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Intel
Report 2018
US Sports Betting
~ Kambi
~ SBTech
~ SG Digital
~ Sportradar
WITH OPENBET, YOU SPORTSBOOK PLATFORM
HAVE EVERYTHING BETTING CONTENT: SPORTS,
YOUR SPORTSBOOK VIRTUALS, RACING, E-SPORTS
NEEDS TO WIN, ONLINE & IN-VENUE
IN ONE PLACE.
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DATA INSIGHTS
MANAGED TRADING SERVICES
INFRASTRUCTURE & HOSTING
PLAYER ACCOUNT
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FOR MORE
INFORMATION, VISIT:
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US SPORTS BETTING REPORT
Group head of content:
Andy Roocroft
Tel: +44 (0)20 7832 6629
a.roocroft@egrmagazine.com Introduction
Report editor:
Ross Law
Tel: +44 (0)20 7832 6535
r.law@pageantmedia.com
Breaking the US
he EGR US Sports Betting report provides a range of insights into the
Production
Head of production:
T world’s biggest untapped sports betting market – which is now finally
beginning to open up.
Claudia Honerjager
The repeal of PASPA in May 2018 paves the way for providers to
Sub-editors: make inroads into the US, and many companies are now readying their
Luke Tuchscherer, Alice Burton
Charlotte Sayers sportsbook offerings to go live in a number of states.
Some of the contributors share what they have been doing to gain
Art director, EGR: a foothold in the market early on, and reflect on how partnerships with
Toni Giddings
t.giddings@egrmagazine.com established sports gambling outlets, and close analysis of American
gamblers’ desires, will give them the necessary leading edge.
Commercial Overall this report serves to give our readers valuable insight into the way
Group commercial manager:
Sam Compagnoni ‘breaking the US’ should be handled.
Tel: +44 (0)20 7832 6554
s.compagnoni@egrmagazine.com
By Ross Law | Report editor
Publishing account managers:
Debbie Robson
Tel: +44 (0)20 7832 6551
d.robson@egrmagazine.com
3
Content sales:
Tel: +44 (0) 20 7832 6512
membership@egrmagazine.com
Distribution:
Fay Oborne
05
US sports betting: a
07
The price is right, or at
CEO: beginner’s guide least it should be
Keith O’Loughlin, of SG Digital, Tom Daniel, head of risk and
Charlie Kerr
provides a beginner’s guide to player analytics at Kambi,
sports betting in the U.S. explains why taking a global
approach to managing risk is
key to operator growth
EGR Intel is published
monthly by Pageant Gaming Media
One London Wall, London,
EC2Y 5EA, United Kingdom
09
SBTech makes
13
End-to-end
ISSN 1742-2450 immediate impact in US opportunities in state-
Richard Carter, of SBTech, by-state US
Printed by The Manson Group reflects on what SBTech has Dr Laila Minta, deputy president
© 2018 all rights reserved. been doing in the U.S. sports Sportradar US, considers the
No parts of this publication may be betting market since the repeal opportunities which exist in
reproduced or used without the prior of PASPA the world’s largest untapped
permission from the publisher sports-betting market
There is data
behind every story
you tell.
Power your stories with Sportradar
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US SPORTS BETTING REPORT
Featuring: SG Digital
US sports betting:
a beginner’s guide
Keith O’Loughlin, of SG Digital, provides granular level. There’s a lot to be done, and suppliers
a beginner’s guide to sports betting in are already working with operators and regulators to
seize the opportunities that arise.
the U.S.
F
Understanding the current landscape
ollowing the U.S. Supreme Court’s ruling The vast majority of U.S. sports betting occurs in
on the Professional and Amateur Sports one of three distinct ways. First, Nevada. Simple as
Keith O’Loughlin Protection Act (PASPA), newcomers to the that. Most Vegas casinos have a sportsbook in-ven-
XSenior vice industry are seeking ways to level-up their offering ue, attracting seasoned bettors and those looking to
president
XSG Digital in preparation for jurisdictional regulation. It’s a learn. The Las Vegas model is so powerful that many
As senior vice president transformational time, so a sharp understanding states are expected to reflect it in their own regula-
of sportsbook and of the sports betting world can set operators apart tory structures.
