Gambling companies are lining up for a record-breaking Super Bowl, expecting billions of dollars to be spent on wagers.
The matchup between the Philadelphia Eagles and the Kansas City Chiefs is hotly anticipated, not only because of the caliber of teams (both teams were 14-3 in the regular season) but also because it is the first year that the country’s biggest sports game will be held in a state with legalized sports betting — Arizona. It also comes as more states have allowed the practice.
THE ECONOMICS OF THE SUPER BOWL: HOSTING, GAMBLING, ADS, AND MORE
In fact, more than 50 million people in the United States will place a bet on this year’s Super Bowl, and the total amount wagered is expected to be north of $16 billion, according to the American Gaming Association. For context, that is more than the annual gross domestic product of Vermont and would break another record for the fast-growing industry.
That number, based on a survey of about 2,200 adults, is more than double last year’s estimate of $7.6 billion — showing just how fast the legal betting market is growing.
“Every year, the Super Bowl serves to highlight the benefits of legal sports betting: bettors are transitioning to the protections of the regulated market, leagues and sports media are seeing increased engagement, and legal operators are driving needed tax revenue to states across the country,” said AGA President and CEO Bill Miller.
The transition toward legal sports betting began in 2018 when the Supreme Court ruled that a 1992 law prohibiting the activity was unconstitutional. That landmark decision paved the way for states to legalize sports betting, and each year, more states have begun offering residents the opportunity to place legal bets.
Massachusetts is the most recent state to legalize the practice and joined more than 30 other states and the District of Columbia that allow wagers of some kind.
Of the 50 million people expected to place wagers on the game, some 30 million of those will place a traditional sports wager online, at a retail sportsbook, or with a bookie, while an additional 28 million will bet as parts of a pool or informally among friends, according to the AGA.
Johnny Avello, director of race and sportsbook operations for betting giant DraftKings, said that he is also betting that this year’s Super Bowl will once again be the biggest one for the industry since sports wagers were legalized nearly five years ago.
“I say that every year, and it has been true so far,” Avello told the Washington Examiner.
The boom in sports betting is not only big business for casinos and gambling operators such as DraftKings, FanDuel, and BetMGM, it is also big business for the NFL. The practice is becoming increasingly enmeshed in sporting culture. Commercials for various sportsbooks permeate television screens, and pundits discuss spreads.
The AGA found that more than a third (34%) of NFL fans say that the expansion of sports betting has increased the excitement surrounding games. For example, a fan of another team might be tempted to tune out a matchup between two teams he doesn’t care about. But if he is able to place a wager on the Super Bowl, it gives him some skin in the game and he is more likely to watch.
Rodney Paul, director of the sports analytics program at Syracuse University, told the Washington Examiner that, based on his own research, being able to watch a game and be an active participant through placing bets makes people more invested and want to tune into more games.
“So for the Super Bowl, there are so many prop odds and things like that … they definitely lure people in … I think it just gets people excited and more into individual elements of the game that are happening there,” Paul said.
The gambling fever has extended beyond just the sports aspect of the Super Bowl. Molson Coors is partnering with DraftKings to offer prop bets on a yet-to-be-aired beer commercial. Guesses can be made about questions about the commercial, such as what beer will be mentioned first in the ad and how many actors in the ad will sport facial hair. Winners will share a pool of $500,000.
The Super Bowl will take place on Sunday, with the Eagles of the NFC gunning for their second Lombardi Trophy after clinching their first Super Bowl win following the 2017 season, and the Chiefs of the AFC aiming for their third Super Bowl victory in franchise history, their last being won just three years ago.
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The sports betting industry is also predicting that no matter who wins Super Bowl LVII and how much money is shelled out on wagers, next year will be even bigger.
“The growth of the Super Bowl will continue for many years because there will be more states that will come onboard,” said Avello. “For now, the growth we’ve seen and everyone else has seen has been great.”
