Australia’s NRL sets sights on US sports betting market

The National Rugby League (NRL) has set its sights on tapping into the online sports betting market in the US, a move that could potentially generate hundreds of millions of dollars in revenue. The league is currently in the process of finalising its long-term plan to monetise online sports betting in the US, with executives set to visit Las Vegas next month to negotiate the conditions for hosting two round one games in the city next year.

The NRL’s ambitions to enter the US sports betting market are not new. Peter V’landys, the Chair of the Australian Rugby League, has been vocal about his desire to tap into the growing sports betting market in the US ever since he took up the position in 2019. Now, the NRL is taking concrete steps towards realizing this goal.

According to Colin Smith, a representative of advisory firm Global Media and Sports, entering the US online betting market would be a smart move for the NRL. The legal US sports betting market has grown exponentially in the last five years following the overturn of the Federal ban on the industry.

Estimates suggest that it is now worth US$20 billion (AU$30 billion) per year. By entering this market, the NRL could potentially generate revenue through a variety of channels, including sponsorships, broadcasting fees, and gambling revenue.

While the specifics of the NRL’s plans to enter the US market remain unclear, Smith suggests that the league could benefit from exclusive deals with gambling operators and broadcasters, as well as potential sponsorships. Monetizing alternative sponsorship deals with US brands could also compensate for any potential losses the NRL could face if the Australian gambling industry decides to ban match-day jersey sponsorships.

While scrutinizing the move, industry experts like Jason Bourne, a professor at the Miami University Institute on Responsible Gaming, says the NRL’s primary motivation is likely the “very lucrative television, advertising, and sponsorship markets.” Clayton Larcombe, Chief Investment Officer at PAC Capital, which invests in the esports and gaming sectors, added also that with many US gambling companies spending significant sums on sponsorships, they would certainly be eager to associate themselves with Australian leagues.

However, not everyone is convinced that the NRL’s plans to enter the US sports betting market are a good idea. Les Bernal, the director of the Stop Predatory Gambling organization and Campaign for Gambling-Free Kids, suggests that the NRL could profit from the losses generated by American bettors by selling statistics on NRL games to “predatory gambling operators.” This, in turn, could lead to riskier and more frequent bets, resulting in American bettors losing even more money.

Despite the potential drawbacks, the NRL’s plans to tap into the US sports betting market have received support from many of Australia’s biggest sports betting companies. However, these companies are unlikely to enjoy any direct benefits from the NRL’s expansion, as international punters are not allowed to place bets with Australian sportsbooks. Even if this were to change, the time difference between Australia and the US could impact the volume of such bets.

Overall, the NRL’s plans to monetize online sports betting in the US could prove to be a lucrative move for the league. However, it remains to be seen how successful the league will be in navigating the complex and ever-changing landscape of the US sports betting market.

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