MGM’s Gamble with the NBA

This afternoon, the NBA announced that they have entered into a 3-year partnership worth more than $25 million with MGM Resorts International. This deal makes the NBA the first major sports league to set up an exclusive gambling partnership.

However, what do these partnerships mean for competitors, like FanDuel and DraftKings?

The NBA deal with MGM grants exclusive rights to the NBA and WNBA logos and marketing content. This deal also grants MGM the right to use league data, however, this is not an exclusive right.

By not making the data an exclusive right, the NBA is able to make deals with other sports betting operations.

This is good news for companies like FanDuel and DraftKings, because they will also be able to pay the NBA for access to the league data, if they believe it is worth the cost.

Adam Silver, who has long been a supporter of sports betting, said, “collaboration will result in the best possible gaming and entertainment experience for consumers through the use of accurate, real-time NBA and WNBA data, and our collective efforts to maintain and enhance the integrity of our games.”

This approach by the NBA is all about maximizing their revenue from sports betting. The bid to receive an “integrity fee” failed, so now they are trying this. However, do not forget businesses do not need to pay the NBA, they can continue to collect data on their own just as they were before.

The NBA is trying to create an integrity fee of their own by charging companies for their data.

The 3-year $25 million partnership may be worth it if the consumers care about “authentic” data.

However, do you think those who bet by using a bookie at the bar really care about their data source? Me neither.

 

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s