NRL expecting to face up to $60 million in losses over new gambling legislation, Sharks and Sea Eagles first teams to be impacted

New gambling legislations are set to cost the NRL millions, while also having huge repercussions for not just the top end of the game, but also grassroots and women’s rugby league. See which two clubs are already impacted.

The Sharks are already feeling the pinch given their stadium sponsorship with PointsBet is one of the most lucrative in the NRL and has been running since 2019.

Cronulla and Manly are set to become the first major casualty of gambling legislation that is expected to cost the NRL as much as $60 million.

Federal Government plans to introduce restrictions on gambling advertising could have huge repercussions for the game, not just the top end but also grassroots and women’s rugby league.

It comes after a parliamentary committee called for a phased ban on gambling advertising during sporting events within three years.

A ban on logos on club jerseys is also set to follow.

And it follows the state government launching its “Reclaim the Game” initiative in 2020 to reduce the amount of sports betting advertising.

In preparation for the announcements, Cronulla have made the reluctant decision to end their stadium deal at the end of this NRL season with gambling company PointsBet.

The Sharks have been locked in talks with PointsBet and the parties agreed to maintain their relationship, although it will no longer include the naming rights to their home ground.

The Sharks’ stadium sponsorship with PointsBet is one of the most lucrative in the NRL and has been running since 2019. Picture: NRL Imagery

It is understood Manly have also been in talks with PointsBet – the major jersey sponsor of the Sea Eagles – over their relationship and will explore other options at the end of the season.

Any restrictions on gambling advertising will impact 14 of the 17 NRL clubs that are sponsored by wagering companies. Jersey sponsorships alone are estimated to be worth more than $6m.

Penrith’s BlueBet Stadium is also at risk of being removed, while the Roosters lucrative UniBet sponsorship and the Raiders and Knights partnership with Palmerbet is also in danger. The Bulldogs, Rabbitohs and Dragons are the only three NRL clubs without a betting company sponsor. It is understood Sharks and Sea Eagles officials recently met NRL powerbrokers to discuss the situation.

Manly have been in talks with major jersey sponsor PointsBet over their future. Picture: NRL Imagery

The NRL itself will also face a loss of revenue – estimated at as much as $50m – and will be forced to restrict spending at head office, with the ­integrity unit one area that may suffer.

NRL chief executive Andrew Abdo has taken up the issue with the Government.

The Sharks are already feeling the pinch given their stadium sponsorship is one of the most lucrative in the NRL and has been running since 2019.

“We respect PointsBet’s decision given their changing operating environment and are delighted they will continue to invest in the Sharks,” Sharks chief executive Dino Mezzatesta said.

PointsBet Australia chief executive Andrew Catterall said change was coming.

“Community attitudes to gambling advertising have changed, and stadium naming rights and perimeter signage are no longer appropriate for the category,” he said.

South Sydney and Canterbury have been among the sporting teams to benefit from the proposed changes by signing sponsorship deals with Reclaim the Game, an organisation that partners with sporting clubs to reduce the amount of sports betting advertising. The NRL believe that research shows that sports betting is only a minor issue when it comes to problem gambling.

The NRL also feels that recent changes to regulations have had an impact on the sports betting industry, which in turn has impacted their share of the pie.

While they are not opposed to change, it is understood they are of the opinion a blanket ban will only force money offshore. The NRL is believed to be optimistic it can convince the Government to temper the ­restrictions – or at least limit their effect.

The anti-gaming lobby has praised the proposed changes as a step in the right direction.