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The changing face of sports betting

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The changing face of sports betting

 

With Flutter reporting a key trend of a higher proportion of accumulator bets being placed across the US, is the recreational betting market about to hit lift-off? We talk to Callum Broxton, Commercial Director at Checkd Group, Brandon Walker, Head of Amelco US and Alex Kornilov, CEO at Betegy, to get the low-down on the market, examining the role played by European suppliers in shaping the offering put in front of bettors and looking at how high-quality content and new media partnerships are driving engagement and trimming CPA for operators.

How quickly is recreational betting growing in the US and how influential are the ideas imported by European suppliers?

Callum Broxton, Checkd Group: “There has been some understandable copying of homework as the US market finds its feet, with high-margin products starting to be placed front and centre by the major operators. Much has been made of the need to educate the population on the intricacies and details of sports betting, but that same population has spent years being stats-obsessed thanks to fantasy sports and broadcasts of the games themselves. Recreational markets such as single-game parlays bundle up the knowledge they already have and present it to them in a simple, easy to consume betting product.

“There has also been a clear realisation of the organic marketing power of big wins from small stakes and the role that plays in attracting a whole new audience. Winning $10,000 from a $10 parlay is far more relatable and attainable than winning the same amount from a $5k bet on a single match to hit the over. The former is also far more likely to catch fire on social media and be picked up by publishers, operators and affiliates across the country – those sorts of stories are an invaluable marketing tool for the industry as a whole.”

Brandon Walker, Amelco: “It’s definitely growing and it’s extremely influential. Pre-defined accas / parlays are really going to take off, especially with recreational punters. Alongside that, with the likes of BetBull and its tipsters, it’s got every reason to drive serious growth.

“That’s not to say that’s all the market is going to be, but it will certainly play a big role in the landscape, especially in attracting a new generation of bettor, rather than the old-school approach of moneyline and single bets. The traditional ways of betting will always be there, of course – with the mainstay of high rollers, VIPs and singles.

“But, on the recreational side, newer bettors are going to be interested in the likes of pre-defined parlays, who will want something that can be more emotional, rather than a complex decision. Looking at Fubo for example, we’re seeing a real transition into merging entertainment with the betting experience – and that’s something that can almost be called native, rather than a European import. Combine the streaming experience, which is arguably a more US-centric idea, along with recreational betting – and you have an entirely different landscape to Europe.

“Moving forward – looking at innovation around entertainment and engagement, we’re almost only scraping the tip of the iceberg in terms of what’s out there and what can be done. Sports fans are becoming savvy to what’s available – and it’s an open invitation for excitement and engagement, and this space is set to grow even more.”

Alex Kornilov, Betegy: “It’s growing quickly, as the US in effect offers a blank state for creating an entirely new experience. As we all know, a big chunk of the market has come from recreational activities as such as skill-based betting (think DFS), which means fans are already used to the recreational element. Betting offers a natural cross-over, as they still see this as a similar skill-based activity, in the style of making an informed bet. Casino of course, is a completely different kettle of fish, but when it comes to sports DFS really does provide the base – just look at DraftKings, FanDuel, ESPN and Yahoo. You effectively have the customer base already to transfer over. It is one can argue, already there by default.

“What can be learnt from European suppliers? For me, it’s more about factors such as infrastructure and affiliate management. It’s less about the ideas here, but rather about the tech that can be supplied to support such growth. The core is definitely there to satisfy the demand, and you need suppliers (predominantly European), that can supply that tech and make it top notch.

“That’s not to say, however, that European tech can just be taken and updated – we can see plenty of examples where that tech has been taken and failed to deliver. The US has a unique set of requirements, and it needs to be repackaged and adjusted to fit the US ecosystem.”

Do you see a future where high-margin products such as single-game parlays completely take over the market?

Kornilov: “I see huge potential in quick markets, which is in effect, the generation of bespoke markets for each single event – and it’s supremely well suited in the US to the type of activities that can bring huge turnover to operators. Given the vast expanse of all US leagues across all major sports, you can begin to see the opportunity to offer real-time betting in action, literally on every shot taken. Alongside this, user generated markets (think ‘request a bet’), is another excellent example. I’ve already seen the tech in action for this, which is at the development stage – offering micro and real-time bets, and it’s definitely an area that will offer fantastic growth.

“We can see similar-style action in Europe, particularly in the UK with the Premier League. However, so much more is possible over here given that broadcasters in the US can have complete ownership on the rights of one game. This means that rather than the UK situation of broadcasting at far higher latency, the US is almost instant, enabling so much more to be done to engage and excite.

Broxton: “It seems unlikely that one bet-type alone will take over the US market. There were similar predictions made in the UK during the early days of Request-A-Bet/Bet Builder products. It’s true that these products have been at the centre of industry innovation over the last couple of years. More and more markets are being added to the selection pool and American operators are essentially able to benefit from the trial-and-error process which has taken place in mature markets.

“Ultimately, it’s a very human question and there will always be variance in behaviour. Huge sectors of the market will always prefer traditional parlays or single bets, not to mention in-play.”

