Gambling Insider: Sports Betting Focus 2024

INSIDE

Football & soccer: New hopes for the new season

Data review: Euro 2024 & Copa America tournaments

US sportsbooks: In defence of revenue over profi t?

STILL IN PLAY

Same game. New ways of playing. Are same-game parlays and bet builders changing the industry?

EDITOR’S LETTER

It is a basic economic principle that choice leads to greater market efficiency. If a customer has greater choice, they can shop for the best product, forcing businesses to operate at their very optimum – or risk losing that customer.

In sports betting, same-game parlays and bet builders embody this whole principle. Not only will brands that offer bet builders attract more customers than those that don’t, the brands with the best bet builders will offer the most possible choice within the very sports betting experience.

Of late, the ability for a sports bettor to construct their own wager while watching a football, basketball or soccer game is probably the most innovative development since the ‘cash out’ concept was invented. Both cash outs and bet builders offer a kind of win-win scenario.

Indeed, with both, the bettor has more options to choose from and, to a degree, more control over their own destiny. Yet with more options comes a larger probability of outcomes that can go wrong. Therefore, while the bettor in theory has more ‘control,’ they can now cash out early on a potentially winning bet – creating stronger margins for sportsbooks – and, while they can create their own bets, (wagering on tip-offs, touchdowns, fouls, three-pointers, tackles etc all in one) there is more freedom to choose but less chance of actually winning.

In essence, bet builders and same-game parlays ultimately earn more for the sportsbook, but still create unparalleled entertainment for the player. Sounds pretty good, doesn’t it?

The key question – and one we look to explore in the cover feature of this Sports Betting Focus magazine – is how popular have bet builders become? Have they transformed the industry, or will they find their place as somewhat of a side offering?

We still need more data to truly answer that question, especially over a longer period of time. For instance, if a sports bettor keeps playing same-game parlays and keeps losing, they may over time revert to traditional money line or spread bets. They may argue there is more reward for less research and calculation.

But a crucial fact – and advantage – remains, which makes bet builders and same-game parlays well worth pushing for sportsbook brands. As our magazine title suggests, they can keep players in-play i.e engaged and entertained until the very last second. With so many distractions for a sports fan’s attention in today’s environment, this has the potential to become a major strength for sports betting companies.

Elsewhere in this issue, not only do we present our regular company profiles for key players within the sector, we also analyse tournament data, sponsorship trends, historical horseracing and more. Indeed, Betby provides a breadth of statistical insights into its operator network during Euro 2024 and Copa America, while Exacta Solutions talks all things horseracing and we speak with BetMGM and LiveScore Group about sponsorships in the UK vs US.

We don’t just stop there, as we attempt to defend the revenue vs profit model in US sports betting – just for objectivity’s sake – and we look ahead to new sporting seasons with Covers.com, DraftKings, ESPN Bet and Sportradar. Let the games begin!

TP, Editor

COO, EDITOR IN CHIEF

Julian Perry

EDITOR

Tim Poole

Tim.Poole@gamblinginsider.com

STAFF WRITERS

Beth Turner, Will Underwood, Ciaran McLoughlin, Kirk Geller

CONTENT WRITER

Megan Elswyth

LEAD DESIGNER

Olesya Adamska

DESIGNERS

Claudia Astorino, Callum Flett, Gabriela Baleva

JUNIOR DESIGNER

Medina Mammadkhanova

ILLUSTRATORS

Maria Yanchovichina, Judith Chan

MARKETING & EVENTS MANAGER

Mariya Savova

FINANCE AND ADMINISTRATION ASSISTANT

Dhruvika Patel

IT MANAGER Tom Powling

COMMERCIAL DIRECTOR

Deepak Malkani

Deepak.Malkani@gamblinginsider.com

Tel: +44 (0)20 7729 6279

SENIOR ACCOUNT MANAGER

Michael Juqula

Michael.Juqula@gamblinginsider.com

Tel: +44 (0)20 3487 0498

SENIOR BUSINESS DEVELOPMENT MANAGER

William.Aderele@gamblinginsider.com

Tel: +44 (0)20 7739 2062 Irina Litvinova

Irina.Litvinova@gamblinginsider.com Tel: +44 (0)207 613 5863

Serena Kwong

Serena.Kwong@gamblinginsider.com

Tel: +44 (0)203 435 5628 Max NGarry Max.Ngarry@gamblinginsider.com Tel: +44 (0)207 729 0643

AWARDS SPONSORSHIP MANAGER Michelle Pugh Michelle.Pugh@globalgamingawards.com

Tel: +44 (0)207 360 7590

CREDIT MANAGER Rachel Voit

WITH THANKS TO:

Betby, Data.Bet, DS Virtual Gaming, Andrew Garven, Mike Morrison, Greg Karamitis, Sportradar, Sam Behar, Sam Sadi, LSports, Aristocrat Interactive, Wise Gaming, Jonathon Hurst, Andrew Bramley, ZohrabKarapetyan, AnnabelleLee,NikiBeierandWA.Technology.

Julian Perry, COO, Editor in Chief

Tim Poole, Editor

6 NEW US PROPERTIES

Gambling Insider looks at the new casinos and betting venues developing around the US

8 SOCCER DATA

Gambling Insider breaks down the latest Euro and Copa America data provided by Betby, to see how and what players are betting on

16 COVERS.COM Q&A

The affiliate speaks to Gambling Insider about the summer months and the upcoming NFLseason

18 NEW HORIZONS

With insight from DraftKings and ESPN Bet, we preview what lies ahead for sportsbook operators

22 SPONSORSHIPS

Gambling Insider compares sports sponsorships from across the Atlantic, looking into key US and UK differences

30 COVER FEATURE

Gambling Insider assesses the rising popularity of bet builders and what they mean for players and operators

38 REVENUE VS PROFIT

Just how much revenue does a sportsbook need before it makes a profit? Gambling Insider crunches the numbers

42 TO THE RACES

What is historical horseracing and eHorseracing, and how do they impact the traditional horseracing market? Gambling Insider investigates

48 PERSONAL MARKETING Sportradar answers our burning questions on the new soccer season, how to conduct successful marketing and more

Map: New US properties

Gambling Insider looks at the new casinos and betting venues developing around the US

CHICKEN RANCH CASINO RESORT

Operators of the new Chicken Ranch Casino Resort held a soft opening on July 15 in preparation for the property’s full opening this Fall. Chicken Ranch Casino Resort is owned and operated by the Chicken Ranch Rancheria Me-Wuk Indians of California.

WARHORSE CASINO LINCOLN

The $200m WarHorse Casino Lincoln is under construction at the Lincoln Racecourse. Construction has been completed in phases following breaking ground on 12 July 2022. The first phase opened a temporary casino on 24 September 2022 while the second phase will fully expand the property this Fall.

DURANGO CASINO AND RESORT

Red Rock Resorts, owner of Station Casinos, held a private ceremony to break ground on the $780m resort in March of 2022. On 6 December 2023, Station Casinos opened the Durango Casino and Resort in Summerlin, Las Vegas, Nevada.

HARD ROCK HOTEL IN LAS VEGAS

The Mirage Hotel and Casino held a closing ceremony on 17 July to commemorate a 34-year run. Hard Rock International acquired the Mirage from MGM Resorts for $1.08bn in 2022. The rebranded property has an early estimated opening set for 2027.

HARRAH’S COLUMBUS

Caesars Entertainment announced in July of 2021 that the Columbus Exposition and Racing selected Caesars to build and operate a Harrah’s casino and racetrack in Columbus, Nebraska. The $75m Harrah’s Columbus, NE Racing and Casino property opened on 17 May 2024 with a ribbon-cutting ceremony.

BALLY’S CHICAGO CASINO

Bally’s won a competition in 2022 to build a $1.74bn casino at the site of the Chicago Tribune printing plant in River West. Bally’s bought the site for $200m and plans to open a permanent casino in late 2026. There is currently a temporary casino operating inside the Medinah Temple in Chicago as well.

LIVE! AT THE POINTE ORLANDO

In 2022, The Cordish Companies announced its intentions to build a major facility at Pointe Orlando, set to open this Fall. The project is a joint development between Pointe Orlando owners, the Brixmor Property Group, and Live! Hospitality & Entertainment, a division of the Cordish Companies.

KINGS MOUNTAIN CASINO

The Catawba Indian Tribe announced on 31 May that it would begin construction on a $700m casino property in North Carolina, with a ground-breaking ceremony having taken place on 7 June. The Kings Mountain Casino in Catawba is estimated to open in early 2026. However, due to construction delays, it could face delays until 2027.

LIVE! CASINO AND HOTEL LOUISIANA

The Cordish Companies unveiled its plans to the Louisiana Gaming Control Board in April 2023 to redevelop the Diamond Jacks Casino & Hotel in Bossier City. Live! Casino and Hotel Louisiana is a $250m project and will open its doors to the public in 2025.

SEMINOLE CASINO HOTEL BRIGHTON

The Seminole Tribe of Florida and Seminole Gaming broke ground on the Seminole Casino Hotel Brighton in January of 2023. The reservation is projected to open in late 2024 and will replace the existing Seminole Brighton Casino which opened in 1980. It will be the first hotel to be built on the Brighton Seminole Reservation.

Data: The Euros and Copa America

Sports betting supplier Betby provides Gambling Insider with exclusive data from its operator network at both tournaments

EURO 2024 PRE-MATCH VS LIVE BETTING

78% of bets on the final were pre-match

71% of bets on the tournament were pre-match VS

- According to data from Betby’s partner network, pre-match betting was king for Euro 2024. Only 33% of total bets were placed in-play – and 22% during the nal.

- In terms of turnover, this was more even across the tournament, with 48% of the money being wagered live. But, during the final, 79% of turnover was also pre-match.

75% of turnover went on Spain in the final

TOP 10 EVENTS BY TURNOVER

- Unsurprisingly, the Euro 2024 final between Spain and England topped the billing for bettors in terms of both turnover and betting popularity.

- Other notable inclusions were Germany vs Hungary – which would have attracted betting interested based on Germany being such a heavy favourite, and Portugal Slovenia, which went to penalties despite Portugal’s overwhelming odds.

TOP 10 PLAYERS (FROM ALL PLAYER MARKETS)

- When it came to team betting, most bettors were on the right lines – with both nalists, Spain and England, heavily backed. In player markets, operators had a far better time of things.

- Indeed, all three of Kylian Mbappé, Cristiano Ronaldo and Harry Kane underwhelmed during the tournament, despite being the most heavily backed players.

- Bettors had better luck with the Netherlands’ Cody Gakpo and Spain sensation Lamine Yamal, who only turned 17 a day before the nal.

BETTING ON THE FINAL

70% of bettors backed Spain in the final

- Heartbreakingly for England fans, the market saw Spain’s 2-1 nal victory coming, as the vast majority of both bets and turnover on the Betby network backed Spain over England.

COPA AMERICA PRE-MATCH VS LIVE BETTING

81% of bets on the Copa America final were pre-match

78% of bets on the Copa America were pre-match VS

- According to data from Betby’s partner network, pre-match betting was even more emphatic during the Copa America than in Euro 2024.

- In terms of turnover, far less of the money was bet in-play during the Copa America, totalling 32% - with just 23% of turnover coming live in the nal.

TOP 10 TEAMS (FROM ALL TEAM MARKETS)

- Across the tournament, eventual champion Argentina was well backed across a number of different markets, attracting almost 30% of turnover and 20% of bets.

TOP 5 PLAYERS (FROM ALL PLAYER MARKETS)

- An ageing Lionel Messi continued to attract turnover despite exerting less influence over this Argentina side, while the mercurial Darwin Núñez was also a popular choice as one of Uruguay’s leading men.

- In terms of total bets, Colombia’s Luis Díaz was actually the tournament’s most popular player –followed closely by teammate and renaissance man James Rodríguez.

- Any bets on a mis ring Vinícius Júnior would have likely been pro table for operators.

TOP 10 EVENTS BY TURNOVER

- Compared to the Euros, the difference in interest between the Copa America nal and the rest of the tournament was far more signi cant. Argentina vs Colombia attracted 3% more bets than any other match during the tournament, almost generating 15% of the turnover of the whole event.

Lionel Messi Darwin Núñez Luis Díaz Vinícius Júnior James Rodríguez

In focus: Data.Bet

Esports data provider Data.Bet discusses developing the master key for user retention

ADVANCED TOOLS ARE A KEY TO ATTRACTING AND RETAINING LOYAL USERS

Engagement and retention are paramount in the esports betting industry. Today’s users expect more than just basic functionalities; they seek an interactive experience that captivates their attention and encourages loyalty. The advanced tools Data.Bet uses fulfil this demand by offering real-time data, in-depth analysis and personalised options. They enhance the betting process as well as create a deeper connection between users and the platform.

