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How sports betting is changing the media industry in the US

Dec 26, 2022, 21:47 IST
Business Insider
"Daily Wager" is ESPN's flagship sports-betting show.ESPN Images
  • The lines are blurring between US sports betting and media.
  • Broadcasters and publishers have embraced sports betting as a means of revenue and engagement.
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Sports betting is a vital and growing piece of US sports media.

A few years ago, broadcasters and publishers started taking ad dollars from gambling operators and dabbling in betting content, as the US regulatory tide turned in favor of the industry that had long been viewed as a vice.

The ties between media outlets and gambling operators have only deepened since.

How media companies are working with gambling operators

In 2021, DraftKings bought sports-gambling network VSIN, appointed its first chief media officer, and continued working with the sector to help with customer acquisition and retention.

Read more on DraftKings M&A strategy in an interview with its chief business officer.

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Storied publishers like Sports Illustrated licensed their brands to sportsbooks.

Read more about Sports Illustrated's strategy to leverage sports betting through its deal with gambling company 888.

Sites like The Action Network also became targets of affiliate conglomerates like Bettor Collective as referral engines for sports-betting platforms.

Read more about why sports-betting affiliate sites are hot acquisition targets.

Over the past two years, brands Barstool Sports and Score Media and Gaming also sold to casino company Penn National Gaming, and became marketing vehicles for its sportsbooks in the US and Canada, respectively.

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Media and sports betting need each other. Broadcasters and publishers need to keep audiences engaged, and are allured by the added revenue from advertising, referral, and brand-licensing fees. Gambling operators, meanwhile, need help drawing in new customers and improving retention, while lowering the costs of doing so.

In 2022, the lines between sports media and gambling will continue to blur.

Leagues like the NFL have embraced betting as a facet of the fan experience, and are enabling more ads to air in game broadcasts, more types of wagers to be placed, and alternate streamers that are made for gamblers. Broadcasters including Disney have said they plan to push further into sports betting. FanDuel is relaunching horse racing TV subsidiary TVG as its own sports-betting network, FanDuel TV. And startups such as PickUp and Data Skrive are working with publishers to help engage sports fans with their content.

But some media companies, like FuboTV, have also learned the hard way that sports betting is an expensive game to play in. The pay-TV operator is now looking for a partner to realize its vision of bringing betting onto your TV screen during games.

Read more about how FuboTV is rethinking its sports betting strategy after August layoffs.

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On top of that, the US sports gambling industry is still in its infancy. Online sports gambling is not yet legal nationwide, including in the populous states of Florida, Texas, and California. But the once booming space has seen its momentum slow in recent weeks as legislators in New York and Kansas take a harder look at gambling and consumer protections, according to a report by the New York Times.

Read more about what's next for California after voters rejected two proposals that would've legalized online-sports betting.

There's strong momentum though. New York turned on mobile sports betting in January, which could be a boon for the media industry even though the market could be tricky for gambling companies.

Read more about how the New York market could impact the industry.

A list of our recent coverage of the US sports betting industry follows.

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