Angstrom, a company acquired by Entain in 2023, was often mentioned yet seldom heard from in the industry. Frequently referenced during earnings calls by Entain, BetMGM, and MGM Resorts, it was primarily recognized as an essential component of Entain's sports betting infrastructure. However, recent developments have shown Angstrom taking a more visible role, notably with the launch of its free-to-play game, Seven, highlighted in a press release issued by Entain this month. This move signifies a shift in Angstrom's visibility and hints at evolving betting products in the industry.
Ross Jarvis, Angstrom's director of strategy, remarked, "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."
Initially, Angstrom was acquired by Entain for its expertise in pricing and modeling, but the introduction of the Seven game showcases how specialist B2B companies like Angstrom can evolve into autonomous development teams, or "dev shops." These teams leverage their technological expertise to create products beyond their core responsibilities.
Leo Gaspar, founder of Adria Nexus Consulting and former co-founder of Huddle, noted the growing overlap between technology provision and the design of consumer solutions. He asserts that as specialist firms gain insight into consumer problems that their technologies can solve, it becomes natural for them to take steps into product development.
While major operators maintain extensive technology and product teams, these teams are often tied up with platform maintenance, regulatory compliance, and localization tasks, leaving little time for innovation. Marc Thomas, managing director at Algosport, characterizes some operator platforms as “a little Frankenstein,” built up and modified over years. Consequently, in-house teams might find themselves focused more on maintaining operations than on developing new products.
Specialist companies can streamline their efforts and avoid organizational friction. The concept of Seven emerged from initial discussions between Jarvis and Angstrom CEO Jonathan Blezard, leading to an 18-month development endeavor after securing approval from Entain. Angstrom utilized its modeling capabilities to shape the game’s consumer offering, incorporating historical data from the English Premier League to devise the prize structure and gameplay mechanics.
Gaspar highlights that specialists enjoy an “unfair advantage” in the exploratory phase, noting that the best ideas often stem from a deeper understanding of technical possibilities. While operators offer crucial assets like distribution, customer data, and compliance expertise necessary for scaling new products, specialists can concentrate on domain knowledge to pilot ideas effectively without getting tangled in broader corporate roadmaps.
However, a challenge arises when operators, seeking speed and entrepreneurial spirit, impose their own processes onto acquired specialists, which might stifle innovation. Thomas advises: “Basically, try and leave them alone.”
He acknowledges that while some integration is inevitable, it should occur gradually. Gaspar differentiates between integration—granting specialists access to operator resources—and absorption, which could reduce their unique value. He suggests a test: if the specialist can still transition from concept to viable customer experiment faster than the parent organization, integration is functioning effectively.
The case of Seven illustrates the potential benefits of reusable intellectual property. Originally launched with a focus on Premier League football in the UK, Entain aims to expand this game into other sports and markets. Angstrom is already exploring adaptations, such as transitioning its first-or-last scorer mechanics to the NFL.
Gaspar argues that having reusable capabilities is strategically advantageous, allowing faster and cheaper product implementations under different consumer propositions. This flexibility can elevate firms from mere suppliers to valued partners, as noted by Thomas, whose company, Algosport, is increasingly seen as a resource for innovative partners.
While these arrangements may not always yield direct revenue, they can enhance customer acquisition, retention, and differentiation, while also minimizing development costs.
Independent B2B companies face challenges too, as reliance on a single operator can lead to customization that confines them to unique development paths. Gaspar emphasizes the importance of focusing on specific aspects of projects rather than reinventing entire systems for each client.
Even major operators might hesitate to invest in proprietary development for less lucrative sports, allowing suppliers serving multiple clients to realize economies of scale.
Thus, the betting development shop is becoming an influential entity, potentially functioning within an operator, independently, or somewhere in between. The competitive landscape is shifting, focusing not on who employs developers but on whether operators can effectively integrate specialist capabilities into products that resonate with consumers.
