PASPA and legal sports betting
Under the Professional and Amateur Sports Protection Act (PASPA), there was a federal ban on sports betting in the US. The 1992 law allowed immunity for Nevada, Delaware, Oregon, and Montana, who had allowed sports betting within their borders previously. As of now, several states have moved forward with legal sports betting since the repeal of PASPA. Sports betting fans now have their eyes onNew Jersey, Rhode Island, Pennsylvania, Delaware, Mississippi, and West Virginia.
Factors contributing to sports betting spike in NFL revenue
There are many potential factors contributing to this estimated spike in NFL revenue. Increased consumption and engagement such as NFL media rights, sponsorships, merch and ticket sales, along with deals from gambling services, etc. leads to much of the revenue increase at about $1.4 billion.
Breaking it down further, studies show that advertising expenses from betting operators give much rise to previous figures. Revenue from NFL data and sponsorship along with increased expenditure of NFL league media are additional factors. Then, of course, there is the purchasing of official NFL products. The NFL could potentially generate $573 million from spending by betting operators and data providers -$451 million on advertising, $92 million on sponsorship, and $30 million on data protection.
NFL sports betting regulatory issues
NFL Vice President, Jocelyn Moore, has stepped in and requested that Congress set up a federal framework forcing sportsbooks to pay fees to the league. The NFL claims that it is necessary for Congress to come up with a set of state regulations to govern sports betting in order to prevent money laundering, corruption, and high-risk, illegal sports betting. The league would also like to protect its intellectual property and enforce the use of “official league data” by charging sportsbooks to pay for the information.
Although regulatory issues will pose challenges, Slane sounded confident that legal sports betting would provide countless benefits to states that move forward with legalization. Slane spoke on a standardized set of a federal framework, expressing that it would not suffice as a proper solution to regulating the sports betting market. Each state has different gaming laws and with legal sports betting the same rules apply. Supervisory at a state level seems to be the right approach so far. Congress does not currently regulate other gaming products and the AGA already maintains state regulation.
The NFL, amongst many other sports leagues, benefit from the repeal of PASPA and the legal sports betting market. States experience exponential benefits while the sports betting market flourishes with increased transparency and integrity. These added factors provide safety to sports betting consumers as well as additional revenue for the state. New jobs come with this new legal sports betting market as well as an increase in state tax revenue. It is still too early, however, to ascertain how this will influence the illegal market.