Walker: “They will play a big part, but not all of it. They are not necessarily in a position to dominate the market, but this is definitely a high-growth space that holds plenty of potential.

“Just as we’ve mentioned already, this will offer a high incentive for the new generation customer to get involved in betting, as it offers what will be perceived to be a ‘bet low, win high’ outcome, which contributes to that entertainment factor. It’s still most likely  that the more established bettors, who have been enjoying land-based sports betting for years (if not decades), will likely stick with the more ‘traditional’ forms of betting as it’s what they know.”

What does the future hold for the old-school American bettor, who traditionally places large stakes on the moneyline?

Broxton: “There is currently a huge opportunity for someone to become the home for the old-school bettor by offering a no-nonsense platform with the best odds. The best example of this would be the Betfair Exchange in the UK which is synonymous with hardcore punters, offering guaranteed value and top odds. The trade-off with exchange-based products, though, is that there is little to no room for innovation and they are limited to offering a fraction of the markets available on sportsbooks. This means they struggle to attract new, younger audiences as a result.

“However, there are some incredibly innovative companies attempting to modernise the exchange model in the US. Sporttrade, for example, offers an alternative, exchange-based experience aiming to capitalise on the exponential post-pandemic surge in popularity of stock/crypto trading platforms among under-30s by presenting users with a Robinhood-esque interface where they can trade bets as if they were stocks.”

Walker: That’s always going to be there. Take the Super Bowl: even prior to PASPA, the large stakes being placed were very much based on emotion and supporting the home team. I think it’s ingrained in the American DNA; and that style of betting is not going anywhere. What’s exciting is the growth in options across betting markets that should create a more exciting hybrid offering for bettors.”

Kornilov: “I would certainly say that moneylines are a good ‘gateway’ into other types of betting as it provides an initial platform to get involved.

“Dynamic withdrawals are also a good evolution of this, as it allows for the fluctuation of odds – and it offers an interesting dimension where you can open and close positions. This progression from one single bet on fixed odds is exactly what operators need, as in many ways they’re behind on the ability to cross-sell across various types of betting. This is particularly the case for our industry, as compared to the likes of Amazon, with the ability to offer recommendations for one product given the use of another lagging far behind. The moneyline therefore can offer just that platform to make the introduction to betting, as it’s the easiest to onboard a customer. You can then offer something more advanced, whether that’s micro-betting or anything else.”

How far can betting incorporate itself into the overall media and sports entertainment industry in the US? What benefits does this approach hold from a CPA perspective for operators?

Kornilov: “How far? They’re trying to do it as quickly as they can. All the key players are doing their best to divide and segment their media markets as well as possible to attract different demographics, although the speed of adoption into betting will be very much defined by legislation. Logically, the more states come online, the further this can go.

“When it comes to CPA, it’s hard to define exact metrics in many ways. Of course, it is potentially the backbone of acquisition, but it’s difficult to define CPA via brand exposure, especially given the multitude of media spend now invested in during matches, which therefore means one cannot know how much (or indeed how long) such exposure will take before the customer gives betting a try. Over time, I believe CPA will go up, as there will be significant increase in media spend and exposure. As this spend increases, CPA will inevitably do so too.

Broxton: “This partly comes down to if and when regulators step in to limit the integration of betting into broadcasts. One of the biggest challenges in an immature market is building trust, familiarity and knowledge, all of which are enhanced immeasurably by synergistic integrations across traditional and new media. In a market the size of America, even a tiny fraction of the market entering the funnel lower down equates to vast sums of money being saved for operators from a CPA perspective.”

Walker: “Fubo, again, is a great example – mixing streaming services with betting. Look at MGM, too, with Jamie Foxx being one of their key figureheads. We’ve always associated brand ambassadors with such marketing, and looking at how the entertainment industry is merging, with the likes of musicians and entertainment icons, this plays a serious role. It’s all about the glitz and glamour in the US – Vegas holds a true legacy there. Looking over to ‘soccer’ in Europe – sponsorship and advertising is massively orientated towards sports betting. It’s becoming the same with the US right now, and in many ways, we’re only just getting started, PGA and the like are starting to test the water, and slowly but surely it will drip into the industry even more. The same can be said for media rights and stadium ownership, and we’re really only just scratching the surface. As brand exposure grows over time, this will likely lower the CPA as reach and awareness steadily grows.”

Moving forward, is there a danger that bigger operators carving up the market between themselves could stifle innovation?

Walker: “Not really – the US is still an open range and, indeed, so big that it’s almost like a snowball at the moment. Give it a few more years and we’re going to be talking about it in an even bigger way.

“Innovators will always be there, and there’s still so much space for smaller operators to be agile and capture market share that it makes it completely open for competition. The US has every potential to be the world’s most dynamic market and, given the interest and pick-up that online is now attracting, there’s no reason to think that the major operators will corner it for themselves.

“Of course, the likes of DraftKings and FanDuel hold plenty of potential for majority share, but there’s going to be plenty of incentives, and indeed means, for sports fans to give alternative operators a try, especially when it comes to brands being native to certain states or associated with their favourite teams.”

