PointsBet is now the official sports betting partner of NBC Sports.
The two inked a deal last week that will have them working together for years to come.
PointsBet is one of the smaller operators in the US, but a move like this will help increase the brand’s exposure.
NBC spends $500 million
NBC coughed up $500 million for a 4.9% stake in the company. After five years, NBC will have the option to bump that number up to 25%.
PointsBet is currently operating in New Jersey, Iowa and Indiana.
Despite its expansion, the Australian-based sportsbook hasn’t been particularly popular with US bettors.
NBC jumping into a partnership with PointsBet shows the confidence it has in its ability to grow the sportsbook’s popularity.
PointsBet will be integrated into the NBC Sports app, NBC Sports Predictor app, Rotoworld and Peacock, which is the network’s recently launched streaming service.
PointsBet’s branding and odds will also be visible on all of NBC’s regional and national sports broadcasts.
Since NBC broadcasts the following, it’s a lot of extra exposure for the sportsbook:
- Indy 500
- PGA Tour
- Premier League
That list doesn’t even include the other individual sports that NBC’s regional networks have partnerships with.
For example, NBC Sports Chicago has the rights to broadcast Chicago White Sox games. If you live in the region or Chicagoland area, that’s where you have to watch those games.
NBC’s other regional networks have similar deals around the country, giving PointsBet even more exposure.
FOX and CBS have similar deals
Although NBC’s partnership with PointsBet may be a new one, it’s not the first deal of its kind.
CBS teamed up with international book William Hill back in February.
FOX partnered with Stars Group back in 2019 to launch FOX Bet Sportsbook.
Neither sportsbook has launched in Indiana yet, but they’re both operating elsewhere in the country in states like New Jersey and Colorado.
The major networks jumping at the chance to partner with sportsbooks just goes to show how profitable they think the betting market will eventually become.
Right now, the US is still a relatively fresh playing ground.
The majority of states don’t have legal sports betting yet, and a handful of the ones that do are plagued by issues such as not having online betting.
Expanding into new states is also wildly expensive. Sportsbooks spend millions on marketing and promotions to try and elbow out their competition.
Running a sportsbook is a huge investment up front, but eventually it will lead to a steady stream of cash. Or at least, that’s the idea.
NBC is getting in on the action with this PointsBet deal.
If the company ends up taking a 25% stake in the sportsbook down the line, it’ll really show how much NBC believes in the brand.
Either way, with a $500 million investment, NBC certainly still has some skin in the game.
PointsBet stagnant in Indiana
PointsBet launched in Indiana back in March, right before the coronavirus shutdowns started.
Without sports to bet on, the sportsbook had a rough start.
Thankfully for the company, things have been picking up. The book’s handle has been increasing month over month as sports have returned.
However, even though PointsBet is taking in more bets, it’s not growing much in terms of its market share in the Hoosier State.
Competitors like BetMGM have been gaining ground, but PointsBet has remained fairly stagnant in terms of market growth.
PointsBet was the fifth most popular Indiana betting app throughout July. It’s doing a lot better than Caesars or BetAmerica, which seem basically dead in the water, but it isn’t gaining much ground overall.
This NBC deal will help fix that.
TV exposure from NBC will help, but so will the $500 million of liquidity.
That money will help with advertising and promotions, which are both hugely important for a sportsbook’s growth. That will hold some extra weight in the coming months, as sportsbooks around the country fight for their share of the NFL betting market.