WASHINGTON, Oct. 2, 2018 /PRNewswire/ -- The National Hockey League's (NHL) annual revenue may increase by $216 million annually due to widely available, legal, regulated sports betting, according to a new Nielsen Sports study commissioned by the American Gaming Association (AGA).
The study analyzes the revenue streams that legal sports betting could generate for the NHL: revenue as a result of spending from betting operators on advertising, data and sponsorship, and revenue generated as a result of increased consumption of the league's media and products.
According to Nielsen Sports, greater fan engagement and viewership could boost the NHL's total annual revenue from media rights, sponsorships, merchandise and ticket sales by 3.5 percent, producing $151 million in new revenue from increased consumption of the league's products.
Legal sports betting could help the NHL generate an additional $65 million in revenue as a result of spending by betting operators and data providers. The study projects that gaming operators may spend $24 million on advertising, which will directly increase the league's rights fees by the same amount. An additional $35 million in sponsorship revenue and $6 million in data is also projected for the league and its teams.
"Today's announcement reaffirms that legal, regulated sports betting will create significant new revenue opportunities for sports leagues," said Sara Slane, senior vice president of public affairs for the American Gaming Association. "Much like the NHL's recent successful expansion into Las Vegas, legal sports betting will continue to expand across the country, bringing with it a $216 million opportunity for the league."
To quantify the value of a legal sports betting market to the NHL, Nielsen Sports surveyed more than 1,000 adult sports fans – including NHL fans – and self-identified sports bettors nationwide to model how a national, legal sports betting market would affect the sports consumption habits of non-bettors, casual bettors and avid bettors, and how this change in consumption would translate to increased revenue.
About the research: On behalf of the American Gaming Association, Nielsen Sports conducted a custom survey of 1,032 U.S. 18+ adults, representative of census age, gender, geography and ethnicity, from May 15 through May 31, 2018. Nielsen is an independent measurement organization. Nielsen does not guarantee any results or performance, or endorse, rank, approve or recommend any products or services. All names and marks are the property of their respective owners and no sponsorship, affiliation or endorsement in expressed or implied.
About AGA: The American Gaming Association is the premier national trade group representing the $261 billion U.S. casino industry, which supports 1.8 million jobs nationwide. AGA members include commercial and tribal casino operators, gaming suppliers and other entities affiliated with the gaming industry. It is the mission of the AGA to achieve sound policies and regulations consistent with casino gaming's modern appeal and vast economic contributions.