platform at SG Digital,
from the competition. The state of Delaware previously offered legal
Keith O’Loughlin
is responsible for With countless opportunities on the horizon for sports betting on professional football, but has ex-
delivering product our company and our partners, Scientific Games panded its offering to include single-game bets on
management, looks to set the standard for knowledge and exper- pro basketball, soccer, football, hockey, golf, and
direction and project
tise in the sports betting industry. When a change auto racing. In-game wagers are not permitted. 5
implementation for
sportsbook, lottery, with so much potential comes along, it’s easy to Most prevalent in the U.S. is horse racing. More
bingo and casino ask the big questions and forget the smaller ones than 90% of legal land-based sports betting cur-
platforms across that can actually make a huge difference. In some rently takes place on horse racing. With the markets
the group. He has circumstances, knowing the difference between opening up, the States’ favorite big sports such as
previously held senior
a parlay and a round robin bet can be just as im- football, basketball, baseball, hockey, and soccer are
positions at some
of the industry’s portant as having a firm grasp on the technologi- expected to gain popularity among bettors.
leading sports betting cal requirements of setting up a sportsbook. From Online, illegal sports betting currently dominates.
operators, including our perspective, establishing a baseline of universal The American Gaming Association estimates that
sportsbook director at
sports betting expertise is crucial. Here, we explore $150bn is wagered illegally on sporting events by
Ladbrokes Coral, as
well as CEO and CTO of the fundamentals of the industry, including the el- the U.S. annually. An estimated 5% margin (com-
BoyleSports. ements that will give operators and players a head parable to Las Vegas sportsbooks) implies revenues
start as markets start to open. of $7.5bn. Players are keen to wager on sports – so
much so that they do it illegally. When the regulatory
The implications of the PASPA ruling landscape changes, providing a safe, regulated space
The Supreme Court’s recent ruling on PASPA set the for players to bet on sports will be crucial for any op-
stage for rapid growth in the U.S. market, but it’s not erator looking to build an audience. Integrity and
an instant, sweeping change. Instead, legalization player protection remains a key pillar for suppliers
rests in the hands of individual states. and operators alike.
When PASPA was initially enacted, four states Nevada, Delaware, and the global experience have
– Nevada, Delaware, Montana, and Oregon – were provided a great foundation, but there’s so much
exempt from the federal ban on states’ offering reg- ahead of us. With the landscape expanding, we’ll
ulated sports gaming. To date, these four states now see mobile and online betting gain popularity while
offer regulated sports betting or have in the past. land-based properties create innovative in-ven-
While the repeal of PASPA deepens the well of op- ue experiences. As in slots, land-based and mobile
portunity, full legalization progresses on a more technology will eventually lead each other through
US SPORTS BETTING REPORT
Featuring: SG Digital
future evolution as operators learn more about play- Jargon terms such as ‘Juice’ or ‘Vig’ (a bookmak-
ers. In other words, the landscape may look familiar er’s commission) are uncommon in everyday Ameri-
today, but it will change at lightning speed as legisla- can English. Or ‘Parlay,’ meaning one or two wagers
tion passes. linked together.
Listing all the relevant sports betting terminol-
Learning from seasoned players ogy here would expand this piece to unreadable
While it’s new in many ways to the United States, lengths, but it’s important to note that the sports
sports betting has a colorful history in the U.K. and betting audience will need support from operators
Australia. Understanding the successes and oppor- and suppliers alike to get a firm grip on how every-
6 tunities for improvement there can provide an excel- thing works.
lent foundation for stateside suppliers and operators. At Scientific Games, we’re eager to explore oppor-
Our U.K. and Australian peers earn substantially tunities for audience engagement, and we’re work-
higher returns than U.S. operators, suggesting mar- ing on tailoring our product to the U.S. audience.
gins in the U.S. could be significant. Of course, this
is contingent on widespread regulation and, subse- It’s a whole new ball game
quently, the adoption of sports betting. Over time, if Even in these early stages, the opportunity for the
those contingencies are met, the U.S. sports betting sports betting industry in the U.S. cannot be un-
market could generate up to $60.8bn in GGR, ac- derstated. With the illegal market so prevalent and
cording to Goldman Sachs. profitable, regulated providers tend to gain massive
audiences in legal markets.
