Super Bowl LVI in Los Angeles is projected to be the most heavily bet-on game ever, with an estimated $7.61 billion to be wagered on Sunday — a 78% increase from last year, per the American Gaming Association.

The Big Game has attracted an abundance of bettors with two teams — the Los Angeles Rams and Cincinnati Bengals — that haven’t come close to reaching the pinnacle of professional football in decades. 

• 31.4 million Americans plan to bet on the game, up 35% compared to last year.
• Only 20 states offered legal betting for Super Bowl LV, compared to 30 in 2022. 
• In 2021, the U.S. accepted $60 billion in wagers with $4.29 billion in tax revenue generated.

A highly anticipated Super Bowl comes on the heels of record results in New York, which launched online sports betting on Jan. 8. The Empire State reported a handle of more than $1.62 billion in January, topping the single-month record for any state in less than four weeks. 

Commercial Value

Several sportsbooks are expected to air commercials during Super Bowl LVI, a move that signifies the NFL’s changing stance on legal sports betting. The cost of an ad could go for as much as $7 million for a 30-second spot, representing the largest ad spot of its kind to date.

The high marketing costs for sportsbooks has caused Wynn Resorts to try to offload its online betting unit, Wynn Interactive, for $500 million after receiving a $3 billion valuation in 2021.

Disney saw 34% year-over-year revenue growth in the fiscal quarter ending Jan. 1, as the company looks to double down on football. 

The Mouse banked $21.8 billion in its fiscal first quarter of 2022, beating expectations on earnings and subscriber growth.

• ESPN+ surged to 21.3 million subscribers, up 24.6% quarter-over-quarter and 76% year-over-year.
• Disney+ subscribers reached 129.8 million, up 11.7 million from the previous quarter and 37% year-over-year.

Chairman and CEO Bob Chapek confirmed that Disney plans to bid on “NFL Sunday Ticket,” which could fetch $2.5 billion per season. 

The company also re-upped with two of its favorite broadcasters by extending its deal with Peyton Manning’s Omaha Productions, adding a fourth year to its “Monday Night Football with Peyton and Eli” show, better known as the ManningCast.

The Price of Rights

Last month, Disney struck a deal to exclusively broadcast English Premier League games in 10 South American countries.

Disney is also believed to want a new deal for Indian Premier League rights, expected to top $5 billion over five years.

The company’s broadcast rights include the NFL, MLB, NBA, NHL, La Liga, and UFC.

While revenue from its linear media networks were flat at $7.7 billion, Disney saw impressive growth in streaming, as its direct-to-consumer channels grew 34% to $4.7 billion. Streaming remains a money loser, however, with a $593 million operating loss.

Cryptocurrency platform Crypto.com has signed a nine-year deal to become the title sponsor of Formula 1’s newest race, the Miami Grand Prix.

As the first commercial partner announced for the race, Crypto.com is building on its relationship with F1 that started last year. The currency platform became a global sponsor of the sport in a five-year, $100 million deal in June.

Crypto.com branding will be seen throughout the venue.

• With an exclusive observation deck at the track’s fourth turn, the Crypto.com Terrace hospitality area will feature 360-degree views. The first level will be open to all fans.
• The Crypto.com Fan Zone, which includes entertainment and activities the entire weekend, is in the center of the Hard Rock Stadium.

The event will take place May 8-10 at the Miami International Autodrome.

Crypto’s Crown

Financial terms of the deal were not disclosed, but Crypto.com is likely paying a pretty (virtual) penny as it adds to its roster of sports deals.

As part of a 20-year, $700 million deal, Crypto.com took over naming rights to the iconic Staples Center in December. 

In September, the platform signed a jersey patch deal with the Philadelphia 76ers worth roughly $10 million annually, and a three-year deal worth up to $35.4 million with Paris Saint-Germain. In July, it struck a 10-year, $175 million branding deal with the UFC.

Alchemy, the company that created software tools used to build NBA Top Shot, has raised $200 million, valuing the crypto startup at $10.2 billion — nearly tripling its previous valuation. 

The Series C funding round, led by Lightspeed Venture Partners and Silver Lake Partners, included previous investors Andreessen Horowitz, Pantera Capital, and Coatue Management. 

Alchemy presents a unique opportunity for investors as a platform that bridges the gap between blockchain technology and major corporations looking to take advantage of the market. 

The California-based startup has provided services to a variety of companies. 

• It is working with Adobe to begin offering NFTs through Photoshop.
• OpenSea, the largest NFT marketplace, used the company to build its platform.
• It was used to build the NFT-based online video game “Axie Infinity.” 

Last October, Alchemy raised $250 million at a $3.5 billion valuation. The company continues to benefit from a flurry of investments in crypto-related startups — last year, blockchain funding surpassed $25.5 billion for the first time, a 718% increase year-over-year, per CB Insights. 

Part of the Trend

Last month, Blockdaemon — the largest independent blockchain infrastructure platform — raised $207 million during a Series C funding round, valuing the platform at $3.25 billion.

Led by Sapphire Venture Partners and Tiger Global, the round included Softbank Vision Fund 2.