PRESCRIPTION FOR DISASTER
In a cross between Kabuki theatre and a Stalinist show trial, sports betting was raked over the coals during a Judiciary Committee hearing of the United States Senate. The Dec. 17 farce played to a bipartisan group of solons, all of them out for blood.
If you’ve read about this kangaroo court, it’s probably because it took a dive into the bizarre. Republican senators Josh Hawley and John Kennedy went off the deep end, using their question time to berate NCAA President Charlie Baker not about gambling but … transgender athletes. They weren’t even concerned about whether this would affect betting lines. These two buffoons (Hawley and Kennedy) are seemingly convinced that the presence of 10 transgender players among 5,010 NCAA athletes poses a grave threat to the republic. Welcome to the next four years.
“We are not sure how this advanced the discussion on sports betting and we are fairly confident that it didn’t,” dryly noted Deutsche Bank analyst Carlo Santarelli. “We are also fairly confident that Governor Baker is not on Amazon, at present, looking to acquire ‘a spine.’”
Putting the “lame” in the “lame-duck session,” the inquisition featured no one from the sports betting industry to defend it. Aside from former New Jersey Division of Gaming Enforcement director Dave Rebuck, it was a beatdown on American gaming, with even Baker calling for a ban on prop bets on collegiate games.
For instance, former NFL footballer John Bademosi wanted bets on player performance forbidden across the
RIGHT: David McKee, Editor in Chief, Sports Betting Operator
board. Claiming “that states lack the wherewithal to establish and maintain proper problem gambling support,”
National Council on Problem Gambling Executive
Director Keith Whyte called for a greater federal role.
Yes, the snout of the federal regulation camel is poking into gaming’s tent. Various bills to facilitate this have been introduced, usually by Sen. Richard Blumenthal, who has a bee in his bonnet about sports wagering.
One of the more laudable prosals would create a federal-funding mechanism to help people with gambling disorders. Like that’s going to happen. In Donald Trump’s America it’s every man for himself and devil take the hindmost.
Perhaps the most radical take on betting was that of Dr. Harry Levant, who equated it with such addictive substances as tobacco and drugs. He argued that the federal government should regulate gambling in comparable fashion. He also termed alliances between social media and sports leagues “unthinkable.”
For zealots like Levant there is no such thing as responsible gambling. To him, that’s just a euphemism for industry self-policing. Unfortunately, if the federal constabulary is whistled in – as Whyte and Levant desire – its lack of gaming expertise is a prescription for disaster.
I wish I had something positive to say. But the fires have been stoked and sports betting is being led to the stake. Beware.
CONTENTS
CONTACTS
Publisher – Peter White peter@outsourcedigitalmedia.com
Editor in Chief – David McKee dmckee314@gmail.com
Editor EMEA – Damien Connelly damien@outsourcedigitalmedia.com
Las Vegas Correspondent – Ryan Slattery ryanslats@gmail.com
Associate Editor EMEA – Andrew Behan a.behan@librasgroup.com
Designer – Stewart Hyde www.de5ign.co.uk
Tel: 44 (0) 1892 740869 W: www.sportsbettingoperator.com
Editorial Policy: The views and opinions expressed in Sports Betting Operator remain principally the views of contributors and do not necessarily reflect those of the editor or publishers.
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An
down
SPORTS BETTING IN THE UNITED STATES
Crypto, chaos and a whole lot of cash.
By Victor H. Royer
Just when one thought the sports betting landscape in the United States couldn’t get any more interesting, along came 2024 with enough plot twists to make a soap opera writer jealous. Cryptocurrency wants to join the party, some betting companies are heading for the exits and New York is making money faster than a Wall Street trader with inside information.
First up, Crypto.com wants to get into the Super Bowl betting action. But hold your horses. The Commodities & Futures Trading
Commission is giving it the regulatory equivalent of a “time out.” They’re talking about a 90-day review of sports-event contracts, which would be about as useful as studying for last semester’s final exam – since the Super Bowl will be long over before they’re done.
Speaking of timing – isn’t it interesting how this is all happening just as President-elect Donald Trump is about to take office? Crypto.com isn’t too happy about the current CFTC leadership trying to make decisions on its way out the door. It’s like having one’s old boss try to
set the office rules the day before retirement. But here’s where it gets spicy: Donald Trump Jr. is joining Kalshi (one of the big players in this space) as a strategic adviser. Now that’s keeping it in the family.
Meanwhile, over in the traditional sports betting world, we’re watching a game of musical chairs. Betfred, from across the pond, has decided that Nevada isn’t its cup of tea anymore. It’s packing up its British accents and heading out, leaving just Pennsylvania as its lone U.S. outpost.
When one is losing $91.7 million in a year (compared to making $25.1 million the year before), something has got to give. Betfred is not alone in this exodus – Betway, SI Sportsbook and Unibet have all joined what one might call the “Thanks, but No Thanks” club of international operators leaving the U.S. market.
But it’s not all doom and gloom. Take New York, for instance. The Empire State is showing everyone how it’s done, raking in a staggering $22.7 billion in handle for 2024. That’s up 14 percent from the previous year, and if you’re keeping score at home (which New York definitely is), they’ve collected their first billion-dollar haul in tax revenue. Not too shabby for a state that’s only been in the game since 2022.
And speaking of games, American football is still king in the stateside betting world. New York saw $8.94 billion in online wagers just during football season (September through December). However October and December had hiccups when NFL favorites went winning streaks that had bookmakers reaching for their antacids.
