Fubo Gaming, the sports betting and interactive gaming division of FuboTV, signed a multi-year partnership deal with Major Soccer League (MLS) Houston Dynamo FC to become a sponsor of the team and acquire market access in Texas.
Eyeing Sports Betting in Texas
Fubo Gaming and Houston Dynamo FC agreed to a ground-breaking deal that paved the way for the sports betting firm to acquire a gaming license in Texas as soon as the state, which is considered by many to become one of the most lucrative gaming jurisdictions in the US, passes legislation to authorize wagering on sports.
“Partnering with the Houston Dynamo Football Club for market access in Texas is a major milestone for Fubo. Texas has an incredibly enthusiastic community of sports fans and will ultimately become one of the largest sports betting markets in the US.”Scott Butera, President, Fubo Gaming
The sports partnership also encompasses “numerous assets and levels of fan engagement” and will enable Fubo Gaming to maximize gains from its “uniquely integrated streaming and wagering platform” while offering “highly personalized and immersive experiences” for its players, Butera concluded.
The agreement will ensure Fubo Gaming’s presence during games of the Dynamo and its affiliated National Women’s Soccer League (NWSL) Houston Dash via on-site advertising. The brand will also feature across both team’s broadcast, digital and social platforms, as well as on the front of their training tops.
“Fubo Gaming is at the forefront of the sports gaming industry and will be leaders in shaping how we enjoy sports in the years to come. We look forward to working with their industry experts to deliver best-in-class experiences for our fans and continually improve the fan experience as the landscape evolves.”John Walker, President, Houston Dynamo FC
Financial Aspects of the Deal
Neither of the partners revealed details related to the financial aspect of the deal but according to people familiar with the terms cited by Yahoo Finance, the deal could become the biggest in MLS, touted to amount to at least $176 million.
Fubo Gaming is paying an initial $10 million signing bonus and committing to spending $1 million annually for marketing rights every year until Texas legalizes sports wagering. In case the law allows sports teams to distribute betting licenses, Houston Dynamo FC will receive another $15 million, and Fubo will commit to the same annual amount over a period of ten years.
Fubo Gaming is the second sports betting operator to team with a sports franchise from Texas in anticipation of the state legalizing wagering on sports. In September last year, PointsBet entered into a partnership deal with Austin FC.
In October 2021, Fubo Gaming teamed with the Cleveland Cavaliers of the NBA to boost brand awareness among fans of the team and the sport.