Following its acquisition by Entain in 2023, Angstrom was frequently mentioned in discussions but seldom heard from directly. This changed with the recent press release from Entain that highlighted Angstrom's development of a free-to-play game called Seven, marking a new phase for the company.
Ross Jarvis, Angstrom’s director of strategy, indicated that few would have predicted the company’s direction toward creating a mass-market app focused on free-to-play options. Angstrom was initially acquired for its expertise in pricing and modeling in the U.S. betting market, but the introduction of Seven suggests a shift toward fully formed product development in response to emerging market needs.
The company is transitioning towards becoming a more independent development team—termed "dev shops"—specializing in utilizing both technological and domain expertise to innovate outside their initial scope of work. According to Leo Gaspar, founder of Adria Nexus Consulting, many specialist firms now recognize the dual role of delivering technology and addressing the problems that technology can solve for consumers.
Rather than maintaining sprawling, outdated platforms, operators now employ substantial technology and product teams, who often find themselves bogged down with existing system upkeep rather than advancing new offerings. Marc Thomas of Algosport likened some platforms to "a little Frankenstein" due to years of patchwork modifications, meaning internal teams spend more time maintaining systems than innovating.
Specialists like Angstrom can focus their efforts, allowing for rapid idea development. Seven’s creation stemmed from strategic discussions between Jarvis and CEO Jonathan Blezard, leading to 18 months of development that incorporated extensive modeling based on historical data from the English Premier League.
Gaspar believes that specialists possess a significant edge in these exploratory phases. He noted that innovators often derive the best ideas by grasping what is technically feasible ahead of others. Operators provide essential resources like brand visibility, customer data, and infrastructure, which allow specialists to concentrate on refining ideas without being overwhelmed by broader corporate directives.
However, challenges can arise when operators impose their processes on these agile teams. Thomas advises allowing these teams a level of autonomy, arguing that while some integration is necessary, it should be gradual. Gaspar distinguishes between integration—which allows specialists to harness operators’ assets—and absorption, which may dilute their effectiveness.
The introduction of Seven reflects the potential for reusable intellectual property. Initially launched around Premier League football, Entain aims to extend the game’s reach to different brands, markets, and sports. Angstrom is considering how its scoring mechanics could adapt to American football dynamics.
Gaspar posits that reusable capabilities are more strategically valuable than custom solutions, provided they offer varied consumer applications. This efficiency benefits operators by speeding up implementation, while suppliers create valuable intellectual assets.
Algosport also notices similar trends. Its core offerings via Blackbox are flexible enough to allow partners to develop additional services, enhancing Algosport’s role beyond a mere supplier to becoming a valuable resource for companies focused on future growth.
However, independent suppliers face risks when they align too closely with one operator, transitioning into teams that rely entirely on that client. Gaspar advises maintaining flexibility by customizing final touches instead of redesigning foundational systems for every client.
Not all capabilities warrant in-house development. As Thomas points out, major players might hesitate to invest in specialized development for lower revenue sports. This establishes the betting dev shop as a crucial intermediary entity that can operate either within or alongside an operator’s structure. The pivotal question now lies in how effectively operators can harness these specialized skills to create offerings that genuinely resonate with customers.
