$150 BILLION INDUSTRY. 5x EARNINGS. DIRT CHEAP, STRONG BUY -READCBS Sports Partners with William Hill. It's the Latest Media Company to Embrace Sports Betting. -- Barrons.com
Mentioned: VIAC VIACA
By Nicholas Jasinski
ViacomCBS' sports division will join with U.K. bookmaker William Hill on creating sports betting content across its digital and television platforms. It follows Fox Corp's deal with Stars Group on FOX Bet. Anticipated growth in sports betting in the U.S. is a part of many investors' bullish theses for media companies that broadcast live games. Announced on Monday evening, the agreement will give CBS Sports (ticker: VIAC) access to William Hill's (WMH.UK) betting odds, data, and sports books to be used in its TV programming and online offerings. CBS' main sports offerings include NFL games and the NCAA men's basketball championships -- the March Madness tournament. William Hill will be able to exclusively promote its brand on CBS Sports' website and on its fantasy sports platform, which have more than 80 million users a month, according to the company.
"The power of our distribution, combined with the strength of our brands and the expertise of William Hill, has us well positioned to tap into the explosive growth of the legal sports betting industry in the U.S.," said CBS Sports Digital Executive Vice President Jeffrey Gerttula in a statement. "Together, we will deliver even more value to this rapidly growing segment of sports fans."
The offering will have a limited launch in March, followed by a full rollout this summer. Financial terms of ViacomCBS' partnership with William Hill weren't disclosed. Sports betting is now allowed in 20 U.S. states with more on the way. The Supreme Court struck down a federal law banning sports betting across most of the country in May 2018. A recent Barron's cover story examined the booming industry, which could have a potential market as large as
$150 billion annually.
Fox Sports (FOXA) already has a deal with the Stars Group (TSG), an online poker leader. Stars plans to merge with Flutter Entertainment (FLTR.UK) -- the owner of Fan Duel -- after which Fox will have the option to buy 18.5% of Flutter. Fan Duel and DraftKings are the two leading online sports betting platforms in the U.S. (Fox has common ownership with Barron's parent company, News Corp.)
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