NBC Sports has now officially partnered with PointsBet for sports betting.

Last week, the two of them signed a deal that will ensure their collaboration for many years ahead.

Although PointsBet is a less prominent operator in the US, a move of this nature will aid in enhancing the brand’s visibility.

NBC spends $500 million

NBC invested $500 million for a 4.9% share in the company. After a period of five years, NBC has the opportunity to increase this share to 25%.

Currently, PointsBet is operating in New Jersey, Iowa, and Indiana.

Even though it has expanded, the sportsbook based in Australia hasn’t gained much popularity among US bettors.

The partnership between NBC and PointsBet demonstrates NBC’s confidence in its capability to enhance the popularity of the sportsbook.

PointsBet will be incorporated into the NBC Sports app, NBC Sports Predictor app, Rotoworld, and Peacock, the network’s newly launched streaming service.

All of NBC’s regional and national sports broadcasts will also display PointsBet’s branding and odds.

The sportsbook gets a lot of extra exposure due to the following broadcasts by NBC:

• Indy 500
• Olympics
• NASCAR
• PGA Tour
• Premier League

The list doesn’t even encompass the other individual sports that have partnerships with NBC’s regional networks.

For instance, NBC Sports Chicago holds the broadcasting rights for Chicago White Sox games. Therefore, if you reside in the region or the Chicagoland area, this is the channel you will need to tune into to watch these games.

PointsBet is given even more exposure as NBC’s other regional networks also have similar deals across the country.

CBS and FOX have comparable agreements.

While NBC’s partnership with PointsBet may be a recent development, it is not unprecedented.

In February, CBS collaborated with the international bookmaker, William Hill.

In 2019, FOX collaborated with Stars Group to initiate the FOX Bet Sportsbook.

Both sportsbooks have not yet launched in Indiana, but they are active in other parts of the country, including states such as New Jersey and Colorado.

The eagerness of major networks to partner with sportsbooks demonstrates their belief in the potential profitability of the betting market.

Currently, the US still remains a relatively new playing field.

Most states have not yet legalized sports betting, and among those that have, several are facing challenges like the absence of online betting.

Venturing into new states is also tremendously costly. Sportsbooks invest millions in marketing and promotional efforts to outcompete their rivals.

The initial investment for operating a sportsbook is substantial, but it’s anticipated to eventually result in a consistent flow of income. At least, that’s the concept.

NBC is joining the action with this PointsBet agreement.

If NBC eventually acquires a 25% stake in the sportsbook, it will significantly demonstrate the company’s faith in the brand.

Regardless of the situation, NBC still has a considerable stake in the game with a $500 million investment.

PointsBet stagnant in Indiana

PointsBet commenced operations in Indiana in March, just prior to the initiation of coronavirus lockdowns.

The sportsbook had a challenging start due to the absence of sports to bet on.

The company is thankful as things have been improving. The handle of the book has been on a month-on-month rise since the return of sports.

Despite PointsBet receiving an increased number of bets, its market share in the Hoosier State isn’t experiencing significant growth.

Although competitors such as BetMGM have been advancing, PointsBet’s market growth has largely remained static.

Throughout July, PointsBet ranked as the fifth most popular betting app in Indiana. It’s outperforming Caesars and BetAmerica significantly, as they appear to be stagnating. However, PointsBet isn’t making substantial overall progress.

This deal with NBC will aid in rectifying that.

Exposure on NBC TV will be beneficial, but the $500 million in liquidity will also contribute significantly.

That funding will aid in advertising and promotions, crucial elements for a sportsbook’s expansion. This will have additional significance in the forthcoming months as sportsbooks nationwide compete for their portion of the NFL betting market.