Jimmy Garoppolo 93 of the New England Patriots sacks Lawrence Guy 10 of the San Francisco 49ers during the first quarter of the NFL game at Gillette Stadium on October 25, 2020 in Foxborough, Massachusetts.
The National Football League is officially open for sports betting and announces sportsbook partnerships with top companies Caesars, FanDuel and DraftKings.
The agreements allow the sports betting firms to use NFL intellectual property and use their trademarks for promotional purposes. The betting companies will also operate in a content-sharing model with the NFL- for example, the betting sites will be able to use material such as NFL highlights and Next Gen Stats data which will help them set up betting lines. The firms may create their own promotional content to be featured on NFL properties.
Financial terms were not made available but according to a person familiar with the agreements, the five-year pacts could be combined over the lifetime of the deal for just under$ 1 billion. However, the NFL has rights to opt out after the third and fourth year of the agreements, according to the person added.
Caesars will keep its NFL sponsorship as the official casino sponsor to use its official branding at its casino properties. The company purchased William Hill sports bookmaker for$ 3.7 billion in September.
Meanwhile, DraftKings and FanDuel get more brand exposure on league media properties, including the NFL Network and NFL RedZone channels.
The agreements fall under Tier One deals for NFL, and the league is expected to announce another wave of sports betting partnerships but with less content options and more restrictions. The NFL signed a data rights deal with Genius Sports earlier this month. Thus, the sports betting companies need to conduct Genius' information to purchase their NFL bets.
In March, the league also agreed to media rights with partners NBCUniversal, Fox Sports, ESPN, CBS Sports and Amazon. The 11 year deal is worth more than$ 100 billion.
After the announcement on Thursday afternoon, Caesars stock was down 4% to$ 60 per share in after hours, while DraftKings was slightly up at around$ 93 per share.