Sports Betting Data Mandates

Uncategorized Jun 20, 2023

Official betting is a wager placed on an outcome of a horse race or other sporting event. Hitting an “exacta” entails picking the first two finishers in the correct order; a “quinella” includes the first three finishers in either order; and a “trifecta box” includes the first four finishers in any order. A “daily double” requires selecting the winners of two consecutive races. And a “Pick Six” calls for picking the winners of six consecutive races, which is an extremely difficult feat that often yields a large payout.

Several states have included in their sports betting laws requirements for operators to use official data. Official data refers to statistics, results, outcomes and other information relating to a professional sports event obtained by a permit holder through an agreement with a relevant sports governing body or entity expressly authorized by such a sports governing body for determining the outcome of tier 2 bets.

In the US, a handful of major leagues are trying to leverage their influence with regulators to require the use of their data for all in-play bets. In addition to an alliance with MGM, the NFL has pushed for regulations that would allow it to restrict its data flow, while the NBA has also partnered with a gambling company and sought to impose data mandates in legislation.

As the demand for real-time data grows, so does speculation about whether official data will be able to compete with cheaper unofficial sources. But so far, the leagues have not proven that their data is commercially reasonable, making a mandate more challenging to defend.