Meanwhile, FanDuel is playing chess while others are playing checkers. It is beefing up its legalization team with some heavy hitters who know their way around California, Florida and Illinois. It’s is as though FanDuel is assembling the Avengers of gambling legislation. They’ve brought on James Hartmann, who helped bring sports betting to Illinois, and Louis Trombetta, the first executive director of the Florida Gaming Control Commission. Something tells us they’re not hiring these folks just for their sparkling personalities.
The landscape of sports betting in America continues to evolve faster than fashion trends on TikTok. There are crypto companies wanting in, traditional bookmakers wanting out, New York State printing money and FanDuel playing the long game. Let’s not forget: We still have those three golden geese of California, Florida and Texas sitting out there, just waiting to join the party. Who knows what the rest of 2025 will bring?
ABOVE: Donald Trump U.S. Presidentelect
THE GREAT GABSYS
The CEO of Gabsys, Zaven Sahakyan, sits down with Sports Betting Operator. By
Mark
McGuinness
Sports betting continues to grab the headlines, with regulated markets expanding and more brands entering the space. We talked to award-winning platform provider Gabsys’s CEO, Zaven Sahakyan, about market requirements and trends for 2025. Our conversation has been edited for clarity.
Can you tell us what Gabsys provides in the sports betting vertical?
Gabsys stands out as a prominent provider of certified, regulated sportsbetting software solutions, tailored for B2B networks that already have a broad base of clients. Our services extend to a diverse array of direct B2C operators.
With extensive sector experience, we have a holistic, 360-degree approach. We delve into the intricate details of
B2C operations while simultaneously understanding the technological framework that empowers B2B initiatives.
Our team is committed to fostering a distinctive mindset and a collaborative culture. That equips us with the knowledge necessary to assist sports betting businesses in scaling their operations effectively.
We emphasize lean and efficient methods that optimize both operational and technological requirements. This combination of strengths positions Gabsys as the ideal partner for organizations looking to thrive in both the B2B and B2C sectors, across several operational markets.
Sports betting software is a very competitive sector. How important is building trust and reputation when it comes to selling software?
FEATURE: GABSYS
Trust is an essential cornerstone in all aspects of our personal and professional lives. It is a decisive factor in selecting sports betting software and technology vendors for high-stakes projects, directly influencing our choices of sports books and gaming platforms that align with our business objectives and commercial contracts.
At Gabsys, we embed trust into our operational DNA. Our teams are unwavering in their commitment to the values of competency, consistency, integrity and compassion. This ensures that we uphold these ideals for all our internal stakeholders, partners and suppliers.
Trust, respect and reputation must be earned. Gabsys has proven itself by providing a consistent technology framework that delivers a full-service plug-in and turnkey sportsbook, plus platform solutions. Our extensive market and trading knowledge, reliability and reputable standing enable us to engage with regulated operators worldwide. We recognize the critical importance of robust business processes and strategic planning, consistently placing our partners and their players at the heart of everything we do. By building trust, fostering strong relationships and leading by example, we drive success in all our initiatives.
What developments are you seeing in the sports betting industry or what are sports books asking for?
Today’s marketplace is highly competitive on many levels. Digital players are continually seeking newer and faster experiences. This means our technology solutions must have an adaptive and flexible information architecture.
In the past, sports book solutions were complicated and inflexible to
the needs of operators. For today’s operators, it is pointless to design technical solutions that are hardcoded and not tailored to the evolving demands of our partners.
That is why our fully functional sports book platform can be integrated as a turnkey solution or via an API. The API option remains in high demand among our growing number of partners, as it offers a full range of products that are also available in the turnkey solution.
Our bespoke solution, featuring a customized API, can be tailored to meet the specific needs of each local or global partner. Additionally, our bespoke feed API provides partners with access to sports book data feeds, content and promotions. This enables them to build custom, engaging applications that help familiarize new players with sports betting while retaining existing players through enhanced content, websites and services. This flexibility gives partners greater control over their sports betting offerings, providing them with a competitive edge in the market.
As required by the partner operator, we can integrate multiple API content and odds feeds to ensure effective market and event management in their local area. Partners can also configure the odds feeds and profit margins they want to operate within, based on their market knowledge, thereby optimizing customer-revenue forecasts.
Our turnkey solution offers comprehensive services and features, including sports book and casino, all under one platform. This fully customizable platform allows partners to adapt the solution to their specific needs, preferences and branding. We employ advanced technology, including trading algorithms and inhouse created odds, to provide the best user experience and optimize
betting operations. This is supported by a team of over 800 specialist traders and odds compilers, ensuring a consistent experience and trading margin. The platform also offers multilingual support and customer service, ensuring a positive and hassle-free experience for customers worldwide.
We take pride in our approach to developing solutions across all channels, focusing on user interface and user experience. Our team of UI/ UX solution experts is an integral part of product development and software engineering. They engage with our partners regularly, conduct focus groups and provide feedback to refine the overall Gabsys roadmap.
Gabsys has 800-plus traders. How important is trading expertise in the provision of sports book solutions? Trading expertise is vital to delivering outstanding sports book solutions. At Gabsys, our dedicated team of over 800 highly skilled human traders exemplifies the power of this expertise in achieving consistent success and maintaining a competitive edge in the rapidly evolving betting landscape. While technology and automation play crucial roles, the intuition, market knowledge, and decision-making abilities of seasoned traders are irreplaceable. Our human traders provide a unique viewpoint that enables swift adjustments to odds, the identification of emerging trends and meticulous risk management.
