Simon Trim, 10star’s well-known strategic consultant, believes the modern sports betting market needs a radical transformation. He listed methods for optimising the segment and creating sustainable, harmonious relations between the operator, supplier and client.
Casino Market has explored the expert’s key insights to present the core information in this article. At our studio, you learn more about the nuances of running a profitable gambling business and order the development of a bookmaker project.
Mr Trim’s Opinion on Improving the Betting Sector
The industry generates enormous profits and is widespread across various regions. Nevertheless, the consultant is convinced that this field can be even more powerful and beneficial for everyone involved.
In the specialist’s opinion, implementing modern solutions is necessary to foster the sphere’s growth.
Among these instruments:
- big data processing programs;
- innovative trading technologies and tools;
- risk prevention and management systems, etc.
To better understand the significance of such products, let us explore the current market situation, including its challenges and the ways out that Mr Trim suggests.
Issues Related to High Margins
Customers should be the centre of any sustainable business ecosystem since their attention directly affects the supplier’s income. Despite this rule, many bookmakers have long tried to improve profit indicators by increasing brand recognition instead of satisfying the audience’s needs.
Enormous funds were poured into mass marketing to constantly attract new players. As a result, the sphere became full of almost identical offers, and bettors had to spend a lot of time searching for an exclusive proposition.
The trend has changed in recent years. Now, many wagering websites promote the most expensive products from the same-game parlay (SGP) segment.
A couple of key insights about this strategy:
- It gives a good yet short-term result and does not contribute to forming sustainable relationships between the supplier and the client.
- For gamblers, sports betting is a form of entertainment. They will quickly find other options for interacting with the industry if current offers give minimal chances of winning due to record-high margins.
According to Mr Trim, the market needs profound changes. Modern operators increasingly act as intermediaries, connecting users with 3rd-party providers of industry products and services.
The challenge for sportsbooks is to create and develop a sustainable environment with an emphasis on:
- effective governance;
- regulatory compliance;
- responsible social practices.
Unstable Situation in the US Sector
One of the main issues of the wagering market is numerous restrictions on the availability of real-time wagering data. With each cycle of software updates in the niche, operators’ expenses also increase. Quite often, suppliers combine a betting product with closed databases, which require additional fees to access.
This approach directly affects the final cost of sports solutions and does not benefit the end consumer. As a result, business models with expensive marketing, typical odds, and a high data transfer price become irrelevant and have little appeal to consumers. Operators following this program are forced to leave the market.
The income from such platforms does not cover the costs of purchasing software. There is no talk of long-term prospects, even with superprofits in the SGP segment. Over time, the entrepreneurs working under this scheme will probably face a constant outflow of customers.
New Approach in the Sportsbook Segment
Mr Trim believes the industry needs:
- a radical change in analytics and price differentiation;
- leveraging additional expertise in odds.
A comprehensive strategy is the only way to transform the established order. Information transparency will allow operators to respond to market changes in real-time and provide customers with more valuable, high-quality services.
Another critical factor for success is the presence of experienced specialised suppliers with an extensive portfolio of odds and risk management offers. Well-developed operational tools are essential for building a genuinely sustainable, high-quality, safe gaming environment.
Margin Moderation for Differentiated Offers
Reducing markup volumes and increasing the probability of more frequent wins is a great way to retain the audience. However, implementing this method requires deep market knowledge and professional risk management.
With the right approach, the operator will receive a larger turnover and stable long-term profit.
Abandoning a rigid policy with fixed prices from suppliers provides the following benefits:
- improved differentiation;
- decreased customer churn;
- reduced player acquisition costs;
- constant growth of global market share.
The Main Things About Sustainable Sportsbook Development
The modern betting market needs a radical transformation and a complete change of the current sales strategy.
The following will help improve the situation in the niche:
- Open data. Operators depend on big data provided by developers. Therefore, the market is overflowing with similar offers with fixed prices. Free access to information about sporting events and odds will significantly optimise the environment.
- Offer differentiation. By ensuring the audience has more frequent wins, suppliers can abandon the failed strategy of promoting expensive products and form a transparent proposal with the prospect of stable, long-term profit.
The specialists of the Casino Market studio can share additional information about the nuances of launching and promoting gambling projects.
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