Sports Betting Focus 2017 very agile , because we don ’ t know exactly in which direction , or directions , the market could go . Getting the business models , techstacks and data in order that will allow you to respond is the key challenge right now .”
Grasping opportunities Sport is preparing for a big year in 2018 – with the Winter Olympic Games in Pyeongchang , South Korea , followed by football ’ s Fifa World Cup in Russia .
However , Lögdberg is convinced that traditional and established events now represent only part of the sports-betting story as the sector edges closer to the third decade of the new millennium .
Referring to the example of the rise in popularity of esports worldwide , Lögdberg says : “ I think sports betting can reach more demographics that have never really been wagering on sports . Around the world , interest in sports is huge , but the interest in sports betting is only a fraction of this .
“ Esports is one example that really can work for some of the new players . It is definitely a product that can speak to people who have never seen themselves placing a sports bet .”
The daily fantasy sports ( DFS ) market , which is straddling the regulatory sports betting line in North America and remains in a tumultuous state as a result , is another area in which traditional operators can flourish with the right approach .
Although significant question marks remain over DFS , Lögdberg does believe that the appeal of the sector amongst a younger demographic shows that there is untapped potential .
“ DFS is a tricky one as if the US had real sports betting , how big would DFS be ? We are yet to see DFS fly in Europe from a revenue perspective . Regulation in the US is something that everyone keeps an eye on , as this would be a major change for the whole sports betting industry ,” he says .
“ I do believe in DFS in that for many players it is a more accessible way to bet on sports rather than the more traditional product and is more attractive to a younger audience . The younger generation are not necessarily fans of a team , but more a player , and they will follow that player wherever he goes .”
Just as media companies have evolved their coverage of sports to accommodate a more tech-savvy and data-hungry audience in recent years , sports betting providers also need to reflect on how they are perceived by the next generation .
“ For Millennials , you are probably looking at a repackaging of sports betting and it is likely that new channels will be important as well .” Lögdberg says .
“ With mobile , the player always has your product in their pocket , but at the same time you face more competition from various other forms of entertainment . You really need to make yourself relevant as a sportsbook .”
Reinvention Despite the emergence of mobile betting technology and a clear preference for many punters to place wagers ‘ on the go ’, Lögdberg points out that retail and the opportunities with omni-channel absolutely must not be forgotten .
Suggesting that retail still represents around 75 % of the global betting market , Lögdberg adds that there is still a lot to be gained from the humble betting shop experience .
“ It is important to pay attention to retail as while this market clearly isn ’ t growing like online , it is certainly not shrinking either ,” Lögdberg says . “ Retail is definitely reinventing itself by becoming more digital , where players can get the in-play product experience at a retail venue , and it will definitely have a place in this industry for a long time to come .”
With that in mind , innovation is key and it is inevitable that some of the larger sharks in the sea will swallow up some smaller fish . Lögdberg says that despite advancements in recent years – in particular the growth of in-play and mobile betting – the desire to improve mass-used sports-betting services remains as acute as ever .
“ The market is maturing and becoming increasingly crowded ,” Lögdberg adds . “ Everyone needs to find their place in the value chain and identify where they can deliver more value than their competition .
“ This will inevitably lead to M & As , outsourcing and , in some cases , insourcing . Companies need to use all of these measures , while at the same time identifying where they need to be in the value chain .
“ Better use of data is going to become important for all companies in the sports betting industry over the coming years . Once we begin to use data properly , we are going to see the end user experiences being different for different users and see more niche propositions .
“ But right now , it is a big risk to be one of the first to go and do this sort of thing as the traditional product has been working quite well . It ’ s about making that transition and companies need to be able to do both , so I think it ’ s time for some companies to start trying things out .”
Erik Lögdberg is chief business development offi cer at Kambi . Erik started working for Unibet Group plc in 2005 , as head of live betting from an operational as well as product development perspective .
iGamingBusiness | Issue 105 | July / August 2017 | 63