An estimated 70 million Americans are expected to collectively bet over $23 billion on the Super Bowl this year, according to the American Gaming Association. With the advent of online sports gambling legalization, more and more Americans have the eligibility to participate.

Patrick Rishe, Washington University – St. Louis Sports Business Director, joins Yahoo Finance to discuss the landscape of sports gambling and what it could look like during the Super Bowl.

When asked if the legalization of online sports gambling has had a direct impact on viewership, Rishe responds: “Absolutely. This is the reason why so many states have tried to legalize and why the leagues have very much been supportive and quite frankly they lobby. Here in Missouri we got all the professional sports teams lobbying the state of Missouri, who has not legalized gambling just yet because they realize the impact it has on engagement.

“When you got stake in the game, i.e., when you bet on something, you are much more likely to watch, whether on TV or go in-person. This is changing all aspects of the sports industry including even how you’re designing your venues.”

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor’s note: This article was written by Nicholas Jacobino

Video Transcript

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JOSH LIPTON: Super Bowl Sunday is upon us and the American Gaming Association is estimating nearly 70 million Americans will bet on this game. Helping us break down the numbers is Patrick Rishe, Washington University in Saint Louis sports business program director. Patrick, it is great to see you.

And I want to start here. Bottom line, Patrick, I’m curious how much you think is actually going to be wagered on this game, Patrick? I would assume you’re going to see a pretty serious uptick in volume, Patrick, just given how many more states are legalizing betting, but I want to get your take.

PATRICK RISHE: Well, it’s not only a combination of more states that are legalized, but also just a greater degree of comfortability right now that we’re now six years removed from the 2018 PASPA where that was abolished and states obviously could go ahead and legalize gambling on their own. Last year’s Super Bowl, the estimate was $16 billion. The American Gaming Association, their survey just came out. They’re estimating, I think, it’s $23.1 billion and roughly 68 million people in this country betting on that game.

So it’ll be interesting to see how it breaks out. And what I’m going to be curious to see is obviously one of the big side stories of this Super Bowl is the whole Taylor Swift factor. And you know, not to stereotype, but the Swifties who are mostly largely a younger female demographic who may not be as interested in football or gambling, could that particular demographic, at least on the ratings side, people watching this, could lead to an all time record?

JOSH LIPTON: And I want to– you actually went where I wanted to go, Patrick, because we got to talk about Taylor Swift. So listen, as a guy who thinks a lot about sports and sports business, have you ever seen a phenomenon like this, Patrick, honestly? And can we– is there any possible way to quantify the impact Taylor Swift has actually had on the NFL this season?

PATRICK RISHE: The only thing that comes close and maybe he actually outscores Taylor Swift. That’s hard to imagine. But the impact that Lionel Messi had on Major League Soccer, which was all the talk last year in at least in Major League Soccer and in North America is when he came to Major League Soccer, the impact on the entire brand of Major League Soccer just elevated to a different level. Obviously, one of the most popular soccer players in the world.

So now, you juxtapose that with, if not the most famous entertainer in the world, Taylor Swift and that impact on just the visibility. People are talking about the sport more. And again, is it bringing in ultimately what the NFL cares about?

Is it bringing in a new audience? And can you retain that audience? And I think that would be really exciting if they can bring in that new audience of younger, specifically female fans to the sport of football.

JOSH LIPTON: For sure. And Patrick, getting back to betting as well really quickly, the more betting you see, Patrick, does that mean the more people watching the game? Is there kind of a direct relationship here between betting and eyeballs?

PATRICK RISHE: Well, absolutely. And this is the reason why so many states have tried to legalize and why the leagues have very much been supportive and quite frankly they lobby. Here in Missouri, we’ve got all the professional sports teams lobbying the state of Missouri who has not legalized gambling just yet because they realize the impact that it has on engagement.

When you’ve got stake in the game, i.e. when you’ve bet on something, you’re much more likely to watch, whether it’s on TV or go in person. And this is changing all aspects of the sports industry, including even how you’re designing your venues. Now, a lot of these venues in the states where it’s been legalized, you’re creating these sports book lounges within the venue just because you want to give that extra little experience for people to come off the sofa down to the venue.

JOSH LIPTON: And Patrick, I also want to ask you about this new streaming service coming from Disney, and Fox, and Warner Brothers. I’m interested, Patrick, what kind of impact do you think that could have on the cost of media rights. If there’s fewer bidders, could that mean the cost of media rights go down here?

PATRICK RISHE: You know, I don’t think so. And the reason I say that, well, first of all, I think that this is a very innovative deal. And it will be fascinating to see what they’re going to charge.

Now they say that with ESPN, Fox, Warner Brothers, there could be as many as 15 different linear network offerings that are going to be offered on this streaming app. So in one way you’re bringing everything together. But we all know that from all these other streaming devices– and I’m a subscriber to MLS season pass with Apple– you’re going to have to pay a price. And I’m hearing on the street that this could be as expensive as 40 bucks a month for people to subscribe to this. I think it’s absolutely fascinating.

And then on top of that, remember, ESPN is coming out with their own singular app in 2025, offering even more to those customers. So I wonder if we’re going to end up back to the future where there’s so many different things and bundles for people to buy, they end up just going back to their old traditional cable package. I don’t think we’re going to go there, but it makes you wonder.

JOSH LIPTON: Patrick, it was great to have you on the show today. Have a great weekend and enjoy the game.

PATRICK RISHE: You too.