Posted: February 17, 2022, 11:18 a.m.
Last update: February 17, 2022, 11:45 a.m.
BetMGM and SportsGrid, the only 24-hour sports betting streaming network in the United States, unveil content partnership.
The gaming company’s content will be featured in SportsGrid’s live original programming and will be enhanced through social media and television advertising. Financial terms of the arrangement were not disclosed.
BetMGM’s brand, odds and promotions will be integrated into SportsGrid’s most popular broadcasts,” according to a statement released by the companies. “In addition, SportsGrid will have access to BetMGM’s business 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 stable on news of the deal with BetMGM.
Practical move for BetMGM
BetMGM is currently available in 21 markets, and in these jurisdictions it is the dominant iGaming operator. It consistently ranks in the top three among online sports betting operators.
As more states embrace online casinos and sports betting, media partnerships are becoming essential and convenient ways for gaming companies to attract customers while minimizing traditional advertising spend. In that sense, media reach is key, and SportsGrid brings that to the table at BetMGM.
The media company already offers several sports betting programs on its radio network. For example, ‘The Morning After’ is a dedicated betting show, while the popular ‘Ferrall Coast to Coast’ frequently dives into betting discussions, especially during football season. “College Football Full Circle” – a podcast hosted by Mike Carver and Joe Lisi – focuses on NCAA football betting.
Last December, FanDuel, the largest online sports betting operator in the United States, struck a deal worth $30 million with The Pat McAfee Show, which airs on SportsGrid’s streaming platform. The statement released by BetMGM and SportsGrid does not mention this arrangement.
Games and media marriages more and more frequent
With more of the American adult population having access to regulated sports betting, relationships between gaming and media companies are becoming more common. Economics explains why this is the case.
Last year, Macquarie Research predicted more than $30 billion in iGaming and sports betting revenue by 2030 attributable to deals with media companies. The research firm estimates a compound annual growth rate (CAGR) of 33% over the next few years for online casino and sportsbook operators through deals 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 agreement with Yahoo! Sports, and last year entered into a similar agreement with Athleticism.