When it comes to the economic impact of sporting events, there’s a lot of data to consider. Sports remain popular in many cultures around the world. In April 2021, Statista published a survey of at least 1,000 European respondents. In the age groups between 18 and 65, nearly 50% said they watched football on television at least once a month.
Spain tops the list with 48% of respondents saying they watch football several times a month. Italy and the UK come next with 43% and 41%, respectively. From national sporting events to international events, the economic impacts are immense. For example, this year’s World Cup is the most expensive in history.
In 1994, the United States spent 500 million dollars to organize tournaments. Four years later, France has spent $2.3 billion. Japan spent $7 billion in 2002.
In 2014 and 2018, Brazil and Russia together spent $26.6 billion.
Now in 2022, Qatar has allocated an incredible amount $220 billion. This includes billions for new stadiums, hotels and transport.
Here’s a look at the impact sport has on economies around the world.
Legal sports betting in the United States
A wave of legalized sports betting started in 2018 in the United States. The Supreme Court overturned a previous ban on sports betting. Many states across the country have inaugurated their legal markets. In 2021, the sports betting industry generated $4.33 billion in revenue.
The main driver of the windfall from legalization came from taxes. Sports betting regulation has helped channel much-needed revenue into state budgets. Many states have sought to synchronize their legal betting markets with the start of the NFL season. Billions of betting dollars have been paid out in New York, New Jersey and Illinois. Thousands of jobs have also been created through the addition of live casino dealers to legal sports betting. As states reap the benefits of legal sports betting, online casinos may follow.
Sports tourism benefits local economies
Besides professional leagues, youth and amateur sports also benefit local economies. It includes volleyball, baseball and tennis. Sports venues attract visitors to local communities and help generate economic spending among private developers. It adds billions to local economies, creates jobs and increases tax revenue. These expenses fall into three broad categories:
- Direct (hotels, restaurants, retailers, transportation)
- Indirect (goods and services)
- Induced (employee expenses)
Sports facilities receive funding through grants or county and municipal bonds. Sports tourism is a major economic contributor for many cities.
Offshore sports betting
It’s hard to know how much the offshore betting industry might be worth. Revenues are estimated in the billions. In addition, the global online gambling and betting industry was worth $61.5 billion in 2021. Expected to change to $114.4 billion by 2028, offshore sports betting will be a big slice of the pie.
Help create massive competition among the best gambling companies in the world. Review of the Best Offshore Sportsbooks for US Players is essential. US bettors can access offshore sports betting from outside legal jurisdictions. Some states offer a laissez-faire attitude to these gray areas. This helps prepare them for possible legal frameworks. The demand is there. Offshore sports betting creates jobs and generates revenue for their respective localities.
Most popular sports in Europe
With approximately 3.5 billion fans worldwide, football (soccer) dominates in Europe. Other popular sports include rugby, ice hockey and Formula 1 racing. Cricket and basketball also remain popular in countries like Germany and France. In 2020, a study by the European Union showed that sport represented 2.12% of GDP. Nearly 3% of jobs came from sports. These figures were the highest in Austria. Sport represented 4.12% of GDP and 5.63% of employed persons.
A UEFA social return on investment model also provided positive economic data. The model studied footballers from 25 national associations. They generated 39.5 billion euros “of positive economic, social and health impacts”. This included creating jobs, education, reducing crime rates and improving general well-being.
The economic value of football has helped reduce type II diabetes and heart disease. It has even reduced the risk of individuals turning to crime. Scottish football leagues have also shown social and economic impacts on local communities. It has saved thousands by improving mental health and millions through subjective well-being. Studies confirm the countless positive effects of sport in local societies.
The impact of sporting events on local communities remains positive. Playing sports helps reduce school absences while improving physical fitness. The economic benefits are also obvious. Investing in the future creates massive opportunities that benefit the public. For example, Qatar’s spending on the World Cup is framed around a broader economic roadmap. Infrastructure costs are aimed at making the country a leading hub. New stadiums, airports and underground transport are setting the stage for 2030 and beyond.
Stimulating innovation is the goal. The world of sport continues to steer many large and small economies into the future. For more online sports betting and reviews, visit SafestBettingSites.com.