Ahead of a bumper few months for the sports betting industry, iNTERGAMINGi explores how suppliers and operators will combine expertise across all areas of the sector to take full advantage
Sports across the world have so far delivered in spades for the betting industry, including the thrilling conclusion to the Premier League title race shortly before this issue went to press.
However, 2024 has a few extra treats in store for sports betting operators and suppliers than the average year − a few more sprinkles of that magic dust that sports fans live for. Chief among them is football’s Euro 2024 in Germany which will be “huge” for the industry, begins Abelson Odds’ chief operating officer Jeeve Jeyaratnam.
“You can be sure operators will be fine−tuning their bet builder products to best capture market share,” he adds.
Reflecting the global appeal of sports betting, the latest edition of the Copa America runs in tandem with Euro 2024 and will be a “seismic event” given the recent regulatory activity across Latin America, says Jeyaratnam, not to mention the “added significance” the US will have as the host nation.
Joining the discussion, NSoft’s managing director for Seven Sportsbook, Robert Matijevic, says: “Players who prefer live betting − and they are the majority − will be able to enjoy betting on these tournaments continuously from 3pm CEST until the early hours when the last Copa America matches finish on the US west coast.”
RISK MANAGEMENT FACTOR
Throwing the Paris Olympics into the mix − which Jeyaratnam labels “something of a conundrum” for operators − brings up a pertinent debate about risk management from both the operator and supplier side.
“The interest will centre on events not regularly priced by sportsbooks,” he notes. “This opens the door for experts to pick at the pricing, and while operators will be keen to offer as many markets as possible, there will be a large emphasis on risk management.
“Operators won’t be able to rely on bet builders for margin protection either, so expect to see pre−canned accumulators pushing punters towards certain bets.
“Just how much of the operators’ real estate will be given over to the Olympics is open to debate.”
Matijevic adds that high odds, “or rather low profit margins,” combined with the attractiveness and “fan factor” of the footballing feast, ensures “significantly higher average stakes compared to regular tournaments.”
“Moreover, such events are always accompanied by aggressive promotion from the organisers,” he continues.
“While profits largely depend on match outcomes, especially in pre−match betting, optimal trading can steer the game in such a way as to ensure profitability. Our NSoft traders have the necessary experience, knowledge and tools to manage this effectively.”
For Abelson, Jeyaratnam confirms that the company will be embracing Euro 2024 and the Copa America “with open arms,” offering its Goalscorer Pricing & Settlement (GPS), GPS In−Play and Player Incident Pricing & Settlement (PIPS) services for all games.
SPANISH EXPANSION
Staying in Europe, Spanish expansion “fits right in” with the strategic aims of supplier Vermantia, as it looks to further the reach of its live racing, live sports, virtual sports and numbers games content.
With betting a “big tradition” in “one of the oldest and stronger betting markets in Europe,” chief business officer Spyros Stavropoulos states that Vermantia wants to become a “household name” in the market through its retail operations.
“We have proudly conquered many markets with our solutions as most tier−one operators have partnered with us one way or another,” he adds.
NEXTGEN SOFTWARE
For NSoft’s Matijevic, the company’s NextGen sports betting platform, incorporating a range of software functionalities for large and small−scale operators, is a key vehicle of choice for expansion having been launched at ICE 2024.
“This has been a game−changer for us and the industry, setting a new standard in sports betting technology,” he tells iNTERGAMINGi.
“The response has been overwhelmingly positive, confirming we’re on the right track. Our NextGen system isn’t just new software; it’s a leap forward. The demand from various
markets has been robust, underscoring its appeal and effectiveness.
“We’re not just talking about software functionalities but also trading options that can meet the diverse needs of different markets in terms of profit margins, risk strategies and the distinct profiles and playing styles of the bettors in those markets.”
Aside from Europe and Africa, where NSoft “traditionally has a strong presence,” NextGen is also attracting “significant interest” in Asia and Latin America where the company’s sales agents are “intensely focused.”
“Our current client portfolio, spanning five continents, underscores the crucial role of localisation and customisation in our offerings. This was a key consideration in planning our NextGen solutions, enabling us to swiftly and effectively adapt to various markets.”
PERU’S SEAL OF APPROVAL
Back in LatAm, Peru has attracted lots of attention from the sports betting industry as regulation there continues to proceed.
Jeyaratnam labels the market a “welcome addition to the regulated betting map,” outlining the “smooth” supplier accreditation process which he hopes is a sign of things to come.
“Abelson has recently undertaken the Ministry of Foreign Trade and Tourism (Mincetur) ordained supplier registration procedures, and after finding a suitable Peruvian solicitor, we have been satisfied with how smooth the process has been,” he says.
“We hope this is a positive precursor for how the country’s regulatory framework will operate.”