In the highly competitive sports book sector, where profit margins are narrow and customer expectations are soaring, having a robust team of experts is key to operational excellence and market agility. Our traders collaborate seamlessly with state-of-the-art technology to deliver customized, dependable and
Zaven Sahakyan, CEO of Gabsys
responsive sports book solutions, optimizing value for our partners.
At Gabsys, we are convinced that the secret to thriving in this industry lies in the perfect blend of talented human traders and advanced technological tools.
For more information about Gabsys’s sports betting solutions you can visit the website or find them at 5N36 at ICE Barcelona.
ABOVE:
FIGHTING FOR ATTENTION
We speak with Game79 co-founder Niall Coen. By Mark McGuinness
Digital innovation in the attention economy is becoming increasingly challenging for sports betting brands, with rising acquisition costs and declining lifetime values. Sports Betting Operator sat down with Game79, the innovators behind custom-branded mobile keyboards, to explore how this ubiquitous, mobile tool is redefining user engagement for betting operators.
Tell us about Game79. How did it all come about?
Game79 was born from a shared vision of seasoned innovators in media, gaming and digital growth. Our founders recognized a gap in the market for a solution that seamlessly integrates technology, creativity and user engagement, leading to the creation of our unique, branded keyboard platform.
Our mission is clear: To deliver transformative digital experiences that bridge the gap between brands and users. By leveraging our team’s diverse expertise, we’ve built a product that provides unmatched value for both players and operators.
At its core, Game79 is a growth catalyst, helping betting operators reimagine the player experience. We don’t just deliver products; we deliver partnerships, ensuring that every client can thrive in the rapidly evolving digital landscape.
Game79 is launching branded keyboards specifically for sports betting operators and casinos. How is this product a good fit for them? Branded keyboards are a game changer for operators looking to deepen user engagement and drive better returns on their marketing spend. With nearly every interaction on a mobile device involving a keyboard, our solution provides operators with a unique opportunity to integrate their brand into the user’s daily digital life. Here’s why it works … The average smartphone user opens
ABOVE: Niall Coen, co-founder, Game79
their keyboard more than 100 times a day. By embedding a custom-branded keyboard into their app, operators can ensure their brand is always top of mind. This means more app openings, better retention and enhanced loyalty.
Our keyboards are designed for scalability and personalization. Operators can customize the keyboard’s functionality to include exclusive offers, dynamic content and social features like sharing bets or game predictions. This turns a traditional, transactional experience into an interactive, rewarding journey.
The keyboard also delivers real-time insights into user behavior, enabling operators to refine their strategies with data-driven decisions. From increasing app engagement to lowering acquisition costs, branded keyboards represent a cutting-edge solution for operators in a competitive market.
the app.
Sports betting has often been viewed as siloed and transactional. How does Game79’s technology change this?
Our branded keyboards shift the paradigm from isolated, transactional betting to a vibrant, community-driven experience. The keyboard integrates seamlessly with social and messaging apps, allowing users to share wins, predictions and insights directly within their conversations. This fosters organic brand visibility and makes betting a social, interactive activity rather than a solitary one. Additionally, our keyboards allow operators to communicate directly with users through banner notifications, exclusive offers and gamified experiences like reward points or challenges. This real-time engagement keeps users connected to the brand, even when they’re outside
By enabling community engagement and continuous interaction, Game79’s solution humanizes the betting experience, aligning it with the camaraderie and excitement of sports participation. It’s no longer just about placing a bet; it’s about being part of a shared journey.
Web3 and community are buzzwords for 2025. How can betting operators take advantage of these trends?
Web3 and community-driven strategies present exciting opportunities for operators to differentiate themselves in 2025.
Game79’s branded keyboards provide the perfect platform to integrate these trends seamlessly.
For instance, Web3 technologies can power tokenized loyalty programs, where users earn rewards or NFTs by using the keyboard. These assets create a sense of ownership and exclusivity, fostering deeper connections with the brand.
Operators can also leverage
SPORTS BETTING OPERATOR
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A highly regarded team of Internationally experienced journalists, all of whom have a wealth of knowledge in online and land-based gaming involving, legislation, e-commerce, responsible gambling along with the latest online operating systems and solutions.
decentralized platforms to build community spaces where players share tips, discuss strategies, and celebrate wins together. Our keyboard becomes a gateway to these communities, making interactions easy and fluid. Moreover, conversational data captured by the keyboard can inform personalized campaigns, ensuring that every user feels understood and valued. By integrating Web3 tools and emphasizing community, operators can transform passive audiences into engaged ecosystems.
What key collaborations is Game79 working on to enhance the keyboard’s adoption?
Content is central to the success of any digital product, and our custombranded keyboards are no exception. We’re partnering with leading sports brands, influencers and content creators to ensure our keyboard offers unrivaled value to users.
Through these collaborations, we’re curating experiences that blend functionality with entertainment. Imagine accessing live game updates, exclusive betting tips and influencerbacked campaigns directly through your keyboard. This level of integration turns the keyboard into more than just a tool — it becomes a hub for everything users care about. By working closely with brands and creators, we’re also ensuring
that the keyboard reflects the unique personality of each operator. Whether it’s custom sticker packs, gamified rewards or VIP access to events, our partnerships are designed to elevate the user experience and drive adoption.
