Is AI putting the sports betting sector on a collision course w th igaming? Abelson Odds COO Jeeve Jeyaratnam explores the “deeply hypothetical” scenario
HE rapid advancement of artificial intelligence and machine learning has companies across the world buzzing about the potential benefits this new way of thinking and operating could bring to data application.
With that, as Jeeve Jeyaratnam, chief operating officer at sports betting provider Abelson Odds points out, comes a raft of new businesses looking to tap into the quickly−changing landscape.
It feels like “every week” there will be a new start−up proclaiming that its AI−powered solution is going to “disrupt the market,” he tells iNTERGAMINGi.
“While the power of machine learning (ML) − the branch of AI that is really being referred to − is not to be underestimated, there is still a requirement for manual oversight, intervention and nuance.
“Often, that can be lost in the strategies of the big tech companies operating with a pure technology focus.”
Putting things into a sports betting perspective, Jeyaratnam offers a perfect real− world example: “Training a machine to realise the importance of a Dutch regional newspaper’s exclusive on an Eredivisie team’s decision to heavily rotate for a particular game is not easy.”
Trading and risk management have become buzzwords within sports betting in relation to the potential benefits of AI and ML.
And Jeyaratnam admits: “That said, the ability to analyse and detect patterns in data that a human, or even existing processing techniques cannot, is slowly changing the game.
“Concurrently, we’ll continue to witness a reduction in the number of human traders, with automation taking many of these roles.”
A TIPPING POINT?
But can technology and data make sports betting offerings almost too good to be true? And is the sector at risk of forming parallels with the igaming industry from aspects that currently set sports betting and igaming apart?
“Where is the tipping point?” Jeyaratnam asks when considering the “vast data resources and ML−led analytical solutions” now available.
“By this, I mean, is there a time when bookmakers’ odds become so accurate that the business reflects a casino, with certain market RTPs effectively known beforehand?
“Given the rewards on offer in the casino sphere, one could argue that this would be the ideal scenario, but honestly it would be highly damaging for the vertical. Deeply hypothetical, I know, but an interesting notion, nonetheless.”
DATA AT THE CORE
From Abelson Odds’ point of view, data is “unsurprisingly crucial” to its suite of
products, which include Goalscorer Pricing & Settlement (GPS) and Player Incident Pricing & Settlement (PIPS).
The former service provides global sportsbooks with a wide range of goalscorer markets, with PIPS providing sportsbooks with markets for assists, shots, offsides, tackles and more.
“We take in raw data and evolve it into markets that represent interesting betting propositions for our clients,” Jeyaratnam begins.
“Our two core odds−making products have similar steps to using data. Both require a number of parameters that are fed into our proprietary algorithms to produce the pricing we are famous for.
“To determine these parameters, we use several trusted third parties which provide the blocks from which we base our products. Once the data has been crunched, we also need to settle the resulting markets.
“For that we use official data sources. This data needs less interrogation but is equally important, allowing our clients to pay their customers swiftly and accurately.”
Meanwhile, Abelson’s Fixtures and Results service has been around for 20 years this year and has therefore borne witness to a raft of changes to the sports betting industry.
“The obvious change is in terms of expansion,” Jeyaratnam says. “Technology, specifically streaming and improved bandwidth, has meant that the number of media channels and sporting events that are broadcast has increased way beyond what we could have imagined when this product was in its infancy.
“Whether the media companies like it or not, the clamour for live broadcasts is somewhat fuelled by the ability to bet pre−game and in−play on these events. The betting operators and streaming firms benefit from each other. There is no better example than bet365, which must be one of the biggest live sports streamers in the world.”
KEEPING UP WITH THE TIMES
Such is the speed at which data application overall is advancing, Statista and Bernard Marr & Co claim that 90 per cent of the world’s data was generated in the last two years alone.
In sports betting, Jeyaratnam says, that means everything from customer profiling to the bet slip is being “driven by evolving data source size and accuracy.”
“We’re still a little way from a completely personalised sportsbook offer, but steps are being made.
“It’s not just the sportsbooks that are benefitting from this approach, though. Betting syndicates have advanced data processing power, and we’ve seen several of those revert to B2B odds suppliers as they have been targeted by ever−more accurate customer profiling
and restrictions.
“In this way, the data analysis improvements have forced them to pivot to the supply side; data and, importantly, the tools by which we interpret it are changing the face of the industry.”
THE NEXT WAVE
Jeyaratnam concludes that there is now a “rush” to “understand, model and interpret” more granular data points and produce the “next wave” of betting options.
“There’s no doubt that the technology improvements that have in turn boosted the availability and depth of data available for any given event have led to the development of ever−more data−led granular betting markets,” he adds.
“These markets feed directly and meaningfully into bet builders or same−game parlays and it
is no surprise that they are proving popular for both operators and punters.”