Jeyaratnam reports that feedback from clients already live in Peru points to the “unique fervour” with which Peruvians bet on their own domestic football, a trend which “certainly outstrips revenue on the Premier League” and is unlike the landscape in Europe.
“l personally absolutely love this, and we have exciting plans to offer detailed PlPS pricing to accompany our GPS and GPS ln−Play offering there.”
Suppliers and operators also welcome the centrally governed licensing system in Peru, Jeyaratnam remarks, something he claims Brazil could look towards as the framework there is debated.
Nevertheless, he points out that Argentina, with its provincial layout, is following the US’ lead in implementing a state−by−state approach, which he says has “contributed to restricting competition outside of three dominant operators” stateside.
For Matijevic, the race for “better positioning” in the US and Brazil is expected to continue for some time, and creating “richer content tailored to the sports and competitions characteristic of these markets” will play a “crucial role in this effort,” he explains.
RACING FORWARD
Moving from a global picture to a more focused picture brings into view the supplier−led sports betting content making an impact.
Having been acquired by British racing group Arena Racing Company in November 2022, the ARC “mothership” allows Vermantia’s live racing channels to be offered globally to almost all tier one retail operators, begins Stavropoulos.
“Our aggregator platform seamlessly integrates diverse content with top− quality channels, offering retail operators a comprehensive solution through a single integration.
“Retail operators in ltaly, the UK and Greece hold their live racing channels at the top of their offering as they remain key player preferences, and with our fully customisable channel creation, each operator can have a unique operation and appearance.”
From racing to virtual sports, Vermantia also offers pre−recorded live races on its Virtual Channel offering. This content is “about to be the talk of the town,” Stavropoulos says, by “combining real racing action with the ease of virtual games.”
“Since more and more players are entering into the pre−recorded era, as they enjoy the thrill of live racing and the excitement and HD graphics offered only by virtual games, it is only natural that we shift our focus.”
The “pivotal” diversity of NSoft’s virtual sports stable ranges from greyhound races to the Virtual Motorcycle Speedway title. The company is also focused on shouting about its Virtual Drag Races content, which will “bring the fast−paced thrill of drag racing to the virtual world, providing a completely different level of experience with high−speed action and a wide range of betting options.”
Players can bet on the winner of each race or place single or combo bets.
Elsewhere, NSoft’s Virtual Penalty Shootout − a “standout” in the company’s line−up − has garnered “significant attention,” says Matijevic.
Capturing the “high−stakes excitement” of one of the “most dramatic” ways to decide a match, players can bet on the outcome of each spot−kick in “detailed ways.”
“lts appeal is enhanced during major soccer events, but it remains a consistent favourite year−round due to its engaging format and the constant demand for soccer−related content.”
DIVING INTO DATA
Data is another defining pillar of the sports betting industry, with Abelson’s GPS and PlPS centred around the individual actions that take place during a match.
Jeyaratnam talks through the “potential game−changer” solution that could combine the expertise of both tools.
“We’ve considered how integration roadmaps are the biggest hurdle in gaining traction with operators and platforms,” he starts.
“Building on this idea, we have engineered a solution that allows us to leverage current GPS integrations to also provide PlPS markets. This can open up access to a number of current subscribers without heavy integration work. lt also means we can package and market the whole player props solution as one.”
Vermantia’s Adaptive Data Service, meanwhile, is designed for “unified and bespoke data schemes,” Stavropoulos says, allowing for an “enhanced data feed” with additional editorial content available upon request alongside real−time push updates.
“Designed for a fast one−off setup, we pride ourselves in delivering a one−stop−shop for multiple providers’ content through a single, bespoke integration that adapts to regional requirements.”
THE AI REVOLUTION
While data underpins many modern sports betting operations, travelling upstream reveals that artificial intelligence, woven together by data, has now anchored itself at the centre of these processes.
For Matijevic, Al has a “limitless spectrum of uses” in sports betting, from analysing player behaviour and preferences to creating personalised offers based on betting patterns.
“We already offer some AI modules, such as personalised offers, for players through the integration of the AI−driven module Vaix, as part of our NextGen sportsbook solution, and our AI team continues to develop new AI−driven functionalities,” he explains.
“Vision, our in−house, AI−powered surveillance and video management system, employs advanced facial recognition to identify minors and high−stakes players, and assist with self−exclusion, preventing problem gambling and anti−money laundering.
“Once identified, these players are flagged up and tracked from one betting shop to another. Traders are automatically notified when such players enter a betting shop, enabling them to adjust the risk limits for that specific player or location, without impacting other players or venues.”
Vermantia’s Stavropoulos notes AI has “entered our lives for good.” While it is still “leaps and bounds away” from becoming a “dependable tool,” he says popular current usage − making daily processes easier by “providing perspectives and testing hypotheses” − is a very suitable starting point.