What
makes Game79’s keyboard necessary for operators?
Game79’s branded keyboard is indispensable for operators looking to enhance user engagement and brand visibility. Users opening their keyboards over 100 times daily provide unmatched, continuous brand presence. The keyboard goes beyond functionality, offering enhanced engagement through features like direct notifications, exclusive offers and seamless social sharing, creating meaningful touchpoints with users.
Real-time analytics deliver actionable insights into user behavior, empowering operators to optimize marketing strategies effectively. Fully customiszble, the keyboard adapts to each operator’s needs, from unique designs to tailored functionalities. Additionally, its scalable SDK ensures seamless integration into apps, growing effortlessly with the operator’s user base. By turning a daily utility into a powerful engagement tool, Game79’s keyboard helps operators foster active, loyal communities, setting a new standard in digital innovation.
SHARED SPACES
An interview with J.J. Williams, co-founder and CEO of DevilFish
Poker.
By Mark McGuinness
Social, free-to-play poker has transformed one of the world’s oldest card games for the next generation of players. Sports Betting Operator caught up with DevilFish Poker’s co-founder and CEO JJ Williams, to talk about the resurgence in poker and Web3 innovations.
DevilFish Poker is a well-known destination for poker players. Can you tell us how it came about?
Inspired by the legacy of Dave “Devilfish” Ulliott, a legendary poker figure who is sadly no longer with us but whose fearless spirit continues to inspire poker enthusiasts worldwide, Devilfish Social Poker reflects a bold vision. Our brand was founded by a passionate team of poker and Web3 tech aficionados committed to revolutionizing the gaming industry by integrating blockchain technology into social gaming.
We believe Devilfish is a groundbreaking platform that merges the excitement of poker with the revolutionary potential of blockchain technology. Our mission is very clear: We are creating a free-to-play, socialpoker community where skill, strategy and camaraderie reign supreme. By combining the classic poker game play with unique digital assets, Devilfish delivers an engaging, entertaining and unparalleled experience to players for today — and for tomorrow.
We stand firmly on the principles of inclusivity, innovation and community. Our platform empowers players to
ABOVE: J.J. Williams, co-founder and CEO of DevilFish Poker
connect, compete and express their individuality through exclusive NFT (non-fungible tokens) Pass rewards. At Devilfish, we assert that poker is not just a game: It is a lifestyle and a shared passion that showcases strategic brilliance within the community.
We are not just redefining poker for the digital age. We are setting new standards while honoring the timeless traditions of the game. We welcome everyone to the DevilFish table.
Why are we seeing a resurgence in social poker?
The resurgence of social poker and free-to-play business models is a powerful reflection of a significant shift in the global gaming and entertainment landscape. This is fueled by the social-experience economy and the modern consumer’s insatiable demand for connection, interaction, and shared experiences.
Players – and I would include not just poker players but sports bettors and casino players – are actively seeking authentic social engagement in an increasingly immersive and visually captivating digital world. Poker stands out as the perfect medium for merging competition, strategy, community and camaraderie.
At its core, social poker is all about community building. Today’s players are not merely looking for games or passive, siloed entertainment. They are on the hunt for networks, friendships, emotional stimulation, and dynamic environments where they can express themselves and share thrilling moments.
Social poker platforms like Devilfish are meeting this increased demand head on by creating immersive, socially connected, community ecosystems. Here players engage through unique avatars, digital assets, collaborative tournaments and competitive leaderboards. These elements heighten the poker experience beyond a simple transaction, transforming it into an exhilarating social-community event.
The rise of the social experience economy underscores the critical importance of entertainment that fosters emotional connections. This is clear when you look at the games industry and high-growth crash games such as Aviator, which has millions of monthly players. Players want to feel part of something larger, experiencing a sense of belonging and purpose. Social poker delivers on this by actively
promoting interaction, collaboration and friendly competition.
Platforms like Devilfish lead the way by leveraging cutting-edge technologies like blockchain, providing exclusive rewards, unique digital assets and personalized opportunities that supercharge engagement. The resurgence of social poker is not merely about gameplay. It is about community, shared experiences, and a bold redefinition of what entertainment signifies in today’s digital age, where everyone is vying for attention and a compelling sense of purpose.
You mentioned community. How important is this or is it merely just another buzzword?
The marketing landscape for sports books, sports betting and online casinos is rapidly evolving. It is driven by the need to create seamless, frictionless and integrated experiences that engage today’s hyper-connected
players. Central to this is the alignment of brand identity across various platforms, leveraging powerful emotional marketing to forge deep and meaningful connections between the platform and its players.
As we enter the second half of the decade, it is imperative to prioritize community-building as a cornerstone of effective marketing strategies. By fostering shared experiences, social engagement, and collaborative events, sports books and casinos will not only enhance player loyalty but also turn them into passionate advocates for the brand.
The integration of brand consistency, emotional resonance and community initiatives will be the dominant force shaping trends throughout 2025. It is a fundamental marketing truth: Consumers do not simply buy products. They buy feelings and experiences. According to Harvard University professor Gerald Zaltman, a staggering 95 percent of purchasing
decisions are subconscious and driven by emotions.
Sports books and casinos must understand that their focus should extend beyond the mere number of products, games, tables or services. Instead, they must prioritize the feelings and experiences they deliver. The crucial question that marketing teams must tackle is how each touchpoint — or micro-touchpoint — affects player emotions. This understanding is essential before green-lighting yet another complex sign-up welcome offer, which often fails to resonate with today’s discerning audience.
