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Why US operators must improve their marketing tech
Paddy Casey, co-founder at leading product development and digital marketing supplier The Unit, chats to Gaming Americas about the importance of modernising the US product experience now sports-betting markets have settled
The challenges presented to US-facing sports-betting operators have changed considerably since markets began to open up following the overturning of the Professional and Amateur Sports Protection Act (PASPA) in 2018. The idea of exponentially high marketing spends is not so prominent in 2023, and the battleground is transitioning towards a fight for existing customers.
One of the key issues affecting operators is they have been forced to make redundancies in their tech teams. While it is still crucial to develop rapid-fire landing pages/products to meet the demand of sports events, marketing departments rarely received the support they needed for fast digital campaigns from the internal tech teams in the first place, and this issue has now been exacerbated.
When mobile sports betting began to open up in the US, the apps were based on European sportsbooks. This can be an adequate market-entry strategy, but it doesn’t necessarily work in the long-term. When William Hill US first launched as the second mobile sports betting app in New Jersey after DraftKings, the advertising agency behind the campaign had been briefed for three months on the launch. When the app was finally developed and presented to them, the overall reaction was: “Is that it?” They felt it was going to be a new, ground-breaking Silicon-Valley-style piece of new technology, but it was essentially the same William Hill app adapted for US bettors.
Launching based off European models was all the operators could think to do, but that was not necessarily right for the US audience. Now, everyone in the market has to think harder about maximising performance. There are many things you have to do to attract new sign-ups, and the idea of a strong design and the ability to make changes is paramount now, which it wasn’t in 2018.
Following FanDuel’s lead
With a 50% market share as of the end of 2022, FanDuel is the clear market leader in US sports betting, but what is key to remember is it is not necessarily run in the same vein as most other US-facing operators. Given it is owned by Flutter Entertainment, the same parent company that manages Paddy Power and Betfair, it can be guided with more of a European mindset.
FanDuel’s app wasn’t particularly stronger than that of any other operator, but it has taken the lead with product and marketing innovation. Specific products were marketed similarly to how they had been by Paddy Power. While Paddy Power’s advertising is, of course, associated with comedy and at times controversy, it is always focusing on a product release or something that particularly stands out in the mobile app; FanDuel replicated that very astutely. While all the other operators were enforcing generic messages about how enjoyable sports betting can be, FanDuel was actually mentioning products like single-game parlays, and this approach was always likely to be successful.
There is still one thing FanDuel, like all US operators, can improve on, and that’s marketing tech. Tracking marketing spend and player behaviour are still quite new concepts, even with various US markets now being close to five years’ old. We have heard examples of affiliates in the US who can’t work with certain operators because they are convinced the player tracking is so far behind where it needs to be that the operator can’t even track which players have been sent to it by the affiliate. In the early days of regulated US markets, some teams were so naïve in this area they were literally guessing click-through rates.
Working around the problem
In sports betting, there is often one C-level executive whose needs are never prioritised within the product roadmap by the operator, and that’s the chief marketing officer. As soon as someone pipes up about what they need to promote March Madness, for example, the usual response is: “We don’t have time for that.”
That is why it is vital to utilise the expertise of teams who are experienced in sports betting and able to take this matter off an operator’s to-do list. It requires a team who can spend time addressing the player behaviour issues mentioned above, while also building out designs and all the core digital marketing that takes place within the sports product. When operators are able to use resources that can help make their marketing experience better, this will undoubtedly give them an edge in competitive markets.
US consumers are becoming more educated. Their loyalty will be closely matched to the product experience and engagement. With state launches now slowing down with regards to sports betting, operators will now, and should now, focus on product improvements.
Paddy and The Unit’s senior team will be on site at SBC Summit North America this week at the Meadowlands, New Jersey
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A Decade in iGaming: From Newcomer to a CMO
Wow, time flies! Can’t believe it’s been ten years since stepping into the exhilarating world of online gambling – a field that initially seemed like a short-term stint quickly turned into a new-found passion.
