Do Sports Actually Profit from the Betting Boom?

May 8, 2025

In recent years, the bond between the world of sports and that of legal betting has grown increasingly tight, radically transforming the economic ecosystem surrounding sporting events.

From national football leagues to international tennis tournaments, including basketball and even niche disciplines, the betting sector has become a leading player.

But how much of this massive financial engine actually flows back into the sports sector? And who captures the rest?

A Billion-Euro Business: Market Size and Growth

According to data from the European Gaming and Betting Association, the European market for legal sports betting generated over €30 billion in gross revenues in 2023, with steady year-over-year growth, driven by digitalization and the mainstream normalization of legal betting in media.

In Italy, the Agenzia delle Dogane e dei Monopoli reported that online sports betting alone moved over €15 billion in gross turnover.

Football drives a significant portion of this amount, accounting for approximately 80% of total volume.

However, it’s essential to distinguish between turnover and gross gaming revenue (GGR).

While the former represents the total amount wagered, the latter indicates the operator’s actual profit — that is, what remains after payouts.

And it’s this margin that determines how money gets redistributed.

Commercial Rights, Sports Sponsorships, and Royalties

The relationship goes beyond direct cash flow.

A large share of revenues derives from sponsorship deals, naming rights, and commercial licensing agreements.

Serie A teams, second-tier leagues, and even individual professional athletes often engage in multi-million-euro partnerships with betting operators.

In 2022, despite Italy’s advertising ban on gambling introduced by the Decreto Dignità, many clubs found alternative partnership models, such as international agreements or indirect sponsorships.

In the UK, where gambling ads remain legal, Premier League clubs collectively earned over £70 million per year from betting sponsors.

Still, the amount that sports organizations reinvest into the system varies widely.

In some cases, federations sign centralized deals that redistribute income among clubs; in others, betting companies fund CSR initiatives or infrastructure projects directly.

Redistribution: A Drop in the Ocean?

Even though betting moves billions, most sports clubs — especially smaller ones — receive little direct benefit.

Only a small portion of the GGR is systematically reinvested in grassroots programs or youth development.

In many markets, the lack of strict regulation on revenue redistribution prevents betting profits from yielding meaningful benefits for the broader sports ecosystem.

On the contrary, a significant portion of earnings is absorbed by gambling operators, tech providers, affiliate platforms, and, naturally, the state — through a tax burden that can exceed 20–25% of the GGR.

In Italy, for instance, legal betting-related tax revenues exceed €500 million annually, mostly funneled into general public finance and not earmarked for sport-related investments.

The Critical Role of Data and Technology

Another key factor is the increasing value of official sports data.

To offer real-time odds, betting companies license data from providers like Sportradar or Genius Sports, which in turn hold direct agreements with leagues and federations.

This creates a parallel economic flow that benefits some organizations — especially those able to structure well-monetized digital agreements.

Additionally, technological evolution — including live streaming and micro-betting — has further fragmented the value chain, opening up new opportunities as well as new disparities.

Sports Betting: Opportunities and Contradictions

The legal betting economy undeniably represents a powerful yet controversial financial lever.

While it generates substantial revenue, it also raises concerns around fair benefit distribution, sports integrity, and the social responsibility of gambling operators.

To make the system genuinely sustainable, stakeholders must implement transparent governance frameworks and define mechanisms to reinvest proceeds into the sporting fabric, especially at the grassroots and amateur levels.

Without such measures, there’s a real risk that sport becomes merely a traffic driver for an economic sector whose priorities and logic are entirely different, though legitimate.

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