NFL picks Caesars, FanDuel, DraftKings for sports betting partnerships
# 93 Lawrence Guy of the New England Patriots sacked Jimmy Garoppolo # 10 of the San Francisco 49ers during the first quarter of the NFL game at Gillette Stadium on October 25, 2020 in Foxborough, Massachusetts.
Matt Stone | MediaNews Group | Getty Images
The National Football League is officially open for sports betting and is announcing sports betting partnerships with top companies Caesars, FanDuel and DraftKings.
The agreements allow sports betting companies to take advantage of the NFL’s intellectual property and use their brands in betting promotions. The betting companies will also work on a content-sharing model with the NFL. For example, the betting sites may use material such as NFL highlights and next gen stats data to set betting lines. Firms can create their own promotional content to be featured on NFL properties.
Financial terms were not provided, but according to someone familiar with the agreements, the combined five-year pacts could be worth nearly $ 1 billion over the life of the contract. But the NFL has the right to opt out after the third and fourth years of the agreements, the person added.
Caesars maintains its league sponsorship as an “Official Casino Sponsor” which allows it to use NFL brands in its casino properties. The company bought sports bookmaker William Hill for $ 3.7 billion last September.
Meanwhile, DraftKings and FanDuel are gaining more brand awareness in the league’s media properties, including the NFL Network and NFL RedZone channels.
The agreements fall under Tier 1 deals for NFL, and the league is expected to announce another wave of sports betting partnerships, but with fewer content options and more restrictions. The NFL agreed to a data rights agreement with Genius Sports earlier this month. Hence, sports betting companies need to acquire Genius’ data in order to conduct their NFL betting.
The league also agreed to a media rights deal with partners NBCUniversal, Fox Sports, ESPN, CBS Sports and Amazon in March. The 11-year deal is worth over $ 100 billion.
According to the Thursday afternoon announcement, DraftKings stock rose 4% to $ 60 per share after close of business, while Caesars was down slightly at around $ 93 per share.