Sports betting or sports marketing

The American sports betting market has continued to grow rapidly despite the upheaval of 2020. In October, Americans legally bet more than $3 billion in a single month for the first time. 메이저사이트 half of U.S. states have legalized some sort of single-game wagering. Amidst a frenzy of M&A activity and partnership announcements, stocks with large exposure to sports betting have outperformed the market.

Similar to 2020, the major news stories of 2021 will be mostly dominated by new states legalising sports betting and tier 1 operators striking high-profile collaboration agreements. As domestic and international firms fiercely contend for market dominance, advertising expenditures will continue to flood the market.

Current and future market leaders will devote almost all of their efforts to acquiring customers and complying with regulations, with only a small portion of their engineering resources going toward core functionality and platform upgrades (e.g. DraftKings moving off of Kambi to SBTech).

A truly disruptive innovation is noticeably absent from the discussion of 2021 value drivers, a fact exacerbated by commoditized and undifferentiated product markets. A heavy reliance on manual processes and antiquated backend infrastructure plague the organization. Most sportsbooks have almost identical betting markets at nearly the same odds, and they generally offer bonuses and promotions as well.

At the same time, product offerings fall short of capturing the key aspects that fuel American gambling. Friends and family are most likely to affect a sports bettor’s decisions and allegiance to a certain brand, with over half of sports fans wanting to place bets for the pure fun and excitement of it. Ninety percent of sports fans are interested in information that will aid in their decision-making, and 86% of fans say they want to gamble on games while they are being watched.

At the same time, product offerings fall short of capturing the key aspects that fuel American gambling. Friends and family are most likely to affect a sports bettor’s decisions and allegiance to a certain brand, with over half of sports fans wanting to place bets for the pure fun and excitement of it. Ninety percent of sports fans are interested in information that will aid in their decision-making, and 86% of fans say they want to gamble on games while they are being watched.

In order to attract top founders and investors, we have listed a few key areas of interest below:

  • Optimization of the user funnel and customer education – Adopting new customers requires a considerable amount of time and resources, and there is no guarantee that the retention rate will be long-term.
  • Demand for community-based and social functions — With companies like Barstool Sports leveraging “smacktalk culture” in novel and lucrative ways, the social aspect of sports betting is given a distinctively strong emphasis in the U.S. market. Betting-based group activities with broad appeal include Super Bowl box pools and March Madness brackets. Even two years after PASPA was struck down, according to the AGA, 76% of NFL bettors still make their wagers informally through pools and competitions, or with friends, family, and coworkers. The mainstream offerings, however, do not cater to these interests.
  • Media and content are seamlessly included into the product — The struggle for viewers’ eyes and attention has become more non-linear, particularly in the sports, media, and entertainment industries. Operators of sports betting sites and media outlets that monetize associated content are looking for the most efficient and scalable ways to match content with product.
  • Teams and venues using technology — Teams and venues involved in professional sports are attempting to directly and indirectly profit from the increased viewership that sports betting provides. Branded sports betting lounges and even genuine sportsbooks will be present at a lot of arenas and stadiums. But a comprehensive, multi-touchpoint strategy to fan engagement that cuts across the digital and physical economies is getting more attention, particularly in the wake of COVID. In addition to broadcasters, numerous teams and leagues have already made their own native F2P prediction applications available, and more are likely to do so soon.
  • Automation and backend infrastructure suited to scale — Sportsbook operators typically aim to have complete control over their tech stacks, but this is frequently either unaffordable or impractical. In truth, the agreement between DraftKings and SBTech, according to several industry insiders, was motivated less by the inherent value of the underlying technology and more by the positive perception of positioning their IPO as the first pure-play vertically integrated sports betting platform. Early-stage businesses primarily monetize their technological innovation through revenue sharing agreements because the mass market is dependent on a small number of platform and data feed suppliers.

Operators will focus more on providing unique, omni-channel experiences that encourage loyalty and long-term retention as the sports betting industry develops and consolidates. Over the next 24 to 36 months, startups in the best positions for profitable exits will be those that offer appealing goods and solutions that have been adapted to the requirements and operational constraints of potential acquirers.