The online casino industry is starting to take off in the United States, but it is still well behind legal sports betting. Most states are targeting legal sports betting as the first step of iGaming, and then online casino gambling can come next.
The rapid growth of the U.S. sports betting industry has been aided by the fact that professional sports teams and leagues are now partnering with sports betting operators. This started on a small scale, but it seems as if new partnerships are being announced weekly now.
There are several reasons leagues and teams partner with sportsbooks, and we will touch on those below. Both sides of this partnership have plenty to gain when these deals are made, ultimately leading to a huge benefit for sports bettors.
If you wonder why this has become such a growing trend in this industry, here are four of the biggest reasons this is taking place.
The biggest reason that these partnerships have started to form is due to revenue concerns. Teams and leagues are always looking for new ways to make money, and there is plenty of money flowing out of the legal sports betting industry.
Each specific partnership will have its own details in terms of revenue, and there are many different ways to share the money. Some teams are getting paid for referrals after allowing the sports betting operators to advertise during games or broadcasts.
The money from the sports betting industry will only continue to increase as time goes on, and that will have other companies looking to get involved as well.
Teams and leagues are always looking for a way to bring new fans into the sport, and these deals can really help. Most of the partnerships include some sort of language about fan engagement, which can be done in many different ways.
Sports betting operators can help create digital content for teams or create free-to-play games to get everyone involved. Both sides want to gain new customers or fans from this partnership, which has resulted from many partnerships that have been formed.
Gotta Keep Up
Another big reason leagues and teams are looking to make these deals is that they simply have to. Failing to form a partnership will keep that specific team or league from being competitive with all of the rest.
The NFL and NBA were among the first leagues to really start to explore this option in the United States. As soon as MLB and the NHL saw what was taking place, they had to be reactionary and seek out their own deals.
Sportsbooks have the same desire for reaching deals, or they will also fall behind their competitors.
Integrity of the Sport
Finally, the last reason that leagues especially want to form a partnership with sportsbooks and the sports betting industry is to protect the integrity of the sport. This was always the biggest argument against legal sports betting, and it continues to be a worry for professional sports leagues.
There have been some cases of match-fixing or throwing games throughout history, and leagues were worried that this would only get worse with legal sports betting. The exact opposite has happened, and leagues now have plenty of control of what goes on in this industry.
There could still be some match-fixing that takes place, but it is not going to have a significant impact on the sports betting industry like it could have in the past.