The National Rugby League (NRL) is currently at the stage of realising its long-term plan of monetizing online sports betting in the US. If this strategy works out, it could bring the League hundreds of millions of dollars, which could be generated through different channels such as sponsorships, broadcasting fees, and gambling revenue.
The strategy for cashing in on the US online sports betting market is related to the NRL’s plan to have the city of Las Vegas host two round one games next year. Executives for the NRL will visit Sin City next month to further negotiate the conditions for the said games, with League representatives planning to meet different stakeholders before they make any official announcements.
It was a well-known fact that Peter V’landys, chair of the Australian Rugby League, had the ambition to enter the growing sports betting market in the US ever since he accepted the position of chair in 2019.
Colin Smith, a representative of advisory firm Global Media and Sports, commented on the potential deal by acknowledging the great value of the betting sector in the US. Smith said that despite being established only five years ago, the legal US sports betting market has grown exponentially, with estimates showing the industry was worth US$20 billion (AU$30 billion) a year. According to Smith, entering the US online betting market will be a smart move for the NRL.
While the advisory company representative could not confirm the exact way the NRL is about to enter the US market, he commented that such a move could guarantee the NRL monetization through getting a share of the sports betting sector in the US as well as signing exclusive deals with gambling operators and broadcasters. Smith also reported that after establishing its presence in the US, the NRL could also benefit from exclusive sponsorships.
NRL Could Benefit from Exclusive Sponsorships After Entering US Sports Betting Market
With the gambling industry in Australia considering whether they should ban match-day jersey sponsorships, monetizing on alternative sponsorship deals with US brands could potentially compensate for the losses the NRL could face if the jersey betting sponsorship ban is accepted.
The journey towards entering the US market got the approval of most of the biggest sports betting companies in Australia. That being said, they will not enjoy any direct benefits from the NRL expansion as international punters are not allowed to place bets with Australian sportsbooks. Even if Aussie bookmakers were permitted to accept international wagers, the difference in time zones would affect the volume of such bets.
Les Bernal, director of the Stop Predatory Gambling organisation and Campaign for Gambling-Free Kids, acknowledged that there was a potential for the NRL to cash in on gambling in the US. One way the League could profit from the losses generated from American bettors is by selling the statistics on NRL games to “predatory gambling operators”, shared Bernal. He added that getting access to such data would allow gambling operators to push for riskier and more frequent bets, which could ultimately result in American bettors losing even more money.
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Olivia Cole
