One day after BetMGM Sportsbook got invited to the Big Apple, it was awarded a plum.
Madison Square Garden Sports Corporation (MSGS) and Madison Square Garden Entertainment Corporation (MSGE) announced a multi-year marketing partnership with the operator, naming it an official sports betting partner for the arena, as well as the NBA’s New York Knicks and the NHL’s New York Rangers.
The partnership comes following a decision by the New York State Gaming Commission (NYSGC) to recommend issuing mobile sports wagering licenses to nine operators, including BetMGM. Sports betting is projected to begin in the Empire State during Q1 2022, before Super Bowl LVI on February 13.
Under the partnership, BetMGM will receive significant exposure during Knicks and Rangers games at The Garden.
Specifically, the operator will be displayed courtside and in LED signage, GardenVision features and basket stanchion signage at Knicks games. BetMGM will also be prominently displayed in dasherboard signage and Zamboni branding at Rangers games.
BetMGM content will also be included in the official Knicks and Rangers digital channels on Twitter, Instagram and Facebook. BetMGM customers will also receive special opportunities to participate in premium experiences at Knicks and Rangers games.
The operator will also be shown on MSG Networks during live coverage of Knicks and Rangers games, as well as games involving the NHL’s New Jersey Devils and New York Islanders, both of which play their home games at other stadiums.
BetMGM will be highlighted in a virtual blue line during Rangers games and commercial spots during game telecasts. BetMGM will also be displayed on digital boards outside The Garden and on MSG Networks. The boards are seen by millions of people walking by the stadium in midtown Manhattan every day.
“We’re excited to be partnering with BetMGM — a leader in the sports betting and gaming entertainment industry — to bring them an unparalleled platform in sports and entertainment,” said Ron Skotarczak, executive vice president for marketing partnerships at MSGE.
“MSGS and MSGE are made up of world-renowned brands that set industry standards for excellence, exposure and engagement, making us ideal partners to help drive sports betting’s continued growth.”
Said Matt Prevost, BetMGM’s chief revenue officer: “We’re thrilled to see the BetMGM brand connected to a space as iconic as Madison Square Garden. New York is a critical state for BetMGM’s continued growth and I can’t think of a better way to begin our relationship with The Empire State than partnering with The World’s Most Famous Arena and their legendary team franchises.”
Partnership will give BetMGM an edge
The marketing partnership is certain to give BetMGM a huge advantage when mobile sports betting comes to New York. Rangers and Knicks games arguably draw some of the biggest in-person audiences for live sporting events in the Empire State.
BetMGM will need every advantage they can as they compete against some tough competition. The NYSGC also awarded licenses to Bally Bet, Caesars Sportsbook, DraftKings, FanDuel, PointsBet, Resorts World, Rush Street Interactive (RSI) and WynnBET.
All nine operators will also pay a $25 million license fee and will be levied at a gross revenue tax rate of 51%.
Sports betting a boon to teams, too
Analysts say the beginning of mobile sports betting in New York will also likely boost the value of major league sports franchises and make them more attractive to investors.
In a note to clients, Jonathan Boyar, president of Boyar Research and an investment advisor to the MAPFRE AM US Forgotten Value Fund, said the approval of gaming in New York would benefit the Knicks and the Rangers, which already have the distinction of being the most valuable teams in the NBA and NHL, respectively.
“During the MSGS Q4 2021 earnings call, management stated that the approval of mobile sports gaming will be a ‘meaningful’ opportunity for the company,” Boyar wrote. “Although MSGS local media rights do not come due for about 14 years, there are a number of other ways for the company to benefit as online sports gambling becomes a reality in New York State.
“One potential opportunity that the company could benefit from is the sportsbook at the company’s arena. Although MSGS would not be the sole beneficiary of such an arrangement, it would be expected to participate in the opportunity alongside its sister company, MSGE, which owns the arena.”