The major U.S. sports betting brands have either become broadcasters in their own right or signed numerous media partnerships to increase reach and user engagement. The aim will be to increase in-play volumes and interaction.
The convergence of sports betting, media and broadcasting continues in the U.S. with the latest and somewhat unusual agreement that Fan Duel will be the exclusive odds provider of the Associated Press news agency.
The FanDuel-AP agreement is purely commercial and is one of many such media deals made by the operator. The other notable moves by operators into the media mainstream have been carried out via M&A: Penn National acquiring Barstool Media, DraftKings buying up VSiN or Bally’s taking over Sinclair’s regional TV network and renaming it Bally Sports.
The tie-ups and takeovers provide the betting brands that have ambitions of major market share with the scale and channels to deliver hours of sports- and betting-related content, familiarize bettors with wagering, grow their brand awareness levels and, of course, their user-base.
To a non-U.S. observer, the striking aspect of all this activity is how widespread it is. That is specific to the U.S., but it’s notable because it’s unlike anything seen in other markets, whether mature or early stage, and speaks to much higher levels of social acceptance of sports betting (even, to an extent, in business circles).
The more worrisome among us will point to the risk of a backlash against the ubiquitous presence of betting brands on screens, billboards and banner ads, as has been the case in many European markets, while on the positive side of things the switch from near total illegality to broad regulation in the space of three years (caused in no small part by the pandemic) is a turnaround for the ages.
From a media perspective, the fact that sportsbook brands own and run national and regional TV networks raises a number of questions: around plurality, commercial agreements, content, scale and reach.
Creativity to boost competitiveness
The initial negativity from some punters to the DraftKings acquisition of VSiN was one example of how some of them view the topic of plurality and dominance of a small number of brands. For operators, meanwhile, broadcasting is one of the pillars upon which to base their corporate growth.
Adi Dhandhania, SVP Strategy and Interactive at Bally’s Corporation, tells CDC Gaming that “consistent and creative offerings are key to enhancing our competitive posture in this market”. The reach of the Sinclair Broadcast Group will combine Bally’s sports betting output with the fantasy and free-to-play assets of Monkey Knife Fight and SportCaller is part of the play.
When it comes to content, “we have the unique ability to integrate and deliver engaging and interactive content that will differentiate our content from other broadcasters,” Dhandhania adds, but it also seems clear that a lot will revolve around in-play betting. The Sinclair agreement gives Bally’s, which has just launched its mobile app in Colorado and other states, the ability to deliver differentiated content that will “elevate the live viewing experience for fans to an unprecedented level” — and it is easy to envisage the group pumping out markets, odds and promotions to viewers during live sporting events. DraftKings CEO Jason Robins echoed the point when he recently told a panel of investors: “Media is an area we have for a long time believed in (and is) where we acquire (most of) our customers. We can get VSiN to talk more about in-play. It’s become a much bigger area of focus.”
Other operators combining broadcasting and betting, such as Fubo TV, have outlined similar scenarios where a blend of TV reach, engagement, marketing, and a range of different contests and prize draws will drive audiences and revenues. For the likes of Fubo TV, the prospect of owning the complete value chain and user experience is where the value will be, while for the bigger brands broadcasting it is one component in their search for more reach and scale.
Dhandania adds: “Scale and coverage were certainly important elements for us to consider when selecting a media partner”. Sinclair’s national coverage comprises “186 television stations across 88 markets, 19 regional sports networks under the ‘Bally Sports’ name, which account for half of all U.S. NBA, NHL and MLB teams, STIRR, its popular tennis channel, and digital and over-the-air television network, stadium, so we are able to deploy our content across a wide and diverse spectrum of platforms.”
Returning to the FanDuel-AP agreement, Flutter’s U.S. flagship brand will be the only one quoted by AP journalists when writing about sporting events and betting markets. CDC asked David Purdum, who covers gambling for ESPN, if that compromised AP’s content in any way.
“I do not believe so,” he says. “The Associated Press is keeping editorial independence, as part of its deal with FanDuel, and I don’t expect there to be any change in its editorial approach. If there is a controversy involving FanDuel, I expect that AP will cover it objectively.”
In Purdum’s view, the primary function of the deal is that it gives “AP consistency in its stories, in terms of always citing FanDuel odds” but “the one negative, to me, is that odds vary from one sportsbook to the next and using only one sportsbook’s odds may not paint the complete picture of the market.”
Bringing betting to the masses
When it comes to consumer criticism and whether players care that VSiN is owned by DraftKings or that gambling companies are broadcasting to them rather than ESPN or other established media brands, “there was some immediate criticism of the DraftKings-VSIN deal from bettors, but I haven’t noticed any difference in VSIN’s coverage from before the deal to now. They are still citing multiple sportsbooks,” says Purdum.
“Every media outlet has owners and business partners, and with that comes inherent conflicts of interest. How outlets navigate those conflicts of interest is what matters, in my opinion.”
For brands in search of meaningful scale, the scope has to be national and broadcasting makes sense from that perspective. It enables them to reach players across multiple states, devices and boost in-play volumes. Potentially it can even influence non-regulated jurisdictions into tabling betting legislation as they observe the level of economic activity the industry generates.
Bally’s Dhandania says that the U.S. online sports betting industry is currently at such an early and “fast-growing stage, we believe that a rising tide will lift all boats, and that there is sufficient market space to support a variety of operators.”
What seems clear is that barring a major scandal linked to corporate governance or responsible gambling, broad media presence will continue to democratize the industry and sports betting for U.S. players. As Bally’s Dhandania says, “partnerships between industry participants benefit the industry as a whole, while each operator brings something unique to the table.”