KEEPING USERS INFORMED AND ENGAGED

Staying updated with statistics is very important in the bettor’s decision-making process. Modern Scoreboards offer detailed insights into various aspects of the game, including player statistics and team performance. With time, Data.Bet transformed these widgets from simple displays of scores to dynamic, interactive ones that provide comprehensive real-time updates. This level of detail not only keeps users informed but also increases their interest by providing a deeper understanding of the game.

BRINGING THE GAME TO LIFE

Esports is characterised by its rapid pace and constant action. Unlike traditional sports, esports can involve multiple complex strategies and rapid shifts in momentum, making it both exciting and challenging to follow. This dynamic nature requires tools that can keep up with the intensity and provide users with a comprehensive view of the action. Data.Bet’s Pitch Tracker is a perfect example of such a tool, offering a visual representation of the game with real-time tracking of player movements, strategies and in-game events. This allows bettors to follow the action closely and make more informed betting decisions, being always in sync with the game.

EMPOWERING PERSONALISED BETTING

Bet Builder has emerged as a revolutionary tool that empowers users by offering the flexibility to create bets tailored to their preferences. Skilled bettors seek an interactive and personalised experience that allows them to leverage their knowledge and insights to develop unique betting opportunities. This

feature caters to this demand by enabling users to combine di erent betting options into a single, comprehensive bet. This level of customisation is particularly appealing to experienced bettors, offering a range of possibilities that standard markets cannot match.

SUMMARY: THE FUTURE OF ESPORTS

As the esports industry continues to grow and evolve, the integration of advanced tools, such as Scoreboard and Pitch Tracker widgets or Bet Builder, will be crucial for staying competitive. These Data.Bet’s features, supported by o cial data sources and rapid data delivery, provide bettors with a rich, immersive, and personalised betting experience, providing a more strategic, engaging and customised approach to betting. These tools are not just enhancements; they are essential components of a successful platform because they meet the ever-changing demands of the audience and help operators stay ahead of the market.

In focus: DS Virtual Gaming

DS Virtual Gaming stands at the forefront of the gaming industry, leveraging advanced technologies to redefine the landscape of virtual gaming experiences. Founded on the principle of innovation and customer-centricity in 2005, DS Virtual Gaming has successfully integrated traditional land-based operations with cutting-edge online platforms, catering to a diverse global audience.

OUR VISION

The Austrian company is committed to achieving a harmonious balance between land-based and online gaming experiences, acknowledging the inherent strengths and unique appeals of each segment. Our vision is to empower players with seamless access to our portfolio of games, whether they prefer the convenience of online platforms or the immersive environment of physical betting shops. By embracing technological advancements and market insights, we continuously enhance our offerings to meet the evolving demands of the gaming community worldwide.

PRODUCT AND TECHNOLOGY

Central to DS Virtual Gaming’s success is our robust portfolio of virtual games, meticulously crafted to ensure both entertainment value and fairness. Each game is underpinned by rigorous statistical analysis and incorporates random number generators, akin to any real sports, to maintain integrity and excitement. Our dedication to technological prowess ensures that players experience exclusive HD-quality transmissions and uninterrupted gameplay, whether on desktop computers, POS terminals, single-player terminals or mobile devices.

MARKET PRESENCE AND STRATEGY

While acknowledging regional variations, DS Virtual Gaming has strategically expanded its footprint across diverse markets, including Europe, Africa and Latin America. Our tailored approach recognises the unique dynamics of each market, allowing us to forge strategic partnerships and adapt our services accordingly. Recent initiatives include establishing a presence in Lima to strengthen our foothold in the Latin American market, highlighting our commitment to localised operations and customer service excellence.

INNOVATION AND ADAPTABILITY

At DS Virtual Gaming, innovation is ingrained in our DNA. We pride ourselves on being at the forefront of technological innovation within the gaming industry. Our agility in developing bespoke solutions, with a turnaround time of up to three weeks, sets us apart from competitors. Moreover, our exclusive video content offerings further enhance player engagement and satisfaction, solidifying our position as a leader in the virtual gaming sector.

MARKET DYNAMICS AND INSIGHTS

The dynamics of the gaming industry are multifaceted, in uenced by the ability of providers to develop the solution which matches the expectations of the operators and players all over the world. This exibility not only drives increased sales but also highlights the distinct preferences of our diverse customer base. While some players gravitate towards qualitative service

o ered by cashiers, others remain loyal to their independence, underscoring the complementary nature of our offerings. Our data-driven approach ensures that we anticipate market trends and align our strategies accordingly to maximise growth opportunities.

COMMITMENT TO EXCELLENCE

DS Virtual Gaming is dedicated to upholding the highest standards of integrity, transparency and responsible gaming practices. Our commitment to fairness is reflected in our statistically based odds and the stringent measures we implement to safeguard player interests. We prioritise customer satisfaction by delivering seamless integration across all platforms, fostering long-term partnerships based on trust and mutual success.

FUTURE OUTLOOK

Looking forward, DS Virtual Gaming is positioned for sustained growth and advancement. Our strategy includes expanding our global footprint, strengthening technological capabilities and diversifying our product lineup to meet evolving market needs. Emphasising seamless integration of land-based and online services underscores our dedication to delivering exceptional gaming experiences worldwide.

In summary, DS Virtual Gaming embodies integrity and customer-centricity in the virtual gaming sector. Through advanced technologies and deep market understanding, we aim to reshape gaming experiences globally, establishing new standards for excellence and progression in the future.

Preparing for the storm

Andrew Garven, Head of Marketing at Covers, tells Gambling Insider how the sports betting affiliate handled the summer months, as well as its preparation for the upcoming NFL season

How does Covers notice activity change from what could be seen as down summer months sports-wise, compared to when the NFL season is approaching?

It’s night and day; the NFL trumps everything at Covers. We take our Before You Bet show, which is typically three times a week, and ramp that up to ve days a week – as well as bolster our ambassador team. I think we have one of the largest internal teams in the industry, but we supplement those with ambassadors that are speaking speci cally to di erent areas of football betting.

Operators definitely pull back spending over the summer, and then they ramp it up at this time of year so it goes from zero to 60 really,

really quickly. There’s so much information out there, it can be pretty overwhelming for new bettors. We try to simplify that process for them as much as possible and at the same time work closely with our partners to make sure we can present the best offers to our users.

Consumers still look at sportsbooks as being biased in their content and nobody will ever believe they want bettors to win. Being a neutral, third-party site, we really push the fact that we’re trying to win as well. We’re trying to beat the book too. Yes, they’re our partner, but we’re giving out our best bets and boosted SGPs (same-game parlays –see our cover feature!). While we do partner with sportsbooks on content, our editorial team has complete right of refusal. Being neutral, covering every single game, making the volume of picks that we do is what differentiates us.

Do you Covers’ marketing strategies differ from how operators will market when the NFL season approaches? We work together with our sports partners knowing

there’s going to be this influx of new bettors that want to wager on the NFL and everyone’s trying to stand out. There are some unique promotions, whether it be FanDuel or DraftKings who partner with the NFL to include a free month of NFL RedZone and things such as that. At the same time, it makes things interesting for us because we have to break all of that down and show sports bettors where the best opportunities are for them when evaluating sportsbooks. There’s just so much activity this time of year that it makes for a really fascinating time.

Regarding FanDuel, could one of the strategies you spoke of be the operator’s new partnership with YouTube?

Absolutely. Fanatics changed the game with its model. They have that access to their licensing arm of merchandise and other sectors. I think it’s a great way for sportsbooks to di erentiate themselves. They have to do more than just the standard bonus because everyone can do that and it’s been exhausted at this point.

They want to bring down player acquisition costs as well, so it could be a lot cheaper and smarter over the long run to include something other than a bonus. These books, DraftKings and FanDuel, are spending a fortune to partner with the leagues, but anytime you’re running that type of partnership and can take advantage of different league assets, you need to do it.

This summer in particular featured the Olympics, Euros and Copa America; did Covers take advantage of those events or notice any operators using them to bridge the gap to the NFL season?

It was a really nice surprise. At first, there were a couple of us internally who wanted

Andrew Garven, Head of Marketing, Covers

to cover every game of the Euros and Copa America. There was a little bit of resistance internally just because soccer has never been the strongest sport for us; but we went ahead and did it with great results.

I would say our soccer coverage was on par with our NBA playoff coverage in terms of visitors, which was a really welcome surprise. Over the summer months, we brought in a new audience because soccer betting is still new in North America. It was a great opportunity for mature soccer bettors,

“Being a neutral, third-party site, we really push the fact that we’re trying to win as well. We’re trying to beat the book too”

but also for first-time soccer bettors to gain experience with major tournaments and get familiar with the players as well. We also worked with Betano in Canada, which was the official sportsbook partner of the Euros and Copa America, and created an operator integration there. We covered the player props throughout both tournaments, too.

A lot of this was testing to see if we can level it up even more come the World Cup in 2026, knowing that it’s going to be in North America. Like I said, it was almost like an extended NBA playoffs, so it was very welcome along with the new audience. Some of the operators such as bet365 did a really great job with boosts. You could tell their traders really understood the game. The response I’ve heard from operators is that they weren’t sure what to expect, but in terms of overall handle it was a really nice surprise for the summer.

Do you feel added responsibility when something like the NFL season comes around?

Yes, we have to cover every single game and we know we have to continue to enhance our internal programming. We have a new betslip tool that’s dropping now, where players can build their parlays as they’re doing their research and click out once

they see which operator offers the best price. Presenting that information to help sports bettors make informed choices and constantly updating our content to reflect the changing markets.

I’ve heard it out of the NFL’s mouth that their goal is to turn fantasy players into sports bettors. How’s that going to happen? It’s not going to be by betting the second half under in the Bills-Chiefs game, it’s going to be introducing player props for guys like [Patrick] Mahomes and [Travis] Kelce. Those stars will be the ones that pull those fantasy players so they can bet alongside their favourite athletes, while also participating in fantasy leagues at the same time.

Do you see a way in which player props can be combined with a lineups feature? Such as a soccer formation or baseball lineup. You’re starting to see more of it. The integration is only getting better and better. DraftKings has a really strong player prop integration, FanDuel also. Those operators that have the licensing deals with the NFL, I believe that’s the future of this space.

Old-school sports bettors might shake their heads but people want to bet on props, they want to bet on SGPs. They’re not necessarily as price sensitive as sports bettors in the past, so it definitely seems as if that is where things are going. It’s not even where it’s going, it’s already there and there’ll be more of that going forward. The products being offered just have to catch up a little bit; some sportsbooks are there while others are still trying to make up ground.

How does Covers market to people who stick to retail sports betting? Is there a way for you guys to reach that audience?

In the past, we did a lot of ground activation in Las Vegas, Atlantic City and other markets that have changed in the space. It used to be that the sportsbook was in the corner of the hotel and if you had a third-party partner that wanted to bring more attention to your sportsbook, you welcomed it.

I would say over the last few years sports betting has become more popular in terms

“I would say our soccer coverage was on par with our NBA playoff coverage in terms of visitors, which was a really welcome surprise”

of the marketing departments of casinos to the point where they run their own events. I think Circa in Las Vegas is probably the best at it. They’re constantly running events, integrating that with Stadium Swim, doing different things.

For us, it’s something we definitely want to do more of. We’ve started to do some partnerships with operators in Canada, which is our home market. Those types of events have been primarily online over the past three years or so, but we recognise that in an ever-changing market, we need to get more boots on the ground. So it’s definitely part of our marketing strategy going forward.

Are there any contests or promotions Covers will be offering for the NFL season or possibly NBA and NHL coming up in the fall?

Absolutely, we’re going to have a $10,000 survivor NFL contest. We have a Beat the Experts weekly contest where our personalities go up against our users. We’ll definitely run unique programmes for the NBA and the NHL, as well as free-to-play daily contests. We also have a great partner in Chalkline that we work with. Overall, that means a wide variety of offerings that can be used by either a more seasoned Covers user, or someone who is new to our site as well.

