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Tag: sports gambling

Sports Betting Legalization: What Its Big Impact Means for Sports

Posted on by Athelo Group

By Jason Martini

Athelo Group

It’s time to get in the game! As more states legalize sports betting across the country, the sports industry has felt its impact in both positive and negative ways. Mobile sports betting is now legal in 28 states, which is up from 18 in January 2022, and has led to a surge of fans betting on sports. Last year, nearly half of American adults placed at least one sports wager, a third of which placed at least one wager per week. These record-setting numbers will only continue to rise as more states legalize sports betting. While this is great news for fan viewership and engagement, it also brings some negative concerns over the integrity of the game and its impact on athletes.

sports betting legalization

Increase in Viewership/Engagement

Beginning with the positives, sports betting’s growing popularity means an additional layer of engagement for both sports teams and leagues. Leagues like the NFL are now leaning into the industry by placing the betting lines on TV for viewers to follow in real time. Networks will even showcase sports betting analysts before the game to educate audiences on the best bets to place. This new approach relies on the idea that when people place a bet, they have a financial stake in the game and are more likely to closely follow it.

The results speak for themselves: NFL viewership has increased every year since the legalization of sports betting. In 2022, the NFL pulled in an average of 17.9M viewers on regular season games, which is a 20% increase from 2017. With more states beginning to legalize sports betting, these numbers will continue to rise. Major League Baseball is another league reaping the benefits. According to Casey Brett, MLB’s Vice President of Gaming and New Business Ventures, “sports bettors, compared to the average fan, are 40% more likely to stream, 36% more likely to buy a ticket, and 30% more likely to read an article on MLB.com.” For MLB, the positive trend in sports betting translates into increased revenue in the form of ticket sales, subscriptions, and advertising.

Increased Fan Experience

The sports betting surge is also enhancing the fan experience. To meet demand, stadiums have begun incorporating sportsbooks that are connected to the venue for fans to place bets before, during, or after the game. This concept is new in the sports world and is starting to grow. Before sports betting was legalized, fans would go to a game, buy a beer, and watch from their seat. Now fans are able to visit kiosks in the stadium to place bets mid-game, or they can go sit in the sportsbook and watch their bets with other fans.

Millennial fans have long awaited this enhancement, considering back in 2020 over half of this demographic believed on-site sportsbooks would improve the fan experience. The numbers from the Caesars Sportsbook at Capital One Arena support this concept, as the amount of money waged by bettors climbed to $5.7M in August 2022. Because this development is consistently receiving positive feedback from fans, we’re likely to see more in-stadium sportsbooks pop up in the future.

sports betting legalization

Integrity of the Game

While sports betting legalization positively impacts the industry, it does come with some drawbacks—such as its impact on the integrity of the game. We’ve seen this come to light recently when a number of NFL players were suspended for their involvement in sports gambling. In this 2023 season, ten players were suspended for sports gambling, seven of which suspended indefinitely because they bet on the NFL. These are the dangers that come with the legalization of sports betting. Leagues are now on the lookout for this as they have had to implement stricter measures to prevent players and personnel from trying to fix games and participate in other forms of corruption.

To combat this issue, the NFL is reexamining how they educate players and personnel on their gambling policy. A new directive the NFL established this year increases the education provided to young players entering the league. NFL rookies are now obligated to watch additional training videos from the league compliance, beginning with a message about the “integrity of the game.” Putting this in place should provide more information and clarification for the players about the dangers of betting on sports and the consequences involved.

Impact on Athletes

With more people participating in sports gambling and player-specific betting, athletes are now facing more unnecessary scrutiny and hate than ever before. Players have started to speak out about their experiences, some even sharing the hateful messages they’ve received from fans. This happened in the NBA last season when former Washington Wizard and now Phoenix Suns guard Bradley Beal was confronted by a disgruntled fan who had just lost a bet. Beal responded by saying that he was just doing his job and that he takes what he does very seriously. Beal then turned and swatted towards the man, knocking off his hat. There was a police investigation, but no charges were filed.

