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Chris Kape: Micro markets: The future of US sports betting?
Author: Chris Kape, Founder & CEO, JAMCO Capital
The global pandemic may have irrevocably defined sport last year, but it has also been the period in which online sports betting was firmly established as a powerhouse in the US market. This year, 19 states will vote on whether to legalise mobile sports betting and around 8 â 10 of those markets are expected to open up before year end. These are exciting times for the north American sports betting industry and its little surprise that its most recent industry forecasts estimate it to be worth over $20Bn within the next 5 years.
Matching the pace with In-play
Undoubtedly, one of the biggest drivers of online sports book growth has been In-Play betting. Across the pond, in more established markets such as the UK, this vertical already accounts for 70-80% of market revenue. Many predict that within the next three years this figure will be closely reflected in the US market.
As a product, In-Play betting is very attractive to operators because it is a great way to expand revenue above traditional offerings, through creating a seemingly infinite amount of betting opportunities for customers. Also, the natural âstop and startâ pace of Americaâs most popular sports including American Football and Basketball means that smaller betting opportunities such as âNext player to score a touchdown or a 3-pointerâ are easily created.
Keeping the buzz through Micro markets
Some of the leading brands in the US market have recently commented that traditional sports betting is too complex for sports fans and lacks the instant gratification needed to engage a new, wider audience. The US population is estimated to have a little over 37 million sports bettors, but the number of estimated sports fans is over 150 million. This strongly suggests that there’s a over 112 million US sports fans still waiting to be engaged.
In todayâs society, content is a fast-moving commodity, constantly being produced and consumed on a never-ending conveyor belt of news and entertainment. This societal trend has shaped the market landscape to the point where today, players now expect instant gratification throughout their playing experience. The emerging trend of Micro-Markets is the perfect solution for this increasing shift towards fast, easy to consume entertainment.
Micro-Markets are betting markets that are created and resulted in just minutes or seconds, and for U.S. sports, are often coupled with the core engaging moments that drive consumption (e.g., pitches & at-bats for MLB, plays & drives for NFL). Especially since the lockdown, this has been a great way to give sports fans a continuous buzz throughout the games when theyâre not physically able to be in the bleachers! Some industry commentators believe that by the end of the decade, over 80% of U.S. sports betting will be In-Play, and over 50% of In-Play betting handles are expected to be micro-betting.
The importance of AI
Micro market betting products are heavily reliant on the quick turn-around of stats to support the bet-type. Data companies optimising the latest technology are the key to the growth and expansion of these live betting opportunities.
The subtle, more minute details about players, teams and the games themselves are difficult to gather. Ultimately, it is the quick and unwavering stats from data companies utilising new technology such as AI, that help sportsbooks set odds, manage profit margins and determine pay-outs on an increasing variety of betting events.
The dynamic nature of In-Play betting means that things can change unexpectedly. This is almost impossible for a human to assess, but machine learning applications can evaluate the data in real time and adjust the odds in micro-seconds to reflect the ever-changing nature of sports events. AI and machine learning algorithms are designed to scour through all the relevant, contextual data that could impact a particular match, such as the participating players, the weather, injury reports, sport betting stats, and trends. Providing users with access to the latest reports within a fraction of a second. As a result, the odds and fixtures created by AI based systems tend to be significantly more accurate when compared to any past modelling systems
At its purest, the US live sports betting landscape, micro markets especially, is a technological battleground and itâs the operators than can deploy technology best â or identify superior suppliers or particular disruptive technologies â that will succeed. As a vertical, micro markets provide the perfect platform to engage US sports fans with simple, fun and most importantly, safe betting opportunities, taking their viewing experience to the next level!
Chris Kape, an iGaming industry veteran of two decades, is the owner of JAMCO Capital,
a family office venture capital firm, and is the founder and ex-CEO of Don Best Sports, which was sold to Scientific Games in 2018.
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Low6 partners with Choctaw Casinos & Resorts to deliver new interactive game
Low6, the leading gamification innovator, has announced its latest free-to-play partnership with Choctaw Casinos & Resorts by launching Choctaw T-Box, an interactive mobile game for the Invited Celebrity Classic held at Las Colinas Country Club in Irving, Texas, April 19 â 21.
Designed to engage with golf fans throughout the tournament, the unique second screen experience combines an innovative twist to a much-loved game with the thrill of prize draws.
