After being acquired by Entain in 2023, Angstrom remained largely in the background, frequently mentioned during earnings calls by Entain, BetMGM, and MGM Resorts, yet little was known about its operations beyond its role as a key component in the SGP framework. However, this is starting to change. Recently, Entain publicly highlighted Angstrom's involvement in developing a free-to-play game called Seven, indicating a shift in visibility and focus for the company.
This development suggests a new phase for Angstrom, pointing to how betting products may evolve moving forward. According to Ross Jarvis, director of strategy at Angstrom, no one two years ago would have predicted that building a customer-facing, mass-market app, along with creating a brand and product, would be part of Angstrom’s plans.
Acquired primarily for its expertise in US pricing and modeling, Angstrom’s new direction with Seven seems to open the door for specialized B2B businesses to operate as internal development teams. These relatively autonomous groups leverage their technology and expertise to create products beyond their initial scope. Leo Gaspar, founder of Adria Nexus Consulting, explains that the best specialist companies understand both the technology they offer and the consumer problems it can solve, facilitating a natural progression into product development.
While major operators typically have large tech and product teams, these teams face the challenge of balancing product maintenance, migration management, regulatory compliance, and more. Marc Thomas, managing director at Algosport, notes that some operator platforms have become hybridized over time, leaving their internal teams heavily occupied with upkeep instead of fostering innovation.
Focusing on specialists allows for greater efficiency and creativity. The process for Seven kicked off with discussions between Jarvis and Angstrom CEO Jonathan Blezard before Entain granted the go-ahead, ultimately resulting in an 18-month development timeline. Angstrom’s background in modeling informed the game's design, utilizing historical English Premier League data to create its prize structure and scoring probabilities.
Gaspar argues that specialists possess an inherent advantage during the exploratory stage, stating that the best concepts often arise from understanding technical possibilities before they become known to others. Meanwhile, operators possess the essential assets for launching experimental concepts into scalable products, including distribution networks, customer data, and compliance expertise, allowing specialists to focus on their narrower domain.
Despite the advantages, a clear tension exists as operators may initially too readily impose slower, traditional processes on newly acquired specialists. Thomas advises allowing specialists some autonomy, suggesting gradual integration rather than full absorption into the parent company. Gaspar adds that integration should equate to providing access to the operator's assets while absorption risks minimizing the specialist's value.
The game Seven illustrates the potential for reusable intellectual property, as Entain launched it in the UK with ambitions for expansion into other brands and sports. Angstrom is already considering whether its scoring mechanics could apply to NFL touchdowns, highlighting the strategic value of reusable capabilities. This not only helps operators deliver products more quickly and affordably but also creates lasting assets rather than one-off projects.
Algosport is encountering similar trends; their products are driven by their Blackbox software, allowing partners to develop additional services around its framework. This adaptability enhances Algosport’s status from a mere B2B supplier to a collaborative partner for innovative companies.
The financial benefits of these arrangements may not always be immediately visible as direct revenue, yet new products can drive customer engagement, retention, and differentiation. Reusable technology can also lower development costs and reduce reliance on outside suppliers.
Independent B2B suppliers face risks as well; close collaboration with one operator can lead to a dependence on that customer’s roadmap and revenue. Gaspar emphasizes the importance of customizing solutions without overhauling core systems for each client. Not every capability will be brought in-house, as even major operators may find it impractical to justify proprietary development for lower-revenue sports, whereas suppliers can achieve economies of scale.
The emerging model for betting development shops occupies a crucial middle ground. They can function within an operator, operate independently, or balance between the two. The key competitive challenge is less about who employs developers and more about how operators can effectively assemble specialist capabilities and transform those into consumer-relevant products.
