GMB - With 20 years of experience in the market, how has Genius Sports consolidated itself as a leader in data, sports analysis and streaming?
Percy Wilman – I believe the main thing at Genius is that we have been listening a lot to our clients and strategic partners over these 20 years. We try to anticipate trends, market requirements, and bring to the table solutions that are innovative, versatile, and efficient both for the sport, which is a part of our relationship, as well as for the betting industry.
And what were the main achievements of the company during this period?
The Genius story is quite private because we started in a garage in London. We are a company that grew from the very beginning and today we have a relationship with more than 400 sports leagues and federations. At the same time, we have become the main provider and partner of the biggest betting organizations and some of the biggest media. So, we went from a small company created in a garage to a firm that is now on the Stock Exchange and is estimated at over US$3 billion. So, this is the main achievement. The growth we have achieved and that is added to the large number of agreements and contracts that we have with the main properties and sports organizations and in the world of betting. I can cite for example that in April of this year we closed a very important agreement with the National Football League of the United States. As everyone knows, economically the NFL is the biggest league in the world right now. And it wasn't just a direct data or rights purchase deal. We're looking at NFL fan experiences and working with that organization to drive what the convergence of data, broadcast, advertising and betting is all about.
Likewise, we signed an agreement with the Asociación de Fútbol Argentino (AFA), for a similar project, not only for the acquisition of rights, but also the development of a series of contents that AFA will be able to distribute on its own platform, just as we will be able to distribute exclusively to the betting world, probably starting next month. So, among the most recent achievements, these are the most important ones.
The agreement with AFA was signed recently. How are you starting to work with them? Quite well. We already had a data agreement and what we're doing now is an expansion to cover all levels of AFA professional football. We've been working on this project for a few months and talking about data. It's something that has grown a lot, not only because the project is large due to the number of matches, with more than three thousand games to distribute data and transmission, but because the needs are changing. With the pandemic and with the way the sport is being consumed, it is essential that we have creative solutions both for the benefit of our customers and for those who consume Argentine football around the world. So, I think it's going very well.
How to generate reliable data and contribute to the development of sports betting on so many sports currently available for betting?
That's an excellent question, as Genius Sports was the company that created the concept of official sports data. We were the ones who have been proposing from the beginning the need for data directly sanctioned and approved by the sport's organizing bodies. And we are also the main drivers of official data, as the fastest, most accurate and most reliable data source that offers a big return to the sports leagues and federations and, of course, the bookmakers we work with. In that sense, I think that's the strategy, adopting a central and uniform policy. Genius Sports has more than 170,000 data rights per year, across multiple sports, which are distributed super-quickly to each of our betting customers.
As we mentioned a moment ago, you have important partnerships with different entities and professional leagues of different sports. How to manage such a rich portfolio of opportunities and, at the same time, specialize in each of these sports?
First, we are not approaching a league simply with a commercial proposal, but with a proposal for growth and development. We are a technology company, and this is our main characteristic. Technology allows us to connect with the league and bring them closer to their customers, fans and consumers of their product, which is the sport that is presented to the market. For us, it is particularly important to listen to the demands and concerns of a league in order to establish a proposal that is integral, innovative and efficient for its objectives. In addition, we are always very clear that integrity is very important. Protect integrity and protect the sport. This is something that attracts a lot of attention from those leagues like the Premier League, which decided to work with us.
Genius Sports went to the Stock Exchange recently for a public offering of shares. How was the market receptive to this offer?
It was extremely positive. We are very satisfied with the whole process with the way we have been working and with the partners. The final result gives us a lot of satisfaction. Partners in sports, betting and media are also very enthusiastic about the Genius Sports offering on the stock market. And this also opens doors for us to be able to propose new technologies and new solutions that we will soon launch on the market. So, the process of going to the New York Stock Exchange was extremely positive and effectively the market response is better than we expected.
Has Genius Sports been following the growth of the Brazilian sports betting sector? How are you acting in this market that claims to be the largest in South America?
I believe it is the largest in South America. And it will be even more so when the regulation of sports betting is formalized and completed. We have been following Brazil since before the measure proposed to regulate sports betting and online gaming. We have been doing similar work to what we have done in other jurisdictions, such as the United States and Colombia, where we actively participate in proposing legislation, organizing educational events, and also advising different associations that seek the legalization of gambling and that it is a legalization that allows the market to develop in a safe and healthy way. So, Brazil has been a very important market and we hope it will be a market that will regulate itself and grow exponentially in the coming years. We are hopeful that it will be one of the biggest markets not only in Latin America, but in the world.
Have you provided information to the government for proper regulation?
We participated in some consultations that were made by the Ministry of Economy and were one of the first organizations to propose and carry out an event of integrity and sports betting, in Brasilia in 2019. We had a series of approaches with different people and sport stakeholders and agreements with volleyball, basketball, and futsal in Brazil. So, the relationship we maintain with different parts of Brazil is extremely important for us.
The regulation of sports betting is about to take place in Brazil. What to expect from a regulated Brazilian market?
The first is that with good regulation, the Brazilian market will grow, as I said, exponentially. The second is that this regulation should bring an organizational structure to the market that is solid and very strong. What is vital is that the legislation encourages regulated and licensed sports betting operators to prosper and that this drives gambling away from the illegal market. I believe and hope that this will be the result of this legislation process. Once this process is up and running it will attract the biggest bookmakers and operators in the world. Today they are still a little cautious about entering Brazil with force. As I said, Brazil is a giant in sports betting. It's a huge market and has great potential. We all know that, and the legislation will allow the biggest operations to come into the country.
And what's your message to the market, especially to regulators and sports leagues with whom you already have agreements?
My message is direct. One, for regulation. It is critically important for regulators to strike a balance between establishing requirements, tax burdens and procedures. And create a market that is dynamic and attractive to the player. If regulation is too demanding, it can restrict supply and does not drive the customer away from the illegal or unregulated market. For sport, our expectation is that the relationship between sport and the betting market will be consolidated, working directly on sporting integrity to protect both athletes and leagues and federations, as well as the betting market and customers in this market. That would be the message and expectation I have about the Brazilian market.
Source: Exclusive GMB
