The Top 5 Partnerships of 2019 - Sports Media and Sports Betting

2019 was the first full year that mobile sports betting was a part of the American Sports Fans' life. With the success of New Jersey (the first state to legalize), other states have begun the process of adjusting their laws to allow fans to wager on games.

The biggest shift this past year is the convergence of sports media and sports betting, an attempt to bring the fan to the bet. This shift can be read in articles, heard on podcasts, and seen on TV, but it can also be seen in commercial deals.

Below is a recap of the top 5 Partnerships between sports betting operators and sports media companies. This is not taking into account brand partnerships like those of Buffalo Wild Wings and MGM or league deals (that can be for another post).

Top Sports Media and Sports Betting Deals of 2019:

• ESPN and Caesars - ESPN is still the biggest name in sports media. The deal included a physical studio at Caesars in Las Vegas and gave ESPN access to Caesars' odds. This early partnership should be viewed as the first step these two organizations are taking to bring betting to the casual US fan.
• DraftKings and Vox Media - It’s no secret that the traditional daily fantasy sports (DFS) companies own the current sports-betting demographic in the US. DraftKings and Fanduel's rapid growth in the sports betting market makes the Paddy Power Betfair acquisition of Fanduel (2018) look like one of the smarter acquisitions in the space. DraftKings has made a clear realization that content is what will drive the ongoing fan experience and open the door to acquiring the more casual sports fan. Their partnership with Vox Media to release DraftKings Nation (a play on SB Nation) is their first step in bringing content to the forefront and connecting with fans in a new way. DraftKings also recently announced DRIVE By DraftKings, an ecosystem of innovation in the sports betting and sports media space. Exciting and strategic moves on their part.
• TheScore releasing their own Sportsbook - Canadian sports media company, TheScore launched their own Sportsbook at the beginning of the NFL season in New Jersey. This is relevant because as one of the most popular mobile applications for sports fans in the US, they will try to convert their readers to sports bettors in legal states as the regulations evolve. Along with making sure that their sports betting product lives up to their current product quality, a major challenge will be scaling the book across states as they become legal.
• Yahoo and MGM - At the end of the year, Yahoo partnered with Roar Digital and MGM to create Yahoo Sportsbook powered by BetMGM. This is important because from the outside it looks like Yahoo has their own sportsbook. However, if you go through the experience, you will clearly see that this is an affiliate experience kicking you out of the Yahoo product and leading you to sign up for BetMGM. It will be interesting to see how this evolves long term, as it could lead to a great content experience if executed correctly.
• Barstool Bets - There is no real money exchanged with the Barstool Bets, and the product they launched with Chalkboard gets around 3,000 plays on big games. However, they are OWNING the conversation with a young (primarily male) demographic that will be a big portion of the sports betting regulars. They are driving the conversations through social media and podcasts and are running non-exclusive affiliate programs with strong incentives. They will continue to be a relevant driver of the conversation for a specific demographic, and it wouldn’t be surprising to see an exclusive partnership take place in some way or another this year.

Honorable mention:

• Bleacher Report B/R Bets
• Fox Bet Sportsbook
• Fanduel “The Duel"

2020 will be a pivotal year for these two industries as competition heats up and more states legalize online and mobile sports betting. Success in this market will be about bringing the bet to the fan, not the fan to the bet, and the convergence of these industries is the key.