Data is what makes the sports betting world spin.
The fastest, most accurate data is the most desirable. But the data market is far from a highly competitive marketplace, thanks in large part to states that have mandated that companies use official league data, something available from only a handful of companies.
By creating barriers to entry, lawmakers in places like Illinois, Virginia, and Tennessee are almost certainly stifling innovation. But the data market’s consolidation around a handful of companies is not that much different than what is happening in the sports betting market at-large, as a small handful of well-resourced companies outspend and outlobby little companies.
Sports betting data companies not alone
Of course, state lawmakers play a role too, with high licensing fees that small companies cannot pay.