NHL Receives Shares in PointsBet As Part of Sports Betting Agreement

NHL PLayer Sidney Crosby
The National Hockey League received equity from online gambling operator PointsBet as part of the agreement that named the Australian-based company as the NHL’s “official sports betting partner” on Wednesday.

A total of 43,106 PointsBet ordinary shares were allocated to the NHL to sweeten the deal. The shares were priced according to a recent 20-day trading average on the Australian Securities Exchange. Using the average, the shares are valued at $500,000 but are worth over $531,000 according to Tuesday’s closing price. According to the filing, the shares will be distributed in equal parts after 12, 36, and 48 months.

Both Companies Entwined With NBC

As its official sports betting partner, PointsBet will be authorized to use the official NHL league and team logos in its online sports betting app and marketing materials. PointsBet content will now be featured during NBC’s broadcast of NHL games.

The deal will be enhanced by the existing partnership between the league and NBC. Currently, the NHL has a ten-year broadcasting contract with NBC worth $2B. That deal expires after the 2020-21 NHL season but NBC is looking to renew the partnership “for a long time to come”. Meanwhile, PointsBet recently entered into a $500M deal to become NBC’s exclusive betting partner.

Not the First Betting Partner

The NHL opposed the legalization of sports betting for decades but the PointsBet deal isn’t the first of its kind for the North American professional ice hockey league. FanDuel, William Hill, and MGM have partnered with the NHL in the past.

The NHL is also an investor in DraftKings as it acquired shares of the company back when it was still just a private fantasy sports company. In August 2020, Sportico reported that the league also agreed to a data partnership with Sportradar in a deal that is also believed to involve equity.

PointsBet Deal Worth at Least $1.625M for CU Buffaloes

Colorado State Seal With a Casino Hotel Background
The University of Colorado stands to receive at least $1.625M as part of its five-year advertising agreement with sports betting company PointsBet.

According to a copy of the contract obtained by sources, PointsBet will make quarterly payments to CU until June 2026. The payments are due every 1st day of July, October, January and April. They escalate every year, beginning with $76,250 in the first year to $86,250 in the fifth year. The five year annual totals are $305,000, $315,000, $325,000, $335,000, and $345,000.

Aside from the quarterly payments, the University of Colorado will receive a referral fee of $30 for every new customer it sends to PointsBet. The more Colorado sports betting client that CU can get, the more money it will receive under its “affiliate” role. These new customers are required to enter a CU promo code which then triggers $30 to the school’s account.

In exchange for the payments, PointsBet will receive advertisement at Sporting events in Colorado, including the school’s football stadium. Every CU football broadcast must include a segment featuring the gambling company and a 10-second live mention during football games. The football stadium will have the PointsBet logo on both videoboards during home games plus a four-minute exposure on CU ribbon boards and end zone LED screens. The agreement is for regular season games with every 30-second exposure during the postseason costing $600 for PointsBet.

First Gambling Partnership

Last month, CU signed the first partnership between an NCAA College and a gambling company. The deal was a major turnabout for the NCAA which has fought very hard against the legalization of sports betting. Although Colorado sports betting was approved last November, the NCAA’s rules ban sports wagering among athletes, coaches, and administrators.

Impending legislation on compensation of athletes could cause more inequality as it relates to gambling. The NCAA may also prohibit athletes from endorsing gambling companies in its legislation governing NIL or name, image, and likeness.

However, there is no prohibition on universities entering into gambling agreements. But the University of Colorado consulted the NCAA and the PAC-12 Conference before it signed the PointsBet deal. Under the deal, PointsBet is prohibited from using a CU athlete’s name or image without approval from the university, and the school is not liable if an athlete files a claim against PointsBet for using their name, image, and likeness (NIL).

PointsBet Picks Evolution to Provide Table Games

Evolution Gaming
Online bookmaker PointsBet has appointed Evolution Gaming as its partner for live casino games in its U.S. gambling market. Under the partnership, the two will work together to roll out live casino offerings to PointsBet’s online programs moving forward.

Said PointsBet in a statement:

“We are thrilled to partner with Evolution Gaming to launch Live Casino technology in US jurisdictions, where we plan to offer our proprietary online casino platform. The addition of Evolution Live Casino extends the appeal of PointsBet’s premium product in the rapidly growing US market.”

U.S Expansion

It can be recalled that PointsBet is aiming to rollout its online casino in Michigan late this year while also targeting a mid-2021 launch of online casino games in New Jersey. Evolution Gaming chief commercial officer Sebastian Johannisson said in a statement that the company will offer PointsBet a mix of its classic games, poker, and “game show” games. Per Johannnison:

“Evolution’s Live Casino portfolio offers PointsBet a rich mix of world-leading online Live Casino games including classic table games, online Poker variants that are big favourites with US players, and our new generation of award-winning, record-breaking game show games. In addition, PointsBet will have the option of exclusively branded dedicated tables and environments, should they require these.”

PointsBet has been in the U.S. market since last year as a mobile sports betting provider in the states of Indiana, Iowa, and New Jersey. Recently, it revealed plans for a massive expansion as it has deals to roll out in Michigan, Colorado, and Illinois.

Like PointsBet, Evolution Gaming has been expanding in the United States since entering the market two years ago in New Jersey. Evolution is scheduled to launch a gaming studio in Pennsylvania later this year and also has plans to launch one more in Michigan.

About PointsBet

PointsBet is one of the fastest growing sportsbooks in the United States. Originally from Australia, PointsBet launched in the U.S. in 2019. It prides itself in having one of the quickest and most user-friendly apps in the market while also providing the best experience for its users.

It is the only sportsbook in the United States to offer “PointsBetting”- a new and innovative way in making bets. PointsBet also offers the most markets on all four major North American sports leagues. It is an official gaming partner of several professional sports teams like the Denver Nuggets, Colorado Avalanche, Colorado Rapids, and Detroit Tigers.

Last week, PointsBet also added the NBA’s Indiana Pacers to its list of partner teams. One day after the Pacers deal, PointsBet also entered into an agreement with Twin River Management to provide online casino games in New Jersey.