Venuetize and Gaming: A Sure Bet

The demand for sports betting has been apparent in Michigan, where sports betting took effect in January of 2021 and has accounted for an astonishing $1.5 billion in total sports bets to date. Out of that number, the state-authorized sportsbooks have racked in a healthy $125 million in revenue. And, out of that number, the state has made $5 million off taxes from sportsbook operators.[ii] Mind you, this practice has only been live for 6 months. Eilers & Krejcik Gaming, a research and consulting firm focused on sports betting, estimated that total sports betting revenue in the U.S. in 2021 will reach $1.24B marking a staggering 360% Y/Y growth.[iii] Even more, the company forecasts “revenue of $19.0B if all 50 states legalize sports betting.”

As states continue to legalize sports betting, professional sports leagues and teams have been forced to grasp with how to play in the space. Many teams have signed sponsorship deals with sportsbook operators, generating well-needed income and providing sportsbooks with access to potential new customers. However, there may be an even larger monetary opportunity for teams as an affiliate. By working with sportsbooks as affiliates, teams are permitted by the league to collect fees from their betting partner for converting fans into bettors. As Sportico reports, "all five of the major U.S. sports leagues permit clubs to collect affiliate revenue (some were vague in terms of limitations). Few organizations are believed to be taking advantage of the opportunity.”[iv] Those teams that choose not to engage in affiliate-type partnerships with sport book operators could be leaving a large sum of cash on the table. Some teams, however, are starting to figure out just how lucrative a betting affiliate can be for their organization. Teams like the Jets and the Ravens have hired a sports data company to help assist in brokering sponsorship and affiliate deals with betting partners in New York and Baltimore.[v]