“I think Circa in Las Vegas is probably the best at it (retail marketing). They’re constantly running events, integrating that with Stadium Swim, doing different things”

Training days

Gambling Insider explores how the top sportsbooks are gearing up for the NFL season after an eventful summer that included the Euros, Olympics and Copa America, with insight from DraftKings and ESPN Bet

Operators around the US are preparing for the in ux of activity that comes with the arrival of the new NFL season each year. Futures bets, player props and money lines all take centre stage as customers return from what is typically a slow period for most operators during the summer months. With the NBA and NHL Finals concluding in June, sportsbooks are forced to nd alternatives to continue driving audience retention and revenue. Luckily, in 2024, sporting events such as the Euros, Copa America and Paris Olympic Games all took place and provided a bridge between popular US sports coming to the end of its seasons and the beginning of the NFL season on 5 September.

“While the NBA Finals and Stanley Cup Finals were certainly busy, it has been an exciting summer for DraftKings with plenty of key moments on the sports calendar that

grabbed the attention of new and existing customers. The Euros and Copa America both brought in a strong amount of betting activity on soccer, which was great to see as we get ready for the highly anticipated 2026 World Cup [hosted in North America],” DraftKings CRO Greg Karamitis told Gambling Insider

“Of course, this year’s Olympic Games created another big moment during the summer as well, generating plenty of interest among our customers. As we turn our attention to the return of football, we were very pleased with the results we were able to achieve and look forward to continuing to provide our customers with year-round offerings.”

INCREASED OFFERINGS

Now with the NFL season returning, companies can turn attention back towards the sport

that generates the most activity across the US. Some operators have chosen to strike partnerships with the NFL as well as companies that offer features such as NFL Sunday Ticket and NFL RedZone ahead of the 2024-2025 season.

For example, FanDuel recently announced a renewal of its partnership with YouTube to offer its customers the chance at a free trial of NFL Sunday Ticket. Customers who bet $5 will have received a three-week free trial for NFL Sunday Ticket from YouTube and YouTube TV, also making FanDuel the only US sportsbook to partner with the streaming service.

“Football season is an exhilarating time for fans, and we are committed to delivering an unparalleled sports betting experience all season long,” FanDuel President of Sports Mike Raffensperger said at the time of announcement. “As we continue to raise the

bar with new product features that allow fans to engage with the NFL in new ways, we’re also thrilled to again partner with YouTube to offer a NFL Sunday Ticket free trial to our customers, providing an NFL betting experience only available with FanDuel.”

FanDuel also increased its offering for Same Game Parlays (SGP), a feature that continues to draw interest from users of any sportsbook. SGPs offer bettors the chance to combine player props and money lines to create parlays that build increased odds for a specific game’s results. FanDuel’s additions give its customers the chance to include player quarter props, defensive props, players to catch a pass and more.

New products prior to the start of the NFL season are all made in an effort to take advantage of a returning consumer base that departed once the Kansas City Chiefs defeated the San Francisco 49ers to win the Super Bowl in February. Player props and SGPs are quickly becoming perhaps the most popular feature for bettors to use once they sign up with a respective sportsbook. Fans want to get the most out of their viewing experience, and finding ways to incorporate sports betting into that experience seems to be the common goal for operators whose markets are in the US.

INCREASED PROPOSITIONS…

“We have seen player props grow in popularity and as we continue to drive innovation forward, we will certainly be focusing on expanding these markets across several major sports. It’s important that we are delivering our customers with the content they want and enjoy, while also nding new ways for customers to engage with our products,” DraftKings’ Karamitis said.

“Throughout the offseason, we made a series of enhancements to our online sportsbook in an effort to further amplify DraftKings’ offerings. Some key initiatives our team worked on included bringing player props in-house, differentiating our live betting experience and optimising trading capabilities. This fall, customers will see these enhancements reflected across fan-favorite features such as in-game betting, same-game parlays, player prop markets and more.”

Karamitis also spoke on how DraftKings is looking to market its product to football fans this season, “While our campaigns will air nationwide, we know football fans are very passionate about their favorite teams and players, so we also create localized content within the DraftKings sportsbook app customized to their betting experiences. DraftKings customers will be able to access our extensive menu of betting markets and see select offerings on the individual state level that tap into the interest of fans who may root for the local team. This allows us to engage with our customers throughout the season both on the national and local level, no matter how big or small their market is.”

The new strategies created by FanDuel and DraftKings highlight a growing awareness towards what is to come once the NFL season begins in September. The sports betting industry is constantly evolving to bring in younger and more expectant consumers that are very technology-savvy, but still desire a simple process to place wagers. While these additions will assist operators in marketing to the returning client base, actually executing these features and providing an improved experience will be tested from now until the season concludes next February. With the NBA and NHL returning early in the fall, perfecting these strategies could lead to further increased activity for both DraftKings and FanDuel prior to those respective seasons starting.

MEDIA NETWORKS

Sportsbooks such as Fanatics and ESPN Bet have the advantage of marketing to an already existing consumer base due to the popularity of their respective brands in other sectors. Fanatics built its network of customers through clothing and apparel, now connecting that portion of the brand into its sportsbook o ering through FanCash. With the ability to earn rewards based on wagers made, users of

Fanatics Sportsbook are more inclined to take advantage of the possible promotions or deals the operator may offer before the NFL season begins.

ESPN Bet obviously has a pre-established built-in media network it can attach to its sports betting offering at any time, including promoting its money lines or spreads across different ESPN television programs. While the access ESPN Bet has at its discretion will always be an advantage for the operator, it is also responsible for marketing to its consumer base in a responsible manner. Attempting to highlight the odds of a certain bet or influence viewers to place wagers could present challenges especially as the NFL season approaches and betting activity begins to rise.

“A way for us to drive audience growth is to integrate across our platforms. ESPN Bet is the sponsor of various ESPN programming, and it keeps ESPN Bet top-of-mind with our leading database of sports fans,” ESPN Bet and Fantasy VP Mike Morrison told Gambling Insider

An avenue operators could choose to follow in due time is tying in its player prop offerings with a line-ups feature for each game. Take a soccer formation or baseball line-up, for example, the ability for users to simply select any player in the line-up and instantly have the option of wagering on one of their respective player props could be an advancement many operators execute in the near future. The delicate balance of finding ways to constantly enhance one’s product while also keeping the wagering process simple and effective will always be a proponent of the industry that sportsbooks are forced to maintain.

“There are always ongoing updates to the user experience and Penn continues to work to innovate the product. We are working toward new integrations within the ESPN and ESPN Fantasy apps, which will include deep-linked markets and personalised in-app betting offers,” Morrison said.

The sports betting industry is constantly changing, forcing operators to evolve and enhance its product offerings to satisfy a consumer base that will only continue to demand more improvement. Ahead of events such as the NFL’s return to play and the reappearance of the NBA and NHL in the Fall, activity across all sportsbooks spike as wagers for the country’s most popular sports are made available once again.

How US operators choose to prepare for these events helps distinguish which generate the most business throughout the fall and winter months while these sports are occurring. Through a number of new promotions, enhancements and even partnerships in some cases, the sports betting industry is gearing up for the gridiron as fantasy and sportsbook consumers alike look towards a new season –and new horizon.

In focus: Sportradar

Brian Josephs

, VP Account Management, North America, walks us through Sportradar’s Managed Trading Services for the US marketplace

As sports betting continues to reach new heights in the US, with expanding regulation and legalisation, the marketplace becomes increasingly competitive. More than six years after the United States Supreme Court overturned PASPA, 12 states, including the major markets of California and Texas, are yet to legalise and regulate sports betting, leaving great opportunities for new players to enter the game and claim a significant share of the market.

For Sportradar and the larger betting industry, the US continues to be a priority. Online sports betting revenue was predicted to reach $14.3bn in 2024, with an annual growth rate of 10.7%, resulting in a projected market volume of $23.8bn by 2029, which would represent approximately 37% of the global sports betting market.

In other hyper-competitive, high-growth markets such as Europe, LATAM and Africa, we have seen new operators struggle to establish a foothold and obtain significant market share, while simultaneously developing the necessary proprietary backend technology to compete.

What we’ve seen recently, as operators navigate these challenges, is a significant uptake of our MTS solution with 44 operators signing on for the solution in the first half of 2024. In its simplest form, MTS is a bet

validation tool whereby our team of traders review an operator’s betting tickets to assess the risk associated with each bet and determine which ones should be accepted or rejected. In a marketplace that requires a rapid go-to-market strategy, MTS allows operators who lack the proper infrastructure to almost instantaneously utilise Sportradar’s team of experts and stack of leading sports betting technology to begin accepting bets.

Furthermore, our MTS is completely customisable, allowing operators to choose which services they want from us based on the needs of the business. For example, if an operator already trades NBA and NHL matches in-house but wants to quickly add MLB to their offering for the upcoming MLB postseason, they can utilise MTS to do so in-line with their existing trading strategy.

The US is a uniquely challenging market for operators. Along with the additional intricacies that come along with state-bystate regulation, bettor behavior in the US differs from those around the globe. Due to the country’s history in fantasy sports, US sports fans tend to focus on individual player performances rather than team outcomes. ‘Prop bets’ and ‘parlays’, a bet where the bettor ties multiple bet types together to combine odds, have become especially

popular. MTS performed exceptionally well throughout the 2023-24 NBA and NHL seasons, providing clients with margins of 10.3% and 11.5% respectively.

For operators looking to further enhance their risk management strategy, the MTS integration provide operators with access to Alpha Odds, Sportradar’s AI-driven personalised odds technology, which recalculates a sportsbook operator’s financial exposure after each bet is placed using advanced AI models, allowing operators to manage their liability in real time to reduce the associated risk. Alpha Odds is proving to be a game changer for our clients. Over the course of UEFA European Championship qualifying matches, clients with Alpha Odds increased their profit margins by 15%, helping those operators boost their trading performance. As we approach key moments in tennis, soccer and basketball, operators in the US can win with MTS and Alpha Odds, increasing profitability and minimising risk.

The US sports betting industry is remarkably competitive and new market entrants need a partner they can rely on to hit the ground running. Sportradar and our Managed Trading Services provide the unique ability to take on the US market with confidence and efficiency.

Marketing different

Gambling Insider looks at the shift between gambling sponsorships within sport, with insights from BetMGM UK and LiveScore Group

Gambling has been prevalent in sports for years and its presence has continued to grow, especially given the expansion of online betting. In the UK, high-street bookies have been accepting online sports wagers since the 2000s. In the US, legal online sports betting is a lot more recent. It was born in 2018 to be precise, after the overturning of the Professional and Amateur Sports Protection Act (PASPA), which allowed states to start legalising online sports betting. Growth has been rapid in both regions.

Alongside this, the exposure of gambling advertising, promotion and sponsorship has also seen significant growth within sports, including teams, tournaments, leagues and even stadiums.

THE UK MARKET

While gambling sponsorship is seen in many sports in the UK, such as darts, rugby league, horseracing etc., one of the main examples in the UK, naturally, is football, something

that comes as no surprise given the size in popularity of the sport within the region. From Stoke City’s home ground being named the bet365 Stadium to Betway being present on the front of West Ham United’s matchday shirts, and even William Hill’s title sponsorship of the Scottish Professional Football League (SPFL), there are a variety of clubs who are in some way, shape or form connected with a gambling company.

The Premier League is by far the largest football league in the UK, if not the world, so the global appeal of gambling companies being involved with clubs in the league is clear to see; especially when it comes to branding and promotion. It has become almost common to associate gambling with football when so many companies in the industry have naming rights, such as Sky Bet’s sponsorship of the English Football League, covering the Championship, League One and League Two, and general involvement surrounding the sport. However, in recent times there have

been concerns raised by some stakeholders regarding gambling’s widespread presence in the sport, highlighted by a recent survey conducted by the Football Supporters’ Association. It showed that three quarters of football fans are concerned about the prevalence of gambling advertising and sponsorship around football. The data also showed that gambling advertising was significantly more likely to influence those who are already experiencing gambling harm to spend additional money and time on gambling.

Not only has concern been raised in recent times but, prior to this survey, action had already been taken related to the Premier League. In April 2023, clubs in England’s top tier voted to outlaw front-of-shirt gambling sponsors from the league by the end of the 2025/26 season, becoming the first sports league in the UK to take such action voluntarily to reduce gambling advertising. This decision came ahead of the UK Government’s review

of gambling legislation, with the policy proposal described in the UK White Paper as a voluntary commitment by the Premier League. While this has in no way slowed down the plethora of deals still occurring both in the Premier League (more than half of teams in the league have a gambling front-of-shirt sponsor in the 2024/25 season as they cash in before the ban comes into effect) and wider afield in UK sports in general, it does suggest there may be a shift in gambling advertising and sponsorship’s relationship with sports.

