PartyPoker, Philadelphia 76ers sponsorship deal comes to premature conclusion

partypoker-76ers-sponsorship-overOnline gambling operator Bwin.party digital entertainment‘s PartyPoker division has unceremoniously concluded its landmark sponsorship deal with the Philadelphia 76ers just one week before the start of the new National Basketball Association season.

Bwin.party made headlines in January 2014 when it announced that PartyPoker had inked a multiyear sponsorship deal with the NBA franchise, the National Hockey League’s New Jersey Devils and the Prudential Center in Newark, all of which are owned by hedge fund boss John Harris.

But the basketball portion of the deal was pronounced dead on Wednesday by 76ers CEO Scott O’Neil, who offered no explanation for the premature termination except to tell the Inquirer that the deal contained “triggers” that permitted “adjustments based on market opportunity.”

PartyPoker will continue its relationship with the Devils in New Jersey, where online gambling is legal, while curtailing its presence in neighboring Pennsylvania, where legislators have yet to authorize online gambling (although they’re getting closer).

It’s unclear which party pulled this trigger, although it’s notable that the 76ers are continuing the sponsorship deal they struck with daily fantasy sports operator DraftKings in December 2014, so clearly they haven’t suddenly become averse to controversial business partners, particularly given the media maelstrom surrounding the multiple legal investigations of daily fantasy sports.

Bwin.party was recently acquired by fellow UK online gambling operator GVC Holdings, and while the deal has yet to be formalized, it’s possible that GVC identified the 76ers deal as part of the €125m in ‘synergies’ it promised to deliver via the acquisition. GVC is also reportedly not keen on absorbing the PartyPoker operation and could therefore have extra incentives to keep costs to a minimum until a buyer can be found.