In the modern gaming industry, players seek more than just physical transactions. They demand experiences that engage, inspire and resonate with them. The strength of a brand, along with emotional resonance, is critical for success in sports betting and casino marketing. A strong brand serves as a beacon, clearly embodying the values, promises and distinct qualities that set a casino apart in a cluttered marketplace. It establishes clear expectations for trust, entertainment and exclusivity.
Building a community is not just an option; it is a necessity for cultivating loyalty and advocacy. By weaving compelling narratives and fostering a sense of togetherness, brands can create a robust community. In a world where experience reigns supreme, a powerful brand that effectively combines community-building and emotional engagement will create lasting impressions, turning players into lifelong ambassadors.
Is there a natural product fit between sports betting and social poker?
Sports betting and social poker share a compelling synergy, stemming from their common player behavioral
interests of strategy, competition and social interaction. Both engaging activities attract individuals who relish the thrill of calculated risk and find excitement in high-pressure decision making. This unique blend makes them ideal cross-sell product partners in captivating the interest of the contemporary, experience-driven, economy-player profiles.
Both social poker and sports betting excel in cultivating vibrant communities. Players and bettors alike are naturally drawn to platforms that allow them to share their experiences, celebrate their victories, and engage in spirited, friendly and socially responsible competition. By nurturing these connections, brands can create rich ecosystems that extend beyond the mere gameplay, forging deeper relationships that keep users engaged and loyal to the platform.
For today’s players, entertainment is not only about the activity itself
but also about the collective journey they embark upon with their peers. Innovative platforms like Devilfish effectively bridge these interests by offering interactive, communityfocused environments where poker enthusiasts and sports bettors can coexist harmoniously. In these shared spaces, they can connect, collaborate, and enjoy each other’s experiences. This intersection of interests enhances both product categories, reinforcing their significance in today’s intertwined, socially driven marketplace.
DISTORTED MARKETS AND CONSUMER MIGRATION
The negative impact of in-play betting restrictions
It is difficult to overstate consumer demand for in-play sports betting products. Their widespread and growing popularity is driving the growth of sports betting markets internationally. Markets that regulate and license in-play betting are benefiting from expanded market oversight and tax revenues. However, the data shows that traditionally conservative markets that restrict access are inadvertently providing even stronger incentives for consumers to seek out unlicensed, offshore betting operators.
Assessing the growth trajectory for in-play betting markets
IBIA’s 2024 The Availability of Sports Betting Products: An Economic and Integrity Analysis forecast that in-play betting will hit $47 billion in gross gaming revenue (GGR) by 2028, representing 51 percent of all global sports betting. While it should be noted that a handful of large markets, such as Japan and the U.S., still have relatively low levels of in-play wagering, North America is forecast to see significant growth to 65 percent
in-play by 2028.
In-play betting is predominately an online product. Almost half (47 percent) of all online wagers are forecast to be made in-play (or live) during sporting events in 2024 (up from 24 percent and $1.4 billion in 2010), as opposed to pre-match, generating $28.4 billion in gross win globally. In Europe, it accounts for 54 percent of all online bets.
By contrast, the leading global operators who contributed to this report returned an average of 66 percent of turnover from in-play betting, leading to 58 percent of gross win (against 42 percent pre-match) in 2023.
A lack of in-play betting is one of the most distortive restrictions in sports betting markets.
Regulatory approaches impact consumer channeling rates
The regulatory-and-licensing framework provides the core foundation of any policy on the availability of betting services, both land-based and online. There are a variety of approaches adopted globally, but the four main regulatory models in operation are: prohibition; monopoly/single license; limited number of licenses; and an unlimited number of licenses.
The perceived success of the model employed is open to different interpretations based on the focus of the policy in operation. However, if the fundamental policy approach is to have control and oversight of the market, then the compliance of consumers (onshore channeling) with that policy can be considered a core indicator of success. By contrast, consumer migration to unlicensed offshore services results in jurisdictions losing oversight and control of consumer gambling activity, taxable revenues, as well as eroding protections against sports bettingrelated match-fixing and fraud.
The impact of in-play restrictions: Case studies from Australia and Germany
In-play bet restrictions have intensified an already burdensome fiscal operating position in both Australia and Germany.
Australia has banned in-play sports betting for its licensed, online sports betting operators, although it is allowed via telephone and through monopoly-run, land-based channels. This online prohibition is widely understood to be the primary reason for Australia’s low onshore-consumer channeling rate for online sports wagering, which is expected to remain relatively stagnant (78 percent in 2022 to 79 percent in 2028).
Germany does allow in-play betting but only on a limited number of markets, notably for football (soccer).
All other jurisdictions in this study, and indeed more generally where betting is regulated, permit in-play betting; any limitation on product availability is focused on particular markets such as yellow/red cards in football.
Enhancing sports integrity: Debunking myths surrounding in-play betting risks
In-play product restrictions greatly favor offshore operators and hinder the protection of the onshore market. An oft-used rationale for limiting or prohibiting in-play betting is a supposedly heightened integrity risk. However this argument lacks a firm evidence base: While in-play does have a higher number of suspicious betting alerts, that should be viewed in the context of the increasing growth of in-play betting vs. pre-match. Moreover, the vast majority of in-play betting markets can be offered pre-match. An analysis of the
suspicious betting alerts covering all sports in recent years shows that around half (49 percent) had a prematch element.
