30 Sep 2021
Posted in Sport
Washington Capitals and Caesars Entertainment build on US sports betting industry momentum in $5m multi-year jersey patch deal
Caesars’ jersey partnership with National Hockey League (NHL) side Washington Capitals further adds to an industry that has been growing in North America since the removal of the US Professional and Amateur Sports Protection Act (PASPA), with sponsorship from betting and gambling firms in North America now worth nearly $450m in 2021, says GlobalData, a leading data and analytics company.
Patrick Kinch, Sport Analyst at GlobalData, comments: “This multi-year deal between the Capitals and Caesars is the first of its kind in the NHL, after the launching of the league’s Jersey Advertising Program, which allows NHL sides to secure two sponsorship agreements for branding on their home and away jerseys. The agreement further signals the growing interest of betting firms in the US sports market, which has been growing in sponsorship value since the removal of the PASPA in 2018. While this growth was stunted by the pandemic, it is now increasing in value, with up to $450m in sponsorship agreements currently active in the North American sports market.
“Given that this deal is the first of its kind in the NHL, it is likely that competing NHL sides will follow suit. Betting firms such as Caesars, Draft Kings and FanDuel, will no doubt be interested in securing a coveted NHL sponsorship asset, the jersey crest of NHL sides.”
It is also no surprise that the Washington Capitals are the first side to announce such a partnership. Sports betting was legalised in Washington this year, and the state sees one of the highest betting sponsorship values in the US. Only five states are seeing a higher value, with Washington’s political ties no doubt positioning the Capitals to be the first beneficiaries of the NHL jersey program.
According to GlobalData’s recent report, ‘Gambling and Betting in the United States’, Washington attracts $8.50m in betting sponsorship agreements, trailing only New York, Nevada, Pennsylvania, Illinois and Michigan. The same report found that betting sponsorship in North America, as of January 2021, was worth $370m, with that figure now rising to $450m following the removal of PASPA. Further additions coming through NHL sides looking to capitalise on a now less regulated potential revenue stream, such as jersey branding, which is becoming increasingly popular for one of the US’s biggest sporting properties.