Indeed, AI has helped Vermantia “perfect” its digital signage solution, Vision 3.0, for the retail betting market.
“Supported by our aggregator platform, Vision 3.0 can be fully customisable to operators’ needs, accepting all digital files and combining them with live or virtual content that is able to create an experience through smart, bespoke channels,” he says.
OMNICHANNEL OBLIGATIONS
Following the coronavirus pandemic, there has been a noticeable drive in the sports betting industry to go omnichannel − reflecting the best of the land−based sector while embracing digital change.
Indeed, Matijevic says that an omnichannel view is “crucial” for operators offering betting services across all channels, allowing brands to “identify and track players” regardless of their choice of channel and offer tailored promotions and bonuses.
“Looking ahead, NSoft’s omnichannel−focused plans are designed to further propel the company forward by enhancing these capabilities, ensuring a seamless and personalised experience for all users across different platforms,” he adds.
Stavropoulos expects to see more companies joining the omnichannel charge soon as combining both retail and online channels to deliver “an experience” is a “great way of retaining customers and has proven to be an excellent asset for enhancing overall brand awareness and customer loyalty.”
“At Vermantia, we deliver bespoke omnichannel solutions to our customers and partners with the ultimate goal of achieving seamless, effortless and high−quality customer experiences.”
PARTNERSHIPS AT THE HEART
Also at the heart of all successful sports betting operations is a strong partnership.
Abelson has enjoyed a “very exciting start” to the year, Jeyaratnam reveals, with two major deals for GPS struck. Betsson Group has been added to the product’s roster and another operator, with an Asian focus, will “hopefully have GPS live by the end of Q4.”
Abelson also has “several more realistic opportunities” in the pipeline for the second half of the year, spurred on by the company putting its “first boots on the ground” in Latin America earlier this year.
“Myself and my colleague, Simon Temple, travelled to Rio de Janeiro for the SBC Summit in March,” says Jeyaratnam.
“It was a great event and strategically important for us to meet with platforms and operators in Brazil who we otherwise would find it hard to reach.
“Subsequently, we are in the process of offering our website in Brazilian Portuguese and have also had sales pitches translated to help the push.”
NSoft, meanwhile, has struck partnerships with the likes of Pragmatic Play for casino content, Optimove for its CRM solution and Oddin.gg for the burgeoning esports and esports betting sectors. Features like Multifeed have been “well−received” and are elements which “not only enhance the betting experience but also provide our clients with versatile, reliable tools for growth and customer satisfaction.”
“These partnerships and integrations have significantly advanced NSoft towards achieving our goals by expanding our offerings and enhancing our ability to meet the diverse needs of our clients efficiently,” says Matijevic.
“Like any sportsbook platform, our goal is to offer our clients a broad portfolio that includes not only our own products but also third−party offerings, which we achieve through integrations with various partners, typically leaders in their respective fields.
“With two dedicated teams working on these processes, our integration is fast and efficient, providing us additional agility in this area as client demands for integration are a regular occurrence.
“As we move through the year, we’re continuously fine−tuning our strategy based on feedback. We aim to further enhance these features and ensure that our solutions are perfectly aligned with market needs and client expectations.”
Vermantia’s 2024 focus has been on the launch of Vision 3.0 and the partnership with Eurobet that implemented Vermantia’s solution into the operator’s retail stable.
“Being ‘on track’ is an understatement as we have always been overachievers keeping a lookout for trends,” concludes Stavropoulos.
“We are putting our award−winning aggregator platform at the forefront of our strategy along with our Virtual Games Channels and of course Vision 3.0, which will be coming in strong for the second half of 2024 as well.”
LOOKING TO THE FUTURE
Jeyaratnam rounds off iNTERGAMINGi’s sports betting discussion with a view from the operator side. Conversations at SBC Summit Rio, he said, revealed that many of the locally−based operators are using platform technology partners with integrated managed trading services.
“So, yes, next-generation MTS that adapts to individual operator liabilities is starting to come to the fore, expect that to continue.
“Bet builders continue to dominate, and bet365 has recently introduced its Bet Builder+ product, which adds a nice UI to allow punters to combine bet builders from multiple games.
“BetVictor has been pushing its Lucky Dip feature, which combines an RNG call with market selections. The breadth of markets available in conjunction with this feature is impressive.
“I think that as a trend, melding the boundaries between sportsbook, virtuals and casino is likely.”
He says DraftKings’ ongoing acquisition of Jackpocket seems “very smart” business, as lottery couriers have “a lot of latent potential and also provide a diversified revenue stream.”
“Given Jackpocket already has a live casino product, expect to see some interesting crossover products between the different verticals.”
With so many avenues to explore for sports betting, the future is as bright as ever. And despite the careful planning and execution many roll−outs and partnerships require, there is always the raw thrill of live sport for operators to fall back on.
