Despite the failure of the Alliance of American Football League, there is one aspect of it that still carries some value. A proprietary sports betting technology related to in-game betting has caught the attention of MGM Resorts. MGM Resorts has agreed to acquire this technology from the AAF.
MGM will pay $125,000 for this technology and will also reduce its claim against the AAF by $2 million. Back in September of 2018, MGM invested $7 million into the AAF to help fund this technology, and they protected that investment with a secured lien against its assets. The AAF is currently in the process of Chapter 7 bankruptcy. The deal isn’t 100% official just yet as a judge that is overseeing the case has to give final approval before the agreement can be finalized.
While they couldn’t sustain even one full season, the AAF was at least smart enough to see the potential of the US sports betting market after the PASPA ruling last year. The AAF developed this state-of-the-art real-time collection on data that was to be used for in-game sports betting.
Moving To Other Leagues
Once MGM receives this technology (assuming the deal does get finalized, which it should), they will be able to market this technology to other sports leagues. In-game betting is becoming increasingly popular in the US, and the need for instant updates is crucial to a successful in-game betting system. If bettors can’t have bets updated and settled within seconds, they will miss other in-game bets that instantly become available. For the sportsbooks, it is critical for them to have those odds updated accordingly to avoid losing too much money on one particular bet.
The technology created offered real-time player tracking through the league’s mobile application. The league never got a chance to unveil this technology to bettors, and if they did, perhaps it could have saved the league, or at the very least helped them finish one full season. They even had bigger plans for this technology, which is perhaps what MGM is expecting to do. Developers of the programs were hoping to add a predictive aspect that would have allowed bettors to place bets in real-time on the data.
Drawing More Interest
The thought was that this would have drawn more interest in the league at the time as well as creating a new way of instant in-game betting that wouldn’t have been available to the other leagues. Now, MGM will look to repurpose this technology by partnering with one of the major sports leagues in the US.
While the AAF was a massive failure, at least for MGM’s investment, something potentially huge came out of it. They were smart enough to immediately go after this technology during the bankruptcy process before anyone else could try and get their hands on it. The safe bet would be that MGM will be looking to partner with the NFL. Not only is it the biggest market in the country, but sports betting in the NFL is king. MGM’s $7 million investment in the AAF was a flop, but they may have gotten something out of it that could be worth a lot more.