Genius Sports, NFL Extended Data Accord, Stock Soars

On Thursday, Genius Sports (NYSE: GENI) and the NFL announced that they have prolonged their data contract for the duration through the 2027-28 season.

NFL Commissioner Roger Goodell announced that the league has extended its partnership with data provider Genius Sports, causing the stock of the latter to soar by 25.65% on a volume that was 15 times the day’s daily average. Though the financial details of the extended agreement have not been revealed, speculation is rife that Genius Sports has paid the league $1 billion this year for a four-year data contract. This new extended deal will go on until the end of the 2027-28 season, and Genius will continue to remain the NFL’s exclusive distributor of real-time and official play-by-play statistics, proprietary Next Gen Stats data, and the NFL’s official sports betting data feed to media companies and sports betting operators around the world. The news of the extended agreement was met with joyous cheers from the league’s investors.

The new agreement between Genius and the NFL solidifies the company’s reputation as a top data provider for US sportsbooks and a major player in the football betting industry. This is especially pertinent considering football is the most wagered-on sport in the US. According to a press release, Genius Sports now powers over 98% of the legalized US sports betting market with exclusive NFL data, which helps drive initiatives such as personalized advertising, micro-betting, and same-game parlays. Previously, Genius Sports had also secured deals with the English Premier League (EPL) and Germany’s Bundesliga, further solidifying its role as a leader in the European sports betting data market.

Other Details of Genius, NFL Deal

Via its extended data pact with the NFL, Genius has acquired the rights to provide sportsbooks across the world with low-latency live game video feeds. Technology that is essential to capitalize on in-game bets, as it can move faster than traditional broadcasts, allowing companies to accurately value real-time wagers. Amongst its gaming clients are BetMGM, Caesars Sportsbook, Flutter Entertainment (parent organization to FanDuel), PointsBet, and William Hill. Furthermore, Genius plans to use its evolving AI technology to boost fan engagement and live betting. The company commented in a statement that it will use its machine learning and streaming technologies to enrich the NFL fans’ watching experience by providing Watch & Bet, as well as create augmented live video betting products. Analysts have been highly positive on the data deal between the NFL and Genius.

Analyst Bullish on Genius, NFL Data Deal

In late June, Genius secured an expansion in their agreement with a large UK football league. David Bain, a B. Riley analyst, comments on the positive developments, stating that the recent extension with the NFL as well as the UK Football leagues, alongside a strong showcase of the company’s operational capabilities and profitability, have eliminated the primary worries that investors had. He firmly reiterates his “buy” recommendation on Genius with a price target of $9, indicating a potential 23.28% growth from the closing price on Thursday of $7.30.