pay talented scouts, team doctors, and other essential staff members. In some leagues, athletes are allowed to make money by endorsing sports teams. This is yet another chance for them to grow their annual income.
Beyond salaries, revenues generated from gambling companies can help teams improve infrastructure. They can upgrade their equipment or spend some of the money marketing their brands.
By hiring talented athletes and staff, and upgrading equipment and facilities, pro sports teams help improve the quality of sports. A sport packed with talent and competitiveness is bound to grow.
Sports Transparency and Integrity
Legal betting thrives on transparency. It requires the cooperation of pro sports to value teams and players accordingly. On the other hand, sports franchises must work with betting companies to maintain the integrity of sports.
A legal betting environment allows investors to value teams and athletes accordingly. That’s because they can acquire the data they need about a team or player openly from sportsbooks and other sources.
Likewise, teams can monitor their athletes to ensure no one is engaging in illegal betting. So far, Major League sports have suspended over a dozen players for violating betting rules.
Before betting became legal, athletes could wager on sports illegally through offshore sportsbooks. And since foreign bookies don’t cooperate with American leagues, it was impossible to detect players violating betting rules.
Increasing Sports’ Popularity
Some sports have witnessed tremendous growth since the legalization of sports betting in 2018. Electronic Sports are a case in point. Back when bookies began offering eSports odds, more people took an interest in the sport.
While some people became eSports fans because of their love for video games, others did so for betting reasons. Esports is a new sport. Bookies haven’t yet perfected creating the best odds for eSports-related competitions.
As a result, people have been watching eSports to beat the odds given by sportsbooks during major competitions. In turn, this has fueled the growth of competitive gaming globally.