What happened 

Shares of Sinclair Broadcast Group (SBGI -4.73%) spiked Thursday after the company recently announced that it had entered into a long-term sports betting and online gambling partnership with Bally's Corporation (BALY 1.92%).

The communication stock jumped by as much as 19.5% during today's trading and was up by 6.1% as of 1:01 p.m. EST.

So what 

Sinclair said in a press release yesterday that it's teaming up with Bally's to "... create unrivaled sports gamification content on a national scale, positioning Bally's as the premier omni-channel gaming company with physical casinos and online sports betting and iGaming solutions united under a single brand."

A white line graph on top of a blue bar chart.

Image source: Getty Images.

Bally's will integrate its content into the 190 television stations that Sinclair owns and operates across 88 markets. The deal will help Bally's capture more market share in the U.S. sports betting and online gaming market while allowing Sinclair to receive warrants and options for a minority stake in Bally's.

Sinclair investors were clearly excited to hear that the company could gain a minority stake in Bally's, and pushed Sinclair's stock higher on the news. 

No what

The partnership will span 10 years under the deal and the companies said that the partnership will create unrivaled sports gamification and content on a national scale. The size and scope of the integration between the two companies is large, and investors should remember to be patient as they wait to see how the partnership affects Sinclair's top and bottom lines.