If 2018 were the year that sports betting was legalized, major deals were reached across mobile ticketing and biometric verification, and sports streaming services launched at an unprecedented pace, threatening to dethrone cable TV, 2019 will be the year they all hit a stride.
In 2019, niche sports will continue to grow in popularity as streaming services gain steam, sports betting will become accessible at venues, biometric IDs will be used to buy beer at games, esports will create further inroads in traditional sports, and athletes will further embrace wearable technology, digital video, and virtual reality to enhance their skills and marketability.
Sports Betting at Venues
States across the U.S. are working to adopt sports betting following the U.S. Supreme Court’s ruling in May that opened up the legalization of gambling. One thing is for certain as we head into 2019: sports betting will be more commonplace and more widely accepted.
More states will move to embrace betting while regulators start to pass laws that protect athletes, leagues, and gamblers. But another thing fans might come to expect in 2019 is access to sports betting terminals at the venues themselves. In November, MGM Resorts CEO Jim Murren hinted at this possibility at a conference. Murren said that MGM, which owns the Vegas Golden Knights’ T-Mobile Arena alongside AEG, was eyeing plans to test sports betting kiosks at the venue during Knights games. Murren shortly thereafter hedged that statement, saying that it wasn’t in the cards just yet. But his intention has been set.
Elsewhere in the sports world teams and leagues will continue to work sports betting capability into new and existing apps. Interactive mobile game maker Xperiel is currently working with MGM Resorts and the New York Jets to build sports betting into the Jets’ existing in-app prediction game, “I Called It.”
“Sports gambling becomes less of a gamble,” said Xperiel cofounder and CEO Alex Hertel in a note on 2019 tech predictions. “We will see a rift between the desires of the gambler and the regulating bodies that could end up driving some sports betters away. Immersive technology that engages fans will help make them stay.”
Mobile Ticketing and Biometrics
In 2019, mobile ticketing might not just become commonplace to pass through many venue gates, but it may become required. Meanwhile fans will be increasingly incentivized to use their biometrics for verification.
In 2018, major ticketing companies, from Ticketmaster to Seatgeek, moved to couple together the primary and secondary ticketing markets to help teams maintain control over prices and attendance data. After the NFL expanded its partnership with Ticketmaster in 2017 in an attempt to control more secondary-market sales, in 2018 a number of teams started to embrace a mobile-first ticketing strategy. This will continue into the new year, but with the added integration of biometrics.
In the MLB, biometric verification company Clear (which has a presence alongside TSA Pre at airports) entered into a multi-year deal this past year with the league and its ticketing partner Tickets.com to do just that. As part of the deal, Clear agreed to leverage Tickets.com’s API to enable members to link their Clear profile with their MLB.com account to gain entry into games with a fingerprint scan. In the near future, facial recognition is expected to be added as well. The partnership was piloted at select MLB ballparks this past season, with a broader roll-out planned for 2019.
Also next year, biometric verification will expand beyond the gates and into venues. Clear was approved in the state of Washington this year to use its services to verify identities of people looking to purchase beer at Seattle Seahawks, Mariners and Sounders games. The company has since been in talks with regulators in other states to expand this elsewhere in the U.S.
Streaming and Consolidation
A number of streaming services offering extensive live sports programming launched in the U.S. this year, from ESPN+ to DAZN. This has created a fragmented market for sports streaming, while enabling fans to reduce their dependence on traditional cable. In 2019, streaming brands will scoop up new digital rights at a rapid pace, spanning not only major sports but niche ones as well.
We’ve already started to see this, with NBC adding a number of niche sports (from skiing to motocross) on its paid streaming service NBC Sports Gold. ESPN+ has similarly emphasized lesser-known sporting events, while DAZN has entered the U.S. market with a focus on combat sports.
In the new year, digital rights will continue to find their way into the hands of these major players, which will help to tighten their hold on the market. This might also give some of these streaming companies the fuel to begin trouncing (and potentially even scooping up) some rivals, igniting a more mature wave of consolidation within the industry.
Wearables and Privacy
In 2018, Whoop, the wearable company that partnered with the NFL Players Association last year to track player strain and recovery, secured a $25 million Series C funding round led by UAE71 Capital with participation from the NFLPA, Kevin Durant, and former NBA Commissioner David Stern.
In 2019, wearables and RFID trackers will continue to be pushed onto athletes to meet the insatiable appetite of fans and coaches for data. But with this proliferation of wearable devices in professional sports, innovation will continue to push against privacy.
The NFL’s CBA is set to expire in 2020. The next wave of negotiations between the league and NFLPA will likely begin in 2019, bringing many of these issues to the forefront. Under the terms of the NFLPA’s deal with Whoop, NFL players maintain ownership of their health data, and are also able to commercialize that data through the NFLPA’s licensing program.
According to Sean Sansiveri, the NFLPA’s vice president of business and legal affairs, if a market for athletes’ biometric data should ever arise, the union will have an established mechanism in place to ensure that professional football players are not only protected but also well-positioned to profit off their private data if they choose to do so. The Supreme Court’s ruling on sports betting in May, and the expanding state-by-state legalization of sports betting, might well create exactly that market.
NFL Launches an Esports League
While esports and traditional sports merged at an unprecedented rate this year with the launch of the NBA 2K and investments in esports teams by sports franchises, this trend will accelerate in 2019. NASCAR has already announced that it is hopping on the esports league bandwagon heading into the new year. The NFL has been slower to adopt esports, however the league earlier this year posted a job looking for a “head of gaming and esports” that would be based in its New York headquarters and lead the “strategic planning, partner management and execution of the League’s gaming efforts.” Perhaps 2019 is the year that Madden NFL gamers can go pro.