Legal sports betting could be $4.2B windfall for US leagues: report

The four major professional sports leagues in the United States could earn as much as $4.2 billion annually as a result of legalized sports gambling, Reuters reported Thursday, citing a survey that is scheduled to be released publicly later in the day.

The study, a Nielsen Sports survey commissioned by the American Gaming Association, found that the National Football League, Major League Baseball, the National Basketball Association and the National Hockey League would get most of the extra revenue from increased fan engagement, according to Reuters.

{mosads}The study says that if more fans are interested in the sports because of the ability to gamble, the leagues could reap $3.3 billion from indirect revenues such as media rights and merchandise sales, the news service reported. 

Further revenue would come from areas such as the gambling industry spending on advertisements and sponsorship deals with the industry, it added. 

The NFL would likely make the most money, according to the report, with that league being projected to reap $2.33 billion in additional revenue annually.

The study’s results were based on surveys with more than 1,000 adult sports fans and bettors. 

The Supreme Court in May struck down a federal law banning sports betting in almost every state, leaving it up to individuals states to determine whether to legalize the industry.

Since then, a few states — such as New Jersey and Delaware — have passed legislation that has legalized sports gambling.