Sportsbook Sponsorship Deals As A Source Of Leagues’ Profit
Integrity fees, as defined by some states in the United States, are taxes on legal sports betting. These are initially introduced by major professional sports leagues such as the National Football League, National Basketball Association, Major League Baseball, and Champions League. These fees, most of the time, take tolls on each organization’s budget. As a solution, sports leagues resort to the possible “windfall” sports betting can provide through sponsorship deals.
The NFL, NBA, MLB, and CL reportedly started accepting sponsorship deals to make a profit. The NBA is actually the first major sports league in the U.S. to partner with a sportsbook operator when legal wagering begins to expand into new states.
Another example involves the National Hockey League (NHL) which is continuously pioneering the deal-making business with gambling operators and is now set to produce a much stable source of income for the league. NHL partnered with gambling-related entities including the MGM Resorts and FanDuel. Additionally, the league’s New Jersey Devils and Vegas Golden Knights agreed to a partnership and sponsorship deal with FanDuel and William Hill, respectively.
More breakthroughs were announced by the president of the NHL’s Los Angeles Kings, Luc Robitaille. He recently appeared on ESPN ON ICE podcast and announced: “If teams profit, then everybody will profit. If you go by the numbers on the illegal part, it’s pretty significant. If that part ends up on the team side, I think it’s going to help everyone. First of all, the [salary] cap will go up. Fans will be happy. Teams will spend more money on players. Players’ salaries will go up.”
With all these sponsorship deals, the increased revenue of the NFL by next year is expected to reach $216 million. It will allow the organization and the teams to produce more profits and salaries for teams and players, and a better experience for fans and viewers. Robitaille even added that sponsorship deals can be a cost-cutting approach for ice hockey events: “You would think this would help with always putting the pressure on fans to keep paying … hockey is still a ticket business, primarily. Hopefully, that helps offset some of the ticket pricing.”
Ultimately, with such deals beginning to materialize in the sports betting industry, there’s no question that the Bitcoin sports betting niche can further elevate its status in the traditional sports betting industry and make a mark with its unique characteristics.