Filling the gaps Sports betting sits right in the center of the en-
A glossary of sports betting jargon could undoubt- tertainment industry, and the discerning U.S. cus-
edly fill volumes. On top of that, sports betting pres- tomer is expected to seek high-quality, entertaining
ents unique challenges of user interface and experi- betting experiences. Existing sports fans want the
ential design. There’s a vast pool of knowledge that added thrill of betting on the underdog or the extra
doesn’t immediately translate to even veteran gam- incentive to cheer on their college team, and provid-
blers, let alone first-time bettors. ers must examine the best ways to fulfill that need.
Add in-play betting to the mix, and you have loads Reliance on player statistics and supporting infor-
of potential confusion. The onus is on industry ex- mation will be critical not only to bookmakers but
perts to teach the new market how everything works. also to bettors; especially in an environment where
The fun factor is there, and players have shown time statistics are used so widely across sports.
and again that they want fully fledged sports betting. The players are falling into place, and this fresh
But new players will need that helping hand, that opportunity permeates the industry. Right now, the
extra push, to amp up the performance of U.S. sports need is strong for a beginner’s guide. But soon, we’ll
betting. welcome new sports betting experts every day. X
US SPORTS BETTING REPORT
Featuring: Kambi
The price is right, or
at least it should be
Tom Daniel, head of risk and player example, shortening the price on the back of recre-
analytics at Kambi, explains why taking a ational money will only generate incorrect and in-
flated odds on the opposing team. Offering those
global approach to managing risk is key to
incorrect odds, even for a brief period, leaves the
operator growth operator exposed to sharp punters and syndicates
A
– those constantly monitoring the market for inef-
s the U.S. sports betting market begins ficiencies.
Tom Daniel to open up, and casinos, racetracks and Ducking the price on a popular local team is ac-
XHead of risk and other U.S.-based companies survey their tually the worst of all worlds – recreational play-
player analytics
XKambi sportsbook options, an interesting discussion ers are short-changed by having to take odds with
Graduating from Oxford around trading and risk is beginning to surface. I excessive margin built in; sharp players who act
University with a degree say ‘interesting’ as it sees some making the case across regions are able to exploit inefficient odds;
in mathematics, Tom
for trading and risk to be managed at state level and by offering uncompetitive prices, operators
Daniel has worked all
his adult life in the sports in a totally bespoke way – essentially that odds create a space for competitors to steal customers
betting industry, initially shouldn’t be informed by a larger, global pool of and increase market share.
carrying out trading and data. To illustrate the importance of true odds further,
risk roles at Ukbetting
At Kambi, we are firmly of the belief that every we only need to look at casinos. Sit at any roulette 7
and Unibet. He is now
head of risk and player single bet should be struck at the right price – a table in the western world and you’ll see more chips
analytics at Kambi, price that reflects the potential outcome’s true being stacked on number seven than you will on
where he has pioneered probability. At the correct price, with house margin number 13. Seven is, of course, considered by many
an automated, machine built in, we’re prepared to take as much volume to be a lucky number and therefore attracts a higher
learning-based
from recreational players as each of our customers percentage of turnover than the ‘unlucky’ 13.
approach to risk and
player management. are comfortable with, and as each of their uniquely With larger liabilities on the occurrence of seven
configured liability limits allow. The laws of prob- than other numbers, do casinos mitigate the risk
ability, as well as over 20 years of experience in the by lowering the odds on seven and increasing the
sports-trading business, tells us we’ll continue to odds on other numbers? Of course they don’t, and
come out on top in the long-run. neither should they. The fact more cash is being
What we certainly don’t do is lay bets at the in- wagered on seven doesn’t make the roulette ball
correct odds. It would appear some operators are more likely to stop on that number. In a similar
being advised that they should have the ability to vein, recreational sports bettors backing their home
fully manage odds and liabilities at a local level, en- team doesn’t make that team more likely to win, no
abling prices to be moved to reflect the increased matter how much the combined total wagered.
volumes they see on local teams, for example. To
illustrate, this would mean a casino in New York Power of the network
shortening the Yankees money-line price on the Unlike roulette, the probabilities relating to sports
back of local support. This, in our view, is a sub-op- outcomes are subjective, however they can be es-
timal way to manage liabilities. timated accurately. To do so, Kambi carries out all
odds compiling in-house, using skilled odds com-
Avoid the trap pliers and traders, sophisticated models and algo-
While odds should be moved on the back of sharp rithms, and rich and official data sources. We don’t
business, books shouldn’t allow themselves to be scrape odds from other books – we are solely re-
influenced by volume alone. Taking the Yankees sponsible for the odds we produce.
