Remember when America was debating whether or not daily fantasy sports was a form of gambling? There was never much of a question for Jeremy Stein. He knew it was gambling, because he was playing all the time.
It’s hard to say whether or not he knew that his employer, Metamorphic Ventures, investing in one of these companies would lead him down a new career path. All he knew is that there was something to this business.
Stein was more than just kind of successful in the daily fantasy world. He became the first person to ever win a million-dollar prize twice in the same calendar year back in 2016. But that was in the early days. Soon, the DFS sites would become more popular, and the games would get a lot harder.
Like many sharp players during that time, Stein leaned into data to set his lineups. It was something that he and his partner Lou Maione quickly recognized as an opportunity. If you had strong data and took it to a host that was entertaining, it would create a product every sports fan in the country might value.
And that is how SportsGrid was born.
Today, Stein is the company’s CEO. In our conversation, presented by Point to Point Marketing, we touch on the opportunities embracing FAST TV has created for the brand, what opportunities will arise from the growth of women’s sports, and so much more.
Demetri Ravanos: What is the hole that would exist in the market if SportsGrid went away tomorrow? What segment of bettors do you look at and say, “no one can serve them like we do”?
Jeremy Stein: That’s a really interesting question because, we had a few tailwinds at SportsGrid. The first was sports gambling, where the government flipped the switch and said, “go grow in ways that you never thought were imaginable,” right?
The second tailwind that we have is connected TV. SportsGrid is on 95% of all connected TVs. We have over thirty different distribution partners throughout the United States. So, we have very considerable scale within our category, and what we kind of discovered very early on on TV is the bulk of content on connected TVs is playback. If you look at FAST channels,there’s probably 2000 or more of them at this point, a lot of them are single IP channels, meaning there’s been a very successful sitcom and that IP owner just has a 24/7 channel of that IP going.
The real niche that we got in on early on is that we are the only live sports network on a lot of these platforms. So, while we do cater to gambling enthusiasts, if you will, we really have a viewership body that encompasses all sports fans. That’s part of how we have evolved over time, because we were able to pick up on that observation that our opportunity is just a little bit bigger than focusing on, I’m not going to call it a narrow vertical, but sports betting in many respects is a little bit narrow.
DR: It’s a niche vertical. I think all sports talk kind of is in that way. I was going to ask you about the appeal of FAST TV, but it seems like you laid it out perfectly there. So instead, let’s talk about the technology and future opportunities. I wonder if you look at what Roku has just done with Major League Baseball and think that opens up possibilities for SportsGrid that maybe you hadn’t considered before.
JS: The simple answer to that is yes. When we first started SportsGrid, a lot of the opportunity that we’ve seen in the past year, are opportunities that we never would have dreamed about. We have looked at live rights. We have looked at tier one live rights in the past year.
It just goes back to the trend. Last year was the first year where homes that do not subscribe to cable outnumbered those that do. You know, now we don’t just have a term called cord cutters. We also have a term that’s called cord-nevers. I think that it is just the natural evolution of where the leagues are going to go.
I mean, we just saw Netflix do a deal with the NFL. While I understand that that is not FAST. I do think that over time and, this could be a decade in the future, but I do think that you will see, a lot more sports pop up on these platforms.
DR: Yeah, I can see that myself. What did Scott Ferrall bring to SportsGrid when he came in? Certainly name recognition, but what else, in a business sense, did he add?
JS: Scott is great and his show right now is sponsored by Bet MGM, and Bet MGM is a very important commercial partner for SportsGrid. Both sides are very happy with the way that relationship is blossoming. So he’s very important in that respect.
You know, SportsGrid is not just 18 hours of live video content on a daily basis. We’re 21 hours of live original audio. We have channel 159 on Sirius XM. And of course, Scott is by far and away our biggest talent in the audio category. He does have the Sirius XM audience. You know, he came from Howard Stern way back in the day. So, he’s a pretty dynamic talent, if you will, for SportsGrid. We’ve been very happy to leverage him in various ways.
