Which statement correctly identifies two economic impacts of sports betting markets on professional sports?

• A. Increased regulatory costs with no revenue benefits.
• B. Decreased TV viewership due to betting distractions.
• C. Revenue from sponsorship/advertising and higher engagement that can boost viewership and potentially ticket sales.
• D. Lower sponsorship opportunities for teams.

Answer: (C)

The main idea is that sports betting markets can monetize professional sports in two big ways: sponsorship and advertising revenue, and higher fan engagement that translates into more viewership and even ticket sales. Betting companies look to align with major leagues, teams, and broadcasts, so they sponsor events, place ads, and create data and media partnerships. This brings direct income to leagues and clubs through sponsorship fees, advertising dollars, and related partnerships. At the same time, betting tends to deepen fan involvement—people track more games, discuss outcomes, and follow live data because they have a stake in the results. That heightened engagement can lift TV ratings and attendance, boosting both media rights value and ticket revenue.

Choosing the other options misses the broader economic reality. While there are regulatory costs to manage, they don’t erase the revenue opportunities from sponsorship and advertising. Betting generally doesn’t reduce viewership; it often increases it. And rather than shrinking sponsorship opportunities, betting has created a large and active sponsorship market for teams and leagues.