Further to this, towards the end of July this year, the EFL, Premier League, The FA and Women’s Super League agreed on a new Code of Conduct for Gambling Related Agreements in Football. This code covered areas such as the protection of children and other vulnerable persons, social responsibility with regards to how gambling sponsorship is promoted and delivered, reinvestment of income for the benefit of football fans and communities, and ensuring integrity is maintained in football competition.

THE US MARKET

On the other hand, in the US, given the overturning of PASPA only took place in 2018, there hasn’t yet been as much scrutiny of gambling sponsorship in the same sense. So, while the US sports betting market continues to expand, reaching more states, teams and leagues, sponsorship by gambling companies within the sporting realm has likewise continued to new heights.

The likes of FanDuel, Caesars Entertainment, BetMGM and DraftKings have secured partnerships throughout the US surrounding the sporting industry; with teams across a number of verticals, including in the MLS, NBA, NFL, NHL, NASCAR, among others, as well as the related associations for the sports. This branding has also stretched out to companies having brand ambassadors, including sporting stars, such as former NHL player Wayne Gretzky for BetMGM and many, many more.

Sports betting operators not only hold a presence with their corresponding sports team partners in the form of branding and advertising, but on top of this feature in stadiums through sportsbooks. Some examples of this include at the Allegiant Stadium in Las Vegas, an obvious choice, where fans can use the BetMGM app to place wagers through MGM Club; then at the Rocket Mortgage Fieldhouse in Ohio where Caesars partnered with the Cleveland Cavaliers to open a sportsbook in the arena; and at the Capital One Arena in Washington DC where William Hill opened a sportsbook. These sportsbooks will of course vary in size, but generally will be larger than any betting booths/kiosks that might be seen in a football stadium in the UK. Often in the US they will almost look more like bar lounge areas than actual sportsbooks, where people can place bets on their phones, and will feature the branding of the sports betting operator.

This example alone highlights the

potential shift between the UK and the US when it comes to sports betting advertising within sports and the potential perceptions surrounding it. While little has been made of the influx of gambling advertising and sponsorship within the US sports market to date, there is the potential that allowing it to get too out of hand may lead to the US following the same path as the UK. Here, we are talking about potential backlash and scrutiny, with sports betting itself already facing criticism in some parts of the US.

To analyse this trend, we spoke with BetMGM UK Director Sam Behar and LiveScore Group CEO Sam Sadi about the differences in gambling sponsorship within sports and what could change.

BETMGM UK

Though BetMGM UK doesn’t have any frontof-shirt partnerships in the Premier League, it does currently have deals with clubs in the division, such as Wolverhampton Wanderers as its official European betting partner, Newcastle United, and Tottenham Hotspur as its o cial betting and front-of training wear partner. Given this, Behar believes the ban in the Premier League won’t a ect business for the operator too much.

“I think the impending self-imposed ban on front-of-shirt partnerships is something we support. Our position in the market is bigger, better and more responsible and so we support this because we don’t have any front-of-shirt partnerships; we aren’t planning to have any. We are focusing

our efforts on reach in sponsorship in a different way and using our partnerships in a different way in football. And we believe the best route for us to do that, as we’ve displayed this year, is utilising training kit assets and betting partnerships.”

Behar explains that no matter what type of partnership a company may have with a football team, for example in the UK, the rules themselves will still be the same and ultimately “the only benefit you are getting from a front-of-shirt match day partnership is retail,” with BetMGM UK’s Spurs deal meaning fans don’t actually have the sponsor included on the shirts they buy, but rather have a blank non-sponsored shirt.

Looking wider afield, BetMGM UK’s Director highlights that this sort of regulation regarding gambling sponsorship is already seen in other sports both in the UK and in Europe, with there being “self-imposed regulatory requirements on brands appearing on match kit.” Behar believes further rules and regulations in the UK regarding gambling sponsorship may be seen, similar to what we have already in the Premier League and other areas.

“I think that, in general, the UK will continue to strengthen the regulatory position it has on ensuring the protection of minors and those at risk; and if that translates to sports that get broader appeal and broader reach for those people who are at risk or under 18, I’m sure there will be more restrictions in place.”

While BetMGM UK has a number of sponsorships in the world of sport, Behar says the operator does the utmost to ensure what is being promoted is not being advertised to those who are underage or at-risk customers.

“If you look at some of the partnerships we’ve done outside of football, for instance,

notably, TalkSport, an adult audience, darts, an adult audience, horseracing, an adult audience, we have focused our primary objectives on ensuring we deliver advertising to customers who are not at risk and who are not underage.”

LIVESCORE GROUP

this trend has already materialised in many countries.

“Collaboration is essential,” was the main point made by Sadi when talking about how gambling companies can work with their partners. Especially when it comes to avoiding issues such as advertising to underage fans, pointing out that “both parties must recognise the mutual benefit of protecting underage fans from excessive gambling exposure. They need to agree on this principle and actively seek ways to minimise such exposure.”

As a final point, Sadi delved into the reasons behind the differences between gambling sponsorship in the UK and the US. “The key difference lies in market maturity. In the newly regulated markets such as the US, building brand awareness is crucial due to the lack of established brands. By contrast, the UK market, being more mature, places greater emphasis on performance-led marketing channels. Additionally, in new markets like the US, sponsorships and abovethe-line marketing are vital for successful channelisation during the early regulation years; unlike in the UK, where these methods are already well-established but currently facing challenges due to regulation.”

For LiveScore Group, the majority of its sponsorship deals, especially in recent times, have come about through its Virgin Bet brand in the world of horseracing, such as the sponsorship of Cheltenham’s December Gold Cup. However, with its focus being on the convergence of sports media and sports betting, Sadi can o er detailed knowledge surrounding sports’ relationship with the gambling industry.

Reflecting on the impending ban on front-of-shirt sponsors in the Premier League, the LiveScore Group CEO underlined the potential consequences this could have in a wider sense and the possible change of strategy from companies as a result.

“The impact varies depending on the type of gambling company. For Gambling Commission-regulated companies, the effect will be minimal since few rely heavily on this marketing method. However, offshore operators targeting unregulated territories will lose a key tool for mass brand awareness. Consequently, we may see an increase in regional partnerships as these companies adapt their strategies.”

On whether regulation may lead to fewer gambling partnerships in sport in general, Sadi commented: “That’s a reasonable expectation. In fact, if we exclude newly regulated markets, we exclude newly regulated markets,

BetMGM’s partnership with Tottenham Hotspur includes training kit branding

EDUCATION OCTOBER 7–10, 2024

EXPO HALL OCTOBER 8–10, 2024

THE VENETIAN EXPO, LAS VEGAS

G2E is the catalyst for gaming - fostering innovation and driving growth by convening the global industry to define tomorrow. CONVENING GAMING

REGISTER TODAY AT G2E2024.COM/GAMBLINGINSIDER

In focus:

In focus: LSports

CRO Yoav Ziv discusses how advanced computer vision and a combination of official and independent data feeds helped create LSports Tennis Premium - its recently introduced tennis product

With a global audience of over a billion fans growing year by year, tennis continues to captivate huge crowds worldwide, well into the post-Roger Federer era. The same can be said for tennis betting. As a dynamic sport offering thousands of fixtures and countless in-play betting opportunities annually, its popularity among sports bettors is immense. Sportsbooks naturally benefit, as tennis consistently ranks among the highest-turnover sports for bookmakers and is ranked as the fourth most ordered sport by LSports’ clients.

This tremendous traction and potential customer base have driven many industry players to leverage advanced technology to develop superior tennis products, providing users with an exciting, unique, and allencompassing experience. This is precisely what we’ve been doing at LSports in recent years, to the point where I feel confident saying we have the best and surely most costeffective tennis product on the market.

LSports Tennis Premium, our recently introduced tennis product’s strength and uniqueness, come from several factors. First, it’s the technology. We combine various data collection methods; web scouting, TV/In-venue scouts and advanced, fully operational computer vision techniques allow us to deliver super-accurate data to our partners in real time.

Our tennis data feeds are the most extensive bookmakers will find. When we say we cover everything, we mean it literally. Wherever

there’s a tennis ball, two players with racquets, and a chair umpire, our partners will have the match’s data. This results in coverage of over 130,000 fixtures, 2,000 tournaments and more than 150 unique markets, including ITF and ATP & WTA premium packages, with continuous improvements in coverage, provider choice, and uptime guarantee.

Our tennis feeds are backed by a brand-new LSI (Live Score Intelligence) model powered by the wisdom of crowd-based algorithms. This enables us to make smart decisions when choosing between sources, and ensures our partners receive maximum precision and speed of delivery.

The latest development is the enhancement of our offering with real-time official data from more than 50,000 tennis matches yearly. Combined with LSports’ independent feed, this official data further boosts LSports Tennis Premium’s accuracy and speed, making it as bulletproof as possible.

To make our partners’ lives easier, we offer a seamless, one-time integration of both independent and official feeds, providing a 360-degree tennis data solution. This approach keeps them unaffected by the frequent rights-holder changes the industry has recently experienced. On the business level, it’s no secret there’s a lot of buzz in the industry around tennis these days, mainly due to rising data costs and uncertainty about rights holders. Consequently, we have seen significant movement lately from tier 1 and tier 2 bookmakers looking for alternative providers for tennis data.

As the market’s attention increases, this presents us with an opportunity to step up our marketing efforts so that more sportsbooks learn about the advantages our tennis product has over the offerings of other big players. Over 220 of our partners already use LSports Tennis Premium, enjoying the ability to fully customise their packages to meet their specific needs. With ongoing enhancements to our capabilities and the launch of our limited time joining offer, I am confident that this number will soon increase.

Yoav Ziv, CRO, LSports

In focus: Wise Gaming

Could you give a brief summary of your product offering?

Wise Gaming is a fast-growing complete platform, o ering both White-Label & Turnkey Solutions. Our robust solution is built from our team’s extensive experience: 15 years B2C and 10 years B2B. We understand the importance of a truly modular approach, allowing our partner the ability to obtain either our entire solution or individual components that enhance what they currently have.

Your product is regulated in territories around the world. Where would you want to go next and why?

Extensive experiences have given us a solid foothold in the European & LatAm continents. Incredible successes with our current operations as well as the successful growth of our partners, our focus is not only on established markets but exploring unique and emerging markets also. This approach allows us to increase our market and industry knowledge as well as the ability to learn and adapt, truly focusing on our partners needs without limitations.

2025 will be Wise Gaming’s year of expansion! 2024 is our stepping stone, by continuing to build on our successes in EU & LatAm whilst planning next years’ growth in both Africa & Asia.

Beyond football, what are the most popular sports to bet on?

Does that change in different parts of the world?

Football is a very important sport across the industry, with an estimated four billion fans globally. However, other sports must be acknowledged and catered for depending on the regions you are operating in.

A few examples after football you must consider:

1. ASIA

a. Basketball

b. Table Tennis

Wise Gaming Commercial Director Steve Paton on the brand’s products and goals for the future

c. Cricket (Indian Subcontinent)

2. OCEANIA

a. Rugby

b. Cricket

c. Field Hockey

d. Horseracing

e. Aussie Rules Football

3. LATAM

a. Baseball

b. Basketball

c. “Bloodsports” MMA, Cockfighting (probably not on many sportsbooks) etc

4. AFRICA (USUALLY DOMINATED BY SOUTH AFRICAN TREND):

a. Rugby

b. Horseracing

5. EUROPE

a. Basketball

b. Tennis

c. Horseracing

d. MMA

This is why knowing the markets is extremely important for our partners’ success. How important is it to offer esports betting, especially to Gen Z players?

This topic can start some controversial conversations; I think esports is playing a part in the future of the iGaming industry. Back in my youth (I’ll be showing my age now) it was all about going to the betting shops with my father/grandfather to place a physical bet. It wasn’t just about the gambling but the social interaction with peers.

Now, that social interaction has been replaced by digital technology. Gen Z interactions are mainly through social media channels creating this “digital world” where all interactions take place. Esports, as both a product for gambling entertainment and social interaction, will be a core product as it allows “non-sports” individuals to still be included.

It is EXTREMELY important, as well as our responsibility, to make sure such product a is implemented properly with the necessary safeguards in place that it protects the young and vulnerable who may be misled to thinking its simply “gaming.”

What are Wise Gaming’s goals for the next year?

As mentioned above, throughout 2024 Wise Gaming has been growing from strength to strength. Our focus has been two-fold, building new strategic partnerships as well as enhancing our current one. These partnerships are setting us up for our most successful year EVER! Our vision for 2025 is clear, disrupt the current statue quo by becoming a leading White-Label & Turnkey provider, that truly offer our partners the best opportunity at success!