DR: I sort of have a two-part question here, because doing what I do, when I go to SportsGrid.com, one of the first landing spots for me is industry news. How much do you think the average user of SportsGrid is interested in things like when states go legal, something like the pushback going on in Florida right now, and will that get to the Supreme Court from a media standpoint?
I tell sports radio hosts all the time that people care far less about us than we think they do. What about in the gambling world?
JS: News is a very big category, and obviously it’s broad, right? It’s not just general sports news. It is what is happening in the gambling industry. We are fortunate enough to have a lot of data on every show that we produce, and we have seen a lot of positive momentum uncovering specific industry news. So, a lot of what you actually see, on the web, for example, we believe that is largely a gap in the market based on our viewership.
One thing you’re going to start to see on SportsGrid, more and more is we launched a college transfer portal show. There is no major media outlet on broadcast television that is doing a dedicated show, relating specifically to the college transfer portal. It makes college football and college basketball year-round sports. We believe that that’s a big gap in the market. So, you’ll also see a lot of that content flowing through our website too, and not just on our website, but also a lot of our syndication partners like MSN.
Everything we do here has a data driven focus. So if you’re seeing a lot of a specific vertical, there’s a reason for it. It’s largely because that’s what our viewers demand.
DR: Interesting. So, from the standpoint of what is going on in the gambling industry, the idea of the Supreme Court taking up a case related to Florida is interesting because it is such a complicated issue there, as it involves the Indian Gaming Act. Do you think we’re going to see that go in front of the Supreme Court?
JS: Look, I’m certainly not in a position to comment on a legal matter that I’m not really close to, to be perfectly honest with you. But Florida is a very populous state, and that is another reason, to your point, why there is so much interest in it, right?
I think it does speak to the fact that there is a real demand for sports wagering within the state of Florida. But look, the complexities and nuances behind all of the lobbying and a lot of the legal cases that are happening there are certainly beyond our scope.
DR: I was reading an article in the Miami Herald earlier this week that was talking about the effect Lionel Messi has had in betting markets around the world, because even if MLS isn’t on a country’s soccer radar, he certainly is. Can you think of any other athlete that has had that sort of effect on bettors or on his league, where he can get bettors to pay attention to something they usually would not?
JS: I think the examples of that are probably few and far between. You know, soccer is one of the true international sports, and with that comes a very large betting market. I think it is certainly kind of unique in that sense, right? You’re not going to see that with an NBA player moving into the Chinese basketball league. You might see the media attention that kind of happens there. It’s certainly not going to drive the amount of betting handle that we have seen in soccer.
DR: What about betting as the popularity of women’s sports and female athletes have increased? What has been the demand for content from you guys, whether it’s Caitlin Clark’s WNBA debut, the women’s NCAA tournament, or whatever it might be?
JS: There’s a ton of demand. We’ve always had an interest in women’s sports. We’ve produced, in the past, shows for the WNBA. And I think that that demand is only going to continue to grow. Women’s sports, from an economic standpoint, is a huge area of growth. Alongside of that comes all of the viewership. So, we’re very excited, about women’s sports. You’ll absolutely see a lot more coverage from SportsGrid going forward.
DR: So I want to wrap with a follow up to that, because the way you guys think about creating content with providing that data to talented people that can command attention, as women’s sports grow in popularity, and it then becomes more and more of a part of what you do. Do you foresee the people you have now, because they have the talent, being able to intelligently cover it or would you have to go out and hire people more versed in and live in that world?
JS: It’s a little bit of both. You know, you always want to find a talent that resonates with the audience. We’re pretty confident that we have a few of those in our stable. But of course, we will always look to bring in fresh faces. Yeah, it’s a really dynamic market, and it’s something that we are incredibly excited about.
To learn more about Point-To-Point Marketing’s Podcast and Broadcast Audience Development Marketing strategies, contact Tim Bronsil at [emailprotected]or 513-702-5072.
