By Stephen Crystal – Founder & CEO, SCCG
The shifts we’re seeing in today’s media landscape are monumental. For decades, advertising was the economic backbone of media companies, but with declining ad revenue and tech giants like Google, Amazon, and Facebook dominating the digital advertising market, traditional publishers are turning to new and innovative revenue models. One of the most interesting developments? Betting partnerships that go beyond marketing and are redefining media business models.
Since the Supreme Court’s 2018 decision to allow U.S. sports betting, the industry has exploded, with legalized betting markets now active in over half the states. For media companies, the sports betting boom represents more than just a marketing channel. Betting partnerships are emerging as essential revenue streams, engagement tools, and opportunities for growth and reinvention.
Betting Partnerships: The Strategic Pivot
Betting partnerships have become more than sponsorship agreements; they are transformational alliances reshaping media companies’ business models. The stigma of sports betting as a “vice” has faded, with betting now widely recognized as part of mainstream sports culture. Today, betting partnerships often involve co-branded sportsbooks, exclusive digital integrations, and even equity stakes in betting companies. This is evident in some of the most recent collaborations in the industry.
Take, for example, Barstool Sports’ recent multi-year sports betting partnership with DraftKings, which has become Barstool’s exclusive sports betting partner. This deal allows DraftKings to take advantage of Barstool’s passionate audience of sports fans, integrating its odds directly into Barstool’s content and benefiting from customers referred to its sportsbook. In exchange, Barstool receives a share of revenue and enhanced content opportunities, allowing the brand to monetize its audience and boost engagement through sports betting.
In another innovative partnership, BetMGM recently announced a strategic alliance with X (formerly Twitter), where BetMGM’s live odds and branding will be integrated into the platform. This collaboration allows X’s massive user base to access BetMGM’s betting options directly, bringing real-time betting options to users as they follow live sports discussions. For BetMGM, this means reaching millions of sports fans in the moment, and for X, it adds a new engagement dimension, showing how betting can be more than a revenue driver—it’s now a way to enhance social media interaction.
Creating New Revenue Streams and Growth Strategies
Betting partnerships are adding entirely new revenue layers for media companies. Licensing fees, equity stakes, and performance-based payouts now tie the financial success of media companies to customer engagement with betting platforms. Media companies can profit not only from the content they create but also from the betting activities they promote. This shift turns content-driven media businesses into players in the betting space, using betting to drive their own revenue while still engaging their audiences.
This type of alignment is especially notable with Robinhood’s new offering that incorporates election betting. Known for its zero-commission stock trading platform, Robinhood has pivoted into event-based betting, allowing customers to wager on events like U.S. presidential elections. Robinhood’s entry into the betting world is a clear move to expand its growth potential and capitalize on current events, signaling how modern financial platforms are blending trading with betting on timely and sometimes volatile topics.
Betting-Driven Content and Audience Engagement
The most remarkable impact of these betting partnerships is on content strategy. Media companies are building entire verticals around betting, producing dedicated odds-based articles, real-time game-day insights, and analysis to attract avid sports fans and bettors alike. This betting-focused content fosters deep engagement by giving fans insights tied directly to their financial interests in the game.
Through its partnership with FanDuel, The Associated Press (AP) now offers FanDuel as its exclusive provider of sports odds. This integration allows AP to deliver up-to-the-minute betting information and odds directly to readers, catering to the growing interest in sports betting among AP’s audience. This has led to a new kind of sports journalism where betting content drives engagement and creates a loyal audience who returns not just for news but for betting insights.
Audience Interaction: Building Communities Around Betting
With the rise of betting partnerships, media companies are reimagining how they interact with audiences. The fusion of media and betting is leading to interactive platforms where fans can engage with betting odds, predictions, and community-based betting pools. These strategies foster community and excitement, especially around major sports events.
For example, the Barstool-DraftKings partnership has created a community-oriented betting experience by integrating Barstool personalities and content with DraftKings odds. Barstool’s highly engaged user base interacts with their favorite media personalities and bets on DraftKings, creating a social dynamic where sports betting becomes a shared activity. It’s a model that deepens brand loyalty and engagement while adding significant value for both partners.
Betting Partnerships as Business Model Transformation
These partnerships are more than just a way to boost revenue—they are transforming media companies into integrated players in the betting space. This alignment with the sports betting industry allows media companies to future-proof their models in ways that ad revenue alone could never achieve. By linking content, customer engagement, and betting, media companies can focus on quality content creation while tapping into the lucrative betting industry.
Looking ahead, betting partnerships are reshaping the media landscape, positioning media companies for sustained growth in a highly competitive digital arena. Through strategic alliances, equity holdings, and creative content strategies, media companies are investing in their longevity. They are reinventing how they engage with audiences, diversify their income streams, and exert influence in the sports media industry.
Betting partnerships represent more than a shift in revenue—they signal a redefinition of media in the 21st century. It’s a new paradigm where media companies and betting platforms no longer operate separately but as intertwined forces, each bringing unique value to the other. For media companies, sports betting isn’t just a pivot; it’s a path to long-term sustainability and relevance in an ever-evolving digital world.
