The Sports Advisors podcast is a biweekly roundtable discussion for decision-makers, hosted by their peers, on the stories that actually matter and their second-order effects. It is actionable intelligence from senior operators who have actually built, bought, sold, programmed, monetized, and scaled sports businesses.

In the latest episode, The Sports Advisors talk sports betting: whether the pre-legalization viewership narrative was overstated, how gaming operators’ sponsorship priorities have shifted, what rights owners should be asking for in their next round of sports betting partnership deals, whether leagues, teams, and conferences are properly pricing the integrity and reputational risk that comes with the category, and more.

The cast for the fourth episode in a row includes:

You can always connect with a member of the JohnWallStreet Advisory team by sending a note to [email protected]. In fact, we encourage it!

Key insights and takeaways from the conversation include:

Sports Betting is a Sponsorship Category, Not a Viewership Engine

When PASPA was struck down in 2018, many industry observers presumed that legalized sports gaming would drive fans to watch more games and tune in longer. While ratings are up (see: changes in viewership methodology), no sports property has come out and explicitly attributed the gains to wagering. 

“[Gaming] is tied to a significant amount of sponsorship revenue and will continue to be. It's [just] not going to be something that consumes the business and grows [viewership] in the way that [legalization proponents] have ever said,” Crakes said. “You have to understand, you're talking about a segment [of fans that wager] and you're not going to grow it broadly. That's one of the reasons why all the gaming companies stopped the carpet bombing of advertising. It wasn't going to convert any new people.”

Sportsbooks Now Focused on High-Value Customer Retention

The category’s sponsorship needs have evolved as the U.S. market matures. The emphasis has shifted from reaching as many potential bettors as possible to deepening relationships with the highest-value customers.

Sports betting operators have “moved more toward premium [and unique] experiences… [These companies are] now more focused on their top 5% of bettors [and] how [they] ensure that [those customers remain loyal than reaching the masses],” Kelly said. “They want to bring [the most valuable bettors] to have an on-field experience at Gillette. They want [those individuals] to have a chance to do player meet and greets. They [are using] more of the traditional type of hospitality and activation assets, that at the beginning [the gaming companies] didn't care about. [Pre-Covid] it was just [about] eyeballs, engagement, and building their own databases.”

Of course, the prediction markets sit in a different stage of development.

“When you look at the Polymarkets and Kalshis, they're where FanDuel and [DraftKings] were 10 years ago. They're just driving awareness, credibility, and authenticity,” Kelly said. 

Betting Partnerships Should Include Fan Intelligence

If operators are no longer just looking for exposure, rights owners and holders should probably adjust what they ask for in return. Next generation sportsbook partnerships will be built around the data and insights that ultimately help clubs better understand and serve their most avid fans.

“A bettor is the highest frequency consumer in a [team’s] fan base. I think about [this in the context of] when I was at ShopYourWay in terms of loyalty. If [sports] properties can think of the sportsbooks as a CRM [or] pipeline, [and] not just a billboard, [there is an opportunity to turn those relationships into something more measurable and valuable],” Shah said. “And if in the [next] round of [sports betting] deals [they] can get that second-party data, [then the focus becomes about] how do you develop a deeper relationship with that heavy user… That paradigm shift is really where the opportunity is for all parties.” 

Risk Premiums Should Be Rising

One Big 12 athletic director, frustrated by the Brendan Sorsby saga, recently suggested the sport had “lost its soul.” That does not mean leagues and teams should be looking to exit the category. But it does suggest they might want to reprice the risk of aligning with partners that can create integrity concerns and reputational exposure.

“We [didn’t lose] our soul in one week or with one case. This is the [byproduct] of what's going on [with] the commercialization of sports as it is the center cut of media and entertainment in our country,” Brody said. “Teams and leagues [just] probably now [need to] say, ‘[gaming operators] pay me more for [the association’. [At least], until the properties can't get that money [anymore] and they'll succumb to the brands [again] because the brands control the dollars.”

📺Watch the full episode on JohnWallStreet’s YouTube page.
🎧 Listen or watch on Spotify.

Catch previous episodes of The Sports Advisors on JohnWallStreet’s YouTube channel, including discussions on the Saudi Public Investment Fund’s decision to stop funding LIV Golf after the 2026 season, speculation around Vancouver Whitecaps FC potentially relocating to Las Vegas, the 2026 World Cup serving as a stress test for the modern sports business model, and more.

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The next episode will be released on Wednesday, July 1.