US SPORTS BETTING REPORT
Featuring: Kambi
To consistently produce the correct odds and ty? The visibility of players our network gives us is a
manage liabilities effectively, it’s imperative there is powerful tool and one that shouldn’t be ignored.
one single team in charge – not one trader per op- This isn’t to say operators don’t have the abil-
erator each generating different prices, potentially ity to influence and guide how Kambi carries out
throwing up arbitrage opportunities and inefficient their risk management. As highlighted earlier,
odds. It is also essential this single team of traders every single Kambi customer has the ability to set
takes into account all available data. their own liability limits and receive alerts as and
Over the years, Kambi has built a large and pow- when those liabilities are close to being reached.
erful network of bettors – millions of players situ- Our price differentiation tool also gives operators
ated across the globe whose bets and betting pat- the flexibility to adjust the margin offered, depend-
terns are continuously monitored. This sophisticat- ing on their strategies. For instance, we currently
ed monitoring enables us to categorize players into have an operator in Spain which, through this tool,
different categories, one of those being players that reduces the margin on La Liga soccer matches in
are proven to damage margin. order to acquire players.
The activity of these sharp bettors and syndicates
are extremely valuable sources of information. For
“This sophisticated monitoring enables
example, someone may have access to a trainer, a
kit man, or a club doctor, and be presented with us to categorise players into different
data that may give them an advantage over an odds categories, one of those being players
compiler. To ignore their business would be costly. that are proven to damage margin”
Therefore, while we don’t move prices or lines on Tom Daniel | Kambi
volume, we do alter probabilities on the back of
action from highly informed bettors, whose stakes
are carefully managed.
Taking this approach ensures strength in num- Furthermore, we also manage individual custom-
bers, with each of our operators benefiting from the ers in a bespoke way if, for instance, they are valu-
8 scale of the Kambi network. It means sharp busi- able casino players, while for certain events opera-
ness in one area of the network strengthens the tors can select the markets and events which are of-
whole. This will become even more effective when fered, depending on their risk appetite.
Kambi customers such as DraftKings, Rush Street For the Floyd Mayweather versus Conor Mc-
Gaming and Unibet expand into multiple U.S. Gregor fight last year, we saw unprecedented action
states. Furthermore, it enables us to improve our for the outsider, McGregor, which resulted in large
models, algorithms and automations, something liabilities being built up. As a result, we gave opera-
from which all our operators will profit. tors the ability to switch to a more slimmed-down
Essentially, operating in this way allows us to be bet offer to help manage risk. In addition, when
increasingly confident in our prices, and so too can operators’ max liabilities were reached, they were
our operators. So while we of course monitor our given the opportunity to switch to a shorter Mc-
operators’ liabilities and player activity at a local Gregor price, yet the large bulk wisely chose to keep
level, in order to ensure long-term profitability, it is the more aggressive, attractive and ultimately accu-
our data-rich network which provides the edge our rate McGregor price. At all times, Kambi was happy
operators need to compete. with its McGregor risk, knowing it had been built at
the right price.
Network in practice So if anyone tells you trading and risk should be
To illustrate, let’s say LeBron James is a doubt for carried out at a local level, ask the question: “What
the Lakers due to a hand injury, causing the Lakers’ does that mean from day one?” Any price move-
price to drift for the following game. How should ment on volume alone will create opportunities
Kambi act when a player we believe receives injury for sharp players and syndicates on the other side,
information ahead of the market then attempts to sharp players and syndicates that in a new market
back the Lakers at a Kambi operator? Should we may not yet be factored. Instead, the focus should
just move the price at that one book? Or given this be on offering the right price at all times. Follow
information should we alter the price for all our op- this rule and the odds to earn a long-term profit
erators to ensure they all reflect the true probabili- will be stacked heavily in your favor. X
US SPORTS BETTING REPORT
Featuring: SBTech
SBTech makes immediate
impact in US
Richard Carter, of SBTech, reflects on what Just two days after PASPA was repealed, SBTech
SBTech has been doing in the U.S. sports became the first Europe-based technology compa-
ny to announce a long-term agreement with a major
betting market since the repeal of PASPA
U.S. operator when it launched its partnership with
L
Churchill Downs, the horse racing behemoth which
ess than three months have passed since operates courses around America and runs the larg-
the U.S. Supreme Court overturned the est online horse race betting business in the U.S..
