The explosion of sports gambling content in mainstream media is about to take one of its biggest steps yet, and you can bet it will hit Cardinals, Blues and SLU basketball fans.
Fox Sports Midwest owner Sinclair Broadcasting has reached an agreement with casino operator Bally's Corporation in which FSM and more than 20 other regional sports networks it owns nationally will be rebranded, likely as “Bally Sports” or something similar. It was not immediately clear if the stores will continue to be sub-branded locally as “Bally Sports Midwest” in that region, or when the change will take place.
The New York Post reported that Bally's will pay Sinclair $85 million as part of the 10-year deal announced late Wednesday. Sinclair also takes a small stake in Bally's.
But this partnership entails much more than a name being sold. Interactive betting is directed at the TV shows shown on what is now FSM, as well as similar Sinclair outlets elsewhere.
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“This deal represents an opportunity to revolutionize the US sports betting, gaming and media industries,” Bally chairman Soo Kim said in a statement. This will be “…positioning Bally's to become one of the leading sports betting and IGaming providers in the US.”
IGaming includes forms of online betting other than sports betting, such as casino games.
The deal with Sinclair is part of a series of developments that set the stage for Bally's to gain a significant foothold in the growing sports betting business. That is:
• Less than seven weeks ago, Bally's was known as Twin River Worldwide Holdings, owner of nine casinos nationwide (none in the St. Louis market) and a horse track in Colorado.
• Then, in mid-October, Twin River bought the Bally name from Caesars Entertainment, which for years has operated well-known hotels/casinos under that banner in Las Vegas and Atlantic City. Twin River said it will rebrand its properties as Bally's locations.
• On Wednesday that company completed the purchase of the Bally's hotel/casino in Atlantic City from Caesars (although Caesars retains Bally's on the Vegas Strip). Also this week, continuing the rise, Bally's bought sports betting technology developer Bet.Works. This company is expected to develop software in which those who watch regional sports networks will be able to seamlessly bet on these matches directly through their television or mobile device.
There are already options elsewhere where punters can bet not just on games, but on a wide range of propositions ranging from which team will win the season's championship to the outcome of the next game. This huge menu could be integrated into the TV shows.
The seed for all of this was planted in 2018, when the Supreme Court struck down federal restrictions against sports gambling in jurisdictions that were not grandfathered in (most notably Nevada) when prohibition began. This allowed states to decide individually whether to allow such a wager, and many have approved it, including Illinois, and it has grown exponentially — though not in Missouri until now. Most of the betting is done via mobile devices, not in person at a casino.
Sinclair President and CEO Chris Ripley said in a statement that the company has shown the direction of cashing in on the growing sports betting market for some time, and that was highlighted by the addition of the regional sports networks last year when they were purchased from Disney.
“We are working to develop an innovative experience that changes the way people think about and watch live sports across all our platforms,” he said. “Bally's, with its strong brand name, leading technology sports betting platform and extensive market access, is the perfect partner to help us change the paradigm of sports viewing across all of our assets. … Consumers of live sports in the future can look forward to a more dynamic and engaging sports viewing experience… This partnership perfectly positions our sports portfolio to take full advantage of changing audience behavior.”
The companies said U.S. revenue from online betting sources is expected to grow from $1 billion in 2019 to $12 billion by 2025, eventually reaching $50 billion. The Bally's-Sinclair alliance will help them “capture a significant share” of that market, Bally's chairman and CEO George Papanier said Thursday.
A potential big advantage for Sinclair and Bally's is that they would have a captive audience to promote their bookmaking venture. Viewers will already be engaged on the device they are watching on and for simplicity they may not go to a competing bookie's website or app to place a bet.
And some St. Louisans are used to sports betting. Argosy Casino in Alton was the first local venue to come on board, in March, followed by Casino Queen on East St. Louis. Legalization also led to the creation of key partnerships between two local betting facilities and major sports gambling operators, Queen's with DraftKings and more recently Fairmount Park with FanDuel. Fairmount plans to add a sports book to its long-standing horse racing program.
But sports betting has not been legalized in Missouri, the most important state in Fox Sports Midwest territory, although that could come. But FSM is located in Illinois and also reaches Iowa and Indiana — where betting on sporting events is allowed.
Sinclair and Bally say the betting content on telecasts could be tailored to what is legal in each location where the games are shown. In a joint statement they said they will “design and integrate products on a state-by-state basis and deliver unique online gaming experiences to local audiences.”
It was unclear whether the betting-focused telecasts would be sent to all viewers in locations where betting is legal, or if they would have the option to opt for a version on a secondary channel (such as Fox Sports Midwest Plus) that does not focus on betting. gambling.
The deal also calls for Bally's content to air on Sinclair's 190 television stations, including KDNL (Channel 30) locally.
Editor's note: This column has been amended to correct the amount the New York Post reported Bally's will pay Sinclair.
