Nevada eyes requiring licenses for sports data trackers

The Nevada Gaming Control Board is expected to decide in 2025 whether there should be a new category of service providers that require licensing.

CDC Gaming reported that sports data providers could fall under the regulator’s purview after Nevada Gaming Control Board member Kirk Hendrick questioned at a recent workshop if there is enough visibility and knowledge of everyone involved in the sports wagering business.

The new category would include sports data trackers such as Genius Sports (NYSE:GENI) and Sportradar (NASDAQ:SRAD) that sit between the sporting events themselves and the oddsmakers. The line of thinking is that the third parties establish event information, including lines and odds, that ultimately end up in front of patrons where they can place wagers.

The Nevada Gaming Control Board could require only a registration to bring the sports data tracking third parties under the regulatory structure and allow the board to evaluate their suitability to operate in Nevada. However, board member George Assad questioned whether more regulation is needed and said the responsibility should fall on those currently licensed by the state such as MGM Resorts (MGM), Wynn Resorts (WYNN), and Caesars Entertainment (CZR).

Shares of Genius Sports (GENI) are up 48% on a year-to-date basis, while Sportradar (SRAD) us 57% higher.