The NFL has officially announced a multi-year sports betting partnership starting this season with Caesars Entertainment Inc (NASDAQ: CZR), DraftKings (NASDAQ: DKNG), and Fanduel Group which could potentially go public via a SPAC (Special Purpose Acquisition). Though the deal is the first of its kind in NFL history on a league-wide scale, individual teams in the past have partnered with sports betting companies. For example, both the New York Giants and New York Jets previously had exclusive partnerships with Draftkings and BetMGM respectively. The deal gives each of the three companies a specific title, along with the rights to NFL trademarked content including data and highlight footage.
Prior to the deal Draftkings and Caesars Entertainment both had partnerships with the NFL unrelated to sports betting and are both expected to renew their previous deals with the league. Draftkings previously was the NFLs Official Daily Fantasy Partner, as football fans are generally known to be some of the most avid fantasy followers in sports, myself included. The Company is already known for its presence on the NFL Redzone channel in which it displays statistical data for players and teams. Under the deal, Draftkings will integrate more of its content across NFL media in addition to being named the NFL’s Official Sports Betting Partner.
Prior to the deal, Caesars Entertainment was the NFL’s Official Casino Sponsor. Caesars will collaborate with the NFL to begin hosting betting events for fans at its physical locations and at a select few NFL events including the 2022 Pro Bowl and Draft. The Company will also use NFL content to expand its presence in online sports betting. Fanduel enters the deal as the NFL’s newest partner. The Company will have the right to use in-game and post game highlights across its multiple platforms. Fanduel’s content is expected to be included pre-game in the seven games that the NFL Network will air next season. The new deal will last a maximum of 5-years with the NFL having the right to opt-out in the third or fourth year. Should the NFL choose to exercise the deal to its fullest extent, all three of its new partners are expected to pay the league a total of USD 1 Billion over time.