The NBA granted Sportradar exclusive rights to distribute the league’s sports betting data beginning in 2023. In exchange, the NBA gets a 3% stake in Sportradar, Sportico reports citing a regulatory filing.
The eight-year deal is worth more than $3 billion, according to Sports Business Journal.
The deal is part of a movement among major professional sports leagues to sell data rights. Sportradar also has exclusive rights to NHL data and to MLB data overseas.
Genius Sports also has a deal with MLB, as well as an exclusive deal with the NFL that includes an equity stake for the league. Prior to Genius’ deal, Sportradar had partnered with the NFL since 2015.
Clearly, Sportradar and Genius have established themselves as the dominant data distribution partners for major U.S. sports properties.
League Data And Bet Integrity
Illinois and Tennessee are the only two states that require sportsbooks to use official league data to settle live in-game bets. In the minds of legislators, this ensures all sportsbooks settle their bets the same way. It avoids scenarios where a sportsbook fails to award winnings because of inaccurate data, the thinking goes.
A Massachusetts Gaming Commission report states professional sports leagues are pushing legislators to require the use of their data.
While there’s plenty of pushback concerning official data requirements from the sports betting industry, for Sportradar and Genius Sports, laws like these are advantageous. Because these two companies have exclusive data rights to major professional leagues, they’re guaranteed business in states that require official league data.
That dynamic between leagues and data providers makes Sportradar and Genius Sports increasingly important industry players. They have powerful allies in their partnered sports leagues and can join the lobbying efforts to require sportsbooks to use official league data.
Such regulations mean profit for sports properties and also help boost the bottom line of these data companies.