Steve Paton, Commercial Director, Wise Gaming

STILL IN PLAY

Same game. New ways of playing. Are same-game parlays and bet builders changing the industry? With contributions from Fair Play Sports Media, Digitain and Kambi, Gambling Insider digs deeper

Bet builders, better known as same-game parlays (SGPs) in the US, have come to redefine how players place sports bets in the mobile betting era. Improved access to real-time data has allowed odds to become more accurate and more specific, creating opportunities for more specific bets, especially for in-play bets when the odds are forever changing. Combined with the interface of sports betting apps, crafting a multi-part bet for a football team to win a game, with a specific player taking the win and another getting a yellow card with odds of +1300 is as simple as personalising a takeout order on a delivery app.

Personalisation is a crucial factor in bringing players to (and back to) a platform (something we delved into in our July/August issue of Gambling Insider magazine) and with bet builders, a wager can be wholly customised. If players are bored of just betting on which team will win or which player will rake in the most points, now they can combine these bets, with the chance of even higher returns than placing those two separately (and many more).

“We’ve seen a meteoric rise in popularity for bet builders in recent years,” Kambi Head

of Soccer Jonathon Hurst tells Gambling Insider. “Bet builder now accounts for a significant proportion of pre-game bets and handle, which obviously differs greatly depending on the sport. For example, most recently during the Copa America and Euros soccer tournaments, we saw bet builders account for 24% and 18% of bets on each tournament, respectively.”

“As a general trend, we are seeing bet builder growth across the board, with some operators now reporting a contribution of over 30% of all football bets,” added Andrew Bramley, Commercial Director, Sports for Fair Play Sports Media. “I’d expect this coming season to be the watershed for bet builder comparison as a normalised part of the customer journey, as the bet builder offering in general cements itself even further in both digital and retail settings as the go-to bet type for a significant audience.”

But where exactly did the idea of bet builders come from and how have they gone on to make up such a big portion of today’s sports bets?

A BRIEF HISTORY

While it was FanDuel that brought the same-game parlay to the US in 2019, it was not FanDuel that came up with the concept. Industry reports tell you that honour would go to Sky Bet, which had begun its work on bet builders almost a decade prior. Notably, FanDuel and Sky Bet both operate under the same parent group, industry giant Flutter Entertainment.

for that specific bet. Of course, as is always the case with social media, not every bet was what was expected; however, one bet type that continuously appeared on #RequestABet was that of multi-part bets.

requested bet is added to the platform, mind – ‘Sorry, this is not something we are looking

The account is active to this day and is still adding requested bets to the Sky Bet platform. On 2 August 2024, one user requested ‘Over 0.5 goals in each Leicester, Southampton and Ipswich premier league games,’ to which RequestABet replied four days later ‘Added at 60/1 in the Over 0.5 Goals in Each Game market.’ Not every requested bet is added to the platform, mind – ‘Sorry, this is not something we are looking to offer’ is a reply seen fairly frequently in RequestABet’s tweets. Sometimes, the Sky Bet team is simply too busy (or chooses not to) reply.

not to) reply.

From here, multi-part bets (accumulators/parlays) began to become more and more commonplace, with other operators both experiencing similar calls for multi-bet options (see Sportsbet in Australia) or using a similar framework set out by Sky Bet (William Hill’s #YourOdds is just one example of this). Their popularity in Europe began to

According to various sources, around 2012 Sky Bet noticed its X (then Twitter) account was filled with player requests for specific bets – ones that, at the time, Sky Bet did not offer. Soon, Sky Bet decided to give its players what they wanted and, with this, RequestABet was born.

RequestABet went live on X in January 2015. As the name suggests, RequestABet was a Sky Bet-ran account through which SkyBet customers could request specific bets and traders could return with odds

Jon Hurst, Head of Soccer, Kambi

develop alongside the popularity of #RequestABet and not long after PASPA was overturned in the US in 2018, same-game parlays arrived on US soil.

WHAT DO SGP’S BRING TO THE TABLE?

As previously mentioned, the customisability of SGPs provides them with diversity and, crucially, choice. An operator offering SGPs a player is interested in will provide more value than one that doesn’t, and even more value than a sportsbook only offering just standard, singular bets.

When asked if bet builders are keeping bettors engaged and online longer, Zohrab Karapetyan, Chief of Sportsbook Product at Digitain, tells Gambling Insider : “Based on our research findings, yes. One reason for this is the desire of bettors to have more control over their betting activity rather than having to choose from pre-existing bet types offered by the operator. Instead of being restricted by the bet options that are set, the bet builder feature allows bettors to combine different selections into a single bet. For example, 49% of bet builders include cards and corners as the most popular statistics markets, again showing that players prefer to combine statistics in choosing their bet builder selections. This helps open up unique betting possibilities that go beyond traditional markets. By being able to create personalised bets, players can discover new sources of excitement and maximise their potential winnings.”

a player’s potential winnings, as Karapetyan and Hurst mentioned. If a player bets $10 on a –108 bet, their returns are $19.25 on the DraftKings app. Add another –108 bet and that figure jumps to $36.40, with odds

Moreover, specificity in bets allows players to show off their support and belief in certain players and teams. Pointing them out specifically is proof of their belief, and if that 1300+ bet goes through, that belief will only increase tenfold. Plus, with the ability to share bets among friends and on social media platforms, a high-stake bet can become proof of a fan’s genuine belief in an outcome.

Or, as Karapetyan put it: “Bet builders offer value when the 1X2 odds are not attractive or one-sided. So value is a driver of adoption for bet builders. Similarly, players are interested in their favourite team; thus, bet builders allow the bettor to look at stats and offer more choices throughout the game instead of just the 1X2 90-minute result for the team that they favour.

Hurst responded similarly, stating: “Sports bettors now have the ability to craft and bet on their own storyline within a game – one that allows them to include more outcomes – adding to the entertainment that comes from engaging with the sportsbook and keeping players engaged. With an almost limitless number of combinable markets, bettors are able to navigate the sportsbook and build a bet that suits their interests; whether that be their favourite teams, players or sports. Complementing this popularity is the potential for a big win coming from a small stake.”

Beyond just the ability to create unique, custom bets, SGPs also drastically increase

Add something with low odds, like a +125 odds bet, and

suddenly your payout is $140, with odds of +1300. Same-game parlays are riskier, given the number of parts involved, but when it’s possible to turn a $10 bet into $140, is it surprising that players are interested?

“Builders are gaining traction among regular or casual bettors who have previously engaged in multi-bets on multi-leg events. Our data shows that 65% of bet builder bets are combo bets, meaning players combine multiple bet builder selections or mix them with standard bets. The increased adoption is due to the expanded choice that bet builders offer within a single football match, providing a deeper and more engaging betting experience.”

For operators, this is also a bonus. While payouts may potentially be bigger, the specificity of the bets makes them far less likely to be successful, resulting in better returns for sportsbooks. Sharp bettors may prove something of a spanner in this plan, but given that the majority of players do not fall into this category, sportsbooks can utilise SGPs to make a little more from casual bettors. Sharp bettors may also prefer to stay away from SGPs or bet builders as they offer less expected value plus.

As Hurst puts it: “Bet builders have become a crucial product for any ambitious sportsbook. Sports bettors increasingly want to be able to drive their own experiences and catering to the growing desire to create bets ‘off-menu.’” Bet builders have become vital, says Hurst, both for the personalisation they offer players and the margins they generate for operators. “Bet builder does

Zohrab Karapetyan, Chief of Sportsbook, Digitain

typically generate higher margins than single selections on fixed-odds markets, although it is important that the right balance is struck here, as generating too high a margin from a particular part of the betting product is unlikely to see customers return to it consistently.”

Karapetyan echoed a similar sentiment, saying: “Our bet builder... enables users to customise their betting experience, enhancing engagement and satisfaction for pre-match and live game betting.” He went on to explain the demand for more markets among users, and Digitain’s delivery on these demands, explaining that the operator has “increased the maximum selections from 10 to 16, as 3.7% of users prefer more customisation in their bet builder experience,” concluding that, “As players require more market choices within their respective bet builders, the sportsbook’s margins within that bet type will be higher.”

Bramley of Fair Play Sports Media also tells Gambling Insider: “There’s no doubt that bet builders are a win-win. Customers now have the ability to make their own betting storylines with more customised odds, while operators are now seeing the high margin traffic that justified the heavy investment in these products. Those sportsbooks willing to offer market-leading prices will inevitably realise the loyalty benefits when presented alongside competitors. After all, we’re talking price differences of 200/1 against 50/1, rather than 6/5 and evens, with the former far more appealing to the more recreational bettor that Bet Builders generally appeal to.”

Neither DraftKings nor FanDuel provided details or analysis for this feature, however by looking at recent quarterly results from the operators, the impact of SGPs becomes undeniable. Said DraftKings CEO Jason Robins in its Q2 2023 earnings call, samegame parlays had been “a huge part of the story” in terms of the sportsbook $874.9m in quarterly revenue and loss decrease from $308.9m to $69m (amounts which have since risen to $1.1bn and reduced loss of $32.4m respectively).

A LIVE BETTING BOOST?

With SGPs offering small, more specific circumstances to bet on, like players receiving penalties or kicks from certain positions, the question becomes, are more people betting live? After all, if you have a bet on a game and see that two players already have yellow cards, why not bet on one of them getting a red and signi cantly increase your win potential?

On the topic, Karapetyan tells us: “Live betting is becoming

increasingly popular due to the fact that bettors are busy and have limited time to place bets. They also prefer the flexibility of being able to place bets throughout the game rather than right before it starts. We are indeed seeing growth in both pre-match and live bet builders. As far as trends are concerned, bettors react to the events on the eld and closely analyse statistics.

“Our bet builders are designed to support a wide range of bet types, including playerto-score markets and statistics markets such as corners, yellow cards, o sides and fouls. We’ve also made it easy to incorporate other popular types of sportsbook bets within our builder, such as Acca Bonus, Cash Back Bonus, Bad Beat Bonus, Double Dooble, Sports Jackpot and 2 Goals Ahead.” Hurst added: “We have seen rapid growth when it comes to live bet builders including cashout, which is the next natural step in the evolution of the product and will be a new battleground for the industry.”

if it seems their full parlay bet will not be fruitful. Bet on X team to win, Y player to score twice and Z to get a red card, but it’s reached half time and Y still hasn’t scored at all?

Cash out options have been available to players for longer than SGPs have, initially coming onto the market some years ago. It is widely acknowledged that Colossus Bets Founder Bernard Marantelli was heavily involved in the creation of the cashout concept, although bet365 is also recognised as the rst major operator to introduce the concept. Gambling Insider won’t take sides but will acknowledge that both had a part to play in the history of the feature.

As Hibai Lopez-Gonzalez and Mark D Griffiths summarise in their Gaming Law Review 21 contribution, ‘“Cashing Out” In Sports Betting: Implications For Problem Gambling And Regulation,’ cash out options are “a feature o ered on single and multiple bets on various sports... CashOut gives you the opportunity to settle your bet early at the value displayed, without having to wait for the event to nish. The amount you are o ered to CashOut is based on your original bet, the status of any selections which have already completed and the current market price(s) of your unsettled selection(s). The CashOut amount may be more than or less than your original stake.”

CASH-OUT: STILL INNOVATION KING?

Cash-out, as Hurst mentioned, has become particularly popular among SGP bettors. These systems allow bettors to tap out, if you will, during a parlay bet, leaving with a percentage of their winnings

Cashouts o er a few incentives to players – namely, that there is a safety net available to them when placing a risky bet, which may encourage bigger spends as, if things go poorly, tapping out early will mean a bet isn’t a complete loss. Of course, this can lead to some less than ideal situations (survey based studies, including those by Hing et al., 2016 and LaPlante et al., suggested that in-play

Andrew Bramley, Commercial Director, Sports Fair Play Sports Media

sports betting was more pervasive among problem gamblers), cash out also provides players with an invaluable tool: a sense of control.

Being in control of your betting experience is something also seen with SGPs; it is no longer the bookies in control of their bets and their outcomes, but the players. Diversifying the way bets are made and played has made them a must-have for sportsbooks – but what else is there too them that may have some see them as the bigger innovator compared to cash outs? And moreover, could the bet builder ever come to replace the single bet?

ONE VERSUS MANY

SGPs are popular, sure, but will they ever displace conventional, single bets as players’ go-to?

