When the U.S. Supreme Court gave the green light for states to legalize sports betting, the ripple effects were felt in the U.S. and abroad. The court’s decision not only gave U.S. residents in certain states the chance to legally bet on sports, but it also had an effect on major sports leagues in the U.S. That includes+++++++ the NBA.
Prior to the court’s decision in 2018, NBA leadership was always hesitant to support the proliferation of sports betting in the U.S. They had made peace with the fact Nevada offered legalized sports betting, but they were leary of any expansion beyond that. Why? They feared any signs of possible impropriety if the league was in any way associated with the gambling community.
With more than two years of sports betting in the books in America, the NBA has clearly had a collective change of mind, and why not? The reality is the league in general and a number of teams specifically stand to reap huge financial benefits from ongoing and future partnerships with top mobile gambling brands.
Here is a look at some of the ways the NBA is being and will be impacted by the legalization of sports betting in the U.S.
Influx of Revenue
With each partnership deal the NBA signs with a major mobile gambling brand, the league is going to reap some kind of financial benefit. It matters not if deals are being signed with specific teams or the NBA as an entity. Some portion of every deal will make into the NBA’s coffers.
At the league level, the additional revenue can be used to market the NBA in other countries, particularly in countries where online/mobile sports gambling is available. Some of this revenue can also be used for outreach related to social initiatives.
At the team level, the additional money will likely flow in three directions. First, each team that has a partnership arrangement will be able to spend more money on player contracts. That will really help small-market teams that have difficulty competing for top-level free agents. Second, teams will be able to initiate more special promotional events to promote the team’s brand. Finally, the executives will surely be getting their share of the additional revenue.
More Exposure Home and Abroad
Currently, the NBA runs behind MLB and the NFL in popularity at home. With more exposure going to sports bettors, the league should experience a bit of a renaissance in popularity. That could ultimately result in a surge in revenue from the sale of team merchandise. The league may not catch the other two sports, but it should see enough improvement to positively affect each team’s bottom line.
It’s also noteworthy that a lot of the mobile operators now doing business in the U.S. have their roots in the UK. This will likely lead to more exposure for the NBA coming compliments of mobile gambling brands operating in both countries. For the NBA and its teams, that should convert to more merchandising revenue as European sports bettors start adopting their favorite teams and players.
For mobile operators, the NBA will certainly become a very important betting market. The betting handle figures to increase for both licensed/GamStop UK online bookmakers and the dozens of betting sites that aren’t on GamStop. These increases should lead to UK mobile operators offering more bonuses build around NBA games, so basketball bettors benefit as well.
Focus on Responsible Gambling
In the past, the NBA feared relationships with the gambling industry because of the possible optics of impropriety. Now, the NBA can stand as an advocate for responsible gambling. That’s quite a change in attitude.
If the NBA is willing to put its star players front and center in the promotion of problem gambling initiatives, these are voices to which basketball fans and bettors will listen.
Stricter Rules
By letting mobile sports operators into the NBA’s doors, it puts more pressure on the NBA to protect itself from the impropriety it feared in years gone by. That will likely result in very strict guidelines related to players, staff members, and league officials betting on basketball specifically and sports in general. It’s also worth mentioning that the NBA commissioner got a commitment from team owners to invest more money in the scrutinization of players as a means of protecting the league’s integrity.
Clearly, these new partnerships between the NBA and mobile operators will continue to create more benefits. In the end, it seems like a win for all vested parties.