Richard Carter Professional and Amateur Sports Protection SBTech has subsequently announced two more
XGroup CEO Act (PASPA), but the American sports betting scene major U.S. deals – with Golden Nugget and Resorts
XSBTech
Richard Carter is group is already almost unrecognizable from how it looked Casino Hotel – cementing its position as one of the
CEO of SBTech. He prior to the 14 May decision. leading online and on-property sports betting solu-
previously ran the The repeal of PASPA gave each of the 50 states the tions providers in the U.S.
highly recognized and
authority to legalize online and land-based sports These recent agreements underline the compa-
respected Deutsche
Bank European gaming betting within their local jurisdictions and, unsur- ny’s readiness to enter the U.S. market and followed a
franchise in London, prisingly, many have been keen to get in on the long period of preparation in anticipation of the Su-
has over 10 years of action as quickly as possible. While New Jersey was preme Court’s decision, during which SBTech became
experience focused expected to be the first state to go live, Delaware deeply involved in shaping the local landscape. As a 9
on the global land-
managed to pip its East Coast neighbor to the post core member of the American Gaming Association’s
based and online
gaming sector and was by nine days with a swift 5 June launch. sports betting taskforce, SBTech has played a key role
instrumental in helping For anyone doubting the American public’s ap- in advising on the best possible legal frameworks for
create the European petite for legal sports betting, initial figures showed sports betting regulation across the country.
quoted online gaming
Delaware handled over $7m in sports bets in the While there are many similarities between regu-
sector.
first three weeks, while an impressive $16m was lated European markets and the U.S. states, there are
wagered in New Jersey in the 17 days following its also clear legal and cultural differences, including
launch. the focus on American sports, varying terminology
Of course, this is only the start, and with a and niche regulations such as the requirement that
wealthy, sports-centric public, the U.S. is clearly the players be automatically logged out of mobile sports
world’s largest untapped betting market. betting sites when crossing state lines.
Pennsylvania, West Virginia, Rhode Island and The companies which have invested in under-
Mississippi are all expected to legalize sports bet- standing the complexities of the local arena and
ting before the end of 2018 and U.S. operators are which offer the greatest flexibility, as well as inno-
rushing to team up with the more experienced Eu- vative product solutions, are therefore most likely
ropean sportsbook solution providers to ensure to achieve success in the States; and SBTech clearly
they can offer the best and most competitive bet- falls into this category.
ting services. The adaptability of SBTech’s products has been
demonstrated by the varying approaches of the
The value of experience group’s new U.S. partners.
SBTech’s vast experience in regulated markets Churchill Downs will utilise SBTech’s Chame-
around the world has already proven to be a signifi- leon360 iGaming platform to power its U.S. online
cant factor for American betting companies look- brands with advanced player management services,
ing to take advantage of the wealth of new oppor- high-end analytics, anti-money laundering protocols
tunities. and a host of responsible gambling features.
mpowerment
we deliver it.
With full access to our open APIs, Kambi-powered
operators have the unique ability to differentiate and
innovate upon our scalable Sportsbook platform, enabling
them to tailor their product for specific audiences.
sales@kambi.com
kambi.comUS SPORTS BETTING REPORT
Featuring: SBTech
Resorts, one of the most recognizable brands in
New Jersey, has opted to seamlessly integrate the
SBTech sportsbook solution into its current egam-
ing platform.
Golden Nugget, meanwhile, is taking advantage of
SBTech’s flexibility to implement different models in
its New Jersey and Mississippi casinos. The SBTech
sportsbook will be integrated with the operator’s ex-
isting egaming platform in New Jersey for online and
land-based operations, while the full platform solu-
tion will be provided to its land-based business in
Mississippi, ready for impending legalization.
