NFL ends partnerships with DraftKings and FanDuel after disagreements over the rising costs of in-app live streaming, with Fanatics now replacing them as the league’s official sportsbook partner.
What Happened
The NFL’s contracts with DraftKings, FanDuel, and Caesars quietly concluded earlier this year. While Caesars’ future remains uncertain, DraftKings and FanDuel have reportedly been replaced by Fanatics as the league’s primary sports betting partner. This shift follows reported disagreements over the cost of the in-app live streaming feature, ‘BetVision,’ which allowed bettors to watch games directly within the DraftKings or FanDuel app after placing a wager. Genius, the company powering these streams and providing real-time data, recently increased its prices. The NFL mandates that its sportsbook partners enter separate deals with Genius to offer these features, and the higher costs caused DraftKings and FanDuel to hesitate in renewing their partnership, allowing Fanatics to secure the deal.
Key Details
- The NFL’s previous contracts with DraftKings, FanDuel, and Caesars ended earlier this year.
- Fanatics has replaced DraftKings and FanDuel as the NFL’s new official sportsbook partner.
- The core issue was reportedly the increased costs for the ‘BetVision’ in-app live streaming feature.
- Genius, the third-party company providing the streaming and data, recently raised its prices.
- NFL sportsbook partners are required to have separate deals with Genius for these streaming services.
- Previous NFL sports betting partners collectively paid approximately $200 million annually.
Why It Matters
This development is a significant coup for Fanatics, which has been aggressively expanding its presence in the sports experiences and content sectors beyond its original memorabilia business. For the NFL, it highlights the league’s commitment to monetizing its data and content through mandated partnerships, even if it means parting ways with major industry players like DraftKings and FanDuel. The situation also raises questions about the actual value and user engagement of these in-app streams, particularly given the availability of alternative viewing platforms like NFL Sunday Ticket and local television. The NFL’s insistence on Genius as a component of its sportsbook partnerships will now face closer scrutiny regarding its true benefit to users and the league itself.