The high-stakes game for sports betting dollars

Legalized sports betting is coming and the leagues want their cut.

Quote from Adam Silver — Commissioner @ National Basketball Association:“If we’re going to spend $8 billion this year producing those games, I feel that we should receive a share of the proceeds from a business that’s being generated exclusively on our games.”

Annual cost for NFL TV rights according to Nielsen:
1) Current — $7.9B
2) Estimated w/ legalized gambling — $9.3B (↑ 18%)

Estimated sports betting wagers according to Activate (YoY growth):
1) 2018 — $6B
2) 2019P — $10B (↑ 67%)
3) 2020P — $44B (↑ 340%)
4) 2021P — $70B (↑ 59%)
5) 2022P — $119B (↑ 70%)

Flashback #1: Nielsen projects NFL could make billions annually from gambling market

Estimated % increase in revenue:
1) Media rights — ↑ 18%
2) Sponsorship — ↑ 8%
3) Ticket sales — ↑ 7%

Flashback #2: How Betting Will Change the Sports Media Business

Share of TV viewing for sports bettors:
1) Total viewers — 25%
2) Total minutes — 47%

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