Legalized sports gambling may increase annual revenue for Major League Baseball and the National Basketball Association by $1.7 billion, according to a recent study commissioned by the American Gaming Association.
The study, conducted by Nielsen Sports, found that with widely available, legal and regulated sports betting, MLB could generate $1.1 billion, while the NBA may see a revenue increase of $585 million.
Nielsen Sports analyzed revenue streams including adverting, data and sponsorship and the additional revenue generated from league media and products as well as increased media rights, sponsorship, merchandise and ticket sales.
The study was conducted from May 15 to 30, surveying more than 1,000 adult sports fans and self-identified sports gamblers.
Earlier this month, the AGA released the results of a similar study of the National Football League and the National Hockey League, finding their annual revenue could increase $2.3 billion and $216 million, respectively.
“The four major sports leagues will earn a collective $4.2 billion from widely available legal sports betting, further proving that working together with the gaming industry will pay dividends for all sports stakeholders,” AGA senior vice president of public affairs Sara Slane said in a statement.
On May 14, The U.S. Supreme Court struck down a federal ban on sports betting, allowing New Jersey to capitalize on passing long-awaited legislation for legal gambling on professional and amateur sports.
One month later, Monmouth Park Racetrack and Atlantic City’s Borgata Hotel Casino & Spa launched sports wagering operations. To date, six of Atlantic City’s nine casinos have opened sports betting lounges.
In addition to New Jersey, legalized sports betting is also available in Delaware, Mississippi, Nevada and West Virginia.