Every day, operators across the US agree new sponsorships and partnerships with sports franchises to much public support and fanfare. Will this positivity last?
A panel at SBC’s Betting on Sports conference believes it may not, and that operators must be smarter to prevent a similar turn to what has occurred in Europe over the last two years.
Gaming America attended a panel which highlighted the importance of partnering with sports teams, rather than simply acting as sponsors.
The conversation, mainly focusing on Europe, highlighted some of the pitfalls the North American markets must avoid if sportsbooks wish to continue their massive growth while remaining in the public's good graces.
As reported by the panel, Europe experienced a wave of bans on sports betting ads, first in Italy, then spreading across the Alps and into other European nations, including Spain. This led to a distinct loss of revenue for European sportsbooks, as the panel highlighted, saying: “This revenue was key for sports betting companies.”
“The indirect effects of the loss of sponsorships will be seen long term,” said Japp Kalma, MD at Parma Calcio. “A ban on sponsorships takes a big chunk of money, the effects are clearly there and will be lingering. It is damaging, absolutely.”
While this conversation focused on Europe. The panellist believed a similar path could follow in any nascent betting markets. Thus, it would seem there is an important lesson to be learned in the US.
The positivity around sports betting may not last forever and operators must be smart on the approach they take in regard to new partnerships.
“The lesson to be learned by the industry where the wave has not yet hit, is that if anything can be done, it should be pre-emptive rather than once the damage has been done. This should be done in terms of coordinated lobbying action,” said Quirino Mancini of Tonucci & Partners.
“I struggle to understand how European sports clubs were so short-sighted. This is something that had to be done far sooner.”
It remains to be seen whether this change will come to the US, but as the panel suggests, operators must be prepared.
