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NFL betting will influence the revenue models of US sports
24th September, 18:57NFL Betting Will Influence Revenue
For many years, it has been the case that betting and gambling have been non-existent in the National Football League (NFL). But as those with a Borgata online casino promo code will know, it's now more than possible to wager on the outcome of matches and league fluctuations in the NFL - and it's possible to win some cash, too. But what have the effects been on the wider sports industry? What are the changes to revenue models looking like - and how will the NFL change financially as a result? This article will explore the answers to all of these questions.
A quick history: no betting revenue
The irony of the changes is not lost on many people - especially those with long memories. Historically, revenue from betting was the last thing that sports leagues such as the NFL wanted. Until very recently, there was widespread concern that wagering on the outcomes of matches could easily lead to the sport becoming corrupted, or to matches being fixed by players or coaches because they had a bet on behind the scenes. That sort of eventuality did come to pass on several occasions. Back in 1998, for example, four footballers from Northwestern University in Illinois were indicted in a serious case of perjury after question marks over whether they were betting on the outcome of games in which they were participating.
Changes to the law
The Professional and Amateur Sports Protection Act was brought into force in large part to tackle this kind of problem, or to at least reduce its incidence. Other than a handful of very precisely and specifically organized lotteries in some states, only Nevada - which is home to the betting hub Las Vegas - was able to offer sports betting. But this was repealed by the US Supreme Court in 2018, and it's now up to individual states as to whether or not they legalize sports betting. Many, such as New Jersey on the east coast and Oregon in the west, have now done so - meaning it's now possible to bet on sports.
Partnerships on the way
The main way in which NFL revenue models are likely to change is through partnerships between either the league or individual clubs with major betting organizations. There is no set model for how this will happen, but there are some key hallmarks to the partnerships which are already springing up. Usually, partnerships will see the club or league provide some of its key advertising materials, like its logo, to its partner for promotional purposes - in return, of course, for a substantial fee.
It may also provide performance data for players and teams, which the betting organization can then use for odds information. There have already been several such partnerships. In January of this year, for example, it was revealed that the NFL as a whole league would partner with Caesars Entertainment Corporation to create a range of opportunities for fans to join in with betting activities while also providing Caesars with those all-important trademarks. Specifically, it said that Caesars would be able to run ads at the NFL Draft and in other environments to promote its betting products - meaning millions of eyes on the gambling opportunities.
Increased audience engagement
A revenue model change, which is perhaps a little harder to predict than the rise in partnerships, is the possibility that there will be increased audience engagement on the way. Right now, there is a whole group of stakeholders (bettors) who are unable to fully engage with the NFL. They may watch it occasionally, for example, but do not engage on a regular basis because they cannot indulge their other hobby while doing so. Now, though, they can. This is likely in turn to lead to higher audience numbers, which means increased advertising revenue.
The NFL has always had to adapt and change throughout its 99-year history - and the arrival of sports betting is not likely to be an exception. These changes look set to revolutionize the way football fans engage with their preferred sport, and it could well lead to higher audience figures. And with lucrative partnerships also on the horizon, the opportunities to make cash are now around every corner. For the NFL, it may well seem like a new dawn has broken thanks to the end of PASPA.