FanDuel Strikes Deal with NFL Sunday Ticket

Posted on: August 21, 2023, 02:39h. 

Last updated on: August 21, 2023, 03:47h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.

FanDuel, the largest US online sportsbook operator, announced Monday that it’s partnering with NFL Sunday Ticket to provide bonus bets to the gaming company’s clients and lure new customers to the football viewing package.

NFL Sunday Ticket
An advertisement for FanDuel Sportsbook, above. The company is partnering with NFL Sunday Ticket. (Image: FanDuel Sportsbook)

The unit of Flutter Entertainment (OTC: PDYPY), the world’s largest online gaming company, said that between August 21 and September 18, new FanDuel customers will receive $200 in bonus bets and $100 off NFL Sunday Ticket after placing one $5 wager. Existing FanDuel clients who place a $5 bet will also receive $100 off NFL Sunday Ticket.

This offer comes as part of a larger campaign by FanDuel as it enters its third year as an Official Sports Betting Partner of the NFL,” according to a statement. “The brand will also debut a new creative advertising campaign that will run throughout the season and introduce new product features including Parlay Hub and FanDuel Explore, which will engage fans as they cheer on their favorite teams.”

NFL Sunday Ticket has four packages at price points of $299, $339, $399, and $439 when factoring in a $50 discount on each that’s valid through September 19. The 2023 NFL season starts on Thursday, September 7.

NFL Sunday Ticket Might Not Be Boon for YouTube

Introduced in 1994 by satellite television provider DirecTV, NFL Sunday Ticket has become a phenomenon with football fans because it provides access to out-of-market games and the regional contests aired each Sunday by CBS and Fox.

For example, a Philadelphia Eagles fan living in Los Angeles can get their home team fix by subscribing to NFL Sunday Ticket. Estimates vary, but it’s believed the plan has 1.5 million to two million customers.

Last December, YouTube, a unit of Google parent Alphabet, acquired NFL Sunday Ticket, reportedly outbidding competitors such as Apple. In recent years, DirecTV endured subscriber loss from the football package, and it’s unclear how YouTube will stem that tide.

A recent survey by Kagan’s MediaCensus indicates just 17% of respondents are “very interested” in NFL Sunday Ticket on YouTube, while 16% are “somewhat interested.” The other 67% aren’t interested at all. Data also point to current YouTube TV subscribers not being enthusiastic about the NFL viewing plan.

“YouTube TV subscribers were much less likely to be very interested in NFL Sunday Ticket on YouTube (20%) than subscribers to other virtual multichannel services like fuboTV Inc. and DIRECTV Stream at 37% and 33%, respectively,” noted S&P Global Market Intelligence. “YouTube TV subscribers had the second largest share indicating they were not interested in the NFL Sunday Ticket on YouTube at 58%, a little lower than among Frndly TV Inc. subscribers at 64%.”

Potential Perks for FanDuel

In terms of market share, FanDuel is already the leader among US online sportsbook operators, and by a wide margin at that.

How the company benefits from the partnership with NFL Sunday Ticket remains to be seen, but the agreement may bring new bettors into the fold. They could also be avid viewers of the football offering because data confirm bettors are more likely to watch games in which they are financially invested than are more casual fans.

The gaming operator also said it’s introducing FanDuel Explore for this football season. That offering includes betting education, parlay builders and other information that could be relevant to smaller bettors.