H2GC Reports US sports betting: the road to 2030 | Page 20

The economics
Case study: English soccer premiership
• Eyeballs — Enhanced global reach of the
leagues/sports, including NFL, NBA and MLB
London/Mexico/international games and
tours. A new target audiences/demographic to
redress declining TV ratings.
• Promotion — New live action streaming via
sports betting operator online platforms.
Greater, more innovative TV advertising and
overall league/sport marketing and promotion.
• Funding — More diversified sources of
revenue. Team sponsorships/naming rights;
in-stadium retail sales; direct funding
and support of sports’ grass roots/youth
development programs. All 20 English
premiership clubs now have official betting
partner arrangements in place and nearly 50%
have major official shirt sponsor deals with
Asia and Africa-facing brands.
• Royalty/data fees — Not ideal as can lead to
adversarial/inefficient relationships. A win-win
based on shared interested preferable — the
European market the example as already
matured to this model.
• Integrity — A professional integrity system
involving all stakeholders. Pan-state early
warning to track and monitor suspicious
activity — the solution is within, not without,
the sports betting industry.
The upside for the media: The US difference
Will the US media giants offer a difference
over what has been seen before in the sector?
Some big media names have already registered
US sports betting patents — plus the appeal is
there to attract a new millennial demographic
already growing up with a sophisticated digital
offer/new market technology in other sectors.
The US consumer will also need introducing to
new forms of sports betting as they develop —
mainstream media promotion therefore essential.
Whichever media names enter the market, the
winners will likely have:
• Strong US facing brand;
• Direct access to sports betting licences;
• Technological and operational excellence
(especially digital marketing and Silicon Valley
style innovation);
• Strong investment potential; and
• Multi-state exposure.
Chart 22: Gambling companies as % of official premiership shirt sponsors
60%
50%
40%
30%
20%
20
0
10%
US sports betting: the road to 2030 November 2018