This summer, gambling companies have plenty of chances to target and engage new customers. iGB interviewed a number of industry leaders about how to target new markets for betting and create unique products that help them stand out.
Betfred, Paddy Power and Kambi betting engines are all looking to capitalize on the summer sports schedule and gain significant revenues and customers.
Euro 2024 began on Friday, Copa America will begin this week and Olympic Games in Paris from 26 July. Wimbledon and US Open are scheduled for July and August.
It is obvious that the opportunity in sports betting will increase as more people are interested in these events, which leads to more activity on betting websites and more profit.
The French gambling regulator L’Autorite Nationale des Jeux has estimated that the Euro 2024 event alone could generate close to EUR1bn in wagers. According to the German Sports Betting Association DSWV, up to EUR1bn could be wagered on the Euro 2024 tournament in the host country.
Jonathon Hurst, Kambi’s head of soccer, highlights how the simultaneous Euro 2024 and Copa America event can be a huge draw for customers.
Hurst told iGB that both tournaments will generate betting interest, and are important for customer acquisition. This was evident with Euro 2020, where 78% [of new bettors] had a Euro 2020 wager on their bet slip during the competition.
He added, “Notably both finals are on the same date as the Wimbledon Men’s Singles Final, which makes Sunday, 14th July, a betting boon for sportsbooks.”
Best-in-class experience
Companies need to be able to differentiate themselves from their competitors as the betting industry is booming.
Rachael Kayne, Flutter spokesperson, concurs: “Major sports events are what we focus on.” Our activity is built around it all. With so many sporting events ahead, all our hands are on deck in order to maximise every opportunity.
Kane says, “It requires an exceptional level of skills to accomplish all this, but our highly-skilled workforce is personally committed to delivering the best possible experience across all customer touchpoints.”
Behind the scenes, we invest a lot of time, effort and research to find the best ingredients for our products. This ensures that they are at the forefront of the market. They are our daily customers, whether it’s in retail or online. We know them well. ”
What will be the impact on companies?
Betfred wants to capitalize on the UK consumers’ Home Nations interests by offering the best price for England to win and Scotland to qualify at the group stage. The launch of the new Betfred platform in early this year was aimed at ensuring a faster and more convenient user experience.
Companies are also looking for ways to enhance the experience of users. The companies are keen to improve the uniqueness of betting offers and novelty markets available during this summer.
Mark Pearson, Betfred’s Head of Media, says: “There are so many markets now compared to the old days.”
The build-a bets have also become more and more popular. You will also find that the traditional betting options of correct score and first goal scorer will remain popular.
Home Nation Interest
Betfred gains a lot from major soccer tournaments. For example, a 1966 bet that England would win the World Cup helped Fred Done to open his first betting store in Salford.
Pearson makes a comparison between Euro 2024 and the Grand National. He notes that new bettors tend to follow the excitement surrounding both events.
Pearson believes that the fact that England and Scotland are playing in the tournament this year will only increase the betting interest.
Pearson says that “you do notice the odd gambler who will have a bet around these major tournaments, particularly for the Euros.” It makes a huge difference to turnover, and England’s success is great for turnover.
Some punters, who only bet once or two times a year, will watch a Home Nations match and place a First Goalscorer Bet because they plan to be with many friends.
Euro 2024, Copa America and other unique events offer opportunities
Betfred Kambi Flutter have all cited the two summer football majors as the main drivers of their business.
Pearson highlights Royal Ascot, as it is Betfred’s official betting partner.
Pearson says that the Euro can dominate the news, even in an election year. It’s at the top of everyone’s mind. Everyone knows that when England does well, they get the support of the country and interest increases.
Don’t forget Royal Ascot. Royal Ascot is five days long, and all races are broadcast on ITV. So we would also be focused on Royal Ascot.
Kambi also places a high priority on football tournaments, including the Euros as well as Copa America.
Hurst believes that the disparity in revenue between the Copa America and the Euros will be different due to Kambi’s increasing focus on LatAm.
Hurst says that while the Euros were previously the number one in the world, the race should be closer this year due to our expansion into Latin America.
Kane, the Flutter operator’s CEO, says that while the Euros are “the best”, the company will also pay attention to other summer events.
Kane says, “That doesn’t mean we’ll only have an eye on one thing.” We are ready to take advantage of any opportunity that is right for us. “We pride ourselves in being agile, precise, and slick.”
