After its acquisition by Entain in 2023, Angstrom remained a frequently mentioned entity within industry discussions but rarely took center stage itself. Its significance was often reiterated during earnings calls by Entain, BetMGM, and MGM Resorts, yet public understanding of Angstrom was limited to its role as a critical asset in the SGP portfolio. Recently, however, that narrative has shifted following a press release from Entain showcasing Angstrom’s development of a free-to-play game named Seven.
This announcement marks a pivotal moment for Angstrom, indicating that the company is beginning to emerge from behind the scenes. “If you had told me – or anyone on the leadership team – a couple of years ago that building a customer-facing, free-to-play (F2P), mass-market app, and creating a brand as well as a product, would be on Angstrom’s roadmap, I don’t think many people would have placed that bet,” said Ross Jarvis, Angstrom’s director of strategy.
Angstrom was brought into the Entain fold largely due to its expertise in US pricing and modeling. The introduction of the Seven F2P game signifies a notable evolution in Angstrom's capabilities, hinting at a trend where specialized B2B companies evolve into internal "dev shops"—teams that leverage their technological and sector knowledge to create products beyond their original functions.
Leo Gaspar, founder of Adria Nexus Consulting, observes a changing landscape where the boundaries between supplying technology and designing consumer solutions are becoming blurred. “The strongest specialist companies increasingly understand not only the technology they provide but the consumer problem that technology can solve,” he suggests.
As major operators maintain extensive technology and product teams, these groups often find themselves bogged down with responsibilities such as platform maintenance, regulatory compliance, and product localization. According to Marc Thomas, managing director at Algosport, many operator platforms resemble a “little Frankenstein,” leading internal teams to spend significant time on upkeep instead of on innovating new products.
Focusing on specialized expertise can enhance efficiency and innovation. Seven’s creation began with a concept exchange between Jarvis and Angstrom CEO Jonathan Blezard, and after Entain’s approval, the project underwent an 18-month development cycle influenced by Angstrom's modeling acumen. The use of historical English Premier League data allowed the team to shape the game's prize structure and scoring probabilities effectively.
Gaspar points out that having concentrated expertise offers specialists a distinct advantage during exploration phases. “The best ideas often come from understanding what is technically possible before everybody else does,” he states.
While operators possess the necessary resources to scale experimental initiatives—such as distribution channels, customer data, and compliance expertise—the specialists focus on niche knowledge, allowing them to test concepts without getting tied down in broader corporate strategies.
However, challenges can arise when operators that acquire these agile specialists enforce processes that can stifle their innovative spirit. Thomas advises allowing acquired teams to operate with a degree of independence.
“Integration means giving the specialist access to the operator’s essential resources; absorption would mean turning it into another development unit competing within the same organizational structure,” Gaspar clarifies. “The first can strengthen the acquired company; the second risks eliminating what made it valuable.” He challenges organizations to ensure the specialist can still deliver meaningful experiments swiftly, maintaining their speed and creativity.
Seven also reflects the potential of reusing intellectual property. Initially, Entain has launched it focused on Premier League football, but there are plans to adapt it to other sports and markets. For instance, Angstrom is already assessing how its scoring mechanics could translate to NFL touchdowns.
Gaspar emphasizes that reusable capabilities can offer more strategic value compared to custom developments, provided these do not result in simply identical white-label products. “You might have one core piece of IP serving several distinct consumer propositions,” he explains. “For operators, this means each new implementation is faster and more cost-effective. For suppliers, it transforms development into a valuable asset instead of just another task completed.”
Algosport has encountered similar demands. While its primary products operate through its Blackbox software, partners are now using that technology to create additional services. Thomas notes that this adaptability elevates Algosport from a mere B2B supplier to a resource or partner for innovative companies.
The economic benefits of these partnerships may not always directly reflect in revenue. New offerings can enhance customer acquisition, retention, and engagement. Utilizing reusable technology can also lower development costs and reduce reliance on external suppliers.
Nevertheless, independent B2B firms face inherent risks. A company that becomes too integrated with a single operator may evolve into a custom development team beholden to that client’s demands. Gaspar asserts that the key lies in personalizing the final phases of development while not reconstructing foundational elements for each client.
Ultimately, not every service will be pulled in-house; Thomas argues that even major operators might hesitate to pursue proprietary tech for less lucrative sports. The betting development shop has thus positioned itself within an increasingly valuable intermediary space, whether functioning within an operator or maintaining independence.
The competitive landscape will increasingly focus on the ability of operators to harness specialist technologies and convert them into appealing products for consumers.
