MGM Resorts has agreed to acquire proprietary sports betting technology developed by the now defunct Alliance of American Football League (AAF) for $125,000 plus a $2m reduction in its claim against the League which is currently engaged in Chapter 7 bankruptcy proceedings.
According to WSN, which broke the story, trustee Randolph Osherow who is overseeing the bankruptcy submitted the settlement paperwork to the court last week. The judge in charge of the case will still have to give final approval on the agreement before assets can be exchanged. The report also noted that there remains a period where other claims to assets from the AAF will be awarded.
MGM Resorts made its investment in the AAF last September, becoming its official sports betting sponsor and exclusive gaming partner. The investment was considered by the casino firm as taking a forward-looking view on the combination of live sports, real-time second-generation stats, and fan engagement.
WSN reported that while the AAF technology has yet to be used in a fully fledged betting capacity, MGM could further develop the program and offer it under license to other sports leagues.