Delivering differentiation
As in any market, differentiation will be one of
the keys to success in the U.S. SBTech is provid-
ing Golden Nugget with a bespoke trading strate-
gy and non-pooled risk management, allowing the
casino company to offer unique pricing across all
U.S. sports. Golden Nugget will also benefit from a
uniquely designed and fully customizable front end.
As the undisputed leader of in-play betting,
SBTech provides the industry’s widest range of
events and markets along with a range of unique
live betting features. These include Action Betting,
a quick-fire bet suggestion feature, which offers bet
recommendations to users based on live events. For
12 example, when the bases are loaded in a baseball
game, players can be prompted to bet on whether
the batter will hit a grand slam.
SBTech’s patent-pending innovation Pulse Bet
is also set to make a big splash in the U.S. Inspired
by the dynamic of casino betting, the feature offers
“Early success for operators in New
rising jackpot wins on in-running sports bets – the Jersey and Delaware has proven that
longer the bet is active, the higher the potential re- U.S. consumers are ready to embrace
wards. regulated sports betting”
These features might not be all offered on day one Richard Carter | SBTech
to all players, with many operators expected to pro-
vide limited versions at the outset, considering that
online sports betting will be an entirely new proposi- experience when it comes to delivering increasingly
tion for vast numbers of Americans. However, once complex projects and its modular architecture helps
players become used to the new concepts, these bet- to minimize the challenges presented by the ever-
ting options will be used as key acquisition and re- changing regulations in this dynamic marketplace.
tention tools. Looking more long-term, the future is very en-
With the rush towards legalization in multiple couraging for the U.S. industry. Early success for
states, many operators are looking to launch as early operators in New Jersey and Delaware has proven
as possible to make inroads into what will quickly that U.S. consumers are ready to embrace regulated
become crowded marketplaces. Speed to market and sports betting. States such as New York, California
configurability are therefore prized attributes when and Florida could very well become some of the big-
it comes to selecting a platform provider. gest markets in the world if they follow suit, while
Having launched tier 1 partners in more than 15 the midwest could also provide significant opportu-
regulated markets around the world over the past nities in 2019 and 2020 as the U.S. takes its rightful
decade, SBTech has developed deep knowledge and place at the pinnacle of the sports betting sector. XUS SPORTS BETTING REPORT
Featuring: Sportradar
End-to-end opportunities
in state-by-state US
Dr Laila Minta, deputy president rate nature of each potential market opening. From
Sportradar US, considers the existing gaming entities, whether that is racetracks
operators or casinos, through to fantasy sports op-
opportunities which exist in the world’s
erators and start-ups, the spread of potential market
largest untapped sports-betting market entrants is extensive.
W
But regardless of state or putative operator, expe-
e are already well on the way to rience and prior market knowledge will count in the
Dr Laila Mintas understanding what the U.S. sports- U.S. as with anywhere else. The individual markets
XDeputy president betting market will look like in its initial may be new to sports betting but it doesn’t mean we
XSportradar US
Dr Laila Mintas is a stages. Bets are now being struck in New Jersey: are ploughing completely virgin territory.
global thought leader $16.4m from a standing start for a short period from
on sports betting mid- to the end of June and the Meadowlands taking An ongoing dialogue
legislation, regulation
$3.5m in wagers from its first nine days of operation Companies such as Sportradar have been working
and sports integrity. A
lawyer by trade, Mintas in July. with the U.S. sports leagues on data and other aspects
previously worked Although we should avoid concluding too much of content provision for many years. Metaphorically
several years at the from any of the early revenue returns, it is still a the leagues may have been on the other side of the
international law firm promising start. Moreover, what we can say for defi- courtroom during the PASPA hearings, but in many 13
White & Case LLP in
nite is that the expansion of sports betting in the other respects they already play an important part in
Berlin, Germany and
specialized i.a. in Sports U.S. outside of Nevada and three other pre-PASPA the existing global sports betting supply ecosystem.
Law and Gambling, states is now under way. A new era has begun.
Compliance and The focus now turns towards process. What is “The message needs to be made again
Litigation. She wrote her
Ph.D. in Betting via the
important from the point of view of both suppliers and again; shining a light on corrupt
and the operators in the U.S. will be how each state
Internet which became activity means it can be uncovered,
a well-recognized book develops from here. We know that there are sure to
in its field. be wide differences between how each market pro- dealt with and stamped out”
ceeds, first with the regulation and subsequently in Dr Laila Mintas | Sportradar
the implementation.