Moving to Malta, and eventually finding a home in Tallinn, I’ve had the privilege to watch the highs and lows as well as the many progressions and transformations. Today, I am proud to form part of the Mr. Gamble team that is ambitiously expanding into new markets, and pushing the boundaries.
From Customer Support to CMO
My journey in iGaming kicked off in Customer Support at Betsson – a leap from my telecom sales management role back in Finland. While this move puzzled my family and friends alike, it was a necessary step. Over the months and years, I worked my way up through various roles including Affiliate Coordinator, Affiliate Manager and Head of Affiliates, learning the various intricate parts of the industry, while at the same time adapting to new technological changes.
One thing is for sure, the iGaming industry is a fast-paced one, and each role has helped me to thrive and adapt to the various changes. Flexibility is key when working in this industry.
Venturing into Entrepreneurship: My Own Affiliate Business
Following many years of corporate experience, I took the leap to start up my own affiliate business with the aim of creating my own business from scratch. Handling everything from SEO and content strategy to fostering brand partnerships and growth strategies gave me an overall view of the affiliate industry’s many complexities. This entrepreneurial journey instilled insight and resilience, especially in terms of the value of the diverse skill sets found within a team.
By 2023, I joined Mr. Gamble as CMO, bringing my own entrepreneurial experience into this company’s growth strategy. Drawing on my background in SEO, content management and brand development and alongside a knowledgeable team, we have successfully strengthened Mr. Gamble’s presence in established markets, while also setting our sites on new markets.
New Markets and New Possibilities
Since the online gambling industry is continually evolving and expanding, it also brings with it a surge in growth when it comes to new and emerging markets. While we have made huge strides in launching Mr. Gambe USA, we are also eyeing promising regions in Asia, Latin America and Africa, where digital adoption and regulations are evolving creating new opportunities.
As we continue to solidify our presence in the US, these emerging markets represent the next frontier.
An Ever-Changing and Evolving Gambling Industry
Over the past decade, the online gambling industry has quickly evolved from a somewhat fragmented field to a high-powered professional space. Conferences and expos, once informal gatherings have become hubs for talent.
Events such as SiGMA, SBC, iGB, NEXT.io and Hiphter Events today celebrate the progression of iGaming, while highlighting the various advances in technology and market inclusivity.
The shift toward hybrid work in recent years has also paved the way for industry shakeups. While digital operations are convenient, the importance of face-to-face meetings and connections remains. In an industry highly reliant and built on personal relationships, meeting in person strengthens partnerships and opens doors to new opportunities.
A Bright Future for Mr. Gamble
As CMO of Mr. Gamble, I along with the team are committed to expanding our brand’s influence, not only in traditional markets, but also in new and emerging ones. iGaming is constantly evolving and our strategies must evolve too, adapting and driving on the windy road to success. This entails adapting to changes in technology, user behaviour and experience, and most importantly navigating regulatory landscapes.
Of course, Google’s frequent algorithm updates keep us our our toes, pushing us to refine our approach to stay competitive and ever more relent.
Reflecting on the last 10 years, I am energised and optimistic for the future. With a talented team and untapped markets in tow, Mr. Gamble is well-prepared for substantial growth and impact. Here is to the journey ahead and to everyone – mentors, peers, and friends who have been part of this rewarding path. The next decade holds great potential, and I look more than forward to what is yet to come.
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MAJOR LEAGUE BASEBALL SELECTS SPORTRADAR TO TRANSFORM PLAYER TALENT SCOUTING FOR ALL 30 CLUBS
Sportradar today announced a multiyear agreement with Major League Baseball (MLB) to offer unparalleled sports performance analysis of amateur baseball prospects, through its Synergy Coaching and Scouting solution, to the league and its 30 Clubs. This new partnership will revolutionize player talent scouting through Sportradar’s advanced, proprietary technology and highlights Sportradar’s commitment to delivering innovative and game-changing solutions to the league.
