No one thought that a technology firm would benefit from the Supreme Court’s decision to overturn the Professional and Amateur Sports Protection Act five years ago. The sports leagues were the ones who opposed the expansion of sports betting, and operators thought they would be forced to pay the “integrity fee” directly.
In the five years since then, it is likely that no other group has been more influential in shaping US sports betting. Sportradar, for example, is a company that provides a vital revenue stream to the sports leagues. They are also at the intersection between sports, betting, and media.
Andrew Bimson , Sportradar North America’s President & CEO, reflects on the growth of the industry since the repeal PASPA. Bimson believes that the repeal of PASPA and the slowing pace of legislation expansion is a moment when the industry can take a deep breath, rethink things, and prepare for the future instead of reacting to what’s happening now.
PASPA’s anniversary is the perfect opportunity to reflect on sports betting
“Five years into your career, you have a chance for reflection. You have a few data-points year-over year that you can use to begin to ask, “Okay, what’s happening on the market?” What are the main drivers? What are the consumer behaviors? What is the retention rate? What is our cost of carrying or acquisition cost for new customers? I think that [operators] have all started to pay attention to this. “I think this also goes against the quest for profit and responsibility to shareholders.”
The situation is a far cry compared to the beginning, when sports betting companies from other markets were scrambling for new markets.
The market must have shipped everything in. We imported people, processes, products, and platforms from the UK. It was impossible to build anything, and it was even more difficult to find industry talent. There was a massive migration of these things to the East Coast. Bimson remembered, “Some of that is still there. But I was really interested in how the market has changed over the past two and half years.”
Early on, sportsbooks learned that simply importing products from Europe would not work. It may have met a short-term need, but US audiences are looking for more.
“You are hearing from real consumers that they want something a bit more Americanized. He explained that we just need to have the feeling that this is a reflection of US sports. This is by no means a criticism against any operators. “We all did what we could, and that’s what I believe allowed the growth or traction to occur at the pace it did. I feel now that there is a kind of reflection on what the products are. What are the benefits and features? What is the user experience?
Same Game Parlay: The Rise of This Popular Game
Same Game Parlays are the product that defines the last five years in US sports betting. SGPs have exploded in popularity, and Bimson believes that they are the best way to capture what American sports betting fans want.
“All operators were surprised at Same Game Parlays, and how they adopted it. They assumed the European model was going to migrate here, and that the US would then follow suit. After living here for nearly 25 years, I know that the US does not follow anyone. They choose their own path. They choose their own course. “And heaven help you if try to get in their way.”
He said that the SGPs were popular because they are a smaller version of fantasy sports, with categories for bets that people feel confident about predicting. Bimson noted that the game is primarily about maximising entertainment across multiple games.
He said that 85% US bets were for $5 or under, and only 2% of them exceeded $100. There are some high-value clients, but the majority of customers are interested in small bets to complement sporting events that they watch on television. This is good news for the leagues. According to Bimson, sports betting offers them a chance to “reengage with a younger generation of fans.”
Sports betting in the future will be based on engagement
What will you do if your team loses? “Nobody likes a big blowout. Are there any three-point plays or performances that could be interesting? Are there any records for rebounding? He said that there are many ways in which the leagues try to reach out to their fans through their media partners.
These media partners also extend beyond the four core sports. Sports betting is here for the long haul, and new leagues are looking to join in. Some are not suited to betting success.
Bimson stated that “we get regular calls from leagues and sporting properties asking how they can engage younger audiences, and whether betting is appropriate in those environments. So I believe you’ll see this drumbeat of interest.” It has to be an interesting product on TV to attract attention and interest, and people will want to participate. I don’t think the core four will change that much in the next five years. We’ll then see what happens after we reach full maturity.
Engagement seems to be the main concern for Bimson and Sportradar as they look forward. Bimson pointed out that big players such as Apple and Amazon have entered the OTT sport game. In order to maintain the attention of their fans, they will need to find new and innovative ways to do so. In the next five to ten years, this could lead to a renewed focus on in-game wagering.
“I believe that as US bettors mature, the game will become more exciting. This will be driven by data. More data, data about players, deeper data. The way we collect that information from an automated perspective, becomes very interesting. As more markets open up around the collection of data, I believe you will see an increase in educated bettors who tune into games and place bets while watching them.
The debate continues over the challenges that in-play betting will face. We’ve learned that the US is a fiercely independent market, and other markets are not a good indicator of what we can expect. The industry will have to set its own path and trailblaze in the next five years. What’s more American?
