Some Las Vegas sportsbook operators don’t want league data

Despite decades of anti-betting rhetoric, sports leagues are jumping into partnerships with a number of sportsbook operators and handing over some of their most valuable assets: data.

MGM Resorts International has partnerships with the NHL, NBA, MLS, MLB and the National Lacrosse League. William Hill U.S., which operates sportsbooks in 115 Nevada casinos, signed a deal with the NBA that gives it access to official data. Even fantasy sports operators are getting in on the action; DraftKings receives official data from three leagues.

These deals often give operators a title like “official gaming partner” or “official daily fantasy partner,” along with access to official league marks, logos and betting data.

Experts say faster access to more complex data from leagues could lead to better in-game betting options, drawing in more sports viewers and bets. But others in the industry would rather get their data from third parties, which is often more affordable.

Westgate sportsbook director John Murray said that “it’s hard to say” if his casino will want league data.

“It depends on how big we grow, what the price points are from the different leagues,” he said. “I’m skeptical about how much that would help us make our numbers any better than they already are.”

Data use

William Hill has access to data from some of its partnerships, but others — like its multiyear agreement with the NHL — are focused on marketing and do not include official league data.

Instead, the deal gives William Hill access to promotional media in relevant NHL markets and branding opportunities with the league.

Scott Butera, president of interactive gaming at MGM, said the marketing agreements “give authenticity” to sportsbooks and could draw in people who had been betting illegally. The American Gaming Association estimates Americans wager $150 billion a year on the black market, which thrives offshore.

“If you saw the MGM name with Major League Baseball or the NBA or NHL, you’d say ‘Hey, this is absolutely legitimate,’ ” he said.

But Butera believes the data side of the deals is also “very valuable.” He said faster speeds could open doors for more betting after games have already started.

“We knew if we could get the leagues’ data, we could establish a sports betting product that was unique … and create these great customer experiences,” he said. “It’s going to become even more valuable as the leagues develop their own proprietary data.”

AGA president and CEO Bill Miller said during a press call last month that he believes in-game wagers are the “next really exciting development” in sports betting.

“This is something that the NFL and other leagues have recognized has great value to increasing fans to watch games that are lopsided and no longer competitive,” Miller said.

Joe Asher, CEO of William Hill U.S., is more bearish on the future of in-game betting, which is partially why his company has been slow to enter data partnerships.

He pointed to technology like the sensors the NHL has put in shoulder pads and pucks to track things like players’ speed and how hard they hit a puck.

Asher said this data will prove more useful for scouts than sportsbooks. Even if in-play betting does become big in the U.S., he said, those bets will focus on the result of the game, as opposed to granular bets based on metrics like speed.

“I’m not sure how many people care if (Golden Knights center William) Karlsson or (right wing Alex) Tuch is faster. I don’t know how much of that will translate to betting. … It becomes disruptive to the viewing experience,” he said. “Ultimately, the market will decide whether (this data) is useful.”

More data, more money

Sportsbook operators look for the most affordable, most efficient data when setting up their sportsbooks, according to Gerard J. Hall, founder and CEO of real-time scoring system provider SportsMEDIA Technology, the NHL’s puck and player tracking partner.

That means operators might pass over opportunities to partner directly with leagues, especially since some are “absolutely struggling” to set their data apart from third-party competitors, Hall said.

Asher said third parties often deliver data just as fast as leagues, but “it all depends on specific sports, specific providers, so it’s dangerous to make generalizations.”

Christian Stuart, executive vice president of gaming and interactive entertainment for Caesars Entertainment Corp., said the company is in talks with different leagues but hasn’t entered any data-sharing deals.

“I think there’s some importance to it, but at what cost? And what’s the value?”

Murray said he thought data partnerships with leagues like the NBA and MLB were simply too expensive.

Financial terms of league deals with sportsbook operators have not been disclosed.

“You want to be in good graces with the leagues, but you also don’t want to pay for stuff you don’t think you need,” he said. “We can’t start handing money out to everybody.”

He said operators have to be selective in which deals they enter, because margins are already so tight.

“It’s hard to say” if Westgate will want league data, according to Murray. He said he plans to play it by ear, keeping an eye on price points, competition and the evolution of in-play betting.

But “right now, I can say we’re not interested in” those partnerships, he said.

Contact Bailey Schulz at bschulz@reviewjournal.com or 702-383-0233. Follow @bailey_schulz on Twitter.