The Athletic reported that in a major shift in stance towards sports betting, NFL owners have voted to allow physical sportsbooks to operate on game days starting from the 2023 season, according to league sources. The vote occurred on Monday at the NFL owners’ meetings in Scottsdale, Arizona.
The NFL Goes All-In on Sports Betting with Seven Approved Outlets
Currently, only four teams operate sportsbooks at their stadiums, with the Washington Commanders being the only team with a sportsbook inside their stadium. The Arizona Cardinals, New York Giants, and Jets all have sites located outside their stadiums. The NFL had already announced its first sportsbook partnerships in April 2021, and now has seven outlets approved to operate sportsbooks.
While the move will certainly generate additional revenue for the teams, many bettors already use apps on their phones to place bets. The shift is therefore seen as more symbolic than a significant revenue booster. However, it marks a significant turning point in the relationship between the NFL and sports betting, particularly given the league’s previously conservative attitude towards gambling.
Despite the fact that Texas, Florida, and California have not yet legalized sports betting, the NFL’s continued embrace of the industry suggests it is only a matter of time before they do. The vote to allow physical sportsbooks at stadiums on game days is the latest sign of the NFL’s growing acceptance of legalized sports gambling.
The move comes as legal sports betting has expanded rapidly across the US, with 33 states now allowing legalized sports betting. The NFL’s new stance on sports betting has evolved to such an extent that the league now stages events in Las Vegas, including next year’s Super Bowl.
NFL Teams to Pool Sportsbook Revenue After Hitting $20 Million Mark
Revenue from the sportsbooks will not be shared with other teams until a certain threshold is exceeded, believed to be around $20 million, after which it will be pooled with the other 31 clubs. Teams have traditionally shared local gate revenue, but not other non-national revenues, such as club sponsorships.
Sportsbook revenues, on the other hand, are viewed within the NFL as a category that should be shared. However, as sportsbook revenue is not the same as gate receipts, a certain amount of revenue will be allowed to be kept by local teams before hitting a cap, with the remainder shared with the rest of the league. Revenue from sportsbook sponsorships, which many teams currently have, will not be shared.