First of all, it must be acknowledged that, while bet builders have been particularly popular among some operators, for others, it has not yet become so widespread. As seen by data provided by Betby (see Figure 1), only 6.6% of Euro 2024 bets and 6.1% of Copa America bets on its operator network were bet builders, both representing 3.7% of each event’s turnover. All that is to say, while users are utilising bet builder options, they have not made traditional bets obsolete just yet.

Bramley responded with a similarly balanced reply. He explained: “More committed bettors will always stick to core markets and single bets at higher stakes, while casual bettors love the thrill of bigger wins for a more recreational stake, which also add a deeper engagement layer when watching live sport. In that sense,

“Players are interested in their favourite team; thus, bet builders allow the bettor to look at stats and offer more choices throughout the game instead of just the 1X2 90-minute result for the team they favour“Zohrab Karapetyan

recreational customers are bene tting the most from this growth, but we haven’t seen notable signs of cannibalism of traditional markets and I would argue there’ll always be a place for them both.”

Bramley’s statement is backed by what we have seen so far – that casual bettors and big sports fans are placing big bets for fun, with less riding on the necessity of the win (but obviously winning is still an aim) and more on adding thrill to the experience. If they make a big return from a hyperspeci c bet? Well, to them that is just the cherry on top of an already good game.

Karapetyan highlighted the particular appeal bet builders have to the new generation of bettors, stating: “Bet builders o er a variety of features for today’s digitally savvy individuals who want to feel unique and independent and choose how they interact with brands. This trend is apparent in social media and in consumers’ interactions with other digital products and services that are not related to betting.

“It’s not just about change, it’s about empowerment. Bet builders do not just serve as a transformation of traditional markets; they serve as a tool that empowers players to engage, bet, and feel in control on their own terms. This inclusive CRX experience is precisely what today’s players are seeking.”

Hurst’s response mentioned similar topics, stating: “Bet builder has transformed the size of the menu, placing a far greater range of betting opportunities at players’ fingertips. The scale of the technological advancement over the last ve to ten years has been vast, with bet builder making the offering almost limitless in its potential scale. This development is far from over – to o er an example from Kambi, we launched cash out and in-game functionality for the bet builder in 2023, bringing it into line with the rest of the o ering. It’s continuing to grow – bet builders have grown in 2024 as a percentage of overall soccer bets compared to 2023, while approximately 25% of turnover on the Copa America was generated via bet builder.”

OFFERING VALUE

It seems, generally speaking, many operators are of the belief that bet builders are here to stay, and more likely than not will continue in their development and popularity in the market. Still, Bramley was also quick to point out that, with it now being ve years since FanDuel released SGPs, simply having the option on a sportsbook platform isn’t enough for players anymore. “The age of the Bet Builder as purely a money-printing machine is long gone, and those who are brave enough to deliver value across the board, create unique o erings and stand out above the competition will reap the rewards,” he said.

Figure 1: Bet builder share, Betby data

In short, yes, bet builders have rede ned the way some players play. For casual fans, they o er a chance to win big and create something unique to their passions, with the low odds steadily lining the pockets of sportsbooks. But continuous new players do not mean sportsbooks can be complacent –after all, with everyone o ering bet builders, what makes yours stand out?

Fair Play Sport Media has even gone as far as to launch a bet builder comparison platform – a first of its kind in the UK and proof that, no, just having a bet builder on your site is not enough. As Bramley explains: “There are both demand and supply reasons behind the launch. Bet Builders are now ubiquitous, well understood and loved by bettors and operators alike, so it made perfect sense to extend our odds comparison service to this novel offering. We also endeavour to level the playing eld for sports bettors, empowering them to find the best odds and o ers available on whatever sport that might be. Bet Builders can be complicated to compare across di erent bookmakers, but the tool allows the user to do so via a quick and easy experience.”

Of course, with every operator o ering their own avour of bet builder, having accurate comparison tools also allows Fair Play Sport Media to spot certain trends in products, especially among operators of di erent sizes and niches. “The tool surfaces an interesting range of value propositions across integrated operators, each with di erentiating strategies at play,” said Bramley. “Those traditionally strong in the main 1x2 markets (such as bet365 and BetMGM) naturally also show up as o ering price value in the tool, with bet365 also able to showcase their ‘2 Goals Ahead Early Payout’ offer. Elsewhere the Flutter integrated brands (Sky Bet and Paddy Power) are particularly competitive in the player prop markets such as Goalscorers and Cards. Paddy Power are also able to advertise their unique and popular ‘Super Sub’ o er, where player bets remain live when a substitution takes place, with the incoming player taking on the bet from the outgoing player.

“These are examples of how operators are taking di erent approaches to Bet Builders and how the customer may be unaware of the variety of options available to them. That’s something we look to address, providing the customer with an easy-to-use comparison tool demonstrating the breadth of value out there.”

So, should we expect to see more sportsbooks integrating bet builders, and should we expect to see bet builders continue to o er di erent features and options? Yes. While it is uncertain whether the betbuilder will come to outshine the singular bet, one thing is clear – it’s not going anywhere any time soon.

STILL IN PLAY

In focus: Betby

In just a few years, BetBuilders have transitioned from being a supplementary feature to becoming an essential aspect of any sportsbook. Their unique capability to enable players to design their own single bets, either within a single game or spanning multiple games, positions BetBuilders to capture significant market share and boost long-term player engagement.

At Betby, our goal is to continuously enhance the betting experience by removing obstacles and providing exceptional flexibility through our BetBuilder product. This drive for innovation is rooted in the evolving demands of modern bettors.

Traditionally, betting options were presented to users in a predefined, list-style manner. The introduction of BetBuilder marked a significant leap forward for the industry, offering bettors the first taste of ‘odds on demand’ within the sports betting interface. This innovation allowed bettors to create custom bets, transforming the user experience. Now, our aim is to elevate this flexibility to unprecedented levels.

We know that providing bettors with exciting new capabilities and a clearly defined means of personalising their betting experience is crucial for operators. Advances in technology have vastly expanded the range of betting options available, enabling users to place accumulator bets on various outcomes within the same game. This feature gives players the creative freedom to craft unique bets, enhancing their overall engagement and satisfaction.

CREATING PERSONALISED BETTING NARRATIVES

With BetBuilder, sports bettors can now construct their own narratives within a game, o ering nearly limitless options. This

Breaking down the BetBuilder barriers

capability is complemented by the potential for substantial winnings from relatively small stakes, adding to the thrill and appeal of betting.

A high-quality BetBuilder provides users with full control, allowing them to craft bets that are precisely tailored to their preferences quickly and easily. It is essential that popular markets, such as player props, can be combined seamlessly, ensuring a comprehensive and customised betting experience. Additionally, smooth integration into the overall sportsbook user interface is vital. Reducing the number of clicks required to create combinations and maintaining consistent odds are key factors in preventing user frustration, and fostering long-term customer retention.

Incorporating a BetBuilder into the core platform offers several advantages in terms of product development and compliance. It ensures a consistent experience across various elements of the sportsbook, including odds offered in both the BetBuilder and standalone products. Furthermore, risk management processes are streamlined, as they are handled in a unified manner.

BETBY’S INNOVATIVE APPROACH TO BETBUILDER

With all this in mind at Betby, we are continually expanding our pool of available BetBuilder combinations to include all major markets for football matches. Our standout feature lies in the extensive range of statistical markets we o er, distinguishing us from our competitors. We provide not only common markets like corners and cards but also unique ones such as o sides, shots on target, throwins and shots at goal.

Beyond market variety, we allow users to combine individual player statistics like shots, goals, assists and cards. While many competitors offer similar features, the flexibility of our BetBuilder in terms of market availability and the resultant combinations truly sets us apart. Our platform widgets are specifically adapted for BetBuilder, offering features like the “Combo of the Day,” which consists of pre-built outcomes, further enhancing the user experience.

THE EVOLUTION OF BETBUILDER

Looking ahead, personalisation will play a crucial role in the evolution of BetBuilder. Innovations in live sports data are expected to provide richer contextual bet prompts, laying the foundation for new BetBuilder options. Advancements in live sports data will enable the creation of more dynamic and personalised betting experiences. Live data will allow traders to elevate BetBuilder experiences, presenting highly appealing betting markets tailored to speci c customer segments. This level of personalisation will provide an engaging and unique experience for users, making BetBuilder a more attractive option for bettors.

Chris Nikolopoulos, CCO, Betby

Highly

Multi-level

Exclusive

Betbuilder

Strong

In defence of revenue vs profit?

The phrase ‘the house always wins’ has been around for a long time, but no one mentioned just how long that process would take in the US

DraftKings, much like its name suggests, is undoubtedly one of the monarchs of American sports betting. Similar to FanDuel, it has around 30% of the market share in the US, which is no small feat. In its Q1 2024 result, for the period ending 31 March, DraftKings reported a revenue of $1.17bnbut a net loss of $142.6m. For Q2, it had a revenue of $1.1bn and a net income of $63.8m, but still a loss from operations to the tune of $32.4m. So what’s happening, and why is it important? Well, the second rule of business is that in order to make money, you have to spend money.

In 2023, DraftKings spent a total of $1.2bn on its Sales and Marketing, and it’s continuing strong this year, with $341m spent in this Q1 alone AND $216m in Q2. In comparison, the company spent $89m

on Product and Technology and $174m on General and Administrative in Q1 2024.

Despite dropping the big bucks, DraftKings undoubtedly saw results from it too. Q1 monthly unique players (MUPs) rose 23% to 3.4 million on average, while the average revenue per MUP (ARPMUP) grew 25% to $114. The company attributed the former to its expansion into new jurisdictions and the latter to hold percentage and improved promotional reinvestment for Sportsbook and iGaming. The higher player percentages aren’t the results either, as its adjusted EBITDA rose 110% to $22.4m – and the Q1 net loss of $142.6m mentioned earlier was actually an improvement of 64% when compared to the high net loss from the year prior. DraftKings has been very open about this business strategy too. The executives

are well aware that they aren’t currently making a profit.

“DraftKings’ performance in the first quarter of 2024 was outstanding, reflecting healthy revenue growth and a scaled fixed cost structure that positions us to drive rapidly improving adjusted EBITDA,” said Jason Robins, CEO and Co-Founder of DraftKings. “We successfully launched our online sportsbook in Vermont and North Carolina with highly efficient customer acquisition. Looking ahead, we remain committed to maximising shareholder value through continued innovation, operational excellence and disciplined capital allocation.”

It’s this final sentence that we need to focus on. The company is not taking the easy route, if one is even possible in establishing itself in the US sports betting market. With

the Murphy vs NCAA ruling only overturned in 2018, sports betting has only been live for six years in the US, making it a relatively immature market still. At the time of writing, 38 states and jurisdictions across America have legalised sports betting and DraftKings is live in 25 of them. This equals out to the business expanding to four new states a year on average, which is quite a lot when you think about it. When appointing Jason Park as the company’s Chief Transformation Officer, Robins quoted that “this would generate significant incremental profitability over the coming years”. It’s clear that making a profit is an obvious goal for the company, that being said, DraftKings isn’t going to rush the process just to reach the milestone any quicker.

It’s not just the executives who have addressed this, either. You can find countless

threads on Reddit discussing the losses from DraftKings for many years. The users on r/stocks explored how starting in new states is great for long-term growth, but this comes with brutal costs associated with winning customers over from the competition; while the regulars on r/sportsbetting held talks on which of DraftKings’ products had been released to attract new customers to the business, and which ones would likely bring in the revenue after a few years. If even Redditors can unanimously recognise that your high customer acquisition costs are a strategic long-term play and that “DKNG will be one of the winners when all is said and done”, then you know your operations team has done something right.

Going forward, we might not see DraftKings make significant profits for some time. It was

said three years ago that we wouldn’t see any profits from the company for, well, at least three years. This is where the Q1 2024 net loss of $142.6m is so important – because in the same period the year before, it was actually a net loss of $397.1m. While it would be naive to assume that the company could continue this exact trajectory, it’s also worth considering that we could actually see DraftKings make a profit this year. This has been something that people have been holding their breath over for quite a while. But if DraftKings has taught us anything, it’s that slow and steady really could win this race.

On the other end of the scale, we have PointsBet: A successful and well-known sports betting platform headquartered in Melbourne, Australia. When the brand

launched in the US in 2019, a year after wagering on sports was legalised in the US, PointsBet had no idea it would be at the heart of a high-profile exit sale less than five years later. Despite years of industry experience and the best intentions, PointsBet went on to become less of a case study, and more of a cautionary tale on how to tread the dangerous waters of sports betting business operating in the US.

