MLB and NBA are vying for a piece of the off-the-top betting handle for their leagues. This revenue has been dubbed an integrity fee, royalty, or compensation. While these deals would allow leagues to have some control over official data, they may not have as much leverage as the NBA and NFL. In the end, the NBA and MLB are the ones who will ultimately decide which companies are eligible to be partners. And while they may not get it right away, they may get it later.
NFL is the last American sports league to sign an official betting deal. The league announced that three sportsbooks have signed on as official partners. Betting partners will gain access to official league data and can promote their relationship with the league by tying their brands to team statistics. The five-year deal will pay nearly $1 billion to the league if the partnership continues. If it fails, the NFL can opt out after three years. In the meantime, official betting deals are a welcome addition to the NFL’s overall revenue strategy.
While these agreements are far from perfect, the results have been promising. In Tennessee, a recent law passed by the state’s governor requires sportsbooks to use official data sources. In other states, such as Ohio, betting regulations are still in flux, so there are no official rules yet. However, sportsbook operators can use data feeds provided by independent organizations if they comply with state laws. In some states, such as New Jersey and Nevada, it’s common practice for sportsbooks to use data from leagues that are not affiliated with the league.