Becomes 1st League to Sign an Official Betting Sponsor
The NBA has reached a milestone in its growing relationship with the sports betting world. The league annouced Tuesday that it has reached a deal with MGM that will establish the gaming company as the NBA’s official betting sponsor, with the NBA becoming the first major U.S. sports league to sign such a deal.
The new agreement will give MGM rights to use league highlights, names, logos and its direct data feed, as well as exclusively market itself as the official gaming partner of the NBA and WNBA. The logos and league highlights will also appear on an MGM sports betting app, which will be available to states that approve online sports betting.
Industry sources estimate the deal at 3 years and at least $25 million.
“As the landscape for sports betting in the U.S. continues to evolve at a rapid pace, MGM Resorts is a proven gaming leader for us to work with on this groundbreaking partnership,” NBA commissioner Adam Silver said. “Our 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.”
Sources say that the NBA will receive a cut of the amounts wagered on their games, although the exact percentage of the said “integrity fee” was not disclosed.
Nearly $1.5 billion was bet on basketball at Nevada sportsbooks in 2017, 40-50 percent of which was bet on the NBA.
While sports betting is currently legal in Nevada, Oregon, New Jersey, Delaware and Montana, in the next 3 to 5 years more than 20 states are expected to have legalized sports gambling, making the league’s deal an increasingly lucrative coup.