During its H1 2023 report, PointsBet’s revenue was AU$178.1m (US$118m), a 28% improvement year-on-year, which was just topped by a net loss of AU$178.2m, an increase of 22%. By the time the FY2023 results rolled around, and PointsBet was certain it was going to sell the US business arm, its annual revenue was AU$210.3m (US$139.4m), but its total loss for the year was AU$276.3m. You might be wondering whether this was just because its business didn’t take off in the US like it did in Australia, but the US branch was actually handling a larger turnover. By H1 2023, the turnover for down under was AU$1.55bn, while in the states it was AU$1.57bn. Sure, it’s a small win, but a notable one all the same. The revenue wasn’t too far off either, with a 2.4% dip in the former totalling $AU95.3m and a jump of 86.3% for the latter, with $75m. So its business was thriving and growing. By 2023, PointsBet was active in 14 online sports betting states, four online casino states and had a retail

DRAFTKINGS

sports betting footprint across three states. In fact, the company described it best in its own financial reports, stating that “in the United States, the largest and fastest-growing online betting market in the world, we are the seventh largest online operator, out of a field of over 60 licensed online operators. On top of that, our app which is powered by our proprietary tech stack is independently ranked as top three in the US market.”

So, what happened? Well, PointsBet simply didn’t believe in waiting for the company to make a profit. It even says as much in its reports, saying that the reason it’s selling up is because “it is not expected to be cash flow positive in the near term. PointsBet’s current corporate cash balance is insufficient to fund the US business through to profitability”, the report explained, “and as such, should the proposed transaction not proceed, the company would need to raise additional capital in the near term”. It’s all well and good to joke at the fact that companies like DraftKings still aren’t making a profit, but the reality is that it’s incredibly expensive. There are real stakes involved in the path to profitability, and this race was one that PointsBet couldn’t feasibly keep taking part in.

When PointsBet Managing Director and Group CEO, Sam Swanell, discussed selling the business, he said: “Despite the strategic success building a valuable asset in the US, the costs of operating in a state-by-state environment, together with the requirement

DraftKings - High revenue, mid loss from operations - prioritising growth

DraftKings

Q2 2024 ending June 30

to build significant scale to compete against well-capitalised operators, led us to explore a number of options.” The costs associated with expanding into different states is something that should be highlighted when breaking down the nuances of a business building a userbase against making a profit. In order to launch a sports betting business in New Jersey, operators must first partner with a licensed casino or racetrack in the state. After this, the company must then pay $100,000 to the New Jersey Division of Gaming Enforcement (NJDGE) to apply for a licence, for any costs associated with handling the application. Once you add on all of the sales, marketing and promotional costs required for launching in a new area, across at least 14 different states; it’s easy to see why this can drain a business fast, especially if they weren’t prepared to deal with a money sink of this proportion.

“This reflects the structurally high cost of operating in a state-by-state regulated environment”, PointsBet concluded quite succinctly. “The requirement to pay partner fees in most US States and continued competition from well-capitalised operators.” Perhaps the biggest shame in this entire debacle is the fact that the company PointsBet sold its US operations to, Fanatics, is a private company – meaning that we cannot see its financial results and draw any conclusions about its fiscal state a year on from the deal.

Revenue: $1.1bn (up 26% Year-over-Year)

Net income: $63.8m (up 183%)

Loss from Operations: $32.4m (improved 53%)

Adjusted EBITDA: $1.1bn (up 26% Year-over-Year)

POINTSBET

PointsBet - Low revenue, high loss from operations - prioritised immediate pro t

PointsBet Q3 2023 ending 31 March

IN DEFENCE OF LOW PROFIT, HIGH REVENUE

In a world still struggling to grapple with evolving business demands post-Covid, perhaps we’ve become a little too overanalytical of quarterly pro t reports. There was a massive demand for online gaming a few years ago, which came hand-in-hand with a massive drop in revenue too. What was popular ve years ago was impossible four years ago, with people wanting new experiences once the world normalised two years ago. If you then mix in the fact that America has only recently legalised sports betting, with many states still not allowing it, then this is a major shift in customer trends and it makes it impossible to predict what will stick and what won’t. In such a turbulent environment, a quick profit is impossible. You have to be able to ride out all of the waves as the US sports betting environment stabilises itself. While Europeans grew up with a peripheral betting culture, many in the US simply didn’t have that, and so this is the rst time they’ve even been able to discuss bet slips with friends and family.

It might seem obscene for DraftKings to be spending so much on its Sales and Marketing, with $1.2bn dropping on acquiring new customers in 2023, but if you take a look at the consumer figures then it makes more

Revenue: AU$106.6m (up 39% Year-over-Year)

Loss from Operations: AU$76.7m (worsened 31%)

Net cash flow: -AU$88.7m (down 4%)

Served: 35% of US population

sense. According to the US bettor report for 2024 from YouGov, 73% of sports bettors used more than one wagering app last month, and 43% used three or more. The customers are playing the field, which is completely understandable. Not only is it a new experience for them, but many of the operators are offering enticing welcome offers, so why not sign up for all of them? The real skill is keeping them betting on the platform after the honeymoon period ends, because that’s where the long-term revenue comes from. Hypothetically, would you spend $10m to be unlikely to retain customers in the short term, or spend $100m with a much better chance to make that back, and more, over a ten-year period?

It’s also no surprise to see that, with such an emphasis on these quarterly reports, many businesses in the gambling industry are going private. In the past 12 months alone, we’ve seen Endeavor, PlayAGS and SKS365 go private, while Games Global thought about going public but didn’t; Bally’s is in a precarious takeover situation, and PointsBet sold its US branch to Fanatics, a private company. This seems to be a trend that isn’t going to stop anytime soon, but it’s also one that’s difficult to pinpoint a particular reasoning onto. Are IPOs, the long-time beacon of ‘making it’ in the

business world, losing their popularity in favour of running a business away from prying eyes?

Overall, perhaps this should be a lesson in how to navigate a sports betting business through an unsteady market, especially with the focus on Latin America, South Africa and even potentially Asia. Many people saw the US as an easy jurisdiction to open up in, especially considering the huge NFL games held in the country, but what about when a sportsbook wants to open up in a country that could be even more volatile when it comes to handles and net win? It’s always been emphasised that gambling as a player could see short-term success, but this is impossible to maintain over a long period of time; but it’s become pertinent that launching a sports betting business in an immature market requires a brilliant strategy if it wants to translate a short-term loss into that coveted steady net profit result.

Crucially, if a company (like Tesla or DraftKings) can earn billions in revenue and create billions worth of jobs, adding to the global economy, if investors are willing to fund it–perhaps there is nothing wrong with the occasional net loss? You would have to ask investors, though, if they are willing to continue backing that thesis in the long term.

Historical horseracing vs eHorseracing

With insights from Exacta Systems President Jeff Lind, Gambling Insider looks into the rise of eHorseracing and historical horseracing (HHR), their differences and what they mean for the future of horseracing

Horseracing has been part of the gambling landscape for as long as man has known how to ride a horse or place wagers on outcomes, whichever came rst. However, the modern landscape of horseracing is somewhat di erent, primarily due to advancement in technology and the new ways through which fans can engage with the sport.

Two such examples are historical horseracing (HHR) and eHorseracing, which are bringing the thrills of horseracing to players with one crucial difference: No horses are involved.

In the case of eHorseracing, bookies will provide virtual horseraces for players to bet on. This is not something to be conflated with esports, which involves teams playing various competitive video games like Dota 2 and CS:GO – eHorseracing uses data and real-time graphics to generate horse-less races for players to bet on.

Due to being a completely virtual betting market, new races can run continuously, even 24/7 if an operator chooses. Betting options also mimic those seen with traditional horseracing, with some bookies

offering things such as combination, tricast and other options for players.

HHR, meanwhile, is a different can of worms entirely. These slot-esque machines use the data from historic horseraces to determine their outcomes and are almost exclusive to the US. Popular designers of these machines include Ainsworth and Churchill Downs (CDI) subsidiary Exacta Systems, having first come onto the market at the turn of the century. These machines use naming substitutions, handicaps and other techniques to conceal the race being pulled from during games

CDI LIVE AND HISTORICAL RACING REVENUE BY SEGMENT ($M)

CDI LIVE AND HISTORICAL RACING REVENUE BY SEGMENT (�M)

– HHR has outperformed CDI’s TwinSpires vertical since the latter half of 2022, first being reported in Q4 2022. The segment has almost always increased in revenue quarter-on-quarter.

Source: Churchill Downs

– In Q2 2020, during the Covid-19 pandemic, HHR made $7.3m in the quarter. Four years later, it reported revenue of $212.1m.

“The goal of HHR is to grow revenues to the horseracing industry... It is not a goal of HHR to replace the horseracing industry, but rather to use technology to keep the live racing industry viable” - Jeff Lind

to avoid cheating, and pull much of their design philosophy from other popular Class II and Class III games. As Jeff Lind, President, at Exacta Systems, explains to Gambling Insider: “Exacta’s founders were early innovators in the Class II gaming and central determinant lottery industries. Similar to Class II using bingo to determine a prize, HHR leverages horseracing wagers on past events to quickly determine prizes that can be used to model most slot style games.”

Aside from HHR’s recent debut in Malta, made possible via a collaboration between the Maltese National Lottery, IGT and CDI,

HHR is a betting vertical exclusive to the US. These machines have been “ramping up” in terms of performance numbers, according to Lind, though he suspects that these machines will be less popular than they are in the US. “The differential between US performance and foreign performance is expected to mimic Class III games where performance varies greatly by country and is generally lower than in the United States,” he said. So, who is playing these alternative horseracing games? For eHorseracing, a likely demographic is those with a keen interest in the sport in first place – after all, these games are not tied down to an

in-person racing schedule, national or international, making them ideal for players during quieter racing periods. The player base is also likely to be younger; virtual horseracing is still a relatively new betting vertical, and considering its reliance on technology and computer graphics, older generations of sports bettors may be less inclined to spend money on horses that ‘aren’t real.’

On the HHR side, Lind describes typical US players as “Similar to Class III gaming machine players. These players prefer the fast paced, immediate gratification of casino style gaming machines as opposed to the slower paced traditional wagering on horses,” with the machines now being a significant moneymaker for operators like CDI.

Consider the operator’s Q2 2024 results. Of the $464.7m in revenue made that quarter by live and historical racing, $212.1m was made from historical racing – more than CDI’s TwinSpires service and just shy of the $274.2m made by CDI’s combined gaming vertical. In total, CDI reported revenue growth of over $120m, totalling $890.7m, with Lind stating that “We expect HHR to grow in existing jurisdictions and add new jurisdictions domestically and internationally.”

Still, with the popularity of these horseless horseracing alternatives, the question becomes, what happens to the horses?

HHR machines use historical data to present the thrill of race betting in a new format, while eHorseracing provides a more typical betting experience all while avoiding the use of real animals.

Does the proliferation of these alternatives present a challenge to traditional horseracing? And, more to the point, does it reflect a change of attitude towards horseracing, with many conversations in the wider zeitgeist criticising the use of animals in sport?

“HHR was created as a solution to the declining numbers in the live racing industry,” said Lind. Indeed, the horseracing industry has seen struggle and backlash across the globe – the dropping of daily racing tips on BBC’s Radio 4 Today programme after 47 years is a small yet stark example of this –with racing authorities routinely having to reassure the safety and wellbeing of the animals. It is no surprise, therefore, that operators like CDI have had to resort to alternative solutions – solutions that, as seen with the above quarterly statistics, have made them a pretty penny.

“The goal of HHR is to grow revenues to

Lind, Exacta Systems, President

the horseracing industry and the jurisdictions where they operate. It is not a goal of HHR to replace the horseracing industry, but rather to use technology to keep the live racing industry viable,” Lind concluded.

SO, WHAT CAN WE EXPECT GOING FORWARD?

With AI and real-time computer graphics improving year on year, and the proliferation of HHR both in and outside of the US, it is likely we will be seeing more of these

horseracing alternatives on the market. It is true – neither will replace traditional horseracing, as both are distinctly NOT traditional racing – but as Lind pointed out, the market is currently facing a decline.

Animals need care and training and racing grounds need tending; all things traditionally funded by income made from wagering. These are things that will retain their cost no matter the amount of race attendees and bettors, and if those numbers are facing decline, alternative methods of revenue generation will become crucial.

