Sports Betting Focus 2018 for a‘ gamified’ experience. Whereas players of previous generations may have had their first gaming experience next to their parents on the race track or in the betting shop, today’ s new players found their way to gaming through their smartphones and friend interactions. Second, looking for them where they already are: online, on social media networks, basically everywhere where they get their news, express their views and interact with each other.
Sports Betting Focus 2018 for a‘ gamified’ experience. Whereas players of previous generations may have had their first gaming experience next to their parents on the race track or in the betting shop, today’ s new players found their way to gaming through their smartphones and friend interactions. Second, looking for them where they already are: online, on social media networks, basically everywhere where they get their news, express their views and interact with each other.
Product aside, there are also significant brand implications. Millennials care to be associated with brands that reflect their values, add to their social cachet and extend their reach beyond the product they represent. Operators should take their cue from sports brands that reimagined themselves as the voice of their generation. Take Nike’ s domination in the early’ 90s with their now iconic“ Just Do It” slogan, which spoke directly to the hearts of the young and aspirational who wanted to hit the ground running – literally and metaphorically. What will today’ s brands be about? Ethical gaming seems like a good starting point, as long as it goes beyond a statement of good intentions and is substantiated with proactive product and technology choices. Some operators like Paf and Mr Green have led on this front and we should expect to see more of it. This approach should be coupled with broader and conscious‘ corporate citizenship’ efforts. They should reach out to, and meaningfully support, the communities and sports stakeholders without whom sports betting would not exist. Ultimately, it is about recognising that sports betting is a derivative of sports activity, and without a strong connection to the sports fans, their causes and their venues, no brand can command loyalty.
The quest to the West A look at the modern sports betting landscape would not be complete without a reference to the much anticipated legalisation of sports betting in the US. The US Supreme Court’ s ruling in favour of New Jersey last month, which effectively struck down PASPA, opens the way to bring to the surface an‘ underground’ market estimated in the hundreds of millions of dollars, not to mention the already legal DFS market that has kept things warm for the real thing to come. A dual strategy that combines fantasy with traditional sports betting seems obvious. In fact, fantasy formats can be leveraged as a‘ bridge’. Virtual sports betting and esports, both fast-growing product segments in other parts of the world, are also likely to appeal to a player base raised on video gaming and fantasy sports.
While from a product strategy standpoint, diversification seems obvious( if not safe), cracking the distribution question will be much trickier. The US is still years away from a federal regulatory framework – if one is to come at all – and in the meantime operators will have to grapple with the challenge of a much fragmented market. Some will lead with an acquisition strategy. Paddy Power Betfair’ s recent purchase of FanDuel is a prime example of this approach, and beyond distribution benefits it brings to the table a household brand. Others will opt for the organic route. William Hill has opened a new office in New Jersey and is recruiting local talent. As for its brand strategy, first signs point to a‘ side with the leagues’ approach, as the company was the first to sign a sports sponsorship deal with a US soccer team, Las Vegas Lights. Many will seek coveted partnerships with the NFL and NBA.
Where do we go now? No single product or market can give operators their silver bullet today. Constant adaptation, portfolio diversity and multi-channel, digital-heavy marketing strategies will all be necessary to survive, then possibly thrive. For what it’ s worth, at Colossus we have placed our bets – and seem to have found our sweet spot – on sports jackpots, a format we believe will resonate more and more with players thanks to its simplicity and lottery-like appeal, and bringing players together through our Syndicates to take them on. Over time, we are taking our product principles in more sports, racing and soon fantasy and esports. The future is uncertain but there is excitement on the horizon. iGamingBusiness | Issue 111 | July / August 2018 43