“ The primary way an operator can differentiate from the competition in the US market is by offering a diversified portfolio of 24 / 7 content ”
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SPORTS BETTING
in the marketplace right now , which are very easy to set up , but gaining that competitive edge is difficult . This makes customisation a key way to differentiate . We know players tend to have more than one account across different operators and , ultimately , they will be attracted to place bets based on the unique products and features each operator can provide .”
All of these businesses and executives and products have one thing in common : they ’ re looking forward , analysing not only what sports betting is , but what it will be . With a sturdy stable of existing operators and some new challengers in play , the time is ripe for something different in a sea of sameness .
MIXED MARKET MADNESS
Of course , it ’ s all fine and dandy to discuss new products or services in a vacuum . The unfortunate reality is that , well , reality is unfortunate . The US sports betting arena is hardly an arena at all . It ’ s a subset of smaller venues , each with its own unique rules and regulations .
Naturally , the structure of US sports betting law is such that it ’ s practically nonexistent . States individually legalise and regulate sports betting , which in turn leads to wildly different markets that , in some cases , share a border .
It ’ s a challenge to break through , and stakeholders of all sorts must carefully consider if , when , and where they offer their products .
“ In general , it ’ s hard and expensive to fight sportsbooks with an established audience ,” says Sam Depoortere of OpenBet . “ Media and marketing spend is essential to build brand recognition and visibility as there are a lot of existing operators offering a strong product with very high brand recognition .
“ Legislation is a key factor . It ’ s interesting to see the progress with
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Jake Nowry , SIS Content Services
“ The primary way an operator can differentiate from the competition in the US market is by offering a diversified portfolio of 24 / 7 content ”
Jake Nowry , SIS Content Services
legislation happening in both Florida and California which could open up two of the largest states in the US to the sports betting industry . However , it ’ s currently very competitive in the US with the top three operators having 85 % of the established markets in their hands .”
MATURITY MATTERS
Circa ’ s Stevens agrees . “ The most significant factor is the regulatory environment ,” he says from eyeing new markets for launch . “ Competition is a close second , but the regulatory environment is the key thing .
“ We ’ re running a low-hold model , some states might have a minimum win threshold that is in excess of what our model is . Tennessee is an example there . So is New York . When you run a low-hold model , and you look at the New York regulatory environment , you know it ’ s not optimal for our model .” Simplebet is live with numerous operators , including DraftKings , Bet365 ,
Caesars and ESPN . Through working with such partners , Nerenberg has developed an understanding of the challenges operators face in the US .
“ For B2C operators , we have seen that entering established markets is more expensive and challenging compared to breaking in during a new state launch . If you are entering a mature market , you should probably feel strongly that you have some competitive advantage that will lead to desirable unit economics .”
Simplebet , for its part , is trying to carve out that advantage for its customers . “ We enable unmatched market availability for user adoption and stickiness of micro betting ,” Nerenberg says .
Nowry of SIS says : “ Brand affinity is the most crucial aspect of building an audience and a strong following . It ’ s about a robust catalogue of content , more than your competitors can offer .”
But for a company like SIS Content Services , market saturation is far more of an opportunity than an obstacle .
50 • ISSUE 135 • ICE LONDON 2024