Unless this can be turned around (something with some potential in the UK, after new Labour Government Parliamentary Under-Secretary of State for Sport, Media, Civil Society and Youth Stephanie Peacock emphasised the “huge contribution that horseracing makes to both our culture and our economy”), the development of horseracing alternatives will likely continue. HHR will likely continue its growth in and outside of the US, while virtual horseracing will continue to develop its following and proliferation across various sportsbooks.

The flesh-and-blood horses won’t be going anywhere. But it seems their virtual, slot-based counterparts won’t be either.

Jeff

In focus: Aristocrat Interactive

The value proposition: Dima Reiderman, Managing Director iGaming & Sports at Aristocrat Interactive, examines the key choices that need to be made by operators when choosing a suitable sportsbook and iGaming solution

Long-term value creation is the key to success in regulated online gaming, and nding the right provider is one of the most significant pieces to reach this goal. It’s important to consider a company that has a clear and well-positioned future that can support the growth journey. For example, at Aristocrat Interactive, we’ve blended the backing of a titan powerhouse in the industry with a company proven technology and respected resources to provide operators a wealth of available resources and industry matter experts at their disposal.

Choosing the right provider is a critical decision and it includes selecting a team that understands the importance of knowing your audience, how to grab attention, and being able to offer a variety of supporting services that operators need to succeed.

KNOWING

YOUR AUDIENCE

As a provider, it is important to o er operators various versions of a sportsbook that are tailored to the regulated markets in which they operate. For example, if you take Africa, where our iGaming & Sports business has gathered key insights over the years, we have learned that that bettors favour high-multiple selections, presented to them in a light browsing, low-data format. However, in the UK, our experience is that bettors are focused on major events and their favourite teams, so boosted odds are attractive in this market.

Considering the different preferences of players across markets, a high-quality sportsbook solution must be able to offer and display the betting opportunities in the most attractive way for each target audience, whilst encouraging responsible betting. These types of unique needs require serious investments in technology, and it’s something that we are committed to.

GRABBING THE ATTENTION

As a provider, it’s important to understand

why offering a vast range of content to operators is essential. Furthermore, providers need to be aware of their operators’ customers’ needs and preferences, which varies greatly by each market.

For example, the NFL is the number one sport across many parts of North America, while March Madness will inevitably grab the attention of millions of customers in the same region. One size does not fit all, though, and it’s our experience that regional variations mean that bettors in Canada are more than likely to prefer hockey to baseball. This pattern also rings true in other areas of the world. In Europe, basketball is a popular preference, but not necessarily in the UK where cricket is a major sport, especially in the summer months.

FLEXIBILITY & SECURITY

A modern, exible, and adaptable solution allows operators to benefit not only from a highly localised sports betting offering, but also lets them select from other pieces of the online gaming chain. Bettors fully expect sports betting on a platform to be accompanied by a wide range of content that can include any or all of casino games,

instant games, fantasy sports, live casino, virtual sports, bingo, and poker. API-based support can enable custom sportsbook frontends, while an integrate-and-merge multi-feed design allows for the selection of best-in-class data feeds from multiple sources. Modern sportsbook solutions also follow a set of key architecture concepts, including –but not limited to – fully scalable micro services, stateless services that are designed to scale horizontally, cloud and on-prem hosting, and state-of-the-art security features without the hassle of dealing with proprietary technologies that are bound to a cloud provider.

SUPPORTING SERVICES

Operators are increasingly interested in options that offer a full suite of Managed Services. This includes a wide-range of o erings including round-the-clock customer support, payment and risk management, fraud detection and prevention and AML, while also covering all bases across CRM and marketing, compliance and responsible gaming.

Modern bettors need to be served with a host of options that help to decrease friction within an online offering, while operators must be allowed to focus strongly on brand-building. As operational experts, a successful platform provider with a proven track record invests in all these areas so that operators do not need to, meaning they are free to focus on brand marketing and acquiring customers.

Whether it’s land-based or online, Aristocrat Interactive offers operators the full package, backed by decades of experience and success. As a true one-stop shop for all sports betting and iGaming verticals in regulated markets, we play by the rules and present a complete picture of stability, reliability and adaptability to help create value.

Dima Reiderman, MD iGaming & Sports, Aristocrat Interactive

BARCELONA! ! HOLA

THE INDUSTRY’S MOST PRESTIGIOUS AWARDS ARRIVE IN ESPAÑA

CATEGORY SPONSORS

LEAD PARTNER

Fan favourite: The new season

Sportradar SVP Marketing Services Niki Beier speaks to Gambling Insider about what operators can do to stand out in a congested football betting industry

What new marketing trends will de ne the football betting industry this season?

This season, personalisation will be key for engagement and acquisition, and Sportradar is working behind-the-scenes to help our operator clients maximise this opportunity at a crucial time in their marketing calendars.

The modern football bettor is increasingly demanding instant content that is tailored to their individual preferences, so providing

personalised experiences has gone from a ‘nice to have’ to an essential component of operators’ acquisition and retention strategies.

We’re seeing operators continually personalise more aspects of their marketing activities, from their ad contents and enduser experience, to retention strategies through tailored CRM tools. At Sportradar, we’re delivering this through our ad:s multi-channel marketing service across programmatic display, video, audio and

digital-out-of-home (DOOH), paid social media and our VAIX retention services for CRM and on-site personalisation.

This season more than ever, if operators can personalise their content to football fans, they’ll be more likely to be rewarded with their interest and custom.

With an increasing number of competitors, how can sports betting operators stand out this season? In an industry as competitive as football

betting, serving the right ad to the right fan, on their preferred digital channels, when they are most active, is essential. It is this individualised targeting and customised advertising that will enable operators to stand out.

Operators can separate themselves from competitors by using the right technology to serve personalised and targeted ads, for example placing a display ad on football sites where fans check team news, or within social media feeds just before kick-off. Whilst this is something you would think most operators are doing, you would be surprised about how much room for growth many still have. In a competitive market, success ultimately comes down to advertising efficiency and achieving better marketing ROI than your competitors and having the technology to do this is key.

If you know where to reach individual football fans and understand the types of bets they place, you’re in a prime position to create the unique experiences that they want. Without this data-driven

understanding, marketing just becomes a guessing game.

is essential, brand awareness shouldn’t be overlooked. Making your brand well-known plays a massive role in increasing fans’ trust and purchase intent, which

“This season more than ever, if operators can personalise their content to football fans, they’ll be more likely to be rewarded with their interest and custom”

elevates acquisition efficiency.

With the sheer volume of content available today and fan attention spans shorter than ever, traditional broad brand awareness strategies are unlikely to cut it. Just like acquisition, brand awareness campaigns should use data and AI to highly target fans with personalised messages. Channels like programmatic video and audio can identify relevant sport betting audiences and seamlessly serve messages for maximum brand exposure and return-on-ad-spend.

In fact, simultaneously using performance marketing channels, such as programmatic display and paid social, with brand awareness channels like video, audio or digital-out-ofhome (DOOH), can provide holistic marketing efficiency. By increasing lead generation and brand familiarity through targeted and personalised brand awareness, your acquisition channels are in prime position to persuasively convert customers.

integrating live sports odds into social media ads.

Can you explain the thinking behind this, especially in the context

We’ve already seen

great success with the integration of live data into static ads on social media, so saw a massive opportunity to apply the same dynamic creative technology to video.

We therefore partnered with Meta and launched this industry-first service to help operators maximise their acquisition of customers on social media. As one of the primary ways fans now follow football, social media has become a key marketing channel for operators, so the ability to deliver live odds and real-time content into video ads allows them to engage customers with more immersive and relevant content. This dynamic data includes team names, kits, logos, kick off times and more, which really make ads ‘pop’ in fans’ news feeds.

Football fans also consume significant amounts of short-form video, so including live odds and data into this advertising format allows operators to meet this growing content preference and improve advertising efficiency. By automating millions of dynamic video ads, which are updated in real-time to reflect betting market movements and live sports events, we’re helping operators scale and optimise their matchday operations.

Fans demand for stats has continued to grow in recent years. How is Sportradar meeting this appeal?

The use of data and stats helps to shape the sports betting experience for fans, as it informs their choices, provides deeper insights into the teams and players they’re interested in, and creates greater excitement. Through our technology and data, we’re incorporating data across more digital touchpoints so operators can meet this demand and unlock new levels of marketing efficiency.

For example, if a customer’s reading a website article on Manchester United, we can serve data-recommended ads and stats that are relevant to the content they’re consuming. Thus, could include the odds for the team’s next fixture, historical results, current form, down to the likelihood of a new signing starting or scoring – all of which create richer and more engaging experiences.

Niki Beier, SVP Marketing Services, Sportradar

Company profile: WA.Technology

WA.Technology on maximising iGaming potential with WA.Sports & WA.Fantasy, and why powerful sportsbook & fantasy products are a must

WA.Technology is a B2B provider of cuttingedge iGaming solutions, renowned for its strategic global collaborations and signi cant presence in emerging markets, particularly in Latin America. The company o ers a full spectrum of iGaming platforms, turnkey solutions, and standalone products, enabling operators to enter and expand in new markets swiftly. WA.Technology’s vibrant presence at numerous iGaming events has garnered the attention of industry leaders worldwide. At the core of WA.Technology’s o erings is WA.Platform, a fully customisable iGaming solution empowering operators to manage their casino, sportsbook, lottery or fantasy products with complete control. Transforming the iGaming supply chain with solutions that supercharge our partners’ success, WA.Technology believes that outstanding sportsbooks and fantasy products are key drivers for operator success. These products appeal to a rich and diverse global demographic of potential new users for increased acquisition, engagement and retention.

WA.SPORTS: TRANSFORMING SPORTSBOOKS INTO PROFITABLE VENTURES

various sports, live streaming and live match trackers for diverse sports, e-sports, and e-leagues. Operators bene t from bespoke market creation, in-depth performance analysis, and comprehensive risk management, all supported by realtime bet tickers and dedicated customer support. WA.Sports sets itself apart with a single integration that includes customised reporting, player pro ling for pro tability, and a recommendation engine with widgets designed to enhance user engagement. This holistic approach ensures operators can differentiate their sportsbooks and maximise their market presence.

WA.FANTASY: ELEVATING ENGAGEMENT WITH SUPERCHARGED EXPERIENCES

that drive tra c to similar markets within sportsbooks and casinos, making them a rst choice for brands looking to engage a broader audience. WA.Fantasy covers every aspect of the fantasy league experience, from a sleek, interactive lobby for players to visual highlights for squad announcements and match start reminders. The platform supports single (team vs team) or multimatch fantasy games, private pools created by users, exible point systems and global player leaderboards. Real-time updates on leaderboards and scoreboards, along with promo codes, bonus cash and referral rewards, further enrich the user experience.

THE NECESSITY OF POWERFUL IGAMING SOLUTIONS WITH WA.TECHNOLOGY

WA.Sports, a flagship product of WA.Technology, provides an extensive sportsbook package designed to offer a superior sports betting experience. The platform supports over 500,000 prematch and 30,000 live events annually, covering over 125 sports and virtual sports, with localised content tailored to specific markets. WA.Sports ensures a personalised experience for operators and their users. Key features of WA.Sports include highly customisable content portfolios, tailored trading strategies, and industry-leading in-play risk management tools. The platform also boasts an extensive market o ering across

WA.Fantasy offers a fully customisable fantasy sports platform, transforming the world of sport into an immersive experience for users. This product features daily fantasy sports (DFS) pools, allowing participants to create their teams, leagues, and private contests, all fully customisable for a personalised experience. Live match data and player stats cater to both casual fans and dedicated enthusiasts, enhancing user engagement. The DFS pools are complemented by marketing and branding opportunities that boost user retention and promote operator brands. WA.Fantasy also o ers free-to-play (F2P) predictive games and practical tools for customer acquisition and retention. These F2P games are ideal cross-sell opportunities

Operators need robust and engaging sportsbook and fantasy products to drive revenue and retain users. WA.Technology’s offerings, WA.Sports and WA.Fantasy, provide operators with the tools necessary to transform their platforms into pro table ventures by utilising customisation, advanced risk management and extensive event coverage, WA.Technology ensures operators can meet and exceed global market demands.

WA.Technology continues to excel in providing top-tier iGaming solutions through its comprehensive offerings. WA.Sports delivers a complete sportsbook package with unmatched event coverage, customisation options, and advanced risk management tools – meanwhile, WA.Fantasy engages users with its fully customisable fantasy sports platform, driving customer acquisition and retention. Together, these products exemplify WA.Technology’s commitment to empowering iGaming operators and enhancing the overall gaming experience.