NBA to ban unauthorized sportsbooks from official data feed

In a move that could disrupt some types of betting on the Finals, the NBA plans to cut off unauthorized sportsbooks from accessing the league's official data feed starting this week.

Sportradar, an authorized data distributor for the NBA, sent a letter Thursday notifying sportsbook operators that the league was forcing it to cease providing NBA official data for use in the United States, except for authorized gaming operator of the NBA, according to a letter quoted by ESPN. Access of the feed would be shut down on Tuesday, and Game 1 of the Finals is Thursday.

The NBA has partnered with three sportsbook operators: MGM, FanDuel and The Stars Group. As official league gaming partners, those bookmaking companies have access to the official data feed. NBA head of fantasy and gaming Scott Kaufman-Ross told ESPN on Friday that sportsbooks were aware that a season-long grace period for use of the data was coming to an end, adding that the league will continue to discuss additional partnerships.

The NBA's data feed is primarily used by sportsbooks to run their live betting options, updating odds that are offered on different outcomes throughout the game. Live or in-game betting is a growing market in the U.S. but still does not represent significant betting handle for sportsbooks in Las Vegas. The vast majority of money bet on in-game wagering options is on the point spread, money-line and over/under total points, bookmakers say.

The Las Vegas sportsbook operators that have not signed deals with the NBA are mulling their options, including manually producing the live odds or simply stopping live wagering on the NBA altogether.

NBA gambling ads

While sports betting is now legal in the United States, it’s slow state-by-state rollout has the NBA cautiously introducing gambling ads to its media mix. Scott Kaufman-Ross, senior vice-president, head of fantasy and gaming at the NBA, said the league will be working with its broadcast partners and sports betting operators to sensibly introduce gambling ads so they don’t overwhelm viewers.

He added that operators likely won’t rollout national campaigns as less than 10% of states have legalized sports betting. “Should it be done on platforms that can be geo-targeted to places where it is legal, or broadcast platforms where there are local availabilities in local stations? Those are the types of things we're looking at,” Kaufman-Ross said, The Drum reported.

“Certainly, as sports betting becomes legal in more states, more national broadcasting will make sense. But finding that right balance is going to be very important in the early years.” Sports betting is currently legal in Delaware, Mississippi, New Jersey, Nevada, Pennsylvania, Rhode Island, and West Virginia.

Kaufman-Ross recently spoke at sports business conference Leaders Week New York on how sports betting with transform the fan experience.