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Yahoo Sports Enters Into Deal With BetMGM

Written by:
Aaron Goldstein
Published on:
Oct/29/2019

BetMGM and Yahoo Sports have entered into a strategic sponsorship whereby the later will “power sports betting for Yahoo Sports and create collaborative content experiences and live events.”

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Yahoo Sports follows another media outlet, Fox Sports, into the realm of sports wagering. Fox Sports joined forces with the Stars Group earlier this year to form Fox Bet.

“The historic partnership with Yahoo Sports and BetMGM will change the future of fandom, providing new ways for sports fans to go beyond engaging with content and interact through commerce,” Guru Gowrappan, CEO of Verizon Media said. “At Verizon Media we believe in building products that connect consumers to their passions and drive the deepest end-to-end value possible.”

“This partnership marks an important moment for BetMGM in the growing U.S. sports betting sector,” Jim Murren, Chairman, and CEO of MGM Resorts International added. “Integrating Yahoo’s leading fantasy sports operations and content with BetMGM’s world-class sports betting and interactive platform uniquely positions us to drive market share and large-scale adoption among sports fans.”

Yahoo Sports will not be receiving a percentage ownership in MGM.  Instead, it will act as an affiliate.  The Fox Bet deal does provide Fox with a percentage of ownership in the Stars Group.

From BettingUSA:

It’s unclear if that means Yahoo will receive a CPA deal (where Yahoo receives a predetermined amount of money for specific user actions) or if it will have a revenue-sharing agreement, or something in between.

GVC, which powers the BetMGM website, is hoping to grab 10 to 15 percent of the market share in New Jersey over the next six months.  That's no easy feat.  FanDuel and DraftKings own nearly three quarters of the New Jersey market and there are around a dozen other sports betting sites chasing after the remaining crumbs.

- Aaron Goldstein, Gambling911.com

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