What happened
Genius Sports (GENI 0.39%) investors had a great start to the trading day on Thursday. Shares of the sports betting specialist were up 11% by 11 a.m. ET, compared to a 1.3% drop in the S&P 500. That boost added to an excellent year so far for the stock, which is up 80% in 2023, while the wider market has risen 14%.
Thursday's rally was sparked by positive news around Genius Sports' partnership with the National Football League.
So what
Before the market opened, the company announced that it had reached a deal to extend its exclusive partnership with the NFL for an additional five seasons. Genius Sports will remain the only sports betting platform to distribute the NFL's official live game data, which allows for targeted betting across many aspects of any game matchup. The deal also gives the company rights to use NFL data and logos in its advertising services.
Executives said the move would help solidify Genius Sports as a central place for football fans to place bets or follow live game statistics. "We are thrilled to extend our partnership with the NFL for five further seasons from today," CEO Mark Locke said in a press release. Executives at the NFL echoed those positive comments.
Now what
Genius Sports partners with most major sports associations, including the NBA, the NCAA and NASCAR. But this deal is critical for its growing audience of betters and content consumers.
The company's last earnings update contained surprisingly strong sales trends, which convinced management to raise the 2023 outlook on both the top and bottom lines. The stock's jump in early trading on Thursday implies that investors believe a long-term exclusive deal with the NFL can help extend that positive growth momentum in 2024 and beyond.
