American mass media holding company Gannett Co. has signed an exclusive agreement with sportsbook and gaming operator Tipico’s US subsidiary.
The deal sees Tipico become the exclusive sports betting and igaming provider for Gannett, owner of the USA Today Network and a range of other local media assets across the US such as the Indianapolis Star and The Oklahoman.
The deal replaces Gannett’s partnership with MGM-Entain joint venture BetMGM, meaning the media business will now promote Tipico odds instead of BetMGM’s.
Tipico will integrate odds, props, free-to-play games and betting trends across the USA Today Network, and has committed to $90m in media spend over the five-year agreement. The operator will also pay performance incentives to Gannett for customer referrals.
Subject to certain conditions being met over the term of the agreement, Gannett will have the right to acquire up to 4,990 common shares in Tipico’s US business, representing a minority interest.
In return, Gannett will provide the operator with exclusive access to premium marketing assets at a pre-negotiated value, based on the expected aggregate sum of the cash consideration, performance incentives, and right to acquire common shares.
The assets will focus on integrating year-round content across the USA Today Network, including video series, columns, blog posts, newsletters, contests, social media and events. Product integrations are expected to begin in August to coincide with the beginning of the 2021 NFL season.
Additionally, Tipico will co-brand all of Gannett’s NFL Wire Team sites, and sports news portal For The Win, including a re-launch of the site’s betting subsection to “Bet For The Win, powered by Tipico Sportsbook”.
“This historic agreement with Gannett, one of the most trusted names in global news, media and sports, will immediately bring additional credibility and trust to Tipico Sportsbook’s US operations,” said Stephen Krombolz, vice president of US business development and strategy at Tipico.
“These assets will serve as a key component of our North American marketing strategy, driving awareness of the Tipico brand and our products among Gannett’s millions of readers, viewers and listeners – ultimately delivering fantastic acquisition and retention opportunities as we prepare to scale rapidly in the US.”
Michael Reed, Gannett’s chairman and chief executive, added: “Our highly engaged audience of more than 46 million sports fans crave analysis, betting insights, odds and unique features which we will provide with our Tipico alliance.”
Last week, the operator announced it had selected Scientific Games’ OpenGaming product suite to power its New Jersey-facing igaming offering.