Yahoo Announces Surprise Deal with BetMGM Sportsbook

  • Yahoo will pocket a referral fee for sending traffic to the BetMGM sportsbook app
  • The collaboration includes exclusive sports content for major sporting events
  • Share prices in GVC Holdings and MGM Resorts International closed up
Person lifting letter 'O' from word 'YAHOO' made from wood
Media giant Yahoo has announced that it will partner with MGM Resorts to offer a wide range of sports betting content. [Image: Shutterstock.com]

Wide range of global sports

Yahoo has announced a deal with MGM Resorts that will link the web services provider with the hospitality giant’s BetMGM sportsbook app.

The partnership will feature a wide variety of sports from around the globe, including the NBA, NFL, and NHL. Other popular sports like soccer, baseball, golf, and tennis will also be included.

Yahoo Sports will also serve as an official digital media sports partner of MGM Resorts

Together, they will collaborate on a range of content experiences. This will include promotional marketing efforts and exclusive content for more than 20 major sporting events. Yahoo Sports will also serve as an official digital media sports partner of MGM Resorts.

This means that MGM Resorts will distribute Yahoo Sports content across its properties and platforms, while multiple events will be hosted on behalf of Yahoo Sports at MGM Resorts properties.

Kicking off in November

The partnership is expected to kick off next month with the launch of sports betting on the Yahoo Sports app. All transactions will take then place on the BetMGM platform.

CEO of Verizon Media, the parent company of Yahoo, Guru Gowrappan, said of the deal: “The historic partnership with Yahoo Sports and BetMGM will change the future of fandom, providing new ways for sports fans to go beyond engaging with content and interact through commerce.”

Shock collaboration

In some respects, the announcement of collaboration is a shock, as Yahoo launched a successful daily fantasy sports platform back in 2015.

Yahoo has not taken steps to become an operator itself, although it will be ideally placed when it comes to the expansion of US sports betting. Instead of launching its own service, Yahoo will suggest users bet via the sports book and collect a fee in return for the traffic.

While the MGM sportsbook BetMGM is currently only live in Nevada (where users must register in person) and New Jersey, it is expected to go live in West Virginia, Indiana, and several other states.

Jim Murren, the CEO of MGM Resorts International, commented on the partnership, saying: “Integrating Yahoo’s leading fantasy sports operations and content with BetMGM’s world-class sports betting and interactive platform uniquely positions us to drive market share and large-scale adoption among sports fans.”

Sports betting will transform the industry

MGM has recently announced a number of sports betting deals, including Major League Baseball (MLB), the National Hockey League (NHL), and also the National Basketball Association (NBA).

NBA Commissioner Adam Silver believes that sports betting will continue to transform the industry. He said that this partnership brings together the power of two trusted partners of the NBA.

By working together, MGM Resorts and Yahoo Sports will offer fans unprecedented ways to engage with our games.”

News of the partnership comes just before MGM’s Q3 announcement on Wednesday. While further details about the deal, such as its duration and terms and conditions, have yet to be announced, shares still rose following the announcement.

GVC Holdings began trading at a 0.28% increase at 872.40 pence ($11.23) per share in London, while shares in MGM Resorts International closed up 1.42% at $28.55 per share in New York.