Multi-year marketing partnership

BetMGM has partnered with the NBA’s New York Knicks and the NHL’s New York Rangers as part of a multi-year marketing agreement with Madison Square Garden (MSG) Sports Corp.

The deal announced Tuesday makes the New Jersey-based betting giant the official sportsbook for the two pro league franchises, plus the iconic indoor arena the Madison Square Garden. BetMGM retweeted a post from sports betting host and analyst Ariel Epstein describing the MSG deal as “huge”:

The announcement comes just one day after BetMGM received one of New York’s nine online sports betting licenses. The marketing partnership with MSG will provide the joint venture between MGM Resorts International and Entain with significant multi-media exposure in New York.

A beneficial agreement for BetMGM

Millions of people who walk past Madison Square Garden each day will see BetMGM’s branding featured on digital screens outside the venue. Inside the arena at Knicks games, BetMGM’s marketing will appear on GardenVision features, basket stanchion, and courtside LED signage, in addition to dashboard signage and Zamboni branding at Rangers games.

BetMGM’s social media marketing reach has extended too. MSG will integrate BetMGM content into official Knicks and Rangers digital channels on Twitter, Facebook, and Instagram. New York sports fans who sign up with BetMGM will get the chance to claim premium experiences at Knicks and Rangers games.

Completing its multi-media blitz, BetMGM will also feature on MSG networks during live coverage of Knicks, Rangers, New Jersey Devils, and New York Islanders games.

The battle for New York

The CEO’s of sportsbooks granted the first mobile licenses for the New York market on Monday, including BetMGM and PointsBet, see the state as a vital, iconic staging post for their US-wide operations.

a critical state for BetMGM’s continued growth.”

In an MSG press release Tuesday, BetMGM chief revenue officer Matt Prevost deemed New York “a critical state for BetMGM’s continued growth.” Prevost said he couldn’t think of a better way to start his brand’s relationship with New York than partnering with the Garden and its iconic sports teams.

According to a Truist analysis, New York State will generate $1.2bn in gambling revenue within the next few years. This projection gives the Empire State 6% of the national take and makes it the US’ fourth largest sports betting state in terms of revenue, behind California at $3.4bn, New Jersey at $800m, and Connecticut at $200m.

One competitor takes a fall

The fundamental need to gain market share sees US sportsbooks in a war of attrition. The owner of one of BetMGM’s main competitors Penn National Gaming has recently struggled to mitigate the impact of damaging allegations. Its shares plummeted nearly 20% after multiple women leveled sordid claims at Dave Portnoy, the owner of Barstool Sports, in which Penn bought a 36% stake in 2020.

To make matters worse, BetMGM, DraftKings, and FanDuel had initially wanted Barstool to posse up with them for a New York betting license, according to the New York Post. However, they U-turned on that decision on the back of Portnoy’s past erratic behavior, deciding to partner with Bally’s Corporation instead.

Barstool Sports’ eventual consortium with Fanatics, led by native New York rapper Jay-Z, did not receive a New York online sports betting license on Monday.