In a game-changing move, Genius Sports and the NFL announced an extension of their data deal that will last through the 2027-28 season. This news ignited a surge in Genius shares, with investors, including the NFL itself, rallying behind the partnership and driving the stock up by an impressive 25.65% on heavy trading volume.
While the financial terms of the extended agreement were not disclosed, reports suggest that Genius Sports paid the league a staggering $1 billion in 2021 for the initial four-year data deal.
Genius Sports in solidifying an exclusive deal
According to a joint statement, the new extended deal solidifies Genius Sports as the exclusive distributor of real-time, official play-by-play statistics, proprietary Next Gen Stats data, and the NFL’s official sports betting data feed to media companies and sports betting operators globally.
Genius has already established its dominance in the European sports betting data market, having secured deals with prestigious leagues such as the English Premier League (EPL) and Germany’s Bundesliga. The expanded partnership with the NFL further strengthens Genius’ position as a leading data provider to domestic sportsbooks, particularly in the realm of football, which happens to be the most wagered-on sport in the US.
The press release proudly stated, “Genius Sports powers over 98% of the legalized U.S. sports betting market with official NFL data, driving innovations such as player props, micro-betting, same-game parlays, and personalized data-driven advertising content.”
Partnerships and what’s ahead
Beyond the core data distribution agreement, Genius Sports also secured the rights to distribute NFL Watch & Bet low-latency live game video feeds to sportsbooks worldwide. This low-latency technology is essential for sportsbook operators seeking to capitalize on in-game wagering, as it enables faster and more accurate pricing of live bets compared to traditional broadcast feeds.
Among Genius’ esteemed gaming clients are BetMGM, Caesars Sportsbook, Flutter Entertainment (parent company of FanDuel), PointsBet, and William Hill.
In a notable move, Genius Sports plans to leverage its evolving artificial intelligence (AI) technology to enhance NFL fan engagement and live wagering experiences. By utilizing machine learning and live streaming technologies, the company aims to power advanced viewing experiences for NFL enthusiasts through its Watch & Bet feature and develop augmented live video betting products.
B. Riley analyst David Bain expressed enthusiasm regarding Genius Sports’ recent contract extensions, including the NFL deal and a significant extension with a major UK football league in late June.
Bain believes these developments address primary investor concerns and underscore the company’s strong operating leverage and earnings momentum. As a result, he maintained a “buy” rating on Genius with a price target of $9, indicating a potential upside of 23.28% from Thursday’s closing price of $7.30.
With the extended NFL data deal and a string of successful partnerships, Genius Sports is poised to dominate the sports data market and continue its impressive growth trajectory. The collaboration with the NFL not only solidifies Genius’ position in the US sports betting landscape but also showcases its commitment to technological innovation and delivering unparalleled fan experiences.
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