iGB Intelligence reports | Page 87

Chapter 3: Betting and connected portable devices SportzRush. “This in turn presents different challenges for both affiliates and operators alike. “On mobile web it is about optimising the user experience with far too few operators differentiating meaningfully between acquisition/conversion on desktop and that on mobile. Those that manage it will see huge rewards in the next 12 months. “Within the Apple App Store competition between sports betting and related gambling apps gets tougher and tougher, meaning ranking for brand and key search terms is far more difficult than it was 12 months ago. More and more operators recognise the limitations of a single ‘1 app does it all’ approach and are favouring of a multi-app approach, meaning ranking for multiple gambling search terms and keywords. “Finally the cost of acquiring gambling customers via mobile advertising is also rising. Competition in regulated markets is tougher than ever especially on mobile.” Peter Bertilsson, President and chief executive, Metric Gaming, adds: “The mobile betting trend remains strong and undeniable, and we will naturally see huge technological strides in this industry as data and bandwidth demands continue to skyrocket. “Sports wagering especially stands to gain from these developments, as the ability to stream games live in real time reliably from a mobile device (which puts tremendous stress on outdated platforms) will only fuel the already burgeoning mobile in-game sports betting market. “At Metric we identified an opportunity to capitalise on this trend by building a mobile-first sports wagering platform from scratch – a daunting and risky undertaking for any established operator, but one that as a post-‘mobile revolution’ start-up we could take on. “Having a sleek, modern and reliable mobile offering will be an absolute necessity in the new year [i.e. 2016], and we are likely to see more competitive differentiation between operators on that basis.” Unique Mobile Phone Subscribers (millions) 2,346 2,569 2008 2009 2,798 2010 3,013 2011 3,210 2012 3,463 2013 3,636 2014 3,838 2015 4,020 4,191 2016 2017 4,336 4,470 2018 2019 4,596 2020 Source: GSMA Intelligence 3.2 Drivers for mobile betting With an increase in the uptake of wireless smartphones such as the iPhone, mobile betting has been growing at a fast pace. The first ever mobile bet was placed by an O2 user with Ladbrokes on a Brazil win versus Turkey in a Group C match for the 2002 FIFA World Cup, at odds of 8/15. Other early adopters of mobile betting technology were Betfair, Tabcorp and Paddy Power. 80 Digital Sports Betting