Sun, Aug 30, 2020
With the stroke of a pen, Australian-based sports betting operator PointsBet potentially transformed the entire outlook for the United States’ regulated gambling marketplace.
www.Odds.com reported Thursday that PointsBet had officially finalized a five-year agreement with NBCUniversal, in a landmark partnership that sees them become the official sports betting partner of the network.
This deal isn't the first of its kind, as CBS and William Hill are currently engaged in a partnership, and FOX teamed up with the Stars Group to birth FOX Bet, but it does signal just how quickly a seemingly smaller player can emerge as a true competitor in the expanding American landscape.
NBC had engaged in talks with all of the industry giants, all eager to gain placement in front of 184 million broadcast viewers and 60 million active users who engage with the Peacock’s digital assets. By opting to go with the smaller player, NBC appears confident in their ability to take on equity in the brand and help develop PointsBet into an industry leader.
Terms of the agreement grant NBC a 4.99% equity share in PointsBet which, if approved by shareholders, could see the broadcasting giant take over up to 25% of the operator after five years.
While all of the fine print remains to be unseen, PointsBet has reportedly agreed allocate up to $395 million on marketing efforts over the duration of the partnership.
As partners, PointsBet has crafted an affiliate-style compensation plan with NBC, which not only rewards the network for traffic sent, but further incentivizes them to promote PointsBet effectively given the financial reward.
NBC will now incorporate PointsBet into their programing, which is set to feature over 2,200 live sporting broadcasts across their eight regional networks.
The network’s NBC Sports Predictor all will now feature PointsBet as an official partner, further exposing the brand to the 1.1 million users who enjoy the numerous free-to-play sports games.
Further integration will see PointsBet’s odds featured on Rotoworld, a digital asset that NBC has used to cater to their daily fantasy and sports betting audience for over twenty years. One of the most trusted sources for fantasy projections, lineup suggestions, and injury updates will now offer their loyal client-base wagering information and lines from PointsBet. With most DFS players already familiar with PointsBet’s competitors DraftKings and FanDuel, this gives them a chance to directly market to players who would likely turn to their fantasy service provider for their sports betting needs.