âChoctaw Casinos & Resorts is committed to engaging and entertaining fans in innovative ways,â said Erica Kosemund, senior director of gaming brand and partnerships for Choctaw Casinos & Resorts. âThe free-to-play Choctaw T-Box game will give fans an added level of interaction at the Invited Celebrity Classic. Low6 has a track record of delivering first-in-class engaging content and we found them to be a perfect fit for the environment we are looking to achieve.â
Players are issued a 25-squared T-Box card with each square randomised with a different event that may occur at the tournament e.g. âMardy Fish scores 4 Birdiesâ. Should the event occur during play, the square is won and players can earn more entries into a Prize Draw with the more squares they win. A single line (5 squares in a row/column/diagonal) is worth 5 bonus entries, a T-shape (top row and centre column) is worth 25 bonus entries and a blackout (all 25 squares) is worth 50 bonus entries.
Fans playing Choctaw T-Box will have a chance to win prizes at the end of each day. Prizes include a package valued at $750 that includes a two-night stay at Choctaw Casino & Resort â Durant, as well as $250 in resort credit. Players can also win $250 in free play. Players must be members of the Choctaw Rewards Club to claim prizes.
Jamie Mitchell, CEO of Low6, said: âWe are incredibly excited with the launch of Choctaw T-Box at the Invited Celebrity Classic. Itâs a classic game with a unique digital sporting spin that will entertain fans even more throughout the tournament. Our innovative white label product allows brands to successfully activate their sponsorships at sporting events and can be fully customised across any sport.â
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OpenBet: Inside the Rise in Wagering on Women’s March Madness
Wagering on womenâs sports is experiencing a meteoric rise in popularity, according to the latest data provided by global sports betting company OpenBet. The excitement surrounding the NCAAâs Womenâs March Madness, boosted by the âCaitlin Clark Effectâ, has marked a sea change for a sport and competition in which the menâs game has historically dominated wagering activity.
This year, the womenâs college basketball championship saw record wagers processed through the OpenBet sports betting platform, as South Carolina’s victory over Iowa it clutched the title of most watched national basketball game in five years.
The tournamentâs Final Four also attracted an average of 10.8 million views per match, up more than 130% on last year and higher than the menâs game. This upward trend in recognition of womenâs sport shows no sign of slowing down.
âThe womenâs national championship between Iowa and South Carolina was the highest wagered event of the entire tournament,â said Jake Schmidt, MTS Trader at OpenBet.
As interest in womenâs basketball skyrockets, OpenBet is strengthening its player props offering to remain competitive and attract more bettors than ever before.
âA constituent and increasing offering of player prop markets is vital to ensuring the popularity of womenâs March Madness across the sports betting landscape continues to grow,â Schmidt said.
âWith different universities making the tournament each year, I believe this will continue to keep consumers engaged as it is something new each year.â
There also continues to be wider coverage of womenâs sports in the US media and on TV than ever before. Iowaâs Caitlin Clark, at the age of just 22, has left a lasting impact on womenâs basketball as the NCAAâs top scorer and gaining endorsements from the likes of Nike.
âThis year, there were multiple high-profile players driving this increase in popularity,â said Schmidt.
âThe media highlighted all games including key players such as USCâs Juju Watkins, South Carolinaâs coach Dawn Staley and player Kamilla Cardoso, and others from LSU, UConn and Iowa Hawkeyes.â
Another reason for its increase in prominence and wagering activity is down to the length of time women typically spend at college.
âIn contrast to the menâs game, female athletes generally choose to remain in college for longer before choosing to participate in the WNBA draft, allowing consumers to get to know them more and build familiarity,â said Schmidt.
OpenBet continues to deliver a robust and reliable betting engine enabling more people than ever to wager on womenâs sports with confidence. As this trend continues, the award-winning provider will add further player props and sports to exceed expectations from sports bettors.
Compliance Updates
Elys BMG Group Announces Approval for The Ugly Mug Sportsbook in Washington, DC.
Elys BMG Group announced that The Ugly Mug in Washington D.C. has been granted provisional approval from the District of Columbia Office of Lottery and Gaming Regulation and Oversight Division (DCOLG) to open its sportsbook at 723 8th St. SE. As the fourth privately owned sportsbook venue in the District powered by Elysâ innovative Gameboard betting technology, The Ugly Mug stands as a testament to Elysâ commitment to bringing cutting-edge solutions to local businesses and sports enthusiasts.
The grand opening for The Ugly Mug sportsbook is anticipated to occur during the week of April 27th. Elys will unveil the grand opening festivities, promotions, and events as the date draws closer.
With easy access to sports wagering and a classic American menu in a relaxed setting, The Ugly Mug sportsbook is set to become a premier destination in the Navy Yard region of Washington D.C. and is another step forward for Elys becoming the leading betting technology provider for neighborhood sportsbooks in the US.
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