Our Takeaways from “Deloitte Insights: TV Sports & Sports Betting”

This blog post is a summary of the Deloitte Insights report “Technology, Media, and Telecommunications Predictions 2019” pages 36-48. https://www2.deloitte.com/content/dam/insights/us/articles/TMT-Predictions_2019/DI_TMT-predictions_2019.pdf

Deloitte’s 2019 report on media and telecommunications predictions had some excellent insights into the relationship between US sports betting and TV sports. We have summarized the key findings that are relevant to both gaming operators and media personnel.

Key Findings

1) The frequency of US sports gambling has a significant and direct impact on TV sports viewership levels.

2) The continued increases in US sports betting will slow the decline in TV viewership.

3) Men aged 18-34 are the primary drivers for both US sports betting and US TV sports viewership.

4) The US sports betting market is already massive and will continue to grow.

5) TV sports and sports betting present incredible partnership opportunities.

Sports gambling’s impact on TV sports

The major new finding is how important TV sports watching is for men aged 18-34, how frequently this demographic gambles, and how close the relationship is between gambling frequency and watching more TV sports.

Broadcasters, distributors, and advertisers could do well to undertake further research to examine this relatively unexplored correlation.

Can sports betting save TV?

TV Sports

Increased frequency of betting translates directly into more hours per week of watching TV sports

It seems probable that the impact of sports betting will make TV sports watching more resilient than some critics expect.

Live TV sports watching motivated by gambling may even boost overall TV watching statistics among younger demographics, either slowing the decline, or perhaps even providing a floor.

Shared Target Audience: Men Aged 18-34

Sports Betting

Men account for 85% of daily sports bettors in the US.

Of US male TV sports watchers aged 25-34, 20% will watch over 35 hours of TV sports per week.

US men aged 25-34 comprise 44% of all weekly sports bettors.

TV sports represents 75% of all TV watching for men aged 25-34 and 67% for men aged 18-24.

Of US men aged 18-34 who watch TV sports, 40% bet on sports weekly.

Of US men aged 25-34 who watch TV sports, 21% bet on sports daily.

US Sports Betting: A Growing Opportunity

The total US sports betting handle (legal and illegal) in 2018 was $169 billion. In comparison, the entire UK sports betting handle for 2017 was just €14 billion.

Deloitte projects that the US sports betting market will grow 9% per year between 2018-2022. This would result in a 2022 total sports betting handle of $239 billion.

Partnership Opportunities

If sports betting was fully legal, sports bettors would represent 56% of all minutes watched of regular season NFL games. In addition, millions more US football fans would bet on NFL games.

Companies that make and distribute TV sports should talk more to, partner with, or even acquire companies that are involved with sports betting; or vice versa.

Sports bettors are far more likely to watch a game they bet on. They are equally likely to watch the game no matter the size of their bet.

This means that, although the gambling industry makes most of its money from “whales” (those who bet heavily), sports broadcasters and distributors need only think about driving sports viewing by tapping into increased bet frequency. They don’t need to encourage large bets to do that.

The Future of US Sports Betting

Sports Betting

We particularly loved this take:

“Where will all this lead? As a thought experiment, one can imagine a 30-year-old American man in the year 2025 (yes, it could be a woman too, but our survey results show that it is much more likely to be a man) watching a football game on the TV set, smartphone in hand. He can bet on the match at any point, modify his wager, buy back a losing wager, bet on the outcome of individual plays or individual stats such as the number of passing yards by the quarterback — all in real time, and all tailored to him. Ads could be served that are customized for him, informed by his betting and attention, and watching would have to be 100 percent live. The broadcaster or betting site could not only charge more for ads seen by such an involved viewer, but even have a share in (or own outright) the profits from the betting/video stream … at margins much higher than the usual for TV broadcasting. To an American, this sounds like science fiction, but in the United Kingdom, these solutions (or variations of them) are available today.

Will this come to America? Will young men use it? Will it drive increased watching of live TV sports matches?

We would bet on it.”

Deloitte Insights: Television and Sports Betting from Chalkline Sports

This blog post is a summary of the Deloitte Insights report “Technology, Media, and Telecommunications Predictions 2019” pages 36-48. https://www2.deloitte.com/content/dam/insights/us/articles/TMT-Predictions_2019/DI_TMT-predictions_2019.pdf

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