Posted on: February 17, 2022, 11:18h.
Last updated on: February 17, 2022, 11:45h.
BetMGM and SportsGrid, the only 24-hour sports wagering streaming network in the US, are unveiling a content partnership.
The gaming company’s content will be featured across SportsGrid’s original, live programming and will be enhanced by social media and television advertising. Financial terms of the arrangement weren’t disclosed.
BetMGM’s brand, odds and promotions will be incorporated into SportsGrid’s most popular shows,” according to a statement issued by the companies. “Additionally, SportsGrid will have access to BetMGM’s trading team and brand ambassadors to create unique insider content for the network.”
Shares of SportsMap Tech Acquisition Corp. (NASDAQ:SMAP), a special purpose acquisition company (SPAC) controlled by SportsGrid SportsMap, are flat on news of the accord with BetMGM.
Practical Move for BetMGM
BetMGM is currently available in 21 markets, and in those jurisdictions, it’s the dominant iGaming operator. It consistently ranks in the top three among online sportsbook operators.
As more states embrace online casinos and sports wagering, media partnerships become essential, practical avenues for gaming companies to attract clients while minimizing traditional advertising expenditures. Along those lines, media reach is critical, and SportsGrid brings that to the table for BetMGM.
The media company already features multiple sports wagering programs on its radio network. For example, “The Morning After” is a dedicated wagering show, while the popular “Ferrall Coast to Coast” frequently delves into betting chatter, particularly during football season. “College Football Full Circle” — a podcast hosted by Mike Carver and Joe Lisi — focuses on NCAA football wagering.
Last December, FanDuel, the largest online sportsbook operator in the US, reached a deal reportedly worth $30 million with the Pat McAfee Show, which airs on SportsGrid’s streaming platform. The statement issued by BetMGM and SportsGrid doesn’t mention that arrangement.
Gaming, Media Marriages Increasingly Common
With more of the US adult population having access to regulated sports wagering, relationships between gaming and media companies are increasingly common. Economics explain why that’s the case.
Last year, Macquarie Research forecast more than $30 billion worth of iGaming and sports wagering revenue by 2030, attributable to accords with media companies. The research firm estimates a compound annual growth rate (CAGR) of 33 percent over the coming years for online casino and sportsbook operators by way of agreements with media companies.
For its part, BetMGM, a joint venture controlled by MGM Resorts International (NYSE:MGM) and Entain Plc (OTC:GMVHY), has an existing media deal with Yahoo! Sports, and last year struck a similar agreement with The Athletic.