FanDuel and DSG Close to Deal for Regional Network Naming Rights

It appears FanDuel is close to completing a historic deal that could change the way we watch sports.

The Diamond Sports Group shared during a bankruptcy hearing that they are close with a new naming rights duel with FanDuel’s parent company, Flutter. The deal would give the company equity in DSG, as well as naming rights for their 18 regional sports networks. If the deal is completed, it would make FanDuel the first sportsbook to offer regional sports.

DSG operates the Bally Sports Networks, which has been failing over the last few years despite rights deals with the MLB, NHL, and NBA. Regional sports networks have been struggling over the years as viewers opt for streaming networks instead of paid cable.

The three pro leagues who partnered with DSG have expressed frustration over the media giant’s lack of transparency over their financial struggles. It hit the MLB the hardest, as several teams were left wondering if they would have a regional network going forward.

While FanDuel is a well-established brand with deep pockets, it’s possible the leagues and their teams will opt for a different option once the deal expires at the end of the MLB season.

While FanDuel lacks exclusive rights deals, it is not necessary in the world of sports media. Its FanDuel TV platform can be streamed on major platforms and is available from both satellite and cable providers. The network is dedicated to sports betting, giving bettors an entire network dedicated to improving their game.

Most betting sites can’t match FanDuel TV, and a regional sports network would take the brand to an entirely new level.

While a deal with FanDuel would help save DSG, it could lead to opposition from Congress. There have been growing calls in Washington, D.C. and several states for stricter regulations around the marketing of sportsbooks. That includes clamping down on advertising during sporting events, which FanDuel branded network would certainly do.

There has also been concern around sports leagues over the rise of betting scandals. The list continues to grow, with an MLB player recently receiving a lifetime ban for betting earlier this week. Some believe the heavy presence of in-game sports betting ads is leading more players taking the risk of placing bets.

FanDuel’s current TV Network will also create concerns over how they cross-market the two products. We have seen betting apps like Barstool run into issues with this in the past, using their media personalities to promote their sportsbook. They got into trouble with legal sports betting states and opted to exit the sports betting industry altogether.