National product restrictions also fail to recognize that the corruption of sporting events is a global issue and the vast majority of suspicious bets are placed outside of the jurisdiction where the potentially corrupted sporting event takes place. In the case of football (soccer), for example, that is around 90 percent offshore, while basketball is 97 percent.
Prohibiting or restricting in-play betting does not unduly hinder corrupt activity, especially with a sizable offshore unregulated (or illegal) market available, notably based in Asia. The absence of that core product does, however, ensure that the onshore market does not adequately meet the appetites of many consumers, thereby driving them offshore for the in-play alternative and resulting in a lower consumer spend onshore.
Harnessing the benefits of consumer demand for in-play betting
Restrictions on the availability of betting, especially when involving a key product like in-play betting, does not benefit consumer protection
or sporting-integrity concerns. The regulated and taxed betting operators licensed in jurisdictions such as Australia and Germany are expected to continue to struggle against an unhindered offering offshore, driven by an increasing consumer demand for in-play sports betting options.
Based on the split of in-play vs. pre-match gross win globally, and the detailed market data received by operators established in Australia and other markets globally (many allowing in-play betting), the impact of prohibiting that product can be ascertained. Australia’s onshore online sports betting gross win of $859 million in 2022 implies that an unrestricted in-play product would add a further $1.1 billion of gross win per year and tax revenues of over $500 million.
In reality, there would be substantial substitution from pre-match to inplay, so the resultant market size and tax uplift would be much lower. However, over a five-year period, assuming 35 percent cannibalization of in-play betting on existing pre-
match gross win (the midpoint of our range), this would imply that the legalization of online in-play could lead to $1 billion of incremental tax revenues, as well as a significant reduction in the offshore market. However, this could range from $482 million to over $1.8 billion, depending on the level of cannibalization of the in-play product.
Operators that contributed to this report with a licensed German offering reported a 10 percent lower in-play turnover in their German business, compared to their global business. If in-play restrictions were removed, there is no reason to believe that the in-play percentage in Germany would be any lower than the global average. To achieve the global average for these operators, in-play wagering would have to increase by 62 percent, which would lead to an increase in total turnover of 36 percent. For the five-year period of 2024-28, this would be expected to generate $416 million of incremental tax revenue for German states
However, a 36 percent increase in wagering activity would still leave German gross win per adult materially lower than comparable markets. This shows that in-play restrictions are not the only product headwinds in the market.
Football, basketball and tennis account for 86 percent of total sports betting turnover and 90 percent of gross win in the market. However, given the current catalogue of betting restrictions, there are periods
over the summer where Germany will have practically no football or basketball and limited in-play tennis wagering. In-play is a particularly prominent product in tennis wagering, representing almost 90 percent of the sport’s betting turnover globally.
Maximizing onshore channelization and thereby taxable revenues requires an attractive product offering. In-play betting is fundamental to achieving that. A comparison of the impact of in-play restrictions and their adverse effect on onshore online consumer channelization is readily apparent when contrasting the regulatory regimes in Great Britain and Ontario, which both permit a wide in-play product offering, as opposed to Australia and Germany.
Over the same five-year period, Great Britain is expected to lose $46 million in taxable revenues offshore, equivalent to around only nine percent of the tax revenue lost in Australia
and seven percent of the taxes lost in Germany. Similarly in-play-permissive markets such as Italy, Denmark, and Ontario are also expected to continue to provide noticeably more attractive onshore markets for their consumers, with the resultant fiscal and regulatory benefits from higher onshore channelization.
Ontario – which only opened its market for private online operators in April 2022 – immediately overtook Germany’s onshore channelization and is expected to overtake Australia during 2023-24. The Canadian province is forecast to reach 97 percent onshore channeling by 2028. This is all the more impressive when that onshore growth is in part a result of drawing consumers away from a well-established offshore market. It is the challenge that faces both Australia and Germany, and where both are constrained by the absence of an important, online wagering product.
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DOUBLE FAULT
A questionable ITF betting ban is losing Portugal and Germany tax revenue
Portugal prohibits betting on all International Tennis Federation (ITF) tennis tournaments. It is therefore no surprise that the Portuguese market generates a significantly lower proportion of wagering turnover on tennis than neighboring Spain or Italy, where betting on ITF is permitted. If Portugal were able to increase the proportion of wagering on tennis to the level seen in Spain and Italy, this would lead to an extra $122 million in tax revenue over the next five years. Based on data from IBIA’s 2024 The Availability of Sports Betting Products: An Economic and Integrity Analysis, this article considers the flawed
rationale for any ban on betting on ITF tennis.
Understanding the global tennis betting market
Global tennis gross gaming revenue (GGR) is expected to reach $4.4 billion in 2024 and is forecast to be over $6 billion annually by 2028. Tennis is one of the most popular sports globally for betting, notably online. This is due to the sheer volume of matches and the fact that it is played worldwide; there is tennisbetting product available around the clock. It is particularly strong in Europe, where its GGR is second only behind the globally dominant football (soccer) product.
The main (or traditional) tennis tours are governed by separate entities, namely three independently run Grand Slam tournaments: Association of Tennis Professionals (ATP), Women’s Tennis Association (WTA) and the International Tennis Federation (ITF). These tours provided nearly 4,000 tournaments across 2021-23.
