A competitive and regulated online gaming and betting market makes a significant contribution to the funding of sport, a new study published by the European Gaming and Betting Association has found.
The study, undertaken by independent consultancy Sportsbusiness, compared the sports funding models of the UK, which combines a lottery monopoly and a competitive online gaming and betting market, with that of France, where the lottery and sports betting are under the monopoly of Francaise des Jeux.
According to the report, UK sports have benefited from a broader funding model and grass roots sport funding is not compromised by an open and regulated gaming and betting market.
Sportsbusiness’ analysis revealed that the average annual budget for UK national governing bodies was €80.1m compared to €46.4m in France.
In France, commercial funding represented 67.4 per cent of this funding, compared with 65.4 per cent in the UK. Lottery funding accounted for 10.2 per cent of revenue in France, while the figure stood at 7.9 per cent in the UK.
Meanwhile, between 2004 and 2007 the UK’s commercial gambling industry contributed approximately €164m of additional funds to sport, of which €133m was spent on football.
Sigrid Ligné, secretary general of the EGBA, said the findings of the report confirmed allowing a fair market access to EU-regulated online gaming and betting operators does not pose a threat to current sport revenue and funding streams.
"On the contrary, it creates additional funding opportunities in jurisdictions where commercial partnerships originating from EU private gaming and betting operators are currently prohibited," he said.
"We are convinced that a fair and regulated opening of the online gaming and betting sector will rapidly lead to a diversification of funding sources for sports."
Sportsbusiness director David Henwood said the study showed different gambling models can co-exist and that a broader funding model can benefit sport as a whole.
