NBA And Stars Group Signed New Sports Betting Deal
We are getting used to seeing major sporting leagues open the door for new and fresh partners in the betting industry. This time the National Basketball Associating (NBA) reached a new agreement with The Stars Group, a Canadian-based sports betting company to become an Authorized Gaming Operator of the league. The Stars Group owns an operating license in New Jersey under its BetStars brand. They have become the second gaming partner of the NBA, following the Supreme Court ruling.
“This is the second company that has done a deal that has seen the value of working together with the league,” Scott Kaufman-Ross, the NBA’s head of fantasy and gaming, told the ex ESPN reporter Darren Rovell, now with The Action Network. “They’ve understood that, aside from the data, they get the rights to the marks and logos on their platform, which helps differentiate them from the offshore sites and others and leads to having a more authentic looking product.”
NBA Data And Trademarks
The idea is the Stars Groups will get official data from the league and be able to use teams and league trademarks. It goes both ways as the NBA will be promoting BetStars on NBA assets. Their products will be available even at NBA.com, the official site of the league. The one question remaining is how the league will handle promoting of the betting odds across their different outlets. According to the NBA, the odds will be shown only on the states where legalized gambling is available. With an IP-address blocking tool, the NBA would prevent the non-legalized state players to see the props, odds and the rest of the betting menu.
“Further enhances consumer confidence in our offering and acts as an official endorsement of our sportsbook offering here in the States,” said The Stars Group spokesman Vaughan Lewis to Rovell. This new deal won’t prevent the league to seek other partners. The NBA signed a three-year contract and $25 Million with the MGM Resorts International (NYSE: MGM) back in July. MGM uses the league’s logos and team names on boards at MGM casinos. The logos and league highlights also appear on an MGM sports betting app, which is available to states with legalized online sports betting.
The NBA still hasn’t won all the battles they would like to. The league hasn’t been able to put their hands on the integrity fee for each state, which is the ultimate goal for them. Of the eight states with legal sports gambling operations, none pay the league and integrity fee. “We will still pursue the so-called integrity fee in parallel,” Kaufman-Ross said. “We hope states will recognize the role we play in legislation.”
According to an ABC report, close to $1.5 billion was bet on basketball at Nevada sportsbooks in 2017. Nevada Gaming Control does not classify the NBA and college basketball on its revenue reports. Although sportsbooks have estimated that around 40-50 percent of the amount bet on basketball belongs to NBA betting action.