As US sports leagues and tournaments resume normal operations, the business of sports video is mostly back to pre-pandemic levels.
And sports gambling, which is now legal in nearly half the US, is emerging as a market opportunity for brands and broadcasters alike.
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The legalization of sports gambling in more than 20 US states has opened new business opportunities, and potential pitfalls, for broadcasters and streaming services that seek to tie in betting content, such as fantasy leagues, with live broadcasts-or at least market separately to the sports viewing and gambling audiences.
Legalized sports gambling in the US will generate $2.1 billion in revenues this year.
The American Gaming Association (AGA) keeps a running tab of US states where sports gambling is legal, along with ones where betting has been legalized but is not yet live. It also tallies states with active sports gambling legislation as well as those with no legislation or dead legislation. As of May 2021, sports gambling was legal and active in 21 states plus the District of Columbia. An additional six states had legalized betting but did not yet have live services, and 14 other states had active pre-filed legislation aimed at legalization. Only 9 US states had either no legislation or dead legislation at that time.
A study by research and brokerage firm Gabelli Securities and the US Census Bureau estimates that legalized sports gambling in the US will generate $2.1 billion in revenues this year and projects growth to $10.1 billion by 2028.
Other companies predict even higher revenues from legalized sports betting in the US, with Morgan Stanley estimating a market size of $15 billion by 2025 and Macquarie Research forecasting $30 billion by 2030. In addition, MGM Resorts International projects that sports gambling will generate $13.5 billion by 2025, with 38 US states participating by that time.
Despite the discrepancies in those forecasts, which could result from differences in methodology, the takeaway is that gambling will produce significant new revenues for sports rights holders, as well as opportunities to integrate this content with traditional broadcasts and streams.
To that end, in March 2021, satellite TV and vMVPD provider Dish Network and gambling app DraftKings announced a deal that will incorporate DraftKings content into live sports games. Under the agreement, Dish customers with a Hopper receiver can use the DraftKings app to initiate bets, and then view live games that correspond with those bets on their TVs. The agreement also includes fantasy league content. Prior to the announcement, DraftKings ran two 15-second ads during the Super Bowl.
Another early entrant into the US sports gambling business is fuboTV, a sports-focused vMVPD. The company has market access licenses, pending regulatory approval, in New Jersey, Indiana, and Iowa, and is in …read more
Source:: Business Insider