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NBA signs sports betting deal with MGM

The MGM lion
The MGM lion. Photo: Marc Sanchez/Icon Sportswire via Getty Images

The National Basketball Association has signed a sports betting sponsorship deal with MGM Resorts that could be worth up to $25 million, reports ESPN.

Why it matters: This is the first such agreement struck by a major pro sports league and a casino since the Supreme Court legalized sports betting in May.

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It allows MGM to use league highlights, names, logos and its direct data feed for live betting with the NBA and WNBA. MGM will soon launch a mobile sports betting app and the league's properties will appear on the app, ESPN reports.

The NBA has been open to sports betting since 2014, but maintained that it deserved a piece of the pie for the content it provides. The league initially lobbied for integrity fee legislation that would deliver a cut of less than 1% of total bets made to the NBA.

It's unclear whether integrity fees are included in the three-year MGM contract, but the league is being similarly compensated. The American Gaming Association praised the compromise, saying such payments should be negotiated via contracts rather than mandated by legislators:

"We anticipate this is the first of many to come."
— Sara Slane, Senior Vice President of Public Affairs at AGA
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