Hornets secure first team sports betting deal in North Carolina with Bet365 pact

The Charlotte Hornets will today become the first North Carolina-based team to unveil a deal with a sportsbook, announcing an exclusive 10-year agreement that will make Bet365 the team’s official mobile sports betting operator, giving The UK-based company access to one of the State is expected to issue 11 licenses next year.

The deal comes in time for Bet365 to see its logo on the base aprons and basket posts at the Spectrum Center for tonight’s NBA In-Season Tournament game against the Bucks, as well as upcoming games against the Knicks on Saturday night and the Celtics on Monday night. . Bet365 will also receive advertising and promotion on the team’s television and radio broadcasts, as well as on social platforms once sports betting is launched. The deal does not include retail plans, although they could be added as part of future arena development.

The Hornets are the fifth American professional team sponsored by Bet365, joining the Guardians, Commanders, Rockies and Spurs. This is its first exclusive deal with an American team, and it comes as the global sports betting leader ramped up its presence in the country this year and is now available in New Jersey, Colorado, Ohio, Virginia, Iowa and Kentucky.

“As an organization, we continue to seek creative and unique opportunities to grow our brand and fan base,” said Hornets CRO Jacob Gallagher. “We’re really excited to do this with a global partner, someone who has dominated the market for a long time. We think they agree with us and can do the same thing here in the United States.

Although financial terms were not disclosed, a source familiar with the matter confirmed that it would be the second richest sponsorship in the team’s portfolio, behind the naming rights to the arena, and that It would rank among the top in terms of average annual value.

Team-based market access led to a change in strategy

The Hornets are the first team to announce a deal in the final state to attach valuable sports betting licenses to professional teams. A wave is expected to reveal their pairings in the coming weeks. The Hornets, Panthers, Hurricanes, Charlotte FC, NC Courage, Quail Hollow Country Club in Charlotte, Sedgefield Country Club in Greensboro, Charlotte Motor Speedway, North Wilkesboro Speedway, NASCAR and the PGA Tour each control licensing access. So are the operators of three tribal casinos in the state.

The inclusion of team-related market access came as a surprise in North Carolina, where legislative leaders used a late-session budget amendment to rewrite the bill signed by the governor three months earlier, which would have allowed regulators to give preference to sportsbooks that agree to sponsor professional teams, sports facilities and tour operators in the state, but did not require it.

Under that model, the Hornets were in talks that likely would have led to them splitting the category between two or three sponsors. When the state changed the rules two months ago, it sparked a stampede among sports properties and sportsbooks — and a shift toward exclusivity. “We were in the middle of negotiations, talking to all the key players in the industry, and everything changed,” Gallagher said. “In doing so, it gave us an opportunity to align with a particular partner instead of maybe multiple partners, which is what I think we were all moving towards.” And I think ultimately it’s positive for us and for the operators.

Sports betting marketing spending has declined noticeably since Arizona launched under a similar team-related licensing model in 2021, generating mid- and high-seven-figure annual deals that included team-related benefits. retail stadiums and arenas for top teams. Many expected the value of transactions in North Carolina to be much lower than that, with some sportsbooks prioritizing lower-cost access.

But North Carolina will open with a slightly different dynamic than other newer states. Alongside Bet365, which has spent aggressively on advertising and promotion in Ohio and ranks fourth in the state with a 6% market share, the online launch of Fanatics in August and ESPN Bet this month could reinvigorate spending.

With an over-21 population of just under 8 million, North Carolina will be the sixth most populous state with legal online sports betting, counting Florida again and again. “The market has matured,” Gallagher said. “But if a brand sees value and really wants it, they will make sure they get what they want. These operators want to invest in these markets and they decide how important this is to them. For us, we are very happy with the investment that Bet365 has made with us.

Legal online sports betting can begin in the state as early as Jan. 8, but regulators have said that won’t happen. Operators hope to reach March Madness. The law requires a launch before June 15.

Hornets are first North Carolina team to unveil sports betting deal