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Spectrum Study: League Involvement Could Increase Betting Volume, Revenue
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A study by Spectrum Gaming commissioned by the MLB and NBA suggests a 0.25 percent royalty fee is only viable in states that would tax sports betting revenues at less than 15 percent and with operator EBITDA margins of at least 20 to 25 percent.
The study, expected to be released soon, also states sports betting would need to be widely available through retail and mobile channels to support the royalty fee.
League involvement in sports betting with a royalty fee would give bettors a higher degree of comfort and therefore could lead to higher revenues, the study suggested.
The report looked at approximately 20 states that are considering sports betting.
Spectrum forecasts these states could generate $6.5 billion to $9.1 billion in sports betting revenue once fully ramped up. League involvement could push that range to the higher end as leagues could create partnerships with operators and states, Spectrum said.
Spectrum took no official stance on royalty fees for the leagues.
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The study, expected to be released soon, also states sports betting would need to be widely available through retail and mobile channels to support the royalty fee.
League involvement in sports betting with a royalty fee would give bettors a higher degree of comfort and therefore could lead to higher revenues, the study suggested.
The report looked at approximately 20 states that are considering sports betting.
Spectrum forecasts these states could generate $6.5 billion to $9.1 billion in sports betting revenue once fully ramped up. League involvement could push that range to the higher end as leagues could create partnerships with operators and states, Spectrum said.
Spectrum took no official stance on royalty fees for the leagues.
Get more gaming news like this straight to your inbox with a subscription to Fantini’s Gaming Report. Email Alex Capitle at This email address is being protected from spambots. You need JavaScript enabled to view it. for a free trial.