The vast majority (76 percent) of those main tour tennis tournaments were governed by the ITF. Some jurisdictions have, however, determined to prohibit betting on ITF competitions due to a perceived, increased integrity risk.
For example, Portugal prohibits betting on all ITF tennis, while Germany prohibits the vast majority of that tour (98 percent of 2023 tournament numbers), only permitting ITF W100 events — and that was only added to the permitted catalogue published in late 2023. Betting on ITF W100 matches is also limited to the match- and tournament-winner markets, thereby also prohibiting betting on nearly 90 percent of the permitted-bet-type catalogue in Germany, which is already significantly restricted compared to most other regulated markets.
The updated permitted sports catalogue in Germany includes the addition of the men’s ATP Challenger 175, 125 and 100 tournaments (added to the Grand Slams and main ATP events), but excludes Challenger 75 and 50 events. That latter two
made up nearly 60 percent (115 of 196 tournaments) of the Challenger Tour in 2023.
As with betting on ITF W100 matches, ATP Challenger Tour betting is also limited to the match- and tournamentwinner markets, again prohibiting betting on nearly 90 percent of the permitted-bet-type catalogue in Germany. The Netherlands also limits the markets on which tennis betting can take place, prohibiting betting on the win/loss of a specific game or set, and also banning bets on double faults.
The baseline: Integrity alert trends in global tennis betting markets
IBIA’s tennis alerts have consistently accounted for the majority of the alerts reported to the ITIA, representing 71 percent in 2022, for example. However, the International Tennis Integrity Agency (ITIA) also provides publicly available reports of suspicious betting, reported to it on a quarterly and annual basis from all parties that provide such alerts. The ITIA’s statistics have therefore been employed in this study as the most representative measure of potential corruption on the main tennis tours.
It is important to note that main-tour tennis alerts have shown a marked reduction during the period 2017-23 for both the ITIA and IBIA. The ITIA’s figures for the most recent years of 2021-23 have been the focal point for this analysis, as tennis was particularly hit by the reduction in sporting events during 2020. More-recent data therefore provides a more accurate picture.
The ITF Tour: Balancing betting availability and integrity risks
The main focus of the availability of betting on tennis has been the ITF Tour. Some jurisdictions have severely restricted or prohibited access to that product. It is an approach that is presumed to be predicated on the number of suspicious-betting alerts generated by that tour.
Whilst the ITF Tour does generate the highest number of betting alerts, that should be viewed in the context of the sizable number of tournaments (and matches) provided by that tour. That amounted to 76 percent across the main tours 2021-23. It should be
noted that the ITF has introduced a range of mitigating measures to protect the integrity of its events and that the ITIA continues to employ its own initiatives, from investigations and sanctions to player education. Theset have clearly had a positive impact. While the alert numbers may be higher, as a result of a significant number of additional tournaments, it is clear from a consideration of the ITF Tour that it does not pose a significantly heightened risk compared to the other tours, from an alert to tournament:match ratio. A deeper consideration of ITF alerts is necessary to analyze that risk more completely, notably across the various levels of the global events governed by that tour.
While the ITF men’s tour consists of M15 and M25 events, the women’s tour consists of a wider array of competitions: W15, W25, W40, W60, W80 and W100 events. Of those competitions, men’s M15 events alone accounted for nearly half (47 percent) of all ITF alerts in 2021-23, with that rising to 72 percent with M25 added. All women’s ITF events combined accounted for only 28 percent of ITF alerts and only 18 percent of all main tennis alerts over the same period.
A blanket ban of all ITF tennis seems a disproportionate and un-evidenced approach. The men’s ITF Tour generates the majority of tennis alerts, based on data from both IBIA and the ITIA. The number of alerts, and the associated risk profile, for ITF women’s tennis is therefore significantly lower. Yet it appears to be categorized within a wider, general ITF higher-risk classification.
Tour is widely permitted, including in Portugal. However, in that jurisdiction and others, the equivalent ITF W40100 is not permitted. Only the WTA 125 is allowed.
To put this into context, comparing the integrity risk for the men’s ATP
The ITIA’s data shows that ITF W80-100 events combined have two alerts for 64 tournaments and 4,277 matches, the latter equating to one alert for every 2,139 matches. The ITF W25 tour is of a similarly low integrity risk, with nine alerts from 518 tournaments and 38,052 matches over the same three-year period, equating to one alert for every 4,228 matches.
Combined, the W25 and W60-100 had only 11 suspicious betting alerts across 42,329 matches at nearly 4,000 matches per alert. To enforce a complete ban for 77 percent of the main tennis tours from the betting product is not proportionate. It also clearly acts as driver for consumers to access those ITF products via the offshore market.
It is important to recognize that ITF W40-100 competitions, along with the WTA 125, are equivalent to the men’s ATP Challenger Tour. The Challenger
Challenger Tour and ITF women’s equivalent W40-100 and WTA 125 during 2021-23 shows that the women’s tour is again significantly lower, accounting for only 20 percent of alerts, compared to 80 percent with the ATP Challenger Tour.
The Challenger Tour is an important part of the tennis-betting product. Its prohibition would make the offshore market attractive to consumers wanting to wager on that tour. It is therefore important that the Challenger Tour is permitted with licensed onshore operators, but similarly also valid that the ITF W40100 (along with WTA 125) is permitted for betting as an equivalent-level competition, one which shows a low integrity-risk profile.
