Genius Sports Limited, self described as “a global leader in digital sports content, technology and integrity services” has carried over the momentum of an exclusive data-distribution deal with the NFL and last week made a pair of moves aimed at bolstering their status as a truly elite player within the US and global legal sports betting scenes.
Looking to strengthen their dominant position within the digital data market, Genius reported out on a deal with free-to-play game and software creators FanHub and with fully integrated sports Artificial Intelligence developer Second Spectrum to integrate their proprietary technologies into the already impressive Genius Sports family.
Second Spectrum
Genius Sports is adding to their sports betting offerings with a $200 million acquisition of data tracking and analytics provider Second Spectrum – an AI provider that offers its clients tracking, analytics and data visualization services with the intention of enhancing bettors’ overall experience. The sports betting experience is evolving globally, and Genius Sports is hoping to keep ahead of the curve. Second Spectrum’s proprietary technology will allow Genius Sports to provide almost real-time sporting action to teams, leagues and data partners through cutting-edge player tracking technology.
“We are thrilled to join the Genius Sports family,” Second Spectrum CEO Rajiv Maheswaran said in the release. “Second Spectrum’s mission to be at the forefront of innovation in the sports ecosystem in combination with the scale and drive of Genius Sports will rapidly accelerate how content is created and experienced and bring significant value for our partners and clients.” Second Spectrum brings with them existing relationships with EPL, the NBA and MLS.
FanHub
Genius Sports reported early in the week a deal that also aims to increase fan engagement and customer retention. FanHub will give Genius Sports a chance to do that with a more personalized betting experience for its growing client base in the US and around the world. “The acquisition of FanHub will provide our sports, betting and media partners with exciting new content platforms that entirely complement our established data, video and marketing solutions,” said Genius Sports CEO Mark Locke. “This transaction is expected to expand Genius Sports’ global audience and reach while accelerating the convergence of sports, betting and media to engage the modern fan.”
FanHub has been one of the global leaders in free-to-play (F2P) games and fan engagement solutions through its proprietary, cutting-edge technology. As part of the deal Genius Sports also gains FanHub’s suite of F2P games, including fantasy sports, trivia, bracket challenges, pick ’em, and polling games which will act to expand the Genius Sports reach. Second Spectrum, like FanHub has existing relationships – with the NFL, MLB, MLS, Betway and PointsBet.
Building the Brand
Genius Sports has had a busy few months building their brand. At the beginning of April, the company won a battle for the exclusive rights to distribute valuable NFL gambling data to sports books. The deal could be valued at $1 billion over the life of the contract. Genius Sports, prior to their most recent acquisition blitz, worked hard to forge relationships with more than 500 organizations around the world. The NBA, Premier League, NCAA, NASCAR and PGA Tour are included in the impressive list.
But a deal with blank-check company dMY Technology Acquisition II to become publicly traded may be the company’s signal that it has arrived. The $1.5 billion deal demonstrated the expansion seriousness of Genius Sports. Stocks for the company jumped 30% on the heels of the Second Spectrum and FanHub deals. Despite paying for companies to bolster their brand, Genius Sports, thanks to the cash infusion from being a publicly traded entity enters the summer with over $145 million in cash and reportedly zero financial debt on the balance sheet.
The Future is Bright
The global sports betting industry is on fire and Genius Sports has been able to take full advantage. More countries and states are coming into the legal sports betting fold every day, causing an intense need for not only data but new and exciting sports betting experience for providers and their increasing stables of clients.
Second Spectrum and FanHub Do Just That for Genius Sports
The growth of the global legal sports betting industry has certainly paved the way for companies like Genius Sports to emerge. Making the right moves, which Genius Sports has seemed to do is the key. Their NFL deal may garner the most headlines but smaller acquisitions like seen with Second Spectrum and FanHub will keep Genius on the critical cutting edge of the industry.
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