NBA deepens sports betting and DFS exposure with new player CBA agreement

The National Basketball Association (NBA) has ratified new changes to a collective bargaining agreement (CBA), opening the door to increased exposure to sports betting and daily fantasy sports (DFS) by players.

Under the new CBA, which was ratified on April 26, active players may endorse sports betting or DFS services on the condition that the endorsement is general in nature and concerns betting on non-NBA sports.

In addition, players will now be permitted to hold “passive, non-controlling” interests in sports betting or DFS companies, subject to a limit of 1% stake in respect of those companies, which offer or facilitate NBA bets or contests.

Teams in the NBA have already taken advantage of the boom arising from sports betting, with teams including the New York Knicks, Philadelphia 76ers, Phoenix Suns, and Washington Wizards all having partnership agreements with sportsbooks.

A variety of former players including Shaq O’Neal, Michael Jordan, and Kevin Garnett have also invested in or partnered with sportsbooks in one form or another.

Under the previous CBA, only so-called “team governors”, the NBA’s term for owners, were allowed to invest in sports betting businesses, with Houston Rockets owner Tilman Fertitta using this rule to acquire $700m in DraftKings’ stock as part of the sale of the Golden Nugget Online Gaming company in 2021.

The agreement mirrors that signed by Major League Baseball (MLB) in March 2022, with the baseball league governing body reversing a previous CBA which limited sportsbook and igaming deals to the league itself or MLB teams.

The new CBA includes brand ambassadorial style deals where athletes lend their likeness and name to sportsbook operators, as well as making appearances at promotional events.

Four-time MLB All-Star Charlie Blackmon was the first to utilize this new agreement, agreeing a brand ambassadorship with now-defunct sportsbook brand MaximBet.