Since the van on sports betting in the US was lifted, several leagues have tried to ally with some companies in the betting industry to create new products and services that allow them to obtain a share of the new and growing betting market.
The MLS and the NHL were so far one of the few leagues that had managed to establish agreements with betting companies. The MLB for its part had been involved in the scandal last May when Sportsradar US apparently approached the betting operators that had acquired the Betradar data feed to indicate that they had to pay a 0.25% fee if they wanted to use the official data of the MLB in their business. This situation was never fully clarified and it seems that the MLB wants to completely disconnect from this case since it recently announced its alliance with DraftKings as an official betting partner.
DraftKings may use the official MLB data as well as the brands and logos related to the league in their betting products, which will focus on live betting products.
This is a very bold move by the MLB who clearly want to take advantage of the lucrative betting market that expands every day. But what does this alliance mean for Pay Per Head bookies and how can it affect them?
Many bookies get scared when this type of news comes up because they believe that these alliances between large operators and the leagues will take away their market and the gamblers will massively use the products that generate these alliances. The truth is that at the beginning some bettors may move to use official league betting products, but after a while, the market will level again. Remember that each product has its pros and cons, once the gamblers discover that the official betting products of the leagues lack some essential characteristics for them, they will return with the pay per head bookies that they know can provide them with these services.
To stay competitive in this new betting market, bookies need to have a good Pay Per Head provider that gives them all the tools and platforms they need to run their business. In addition, the bookies need to learn how to take full advantage of all the tools provided by their Pay Per Head partner as this is the key to winning the game to the official league betting products.