Verizon Media, which owns Yahoo, has inked a multi-year sports gambling agreement with Las Vegas-based hospitality and entertainment giant MGM Resorts international.
The deal makes BetMGM and its joint venture with GVC Holdings, Roar Digital, the official sports betting partners of Yahoo Sports. Yahoo Sports, on the other hand, will serve as the official digital media sports partner of MGM Resorts.
In an official statement released this week, the companies revealed that the partnership would see the integration of the BetMGM sports betting product with Yahoo Sports website and app. The new product is set to debut before the end of this month.
The integration of the BetMGM gaming app with the digital sports platform gives MGM and GVC‘s Roar Digital access to more than 60 million users of the Yahoo! Sports site, which translates to more revenue for the company in the long run.
According to statistics, Yahoo controls about 39% of the fantasy sports market share in the US, which is almost the same figure for both DraftKings and FanDuel combined.
However, all wagering transactions will take place on the BetMGM website and app.
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The agreement also gives MGM Resorts International exclusive rights to host collaborative live events at its venues.
What’s in the deal for Yahoo! Sports?
The deal between Roar Digital and Yahoo! Sports has been classed as an affiliate agreement, meaning that the gaming operator will compensate the Verizon-owned digital media sports company for driving traffic to their sportsbook app.
Apart from the financial benefits, MGM Resorts has agreed to promote Yahoo Sports content across its online platform and physical properties. The company operates hotels, resorts, and casinos in Nevada, New Jersey, New York, Maryland, Ohio, Michigan, and Mississippi. Also, it has an online sportsbook, BetMGM, which is licensed in New Jersey and Nevada.
NBA and NHL hail the agreement
The National Hockey League (NHL) and the National Basketball Association (NBA), who have separate partnership agreements with both Yahoo Sports and MGM Resorts, support the new contract between their partners.
The NBA, through its commissioner Adam silver, said that the deal would provide new ways for fans to engage with its games. His sentiments were echoed by NHL Commissioner Gary Bettman, who termed the partnership as an exciting opportunity to leverage emerging technologies to escalate fan engagement.
MGM Resorts is an official sports betting partner of both the NHL and NBA under separate multi-year data and marketing agreements signed last year. The hospitality and gambling giant also has a similar deal with the MLB and an official gaming partnership with NFL team New York Jets.
About Yahoo! Sports
Yahoo Sports is the sports division of American web service provider Yahoo!. Established on December 8, 1997, the brand has grown to become the biggest and most popular sports website in North America and the world.
The site features comprehensive news, scores, and standings for a variety of leagues and sports. The US edition of the website covers the NFL, NBA, MLB, NBA, WNBA, college sport, and a host of other games. Yahoo! also runs a fantasy sports platform on its website and mobile app.