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State of the Screens

The high-stakes game for sports betting dollars

By January 9, 2019No Comments

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:
Current — $7.9B
Estimated w/ legalized gambling — $9.3B (↑ 18%)

Estimated sports betting wagers according to Activate (YoY growth):
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:
Total viewers — 25%
Total minutes — 47%

Michael Beach

Michael Beach

Michael Beach is the Chief Executive Officer of Cross Screen Media, a media analytics and software company that enables marketers to plan, activate, and measure CTV and linear TV at the local level. Michael is also the founder and editor of State of the Screens, a weekly newsletter focused on video advertising that is a must-read for thought leaders in the advertising industry. He has appeared in such publications as PBS Frontline, The Wall Street Journal, The New York Times, Axios, CNBC and Bloomberg, and on NPR’s Planet Money podcast.