The Reseller Betting Ecosystem

Reselling, affiliate selling, whatever you'd like to call it is alive and well in pretty much every free enterprise business. This was on display yesterday as Fox Sports inked a deal with an existing gambling company to provide a betting app under their huge name brand.

This will be one of the first visible impacts of the FOX Bet-Stars Group deal. https://t.co/0sQQaKTgW0

— Dustin Gouker (@DustinGouker) May 9, 2019

This, and other deals, are important to the underlying business - in this case, simply "sports betting" - because you have dozens and dozens of companies competing for the betting dollar. This means ads on Fox Sports' events and talk shows (targeted to specific states of course), TVG pushing the Fan Duel product, and your average every day online betting site pushing offers and enticements.

This is exactly what we've - and the wagering community - spoken about for a long time regarding the ADW space in racing as it has shrunk.

Crowding out ADW's have snuffed out advertising dollars, lower takeout and enticements.

Increasing signal fees or adding source market fees - something this sport loves to do - stops competition. And stops rebating for the small players (rest assured, the big players are okay!).

Other gambling companies know this, for the most part, and this system works as planned. It's one reason why they're winning customers, and racing continues to struggle.

Have a nice Thursday everyone.