Genius Sports added another sports betting company to its roster this week, agreeing to provide official league data for New York-based pricing provider, Huddle.
Huddle provides AI learning-based models. Sportsbooks like Circa Sports use them to price their lines and factor in risk.
According to the release, Huddle plans to leverage its algorithms with Genius’ feeds to deliver faster and more responsive live-betting markets for quarters and halves, player props, and same game parlays, increasingly popular methods of betting.
NFL data at forefront for Genius Sports
Genius won exclusive rights to NFL data in 2021, after reportedly beating out multiple bidders. While the full details of the deal are not public, LSR reports indicate Genius pays the league around $100 million a year for the rights.
As part of the deal, sportsbooks and software providers like Huddle pay Genius a 1.5% cut from pre-game betting revenue and 5% cuts from live betting revenue in exchange for the data. But it has been challenging to monetize so far, as sportsbooks have struggled with live markets pricing. Genius shares are down over 67% since landing the NFL rights.
Genius has become more experimental since, recently partnering with Caesars Sportsbook to offer the first in-app NFL stream for a sporstbook. It likely will continue to look for ways to make money from its NFL rights, as more than half of the company’s revenue comes from betting technology, content and services.
Huddle leverages computer trading
Landing Genius’s access to official data and stat feeds is a significant development for Huddle.
The provider merged with Las Vegas-based DeckPrism sports last year, a modeling specialist focussed on providing live bets without rapid price changes from delays. Genius’ data should help Huddle strengthen its automated pricing systems, which business-to-business providers have increasingly moved to as they look to cut human workforce.
“We share a joint belief with Genius that betting has enormous untapped potential. The industry needs innovative, engaging products that are easy and entertaining for the users,” Huddle CEO and co-founder Francesco Bgorgosano said. “And the combination of fast and reliable data with algorithmic solutions will unlock the necessary product innovation. It’s an amazing opportunity for Huddle to join forces with a reputable and established Company such as Genius to create new and exciting betting experiences.”