After being opposed to sports betting for a long time, the NFL has changed tone in recent years and has embraced legal sports wagering as an income-generating business for the league. And according to one of its officials, it’s going to be massive source of revenue for the NFL.
According to an article from The Washington Post, the NFL is expecting to generate $270M from gambling and sports betting deals signed by the league and its 32 teams. The amount could go as high as $1 billion before the end of the decade.
The NFL estimated its 2020 season loss to roughly $4 billion due to the pandemic. But with fans expected to return to stadiums this season and a new TV rights contract worth a reported $100 billion, revenue was expected to bounce back this year. And with the sports betting deals entered into by the league and its teams, ,the NFL’s income figures for 2021 should get a boost.
NFL’s Sportsbook Partners and Commercials
Earlier this month, the NFL announced that it would allow six sportsbook commercials per game. The NFL also announced FanDuel, DraftKings, and Caesars its tri-exclusive sports betting partners last April and recently added a second batch of sportsbook alliances with FoxBet, BetMGM, PointsBet, and WynnBet.
The Arizona Cardinals also announced plans to build the first retail betting shop inside an NFL stadium at their State Farm Stadium. Last month, the New Orleans Saints entered into a partnership with Caesars Entertainment for the naming rights to its Superdome. Caesars meanwhile, also has a marketing deal with the Houston Texans even if gambling in general is not allowed in the state of Texas.
Sports Betting Industry Has Expanded Exponentially
Since the U.S. Supreme Court repealed the 1992 Professional and Amateur Sports Protection Act in 2018, the sports betting industry in the United States has grown exponentially and continues to grow right now. Currently, sports betting is legal in a dozen states plus Washington DC that are home to NFL franchise. Overall, 14 out of the league’s 32 teams are based in states where sports betting is legal.
The NFL’s 2021 season begins on September 9th and if the forecast by PlayUSA is correct, the league could generate a total betting handle of $20 billion for the regulated market, which is triple the $7 billion football handle forecast for the 2020 season. Should that $20B handle be realized this season, it would mean $1.5B in profits for the legal sports betting operators.