Before we get started, let’s give a shoutout to TonyBet. It’s one of the rising platforms changing how fans connect with modern sports. They focus on responsible play and new digital experiences. This shows how the gaming world is changing. Today’s study looks into this evolution in interesting ways.
With that, let’s get to a study I would like to share with everybody:
Gambling has poured a lot of money into the sports world in recent years. In 2018, the Supreme Court struck down a federal sports betting law. Now, most states have legalized sports betting in some form. Sportsbooks back many media companies, such as Barstool Sports and my previous job. You can’t tune into any sports event without seeing ads for betting sites or fantasy apps.
Gambling on sports makes somebody (usually the house) a lot of money. But does it actually have a positive impact on fan engagement?
I have no idea. I’m a regular Mormon dad. I’d rather spend ten dollars at Taco Bell than bet on a Conference USA team covering a spread on a Thursday night. I’m not the person you should ask about this sort of stuff.
But thankfully, some academics at Xavier University recently studied this question.
In the Journal of Business Research, a paper titled “Game-changing Innovation or Bad Beat?” was published.” was published.” was published by Dr. Ashley Blank, Dr. Katherine Loveland, and Dr. David Houghton. “How Sports Betting Can Reduce Fan Engagement” seems to answer my question right in the title.
The authors noted two other papers on the topic. One paper used data from before sports betting was widely legalized. It found that local TV ratings went up when the local team covered the point spread. This effect was stronger in games that people typically don’t watch. It was especially notable when the outcome was uncertain. The authors pointed out a second paper. This study showed that sports betting operators can increase engagement using their social media.
There’s some literature on this subject. But there hasn’t been much research on the direct link between fan engagement and betting yet.
The authors examined survey data from many fans. They found that losing a bet lowered fan engagement. Yet, winning a bet didn’t boost it.” They also noticed that fans are more engaged and feel happier when their favorite team wins. Losing a bet, as you might imagine, decreased the positive emotional response.
The authors studied if prop bets led to different results than bets on game outcomes. They found similar results in both cases.
So…what does this mean?
Via the study:
Industry experts think sports betting will boost fan engagement. Yet, two studies show this may not be true. When fans lose a bet, their positive emotions drop. This leads to less fan engagement. This effect holds for both moneyline bets tied to performance (Study 1) and prop bets not tied to performance (Study 2). Also, we find that when fans win a bet, fan engagement does not increase. Together, these results suggest that sports betting can be detrimental to fan engagement. So, sports betting may be a bad bet for leagues and teams.
A sports franchise or athletic department might choose to embrace sports betting for various reasons. One main goal is to enhance fan engagement. It might be about making money. Or it could be for reasons unrelated to boosting future viewership or engagement. All promotions, from sports books to bobbleheads, have costs involved.
The authors offer the following advice:
Fans are vital to every sports organization. The negative impact of sports betting on fan engagement is crucial for leagues and teams. We urge leagues and teams that embrace sports betting to be careful. They should take steps to lessen any negative effects on fan engagement. Teams can set up loyalty programs. These programs help fans feel good, stay engaged, and stick around longer.
Sports gambling isn’t something you should bet the house on. It’s not a sure thing to pay out (that’s a gambling term) the way you think it will.