Consumer demand:
Unlocking tennis betting’s revenue potential in Europe
Tennis betting is particularly strong in Europe, which is expected to provide nearly 60 percent of the global total of $4.4 billion in GGR in 2024. That is forecast to reach $6.3 billion globally by 2028, primarily driven by European consumer spend, and is expected to reach $3.3 billion in GGR in that region. Strong growth is also expected in North America, with a doubling in tennis betting GGR to around $1 billion. It will more than double in Africa, to $700 million by 2028.
ITF competitions account for 17 percent of tennis wagering globally and 43 percent of all matches on which operators offer wagering. There is clear demand for this product. Prohibition will lead to a significant reduction in total tennis-wagering activity, as well as being a potential driver for consumers seeking the product offshore.
The ITF and ATP Challenger tours combined account for 56 percent of all matches globally on which wagering is offered by online sports betting
operators and over 30 percent of all tennis turnover. If Germany were able to reach the same proportion of wagering on tennis as in other countries, this would lead to over $113 million of extra tax revenue over the next five years.
The approach in Germany to significantly limit the availability of ATP Challenger is undoubtedly counterproductive — it is forecast to generate $60 billion of gross win globally in 2024 — and further compounds the adverse impact on onshore channelization from the prohibition of 98 percent of the ITF Tour.
PREACHING A NEW CREED
Sportingtech supercharges the live-casino experience with CreedRoomz partnership
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About Sportingtech
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THINKING GLOBALLY
Soft2Bet doubles cash flow in 2024 and reports strong financial results
Soft2Bet, a leading B2B turnkey solutions provider, unveiled its 2024 Growth Report on January 9. The report highlighted remarkable financial and compliance success, product innovation, industry recognition, and forward-thinking insights from key executives and iGaming experts. In 2024, the company reported doubled EBITDA, year over year, and a significant increase in consolidated group revenue. These milestones reflect Soft2Bet’s expansion and strengthened presence in regulated markets, as well as industry-leading product innovation and credibility on a global scale. To sign up to review the 2024 Growth Report, please visit http://soft2bet.com/report
Market expansion
In 2024, Soft2Bet expanded its global presence by securing licenses in several key regulated markets. The company entered Ontario and Mexico with B2C licenses, and expanded in Sweden with three new B2C licenses. The company also obtained B2B licenses in Greece and Romania, and additional licenses in Sweden. Looking ahead, Soft2Bet is making significant headway in entering the U.S. market – focusing on New Jersey – aligning with its goal to expand in North America’s rapidly growing iGaming sector. Additionally, a planned expansion into Spain will further cement its European leadership, particularly in online sports betting and casino gaming.
FEATURE: SOFT2BET
Also, in 2024, Soft2Bet finalized two major turnkey deals in Mexico and Nigeria while also securing our first MEGA partnership with a leading European operator. “At Soft2Bet, we have redefined traditional gamification through our leading Motivational Engineering Gaming Application (MEGA) solution, driving player engagement. This cutting-edge strategy has significantly impacted our brand’s performance, received industry recognition, driven sustainable revenue growth, and showcased stronger ROI while successfully expanding into new markets,” stated Uri Poliavich, founder and CEO of Soft2Bet.
Financial performance
The principal activities of the group remained unchanged from prior years. Soft2bet retained its trajectory to capitalize on what was established in previous periods, primarily the continuous expansion of its licensed footprint across new markets within Europe and beyond. At the same time, its innovative B2B product offering demonstrated once again its superior quality and effectiveness across the industry. All this is visible in the unaudited consolidated numbers for 2024. Based on accurate forecasts, Soft2Bet 2024 consolidated EBITDA is projected to double the amount of the prior reporting period.
Product innovation and development
Soft2Bet’s financial growth in 2024 was driven by enhancements to MEGA, and the launch of AI-driven tools that personalize game recommendations and promotions. MEGA became available as a stand-alone solution, allowing operators to implement gamification and advanced retention tools. This resulted in a 65 percent increase in net gaming revenue (NGR),
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Industry recognition
This relentless drive for innovation and expansion propelled Soft2Bet’s commercial success and earned the company industry-wide acclaim. In 2024, Soft2bet secured 38 award nominations –a 322 percent increase from 2023 – and 10 accolades highlighting product innovation (a 233 percent increase).
Corporate social responsibility
Soft2Bet’s commitment to corporate social responsibility (CSR) drove nine initiatives this year, including blood drives, breast cancer-awareness sessions, community cleanups and village revitalization projects. The company donated over €821,000 to seven NGOs, and supported 34 organizations and donors.
Industry contribution
In September 2024, Soft2Bet Invest was recognized for “Outstanding Contribution to the Gaming Industry 2024” as a company that significantly impacts the industry through technical innovation, mentoring and investment. Today, “Soft2Bet Invest,” a €50 million iGaming innovation fund for casual gaming entrepreneurs, focusing on AI, UX analytics and high-margin gaming solutions.
About Soft2Bet
Soft 2 Bet is a leading iGaming turnkey solutions provider that delivers high-quality products and services for online gambling operators. The company is known for its Motivational Engineering Gaming Application (MEGA), a casino and sports betting solution that has been proven to enhance retention and engagement. Soft2Bet has deployed numerous successful iGaming brands and holds more than 13 global licences.
ROMAN INSPIRATION
Caesars Entertainment teams with Inspired Entertainment on a new slot offering
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