With the increase of people gambling and placing player-specific bets, more of these situations are likely to occur. So far, there have been no regulations or consequences enacted by the NBA or any other leagues when it comes to fans verbally attacking players for their losing bets, but it’s something leagues may consider moving forward.

sports betting legalization

While there’s still a need for greater clarity on how to shape regulations, one thing’s for sure: sports betting is experiencing rapid growth. By 2030, the industry is projected to be worth $182B. As it expands, its effect on the sports industry will continue to grow alongside it. Its popularity is undeniable; sports betting adds a new dimension to how people engage with the game by maximizing fan experience and deepening fan involvement. On the flip side, it also challenges the game’s integrity and can create a toxic dynamic between fans and players. More leagues may tighten regulations in the future to combat these issues, but only time will tell how this new development changes the landscape of the sports industry.

Sources:

  1. https://www.forbes.com/sites/willyakowicz/2023/06/15/where-is-sports-betting-legal-america-2022/?sh=989903842444
  2. https://www.driveresearch.com/market-research-company-blog/sports-betting-statistics/#:~:text=Just%20under%20half%20of%20all,the%20United%20States%20(53%25)
  3. https://www.forbes.com/sites/jacobgrubman/2022/02/11/nfl-ratings-rise-with-expansion-of-legal-sports-betting/?sh=21158f335bc5
  4. https://www.espn.com/nfl/story/_/id/38245548/why-some-players-want-change-nfl-gambling-policy-2023
  5. https://www.sportsbusinessjournal.com/Daily/Issues/2022/11/10/Technology/dealmakers-mlb-sportradar-sports-betting-fanbase-revenue.aspx#:~:text=According%20to%20Brett%2C%20the%20onset,.com%2C%22%20Brett%20said.
  6. https://www.espn.com/nba/story/_/id/35979445/bradley-beal-police-investigation-spat-fan
  7. https://nvgt.com/blog/on-site-sportsbooks-improve-fan-experience-attendance/

Premier League Cracking Down on Gambling Sponsors

Posted on by Athelo Group

By Samson Wolpov\

Although sports have reportedly been around for 3,000+ years, historians say sports betting has only been around since the mid-20th century. Recently, sports betting has seen a crackdown on regulations in some parts of the world because some countries or citizens perceive it as organized crime. In other parts of the world, it is seen as a revenue stream opportunity that, in return, provides services for citizens. In general, sports betting has become very commonplace with the ability to place bets from the comfort of your home instead of needing to go to an in-person sportsbook. To date, there are more than 45 legal online gambling platforms and almost twice that amount of illegal platforms. Despite this boom of online sportsbooks and an increase in their popularity, not all sports leagues are welcoming them with open arms. 

At the beginning of the 2019-2020 season, gambling companies began infiltrating the Premier League clubs with lucrative amounts of money to be the title sponsor for ten clubs. These clubs earned a record ÂŁ349.1 million in sponsorship deals during the season, a rise of more than 10% from the previous season. The prevalence of these companies has increased in the second division where 17 out of 24 club jerseys showcase a betting logo. This means that 27 out of the 44 top clubs in England – more than half of the clubs – have betting companies as main sponsors. None of the top six teams currently have gambling sponsors – their current sponsorship deals have generated enough revenue to keep them comfortable without pursuing this slightly more controversial path.  However, the remaining 14 clubs need to find deals that will bring them the most possible money so that they can compete with the top clubs. That is exactly what West Ham United did when it struck a deal with Malta-based Betway for ÂŁ10 million pounds. The most recent partnerships created this year were Everton’s deal with Stake.com and newly promoted Bourmoueth’s collaboration with Dafabet. Deals like these are providing clubs with the funds they need to sign talented players from around the world, elevating their status in the league. 

