Genius Sports buys Second Spectrum for $200 million
As the US gambling landscape continues to open up, yet another massive partnership is formed with potentially significant impact on the sports betting industry. This time it is Genius Sports and Second Spectrum who will be joining forces after Genius Sports has agreed to acquire the data tracking and analytics company for a reported $200 million. This merger brings together two of the most technologically advanced sports data companies and allows Genius Sports to provide one of the most sophisticated data tracking and analysis platforms to the sports media and sports betting industries.
Founded in 2013, Second Spectrum has become the preferred tracking provider for the NBA, EPL, and MLS leagues. With a focus on machine learning video capabilities, Second Spectrum allows teams, coaches, and players to quickly break down video and gain valuable insight within seconds. Their AI and machine learning capabilities allow them to analyze, index, and share that video in a very user-friendly and informative way.
Second Spectrum uses strategically placed cameras inside of an arena or stadium to capture player and ball movements throughout the course of a game. That video is then turned into their unique products for players and coaches looking to improve performance and franchises looking for new ways to engage with their fans.
Genius Sports was formed in 2016 after Betgenius and SportingPulse International merged together to create one sports data and technology company with a focus on providing data management, video streaming, and integrity services to sportsbooks, different sports leagues, and media outlets.
Why Now?
The acquisition of Second Spectrum should provide Genius Sports with new product benefits and future revenue potential as the sports betting industry continues to legalize in the US. It is expected that Genius Sports will use the Second Spectrum data to entice sportsbooks looking for new products and wagering options for their customer base.
In the future, you might see sportsbooks being able to offer new types of wagers like how far a particular basketball player or soccer player will travel during the course of a match or how much distance Connor McDavid skated over the course of a hockey game.
By integrating the Second Spectrum products with their platform, it is expected that Genius Sports will be able to open up significant future revenue opportunities for Second Spectrum by offering their best-in-class product to the already established media and gambling relationships Genius Sports already has in place.
Genius Sports currently has over 400 relationships with unique sports leagues all over the world, including the NFL, EPL, FIBA, NCAA, NASCAR, AFA, and PGA.
Second Spectrum also has a very impressive customer base of their own. As mentioned, they are the official tracking provider of the EPL, MLS, and NBA professional leagues. They also have partnerships in place with ESPN, Bally Sports, and BT Sport and offer augmented reality features for select soccer and basketball games. Second Spectrum is also partnering with several leading sports franchises to provide unique content and the ability to revolutionize the fan viewing experience for these teams.
The benefits of the Second Spectrum data products for teams and players looking to improve their performance seem rather obvious when you see the AI and machine learning capabilities applied to the captured video. It will be interesting to see how effectively Genius Sports is able to use this data in other non-traditional means, like providing sportsbooks with new betting products and augmenting the viewing experience for fans either at home or in attendance.
