CBS looks to sports gambling to improve advertising revenue

Gambling ads are most likely going to be the newest “gold mine” for the CBS Network if its Chief Executive Officer’s words are anything to go by.

CBS boss Lee Moonves has predicted that sports gambling will provide a huge chunk of advertising revenue for the media house.

In a recent earnings call the CEO expressed his excitement about earnings growth in the second quarter, saying that CBS Sports HQ and Sportline had gained the most from gambling ads.

He said the US Supreme Court decision to revoke the sports betting ban will “create a whole new ad category as well as drive demand across our sports-related content.”

Currently, the company earns about 38 per cent of its revenue from advertising, but Moonves believes it is a growing market segment that cannot be ignored as a revenue stream.

“Our programming was well received and we sold a number of units for the Super Bowl and the Grammys which we have on back-to-back weekends in the first quarter of 2019.

“This is also the first time we went into the upfront marketplace with our integrated broadcast and digital sales teams, and the results were significant.

“Digital volume was up nearly 40 per cent and we continue to leverage the power of targeted digital advertising with the huge reach of broadcast TV.”

On sports betting, Moonves said, he believes it will start as a local “local phenomenon” pointing out the emerging sports betting market in New Jersey.

He indicated that CBS would likely see a boost in revenue in its Philadelphia station before spreading to other locations, such as New York.