Since soccer is the most popular sport in the world, it comes as no surprise that the most popular sport is also the most bet on. According to Sportradar’s betting and sports data analysis, about 70% of the world’s betting (both legal and illegal) comes from gambling on soccer. Although the World Cup witnesses the biggest betting volume, the Premier League is not foreign to gambling as sportsbook sponsors are among the ruling sponsors in the league. With the Premier League season only one month away, the U.K. government recently announced that it is looking to halt all online gambling business within the country. This news has serious implications for the Premier League as half of the teams in the top division are currently sponsored by gambling companies. The second-tier English Football League, whose title sponsor is a sports betting corporation – Sky Bet, announced that if the bans were to be imposed, the clubs within the league would lose north of ÂŁ47 million per year. 

Much of the pushback the league is setting stems from the U.K. government’s efforts to crack down on the promotion of gambling among the youth. In 2005, the Gambling Act in the U.K. was passed which dictates the protocols for all casinos, poker, sports betting, and lottery betting. Since then, it is estimated that there are around 24 million people betting on various games. In 2020, the Department for digital, culture, media, and Sport (DCMS) launched a review of the gambling laws amid the concern over youth exposure through various advertisements and football sponsorship. The reported changes that are under consideration are a betting limit on online and mobile casinos of £2.40 to £6 per wager, a ban on games that allow users to lose lots of money very quickly such as slots, and a ban on free bets.

Back in the states, there is the potential for the opposite to happen. Now that 19 states have legalized sportsbooks and gambling, these companies are starting to infiltrate professional and collegiate teams by adding in-person sportsbooks into stadiums and nearby buildings. Citi Field (New York Mets), Wrigley Field (Chicago Cubs), and Tiger Stadium (Louisiana State University) are among the many teams that have added gambling companies as sponsors. Professional sports leagues in the US are almost starting to welcome gambling company sponsorships as the NFL has partnerships with a dozen of sportsbooks and fills broadcasts with popular commercials from Draftkings, Fanduel, and Caesars. 

Back across the pond, a decision on this voluntary ban will be decided by July 21. For the ban to be in place, 14 out of the 20 teams will have to come to an agreement. The sponsors won’t be banned right away but rather over a three-year phase. The Premier League had suggested a compromise to the DCMS in which instead of an outright ban on betting partnerships, which would see company logos completely removed from the front of team jerseys, the logos would remain on the sleeves where it is not as visible to the viewers. It is reported that the DCMS minister is considering the proposal but nothing is set in stone yet. 

While Premier League Clubs may be hurting from this revenue change, the ultimate goal is to change society for the better. Being exposed to gambling at such a young age in the U.K. can be very detrimental in the long run. Commercials don’t often lean into responsible betting messaging, and viewers don’t often see the negative impact that gambling can have on someone.  An interesting alternative approach to this subject matter that we’ve seen is with Sportradar, a sport technology company, who is using a lead-by-example approach to sports gambling. They’re launching a program that supports athletes in responsible gambling – with the core focus being education and prevention of gambling addictions. The program consists of on-demand virtual visits, pre-recorded webinars, and in-person workshops. With athletes being such strong role models to the youth, Sportradar is hoping that this program will trickle down and set a positive tone for sports gambling. 

With all this being said, it is important to recognize when regulations are a crticial necessity, regardless of the positive benefit of extra funds. Irrespective of how this vote turns out, it will behoove leagues and teams to consider all angles when entertaining future partners, ensuring that they are handling sponsorships, and the inherent message that comes with them, responsibly.

Sources:

  1. https://frontofficesports.com
  2. https://www.theguardian.com/football/2019/jul/19/half-of-premier-league-clubs-to-have-gambling-sponsors-for-201920
  3. https://www.theguardian.com/football/2019/jul/19/half-of-premier-league-clubs-to-have-gambling-sponsors-for-201920
  4. https://sbcnews.co.uk/marketing/2022/07/05/clubs-to-vote-on-betting-sponsor-phase-out-after-premier-league-request/
  5. https://sportsecyclopedia.com/tank/tank/bettinghistory.html     
  6. https://sportsecyclopedia.com/tank/what-sports-do-people-bet-on-the-most/
  7. https://insidersport.com/2022/07/14/athletes-educated-on-responsible-gambling-via-sportradar-initiative/   

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