Official NFL Data Pricing Could See Significant Shifts Following Genius Sports-DraftKings Agreement
DraftKings and Genius Sports have sealed a comprehensive, multi-year agreement, providing DraftKings with access to Genius Sports' extensive global sports data and content portfolio. This deal, announced on Thursday, grants DraftKings the rights to utilize Genius Sports' renowned NFL-related products, including its official NFL data feed, real-time play-by-play statistics, and the league's proprietary Next Gen Stats (NGS) data.
The agreement signals a potential market shift for the cost of official NFL data to U.S. sportsbooks, as Genius Sports prepares to court sportsbook clients ahead of the NFL's September 9 season opener. The announcement comes a day before the kickoff of the 2021 Pro Football Hall of Fame Game, marking the start of the NFL preseason.
In April, Genius Sports signed a landmark multi-year deal with the NFL, securing exclusive rights to distribute the league's sports betting feed on a global scale. The four-year deal is valued at up to $1 billion, earning the NFL a 5% equity stake in Genius Sports. In this deal, Genius outbid main rival Sportradar, which previously held an exclusive data partnership with the NFL.
Commenting on the partnership, Christopher Halpin, NFL's Chief Strategy & Growth Officer, stated, "With Genius, DraftKings, and the NFL working together on official sports data, we will help create a highly engaging, secure, and sustainable sports betting environment for fans to enjoy."
This agreement has far-reaching implications for other major sports. In April, the NFL named Caesars Entertainment, DraftKings, and FanDuel as its first exclusive sports betting partners. As part of the arrangement, these companies will have the exclusive ability to leverage NFL marks for both retail and online sports betting. DraftKings, being the first to announce a separate deal with Genius, will now have access to official data from other prominent leagues, such as the English Premier League, Liga MX, and NASCAR.
DraftKings will also utilize Genius Sports' BetBuilder product to offer custom bets, make-your-own bets, and single-game parlays. FanDuel, DraftKings' arch rival, has garnered positive reviews for its same-game parlay offering, which allows bettors to combine multiple legs from a single game.
Concerns within the sportsbook community regarding the cost of Genius' NFL partnership have arisen, with the going rate for the NFL's official data package through Genius estimated at around 4% of a sportsbook's pre-game gross gaming revenue (GGR) for NFL wagers and 6% of a book's in-game GGR. These rates represent a significant increase compared to Sportradar's pricing under the prior deal.
Without official confirmation from Genius Sports or DraftKings, it remains unclear how many sportsbooks have purchased the NFL's official data feed since Genius was awarded the contract in April. However, there are strong indications that Genius could add a variety of new sportsbook partners in the coming weeks as the regular season approaches.
This partnership between DraftKings and Genius has significant implications for the mobile sports betting landscape in New York, particularly ahead of the New York State's competitive bidding process for mobile sports wagering, which is set to commence on August 9. The partnership could potentially incentivize sportsbooks to purchase official data to strengthen their bids as the state requires the use of official data from a sports governing body for mobile sports wagering, with certain exceptions.
DraftKings' shares rose 1.7% to $49.50 in midday trading on Thursday, while Genius saw its shares surge more than 5% to a session high of $16.71, giving the company a market capitalization of $3.2 billion. This partnership marks a significant achievement for Genius Sports, reinforcing its commitment to official sports data and demonstrating its intrinsic value in helping sportsbook partners stand out from the competition.
- DraftKings, through its partnership with Genius Sports, will have access to NFL-related products such as the official NFL data feed, real-time play-by-play statistics, and Next Gen Stats (NGS) data.
- The deal between DraftKings and Genius allows DraftKings to utilize official data from other prominent leagues like the English Premier League, Liga MX, and NASCAR.
- DraftKings will use Genius Sports' BetBuilder product to offer custom bets, make-your-own bets, and single-game parlays.
- Concerning the cost of Genius' NFL partnership, the going rate for the NFL's official data package is estimated to be around 4% of a sportsbook's pre-game gross gaming revenue (GGR) for NFL wagers and 6% of a book's in-game GGR.
- The partnership between DraftKings and Genius has significant implications for the mobile sports betting landscape in New York, potentially incentivizing sportsbooks to purchase official data to strengthen their bids in the upcoming competitive bidding process for mobile sports wagering.
- This partnership has marked a significant achievement for Genius Sports, reinforcing its commitment to official sports data and demonstrating its intrinsic value in helping sportsbook partners stand out from the competition.
