Bloomberg News recently reported the PGA Tour issued Requests for Proposals to data companies for the right to package real-time tournament data into feeds for gambling operations. Golf betting generates about .8 billion annually.
Observers said the PGA Tour issued RFPs to WME/IMG, which holds data rights for the top men’s and women’s tennis tours, and to Sportradar, which claims the National Football League as an investor, although the NFL does not allow its data to be sold to bookmakers. The RFP also mentions the possibilities of other “financial upside” including revenue, profit sharing or equity ownership. The RFP noted Tour officials would evaluate the proposals and determine whether to proceed.
The PGA Tour “continues to explore the risk/return trade-off associated with potential entry into the online sports gaming category,” the documents said. Spokesman Ty Votaw noted the PGA Tour sends out proposals “all the time. We’re far away from any kind of deal. We only talk about things when we announce them. We don’t talk about things in progress.”
According to a December Harris Poll, only 3 percent of American adults claim men’s golf as their favorite sport, ahead of boxing, swimming and track and field. “The PGA Tour is at risk of losing the next generation. You have to do something or you’re going to fade away to harness racing,” said Lee Berke, president of LHB Sports Entertainment & Media consultants.
Currently sports betting is illegal in most states. To bet on golf, legal bookmakers in Nevada or overseas will let wagerers pick a player to win, finish in the top 10 or shoot the best round. But the real money is in live betting, where every stroke offers an opportunity for a bet. A few sites already offer this kind of golf gambling based on unofficial data feeds.
Tennis offers a good example of the lucrative growth of point-by-point wagering. In December, Sportradar renewed its data contract with the International Tennis Federation for $14 million a year over five years, six times the value of the company’s original 2012 ITF deal.
Global Betting & Gaming Consultants Chief most likely will grow as in-game betting becomes more common. He said golf is especially appealing since many of its stars come from countries where gambling is legal, such as Australia, England and Northern Ireland.
