DraftKings Signs Deal to Become First Gaming Operator of MLB
The partnership gives DraftKings the official title of Authorized Gaming Operator of Major League Baseball and more importantly, the ability to offer exclusive in-game proposition betting to customers.
Also, the deal between the two entities will allow DraftKings the opportunity to use MLBs official betting data as well as the rights to display MLBs graphics and official logos in advertising.
The company makes the move as real-time betting begins to gather steam in states that offer sports betting. As it stands today, 17 of the 50 states allow some form of wagering on sporting events.
DraftKings is proud to be designated as a Major League Baseball Authorized Gaming Operator, DraftKings Chief Business Officer Ezra Kucharz wrote in a statement.
This deal speaks to the commitment we have to our customers and sports leagues alike while providing the safest and most entertaining American-made sportsbook.
As a result of this agreement, our customers will experience enhanced live wagering offerings for all MLB games.
The deal with DraftKings comes with little surprise as MLB executive Kenny Gersh told media last month in London that the league was close to deals with DraftKings and competitor, FanDuel.
Major League Baseball is also closing in on a deal with The Stars Group, a partner with Fox in their upcoming betting offering, FOX Bet.
The possible agreement with The Stars Group and Fox could be an extension of a deal MLB made with Fox last year for an extension of broadcast rights to the World Series.
Fox will pay $5.1 billion over seven years for the rights to show the World Series on their network through 2028.
Why Does DraftKings Want the Partnership with MLB?
Simply put, in-game betting was the reason that DraftKings wanted the agreement with MLB.
Many betting experts believe that real-time betting will be where the revenue concentrates for sportsbooks as fans become enamored by the ability to place a wager as they watch sporting events.
What has yet to be announced is whether the leagues popular Statcast data platform will be integrated into the in-game offering from DraftKings or other gaming companies.
If the technology is reliable, companies like DraftKings could offer bets based on single pitches to batters.
That endless possibility for betting is what has created excitement in companies vying for the official MLB data.
Some journalists that cover the sports betting market speculate that the real-time technology could be ready by next spring, in time for the start of the 2020 MLB season.
(We are ) buoyed by our collective commitments to drive innovation in the U.S. sports betting marketplace, Gersh wrote after the announcement of the deal with DraftKings.
The tools provided to DraftKings including fast, rich, and reliable data feeds and MLB brand marks will be central to creating these powerful new ways to consume and connect with our sport.
DraftKings will be the first company to offer the advantages provided by MLB, making their offerings an exciting feature to anticipate for bettors of all skill levels.