Thanks to the decision taken by the Supreme Court earlier in the year to strike down a federal ban sports gambling continues to grow. And it also gave rise to speculations on just how much TV would benefit from advertising.
And by the looks of it, it seems that CBS is beginning to see some remarkable benefits. Les Moonves, the CEO of Embattled CBS informed investors at an earnings call that one of the company’s local stations in Philadelphia has already begun receiving ad revenue from sports gambling.
Moonves said, “It is a category which has an extraordinary upside which makes us extremely excited.”
Moonves also claims that similar to the boost that is being seen in CBS’ Philadelphia station the network’s flagship TV station in New York is also expected to achieve an upturn in gambling ad revenue.
Furthermore, in his statement, Moonves then went on to give the example of the excess of advertising from daily fantasy services FanDuel and DraftKings back in 2015, as both series introduced a plethora of ads during that year’s football season before slowing declining the ad rate in the latter stages of that year.
Several sources close to the matter say that there is a real potential for increasing advertising as sportsbooks have already been made legal in three states now (New Jersey, Mississippi, and Delaware).
As more and more states have shown real intent towards entering the gambling market, it proves to be of massive opportunity for bigger states like Florida, California, Texas, and New York and in addition to that, with the Midwest region is also set to legalize sports betting. If this materializes, many networks including the CBS could stand to gain quite san handsome ad revenue.