A new high-profile sports betting partnership has been announced.
On Tuesday morning, Yahoo announced a deal with MGM Resorts and the BetMGM sports betting platform.
According to a report from Yahoo, MGM’s sportsbook will “power sports betting for Yahoo Sports” and create opportunities for both companies to work together on promotional material.
The report said that the integration of BetMGM into the Yahoo Sports app will take place next month.
What’s covered in the deal?
Details on the partnership are scarce at the moment as the length, terms and conditions of the deal were not disclosed.
Under the agreement, which is described as a “multiyear partnership,” Yahoo Sports will become the official digital media sports partner for MGM.
Yahoo Sports and MGM will also work together on creating content experiences, promotional marketing efforts and exclusive live events. MGM will also distribute Yahoo Sports content across its platforms while Yahoo will host several player events at MGM properties.
Verizon Media chief executive Guru Gowrappan said: “The historic partnership with Yahoo Sports and BetMGM will change the future of fandom, providing new ways for sports fans to go beyond engaging with content and interact through commerce.”
Jim Murren, chairman and chief executive of MGM Resorts International, said: “This partnership marks an important moment for BetMGM in the growing US sports betting sector. Integrating Yahoo’s leading fantasy sports operations and content with BetMGM’s world-class sports betting and interactive platform uniquely positions us to drive market share and large-scale adoption among sports fans.”
Will Yahoo become a sportsbook?
Based on the language used in Yahoo’s report, the company will not become a full-blown sportsbook with this deal.
According to a report from Sports Business Journal, both companies confirmed that the deal will be classed as an affiliate agreement for the “purposes of state regulators.”
This means that Yahoo Sports will receive compensation for driving traffic to the BetMGM sportsbook.
At the moment BetMGM’s online and mobile sportsbook is live in New Jersey and Nevada. In Nevada, customers must sign up in person at a land-based sportsbook, but in New Jersey, customers can register remotely from anywhere within the state.
As BetMGM is only available in two states it may take a considerable amount of time for both companies to realize the full potential of this deal.
Another deal for MGM
MGM is no stranger to striking deals in the sports betting space.
Since the repeal of the Professional and Amateur Sports Protection Act (PASPA) in 2018 MGM has struck several high-profile deals.
MGM Resorts is currently partnered with three of the four major sports leagues which include the NBA, NHL and MLB. The gambling giant is also partnered with the NFL’s New York Jets.
