Sports Betting Focus 2017
THE BEST OF BOTH WORLDS
Until recently , operators had only two choices : have a large team of in-house traders or rely on a fully managed sportbook provider . But the emergence of semi-managed sportsbook solutions has changed the game , says SBTech ’ s Tom John Light .
In the ultra-competitive world of online sportsbook management , the aim is always to retain an edge while managing the risk that goes with it .
Operators are constantly looking to create bespoke promotions and offers which allow them to stand out from the crowd , ranging from attractive odds on a major event like a Cup Final to increased payouts on horse racing .
However , one of the biggest conundrums is how to achieve this brand differentiation without incurring the high overheads of a large trading team .
Until recently , if an operator wanted to maintain a well-defined sportsbook there was a difficult choice to be made . It either needed to employ a large team of traders working on all aspects of the operation , or rely on a platform provider to fully manage all significant variables such as odds , payout ratios and maximum win amounts .
Of course , if an operator chose the fully managed option it would define an initial trading strategy that would be implemented by the provider , but after launch they ’ d be unlikely to be able to make many changes . While it was usually possible to request specific adjustments such as a change in odds for a particular game , this required direct communication with the provider on a case-by-case basis – it was very difficult for adjustments to be made on the fly . The new breed of semi-managed solutions has changed all that by giving control back to the operator , which can now manage any market independently while leaving the remaining markets to be managed by the provider .
The operator can therefore employ a relatively small team of traders who are experts in specific fields such as local sports leagues or major competitions , safe in the knowledge that the provider will manage all other markets .
Semi-managed is a natural progression from fully-managed – as an operator grows , it will inevitably want more control , but not necessarily want to invest its resources in fully managing the operation .
With semi-managed , the operator can offer odds on tens of thousands of events and only manage a well-defined group of major moneymakers . This offers them the flexibility to influence the betting on as many or as few events as desired , but at the same time satisfy the need to offer a wide range of sports and markets .
This increased level of control gives the operator major advantages when it comes to
“ Semi-managed solutions give operators access to every betting market available on their provider ’ s website but allow them to adjust the odds , payout ratio and maximum win amount for any of them ” brand differentiation and promotions . The operator has the option to decide certain prices and tie them to an offer . For example , an operator can set static odds for a specific selection , such as ‘ Liverpool to win 1-0 ’, and then create a promotion based on this price .
Semi-managed solutions give operators access to every betting market available on their provider ’ s website but allow them to adjust the odds , payout ratio and maximum win amount for any of them . These adjustments can be made for pre-match and live markets , as well as horse racing and greyhound racing .
The power is put in the hands of the operator but without the cost of having a huge team of traders for every market . Operators can adjust their risk and liability strategy automatically by sport , league , event and market . Operators are also in some cases able to create rules that mean the odds , payment ratios or maximum win amounts change at a specified time in the lead-up to an event , allowing them to optimise turnover based on risky periods during the event lifecycle .
With operators battling to attract players to their sites , semi-managed solutions are a crucial tool in promoting brands and managing risk . And with the advent of new technology and the development of additional semi-managed options , operators will be given even more control over their businesses , creating ever more attractive offerings .
Tom John Light is Vice President of Business Development at SBTech . Tom has been working in the gaming industry for many years with a focus on casino operations and sports betting .
72 | iGamingBusiness | Issue 105 | July / August 2017