Community Shootaround: MGM Partnership

The NBA made history off the court this week when it agreed to a deal that makes MGM Resorts an official “gaming partner.” It becomes the first professional sports league to enter into a partnership with a bookmaker in the wake of May’s Supreme Court ruling that overturned a federal ban on sports gambling.

Although it’s a landmark move, the deal isn’t really loaded with benefits for either side. MGM will reportedly pay the NBA $25MM over three years, which is a small amount considering the potential windfall from legalized betting. In return, the casino gets access to league highlights, names, logos and a direct data feed. MGM can also market itself as the official gaming partner of the NBA and WNBA, and it will work with the NBA on integrity provisions, such as the prevention of fraud and game fixing.

Both sides admit they’re finding their way in this new arrangement, with Commissioner Adam Silver calling it a “leap of faith” and MGM Resorts chief executive Jim Murren referring to the deal as a “partnership of trust.” The parties already had a working relationship with Murren owning the Las Vegas Aces in the WNBA.

Legalized gambling is a cause that Silver has advocated and prepared for since taking over for David Stern in 2014. He sees it as a rich new revenue source for the league and has indicated in the past that he would like the NBA to receive 1% of all dollars wagered on its games.

We want to get your opinion on the new deal. Is the NBA taking the right approach by moving aggressively into the legalized betting era and will it benefit by having a formal agreement with a sportsbook provider? Please leave your feedback in the space below.

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