FanDuel has inked a new deal with Sportradar.

Sportradar is a data company that provides live information to its clients, sportsbooks included. The US wing of the company is the official data provider of the NFL, NBA, NHL and MLB.

Sportsbooks like FanDuel can then use that data to enhance the experience of NFL live betting. However, FanDuel and Sportradar’s new deal isn’t the first between the two companies.

FanDuel, Sportradar are already partners

This new deal is an expansion of the existing partnership between the two companies.

In the spring of 2019, FanDuel signed its original deal with Sportradar, which focused on livestreaming.

FanDuel’s chief rival, DraftKings, even put together a similar streaming-focused deal a few weeks back.

Niall Connell, the general manager of FanDuel Sportsbook, says that expanding FanDuel’s partnership with Sportradar was a no-brainer.

“We’ve been long-time partners with Sportradar, a company that shares a unique vision of engaging with sports fans, so extending the depth of our partnership with Sportradar was a natural next step. Continuing to use Sportradar stats will allow us to further deliver on our promise of improving the experience for our customers.”

FanDuel’s new deal is moving beyond livestreaming.

While the old deal is still in place, the new expansion of the partnership will provide FanDuel with official NFL data. That data could play a significant role in FanDuel’s future.

Some states require official league data

When a state is considering legal sports betting, the major sports leagues often pressure lawmakers to require sportsbooks to use official league data.

That pressure got that requirement built into sports betting laws in states including Illinois, Virginia and Tennessee. The pitch revolves around the idea that using official league data helps to protect the integrity of betting.

However, it’s more than just that.

If sportsbooks have to use official league data, then they’ll have to spend tens of millions of dollars to buy it from the leagues themselves. Or, more specifically, from a data company, like Sportradar, that already owns the rights.

Sportradar already has access to the major sports leagues’ official data due to partnership agreements. One of those is the NBA’s current $250 million deal with Sportradar.

That’s a hefty price tag, and that’s only for one league. When you add the price of data access for the NFL, MLB and NHL, it gets expensive quickly.

FanDuel needs data for expansion

FanDuel isn’t being left with a lot of options outside of coughing up the cash to pay Sportradar.

The more states that make official league data a requirement, the more important that data becomes. If FanDuel wants to expand into those states, it needs access to the state-mandated data. FanDuel is always looking to expand into new markets that have recently legalized betting.

So that’s a big factor of this new deal with Sportradar. In addition to improving live betting in Indiana, FanDuel gets to cover its bases and ensure access to official league data.

That requirement might end up being included in Ohio’s sports betting laws, too.

Data selling has always been a lucrative business, but deals like this highlight the importance to sportsbooks specifically.

Similar deals, like FanDuel’s, will likely be coming down the road as other sportsbooks look to grab access to that data for similar reasons.