After its acquisition by Entain in 2023, Angstrom was often mentioned but seldom heard from. Frequently referenced on earnings calls not just by Entain but also by partners such as BetMGM and MGM Resorts, Angstrom was largely recognized as a key component of SGP but lacked public visibility regarding its operations.
That began to change with a recent press release from Entain highlighting Angstrom's development of a free-to-play game called Seven. This announcement suggests a significant shift for Angstrom, indicating its plans for innovation in the betting product landscape.
Ross Jarvis, Angstrom's director of strategy, reflected on this evolution, stating, "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."
Angstrom was initially acquired for its expertise in pricing and modeling for US markets, and the Seven game points to a trend where specialist B2B businesses may evolve into internal development shops. These teams leverage their technical skills and industry expertise to create products that go beyond their original purpose.
Leo Gaspar, founder of Adria Nexus Consulting and former co-founder of Huddle, noted that the boundary between delivering technology and designing consumer solutions is blurring. He stated, "The strongest specialist companies increasingly understand not only the technology they provide, but the consumer problem that technology can solve. Once that happens, it is quite natural for them to move further into product development."
While major operators like Entain have sizable technology and product teams, these teams often focus on maintaining platforms, managing migrations, ensuring regulatory compliance, and other operational tasks. Consequently, they may spend more time on routine issues than on developing new products.
Marc Thomas, managing director at Algosport, characterized some operator platforms as “a little Frankenstein,” indicating they have been pieced together through years of modifications. This situation leaves internal teams often tied up keeping existing systems operational rather than innovating.
The creation of the Seven game began with discussions between Jarvis and Angstrom CEO Jonathan Blezard, eventually leading to a focused 18-month development process. Angstrom's expertise in modeling influenced critical aspects of the game, using historical English Premier League data to shape the prize structure and scoring probabilities.
Gaspar emphasized that extensive knowledge within specialist companies can provide a decisive advantage. "The best ideas often come from understanding what is technically possible before everybody else does," he noted.
Operators play a vital role in scaling experimental ideas by providing necessary assets such as distribution networks, brand access, customer data, and regulatory compliance expertise. This allows specialists to maintain focus on their specific areas of knowledge while drivers of innovation remain separate from broader corporate strategies.
However, challenges can arise when operators impose their established processes on newly acquired specialists. Thomas advises to allow these teams some autonomy: "Basically, try and leave them alone." He acknowledges some integration is necessary but insists it should occur gradually.
Gaspar differentiates between integration and absorption. He explains that integration implies sharing resources like distribution and regulatory expertise, while absorption risks turning a distinctive specialist into just another internal team competing for limited company resources.
The question of whether a specialist can still rapidly develop and test ideas compared to the broader organization may serve as a litmus test for their value post-acquisition.
The launch of the Seven game also highlights the strategic potential of reusable intellectual property. Although currently focused on Premier League football, Entain plans to expand the game into additional sports and markets. Angstrom has already begun examining adaptations of its mechanics for different sporting events, such as NFL touchdowns.
Gaspar argues that reusable resources can be more strategically advantageous than bespoke developments. He stated, "You might have one core piece of IP underneath several very different consumer propositions. For the operator, each additional implementation becomes faster and cheaper. For the supplier, development creates an asset rather than simply another completed project."
Algosport is also responding to similar demands by allowing partners to create extra services built around its core Blackbox software, positioning it as a resource for innovative companies.
The commercial benefits of these collaborations might not always appear as direct revenue; they could enhance various metrics including customer acquisition, retention, frequency, and differentiation. Additionally, using reusable technology can streamline development processes and lessen reliance on outside suppliers.
Yet, independent B2B companies face risks. A supplier that becomes too aligned with one operator might turn into a de facto internal team, with its strategy and income dependent on that client's roadmap. Gaspar advises firms to focus on customizing the final product rather than reconstructing the entire apparatus for each client.
Not all capabilities will be developed in-house either. Thomas notes that even large operators may hesitate to invest in proprietary development for lower-revenue segments, while independent suppliers can achieve economies of scale by serving multiple clients.
The rise of the betting development shop reflects a pivotal shift. These entities can exist within operators, maintain independence, or find a balance between these roles. Ultimately, the competitive landscape will hinge less on which organization employs developers and more on operators assembling specialized skills and transforming them into desirable products for consumers.