Under the agreement, MLB and its 30 Clubs will gain access to an unprecedented depth of player analysis and insights with event coverage expanding significantly, from 3,300 to more than 20,000 games – an over 600% increase. This includes college, international, professional partner leagues and leading amateur leagues, such as the MLB Draft League, the Appalachian League and MLB Develops events, and, for the first time, top high school events.
The Synergy Coaching and Scouting solution is uniquely positioned to address the player evaluation needs of MLB as it leverages Sportradar’s expertise ingesting and transforming millions of data points from video into detailed metrics, actionable insights and dynamic visualizations. This, combined with Sportradar’s AI-powered sports performance technology, enables Synergy to provide unparalleled, in-depth analysis of every player, play and game situation, and equips MLB and Club scouts with the information and insights they need to streamline the evaluation process, guide draft decisions and support the development of future MLB players.
“Sportradar’s cutting-edge technology, alongside our reputation as a trusted partner to leading US sports leagues, is driving the transformation of sports performance analysis,” said Eduard Blonk, Chief Commercial Officer, Sportradar. “Through Synergy we are pleased that we are expanding our relationship with MLB, equipping them with the deep data and insights they need to identify the next generation of players. We are eager to continue bringing innovative solutions to MLB.”
“We are excited to expand our relationship with Sportradar and ensure equal access to the Synergy video and data services for all 30 MLB Clubs. This platform has become a key resource for Clubs in the domestic and international scouting process and we look forward to continuing our work with Sportradar in the coming years,” said John D’Angelo, MLB’s Sr. Vice President of Amateur and Medical Operations.
Financial reports
Commercial Gaming Revenue Growth Continues in Q3 2024, Driving Industry’s 15th Consecutive Quarter of Growth
U.S. commercial gaming revenue reached $17.71 billion in Q3 2024, the industry’s highest-grossing Q3 on record, according to the American Gaming Association’s (AGA) Commercial Gaming Revenue Tracker. This makes Q3 2024 the industry’s 15th consecutive quarter of annual revenue growth, with September marking the 43rd straight month of rising year-over-year commercial gaming revenue.
Through the first nine months of the year, nationwide commercial gaming revenue stands at $53.24 billion, pacing 8.0 percent ahead of 2023 and putting the industry on track for a fourth straight record revenue year.
In Q3 2024, 29 of the 35 commercial gaming jurisdictions operational last year saw increased year-over-year revenue. This growth resulted in an 8.9 percent year-over-year increase in state and local taxes tied directly to gaming revenue, with commercial gaming operators contributing $3.79 billion in taxes across the quarter.
Quarterly revenue from land-based gaming – encompassing casino slots, table games and retail sports betting – totaled $12.56 billion, 0.62 percent lower than Q3 2023. Meanwhile, combined revenue from online sports betting and iGaming totaled $5.14 billion in Q3 2024 as online gaming made up 29.0 percent of commercial gaming revenue, a significantly higher share than in Q3 2023.
Looking at each sector in Q3 2024:
- Traditional Gaming: Traditional brick-and-mortar casino gaming generated quarterly revenue of $12.38 billion, a contraction of 0.9 percent year-over-year.
- Legal Sports Betting: Americans legally wagered $30.3 billion on sports, generating $3.24 billion in quarterly revenue (+42.4% YoY). Recent market launches in Kentucky, Maine, North Carolina and Vermont contributed to this growth.
- iGaming: iGaming generated $2.08 billion in revenue, marking a 30.3 percent year-over-year increase.
“Q3 2024 continued gaming’s momentum from the first half of the year, with online casino and sports betting driving strong growth. At the same time, new brick-and-mortar casino openings bolstered traditional gaming, which still accounts for the bulk of industry revenue,” said AGA Vice President of Research David Forman. “More than a quarter of commercial revenue now regularly comes from online sources, raising the importance of continued sustainable growth with consumers in those states.”
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