For instance, from New Jersey to New York is but The sports bodies will now play a crucial role in
a short hop across the Hudson, yet there may well determining how each state rolls out any prospective
be stark differences between the neighboring states legislation. We have said before that it will obviously
over what form of sports betting will be allowed in be up to others to determine the stance on integrity
the latter. Other states will likewise present differing fees and other aspects of the relationship between
challenges and, indeed, challengers. Opportunities regulated gaming entities and the major leagues and
are likely to be as diverse as the states themselves. college sports associations.
The point is that the politics of gaming in each We are encouraged here that the AGA looks set to
state across the U.S. differ markedly and this patch- take a leading role in working with the stakeholders
work quilt will be reflected in the shape of each indi- to reach suitable conclusions. We know from pre-
vidual market. vious experience with the sports bodies and politi-
Indeed, the proliferation of supply deals an- cians that negotiation is the best way to forge an un-
nounced across the sector in the months following derstanding.
the striking down of PASPA points both to the scale This is especially the case when it comes to the
of the potential across the U.S. but also the dispa- area of sports integrity. For the wider provision ofUS SPORTS BETTING REPORT
Featuring: Sportradar
regulated sports betting in the U.S. to succeed, this
issue is of paramount importance.
In this regard, the industry can point to the ex-
ample of Europe and further afield to show how via
licensed and regulated gaming match-fixing can be
confronted. The message needs to be made again
and again; shining a light on corrupt activity means
it can be uncovered, dealt with and stamped out.
Regulated gaming brings with it an integrity divi-
dend. Elsewhere, Sportradar has played an important
role. The work being done on education on integri-
ty issues is a vital element of the argument in favor
of regulation and we can point to our track record in
this regard in order to help win over doubters.
Consumer concerns
It is also important to address other areas of con-
cern. A vital element of the industry’s message must
involve reassurances around responsible gambling.
Again, the example set in key regulated markets in
Europe can prove to those that are fearful of the
impact of regulation that a proper licensing system
can and should provide the necessary safeguards.
In understanding the opportunity within the U.S.,
we must acknowledge that the public have for many
years been consuming sports-betting offerings,
albeit from offshore locations and often without the
14 system of checks and balances that comes from reg-
ulated entities. Having said that, much of the audience will be aware
This prior consumer experience also poses opera- of previous sports-betting offerings from elsewhere,
tional challenges. It means that prospective custom- and will also be there to be won over by the new reg-
ers will be coming to newly regulated offerings al- ulated players.
ready primed and well-versed in what an attractive Marketing will play a big part. Experience from
sports-betting offering looks like. For any given reg- other transitioning grey markets proves that the op-
ulated market to work, the consumer won’t want to portunities that open up to promote betting and
feel they are being short-changed. gaming offerings can be transformational. Ensuring
This has important implications for suppliers and the capability of the offering matches the claims of
operators. As much as individual states are a new op- the marketing is vital.
portunity, the prospective audience will be demand- The rush to market in the U.S. will be challenging
ing. This will necessitate the full deployment of the for all concerned. Expectations are high on all sides,
all the tools available in terms of data, content, bet- yet as much as it is obviously good news that the era
ting offering and marketing in order to make each of expanded U.S. sports-betting opportunities is fi-
launch a success. nally upon us – in New Jersey at least – it is still very
It will be fascinating to see which names emerge much early days.
as contenders in the U.S. as the various markets Ensuring that each market reaches its full poten-
move beyond the starting line. We are sure there tial will take every stakeholder pushing in the right
will be new names to add to the list of runners and direction, whether that is on integrity, social respon-
riders, such as BetChicago, who Sportradar will sibility or any number of other important issues
be working with, providing our Managed Trading that will almost certainly crop up state-by-state.
System (MTS) product in readiness for the market to The history of sports betting in the U.S. is check-
open up in Illinois. ered to say the least, but the industry can now seize
New names such as these will be pushing all the chance to write a new chapter. There really is all
market participants to truly engage the audience. to play for. XGlobal
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