Legalizing sports betting would project the US economy by $14 billion, says a recent report by Harvard University. Around the world, regulated sports betting contributes more than $100 billion to dozens of countries that support the industry.
Sports organizations and governments benefit the most. Dallas MavErikks’ owner Mark Cuban, for example, notes that the value of franchises will double immediately gambling sponsorships are allowed.
But at what cost will this happen and what are the pros and cons of gambling advertising in sports? We interviewed Erik King, the chief editor of Zamsino New Zealand, and he had the following to say.
“There’s plenty of money in gambling sponsorships.”
King says that money is the biggest perk offered by betting companies. Where bookies are allowed to sponsor sports organizations, millions of dollars are exchanged. The editor pointed out the English Premier League for its high number of betting relationships.
“Nine out of ten premier league clubs had betting partners last season,” King said. “Westham is sponsored by Betway in an €11.5 million deal. Stoke City partners with Bet365 while Dafabet sponsors Sunderland.
In Spain, giants Real Madrid completed a sponsorship contract with ManBetX last year. In the same period, Bet365 secured sponsorships with nine La Liga teams.”
King also notes that betting sites don’t limit themselves to top-tier sports leagues. Sponsorships happen from the grass root-levels of all significant sponsors upwards. And true, bookies like Sky bet sponsor all three divisions of England’s EFL football.
When translated to money, the economic impact of sports advertising spans more than a hundred billion Euros. Of course, this has an enormous contribution to local economies, which brings us to King’s next point.
“They are responsible for millions of jobs.”
King suggests Gibraltar as an example of a city that thrives through gambling companies. While the small UK Island is home to both online casinos and betting firms, more than 200,000 in the jurisdiction make a living for working in gambling companies.
The Zamsino editor also gives Malta and England as examples of countries where more than a million people are employed because of gambling sponsorships. Both of these companies legalized sports betting more than a decade ago and have adopted liberal betting laws along the way.
Massive job creation is one of the driving forces of legalizing sports betting in the US. States have the powers to regulate the industry, and already more than two dozen of them allow sports betting to some extent.
“Governments earn hundreds of millions in tax revenue.”
Tremendous tax income is yet another reason motivating US states to approve sports betting, and King concurs. New Jersey governor Chris Cristie is one of the most proponents of permitting betting sponsorships. His state is responsible for helping strike off PASPA.
Christie has been such a dedicated advocate for legalized sports betting that his tax income estimates have often been questioned. Before Jersey approved the industry, the governor estimated sports advertising would contribute $120 million in tax revenue to the state every year.
New Jersey is yet to record the enormous tax income its governor once estimated, but this could soon be a reality. As Erik King says, betting sites are continuously finding ways to better their relationships with sports organizations.
“Lately, we’re seeing a trend where betting sites are forging relationships with everyone involved in sports. They’ve forged partnerships with media organizations. They sponsor eSports players and even YouTubers.”
King says tax revenues will continue growing as the sports betting industry expands. Every effort is made to help improve the sector will have a direct impact on the tax income of local governments.
“Advertising Paves the way for society to embrace online gambling.”
Kings says betting sponsorship on sports does more than add money into the pockets of franchises and local governments. Advertising influences societies to be more accepting of sports punters and the profession itself. He also admits societal acceptance isn’t something that has happened to online casinos yet.
“After years of sponsorships and promotions, people everywhere have embraced sports betting. But when it comes to general casino gaming, there’s a reputation problem.”
The content editor was referring to the tremendous backlash, and online resistance casinos face in many countries. The UK, Australia, Canada, Spain, and more than 50 other nations have progressive casino laws.
Indeed, you can always claim Canadian no deposit free spins and relish card games. But once you decide to become a professional gambler, you’ll probably experience more negative feedback than people supporting your decision.
You probably also wouldn’t encourage your friend to become a professional gambler. That’s fair enough. But in spite of people’s attitudes towards slots gaming, some people become millionaires playing casino games. King believes the positive strides made through betting sponsorships may lay a foundation for a society with a warmer attitude toward casino professionals.
“Sponsorships will do more for Gambling Addiction.”
Contrary to popular belief, increased gambling sponsorships do more in creating awareness about betting addictions. King references a campaign initiated by Crystal Palace FC last year. Despite being sponsored by a betting company, Palace partnered with Gamble Aware to produce adverts that will help create awareness about gambling addictions.
A recent study also backs the Zamsino editor’s claims. Campaigns to help combat gambling addiction have been at an all-time high since betting sites started sponsoring sports teams. Surprisingly, bookmakers are at the forefront of battling this problem.
Nearly all betting sites have partnerships with gambling anonymous affiliated sites, according to King. And true, a quick search of the top 10 bookmakers in the UK will lead you to websites that promote anti-addiction awareness.
Erik King believes the involvement of betting sites in the sports industry will lead to significant growth of sports at all levels. The money brought in by sponsorships will lead to more employment and more significant revenues for local governments.
King hopes the blossoming relationship between betting sites and sports could also help improve the reputation for online casinos. By showing people that sports wagering isn’t the monster they’ve always thought it was, societies could also embrace online gambling in general.