Success in the future depends on retention
Operators and suppliers will benefit from a raft of brand new clients this summer. But once some of these high-profile events are over, the battle will begin to keep those customers.
Kane is confident that Flutter can meet the challenge, despite all of the betting options offered to its customers.
Kane says that the industry is now a lot like Tinder. We don’t mind a little summer romance, but we’d like our customers to think they have hit the jackpot and found the perfect partner in Paddy Power. They should feel in love with our brand.
Product Retention
Kambi’s success at retaining customers gained during big tournaments is not new. Data from the company showed that 76% of Euro 2020 first-time punters used Kambi again.
Hurst says that the best way to help operators with their retention strategies is by delivering an excellent product.
Hurst said, “This will include ensuring any new betting offers that are launched for major tournaments such as the Euros or Copa America can be made available to bettors after the event is over and before the start of the domestic season.”
It’s important that the sportsbook is excellent in general, and not only for soccer. Sportsbooks must make sure that players are happy with the entire sportsbook in order to keep them. Retention rates could be higher during and even after the tournament.
Pearson says that the key to retaining customers Betfred acquired is to give them the best possible experience during the tournament. This will hopefully encourage users to return, particularly those who don’t bet a lot.
Pearson says, “Isn’t that the secret to all online business?” To give them good deals, good service and a good experience, then they will hopefully come back.
Some of them will be only football fans, but hopefully they’ll return when the Premier League begins in August.
Prioritizing the punters
Paddy Power, a subsidiary of Flutter’s Paddy Power, is known for its cheeky marketing. This summer it has stayed true to itself, with a campaign that features Danny Dyer playing off the reputation of England football fans across Europe.
Kane believes that Paddy Power’s ability to use humor to engage consumers is what sets them apart.
Kane says that the guardians do an unmatched job of ensuring Paddy’s distinctive tone of voice is a constant source of razor sharp wit.
We look for those topics that make fans fly sparks. We identify them and then we douse them with petrol, light a match, toss it, run as quickly as possible, so we can admire the flame from a distance.
Kane believes that Paddy Power is successful because it makes the consumer’s interaction with them as unique and enjoyable as possible. This goes along with its marketing strategy. It held a penalty shooting event in London and flew the top five penalty takers to Germany for Euros.
“We put our punters first,” Kane declares. If they are entertained, informed, and trust that we will see to their needs, then we have done well.
Kambi Partners with LiveScore Bet
Kambi will take on a multifaceted approach to serve its operators partners this summer.
Hurst says, “We offer new bets that are fully combinable, including player assist, goals methods like headed goal, and woodwork bets.”
Kambi offers a number of special daily markets to keep the competitions fresh, and also to capitalize on new storylines. This can help operators retain and acquire customers.
LiveScore Group is one of Kambi’s partners. It will supply its sports betting solutions to LiveScore Bet in May when the service launches in UK and Ireland, after entering into a partnership with a sportsbook in October 2023.
Hurst says that “Kambi sees our partners as more than just clients.
We work with the teams to develop their strategies and goals well in advance of tournaments.
Companies need to be flexible
The industry’s more experienced firms will be able to better meet demand and provide satisfaction this summer if they have learned from past major events.
Tournaments can call on the need to adapt. Hurst cites the increase in extra time for the World Cup in 2022 as an example where Kambi updated its models in real-time, which was made possible by Kambi’s wealth of experience.
Kambi’s pre-match service is aided by technology. Its AI-powered trading unit Tzeract, which uses artificial intelligence to make trades, has been hailed as its “driver”.
Hurst says that Tzeract, which was launched before the World Cup in 2022 and is now being used by all the major soccer leagues around the world, uses the learnings of hundreds of millions bets for a better offering at the tournaments.
Paddy Power will also be relying on its prior tournament experience to inform their strategy for this summer.
Kane believes that this is not his first time in the ring. After experiencing a Winter World Cup, then another one in Russia, and then several major changes like Brexit and Covid, in just what seems to be the last five minutes, we have learned to hold on, to be brave and to know when to run if things are not under control.
There are many opportunities
Gambling companies are hoping to achieve their own success off the field, while many people will focus on who will win the match or the court.
Kane points out that it is not their first rodeo. Flutter, Betfred, and Kambi all have a lot of experience, which has prepared them to take on the summer’s packed sporting calendar.
Public companies will release their earnings reports later this year, reflecting the hectic period. Marketing, product innovation, and thinking out of the box in terms of customer engagement is key for most to maintain performance during a busy sports calendar.
