Sports Betting's Role in Broadcasting Spectrum
The sports betting industry in the United States, beyond the glitz of Las Vegas, is still in its nascent stages, having only recently emerged following the Supreme Court's 2018 dismantling of the Professional and Amateur Sports Protection Act (PASPA). As of now, the nation is approximately halfway through the process of legalizing sports betting in various states.
In contrast, 2.5 years can feel like a decade in the fast-paced, technologically advanced world of broadcasting. As sports betting becomes increasingly prevalent and socially acceptable, media entities with extensive multimedia platforms are finding themselves in a competitive race to align with sportsbook operators and provide high-quality content.
The rapid advancement of technology has emphasized the importance of digital platforms for both networks and operators. The "secondary screen," composed of smartphones or laptops used by bettors to gather information and place bets during events, is transitioning into a battleground for engagement.
The objective remains not to target a new demographic but to hyper-focus on existing sports fans. Speakers at the Betting on Sports America Digital Conference earlier this week underscored that the process of hyper-focusing on this segment is ongoing.
National vs. Local: Is Sinclair-Bally's Deal a Trendsetter?
The expansion of sports betting has occurred on a state-by-state basis, but it didn't truly break into mainstream awareness until sports networks such as ESPN and FOX Sports started incorporating betting information into their programming. ESPN tried this out during the XFL's short-lived revival, then made a significant move by signing partnership deals with Caesars and DraftKings, making them exclusive partners for odds and daily fantasy content.
FOX Sports has its own betting platform, FOX Bet, which includes a weekly "Super 6" contest that challenges NFL game predictions. The contest is free and available through an app, providing a potential entryway for operators in legal jurisdictions and a placeholder in jurisdictions yet to legalize sports betting.
While these deals have been on a broad, national level, the 10-year, $85 million agreement last month between Bally's Corp. and Sinclair Broadcasting Group stands out. This deal, which will rebrand 21 Fox regional sports networks (RSNs) to Bally's Sports across 88 markets, is the first large-scale deal on a state and local level. Panelists at the "Content rich: Betting and broadcasting" session lauded the arrangement.
Doug Kezirian, a sports betting reporter for ESPN, commented on the deal's potentially game-changing impact. "When you see a deal of this magnitude in terms of reach for operators in the television world, it's going to move the needle and raise some eyebrows. It's a new frontier, and it's a new space. Everyone has to figure out and balance what their product is, specifically, and in general where they want it to go and figure out how advertisers can best fit."
Evan Davis, managing director of sports betting for SeventySix Capital Sports Advisory, noted the strategic nature of the Bally's Corp. and Sinclair Broadcasting Group deal, with many of the networks located in jurisdictions yet to legalize sports betting. Bally's, through this transaction, is positioning itself for growth in future markets.
Ben Fawkes, VSiN Vice President of Digital Content, observed the growing need and desire for more localized content, especially in legal markets beyond Nevada, such as Colorado, New Jersey, and Illinois.
Balancing Audience and Sports Betting Content
Fawkes pointed out VSiN's distinct advantage due to its extensive, original programming covering 17 hours each day across all platforms. This enables the company to create unique content tailored to different levels of bettors. Balancing audience preferences while incorporating sports betting content is essential to maintain engagement without alienating potential viewers who may not be interested in betting.
Davis emphasized the importance of understanding the diverse sports fan base, arguing that not all sports fans are potential bettors, but some may be open to betting given the right opportunity.
In the "Media Grab - New Brands in Gambling" session, Sinclair Chief Strategy Officer Scott Shapiro provided insights into the rationale and potential benefits behind the partnership with Bally's. Shapiro highlighted the deal's potential to enhances engagement through tailored offerings for local audiences, thereby capitalizing on the already engaged sports fan base.
Bet.Works Chief Operating Officer Jay Rood also highlighted the partnership's opportunity for growth, enabling the company to offer a consistent brand experience across different jurisdictions. Sinclair also sees long-term potential in the partnership, potentially leading to on-screen pre-game and in-game betting, though compliance with sports leagues will be essential to realizing these plans.
- The partnership between Bally's Corp. and Sinclair Broadcasting Group, rebranding 21 Fox regional sports networks to Bally's Sports across 88 markets, is a significant step in the state and local integration of sports betting, setting a potential trend for operators.
- Doug Kezirian, a sports betting reporter for ESPN, commented on the deal's potential impact, stating that it will raise eyebrows and move the needle in the sports betting industry, opening a new frontier for both operators and networks.
- Ben Fawkes, VSiN Vice President of Digital Content, noted the growing need for more localized content in legal sports betting markets, such as Colorado, New Jersey, and Illinois, to cater to diverse audiences and maintain engagement without alienating potential viewers.
