Tuesday, July 31, 2018

Quick Thoughts: NBA/MGM Gaming Deal.

The MGM can market itself as the "Official Betting Partner" of the NBA

NBA Signs deal with MGM. ESPN.com

The deal itself is for a reported $25 Million over 3 years. Per the article above it allows MGM-ran sports books to use league logos, highlights and names, have access to their direct data feeds as well as the above-mentioned marketing opportunities.

Good for both parties.

To this fan/blogger, this seems like a preferable way for the leagues to capitalize on gaming revenues, through contracts, than relying on statutory 'gaming taxes' which the leagues laughably referred to as "integrity fees" in the past.

Not that the leagues will stop trying to force states to pay them money for legalized gaming, after all the goal is to increase revenue, not to ensure integrity, but they should have more success signing deals with the individual books allowing them to utilize their trademarks and intellectual property than they will trying to coerce states to give them money. In many cases, the States are no friends with the leagues due to the latter's tireless efforts to block their issuance of sports bets in the first place.

I would imagine the big fish in these negotiations is going to be the NFL and, if they decide to get on board, the NCAA (or, more likely, the individual conferences/teams etc.) with Major League Baseball and the National Hockey League taking up the rear.  It's also possible that the European Soccer Leagues (sans Italy) might benefit from this as well. 

I think this is a good deal for both the league and MGM and hope to see more of the same from the other leagues, which would be a much more sensible way to address this issue going forward.

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