PointsBet Sportsbook and NBC Sports have agreed to a new $500 million deal. The result of this deal will make PointsBet the official sports betting partner of the media broadcasting giant.
PointsBet is an Australian based company, but they were able to land a massive deal with one of the most popular broadcasting companies in the US. Sportico was the first to report this new deal, and the $500 million deal is one of the most expensive prices paid to date.
Either company has not yet announced the partnership’s official terms, but Sportico was able to uncover some of the basics. NBC Sports will refer their listeners to PointsBet Sportsbook, and they will be compensated based on traffic.
NBC will also take on close to a 5 percent stake in the sports betting operator, giving them another reason to entice their viewers to head to that sportsbook. Sources also informed Sportico that NBC will have an option to own 25 percent of the company when the initial five-year partnership comes to an end.
NBC has several different programs under its platform, and PointsBet will become the official betting partner of all of them. These programs include The Golf Channel, NBCSN, and other regional sports networks throughout the country.
PointsBet stocks began to surge on Thursday morning, signaling that some big news was on the way. Stock prices rose as much as 5 percent in the United States, and they are expected to continue to climb when this deal becomes official.
Several Similar Deals Have Been Signed
Media companies and sports betting companies have been signing similar deals over the past few months, as both industries benefit from these partnerships. Professional sports leagues are also getting on board with sports betting, putting more pressure on TV networks to find a partner.
Penn National Gaming was one of the first sports betting companies to start this trend when they inked a huge deal with Barstool Sports. Penn National acquired a 36 percent stake in Barstool, but that deal could eventually grow in the coming years.
ViacomCBS and William Hill also reached an agreement that will make William Hill the official sports betting partner across all CBS platforms. CBS is one of the flagship stations covering the National Football League, and William Hill will receive plenty of exposure on those telecasts.
NBC started introducing sports betting content on their regional sports networks last year, and the company has seen tremendous success.
PointsBet Continues to Make Huge Moves
This has been a hectic and very successful month of August for the Australian-based company. PointsBet has been a big name in the New Jersey market since last fall, but they have started to expand in a big way.
PointsBet will launch sports betting in Colorado soon, and they are expected to take that market by storm. The company has already landed deals with three professional sports teams in the state to become their official betting partner.
The biggest deal inked by PointsBet was with the Denver Broncos, and that partnership is expected to bring in a slew of new customers. PointsBet is also the official betting partner of the Colorado Avalanche in the NHL and the Colorado Mammoth of the National Lacrosse League.
The PGA Tour was also looking for an official betting partner, and PointsBet Sportsbook was able to land that deal. Even though the company is only currently ‘live’ in a handful of states, it has quickly turned into a huge name in the sports betting industry.