Kornilov: “Yes, that is a potential risk. Hopefully we’re a long way from this happening though – because given the nature of competition, you cannot compare the current state of the US market to Europe for example, as the big players are taking a lot more space. In the US, given the nature of current competition, we’re still in many ways in the growth stage, which offers plenty of diversity of outcome. I do hope that the US will present itself as a wonderful example as to how tech leaders – and indeed strategic decision-making can win market share, rather than just weight of investment. We’re seeing plenty of money ploughed into marketing and advertising by the biggest players, but a lot of the more agile outfits are spending their money far more surgically. As a result, such informed planning can enable them the capture far more market share and revenue that would otherwise be possible.”

Broxton: “Innovation rules all when it comes to online sports betting. Operators at the top who fail to do so are left in the dust, often irrevocably, in scarily short time frames. In the US, the pedal is jammed firmly to the floor in the race to scoop up as much technological capability as possible.

“Capital being relatively cheap to acquire has fuelled the M&A heavy landscape and, paired with eye-watering multipliers, it means any investment comes at a premium, premium rate. It’s inevitable, therefore, that the markers of success will soon switch from ‘who has acquired the biggest and best entity’ to ‘who actually has the best product and can start seeing a return on the immense investments made’. Innovation will only benefit from this demand for financial justification of outlay as it’s a faultless handicapper and the all-important Gen X and Y audiences have no mercy if you fail to keep up with the competition.”

Interviews

Counting Down: A Roundtable Preview of Brazil’s iGaming Era

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Counting Down: A Roundtable Preview of Brazil's iGaming Era

 

As Brazil finally gives the green light for sports betting and iGaming, industry leaders are gearing up for a transformative chapter in 2024. In this insightful roundtable discussion, we had the privilege of engaging with key figures, namely Henrique De Simoni (Account Manager LatAm at 3 Oaks Gaming), Massimiliano Vandelli (Head of Sales at ESA Gaming), Denis Kosinsky (VP Operations at NuxGame), Ihor Zarechnyi (CBDO at Evoplay), Jack Smith (Senior Sales Director at Sportingtech), and Roman Bogoduhov (Head of Accounts LatAm at EvenBet Gaming) to delve into the exciting prospects of casino entry into the newly regulated market. Our focus centred on the meticulous preparations undertaken by suppliers, understanding local player preferences, and exploring the collective vision for the future of this burgeoning market.

 

As the journey to secure the final approval for iGaming regulation in Brazil concludes, what strategies and preparations has your company put in place for the upcoming market launch?

 

Henrique De Simoni
Despite Brazil’s iGaming market being in its incipient stages, it has transitioned from a rising star to a tangible reality. This regulatory milestone in the largest Latin American country signifies a plethora of opportunities for the entire iGaming ecosystem, spanning from operators to providers.

As a company known for its agility and meticulous attention to detail, we’ve been actively engaging with key events in the region such as SBC Brazil, and SiGMA Americas. By fortifying our network and relationships with major operators, platforms, and aggregators, we’re positioning ourselves strategically for the impending market launch.

Massimiliano Vandelli

The impending regulation of iGaming alongside sports betting in Brazil presents a pivotal opportunity for our company. We’ve meticulously prepared for this milestone by adopting several strategic initiatives. Firstly, we recognise the significance of a diverse portfolio, particularly given the potential exclusion of certain online casino games. Therefore, we’ve focused on ensuring a balanced offering to cater to varying preferences and regulatory requirements.

Localization lies at the core of our approach. Brazil’s vast and distinct market demands tailored solutions, encompassing language support, minimum bets, and game types that resonate with local preferences. Additionally, understanding the nuances of player behaviour, such as volatility preferences, is crucial for delivering a compelling gaming experience.

Furthermore, leveraging our existing partnerships with established operators positions us strategically in capturing a substantial market share. We have a track record of success with these operators, and collaborating closely with them not only strengthens our market presence but also facilitates smoother market entry.

 

Ihor Zarechnyi
Evoplay’s business strategy after the final approval of iGaming regulation in Brazil will involve forging key partnerships to strengthen our position in the Latin American market.

With Brazil’s population surpassing 215 million and the local audience’s passion for entertainment, our diverse game portfolio is calibrated to cater to their preferences. Our overarching goal is to replicate and surpass the success we’ve already achieved in Latin America. We focus on enhancing the gaming experience of Brazilian players by addressing their entertainment requirements.

 

Denis Kosinsky
As for all new market entries, our strategy for Brazil consists of compliance, localization, partnerships and innovation. Much like Europe, Brazil is a highly fragmented market and each state should be approached on a case-by-case basis. We are customizing our platform for Brazilian players by adapting to the culture in terms of language, local payment methods and games that resonate locally while our multi-brand feature can be used by casino operators to manage different geos. We’ve also turned our attention to forming partnerships with Brazil-based companies, enabling us to both broaden our reach and enhance our offering.

With smartphones dominating as the preferred device for iGaming, we’re optimising our tech’s mobile compatibility for a superior experience. In addition, our marketing efforts are tailored to engage Brazilian audiences through localized content and community events. As Brazil finalizes its iGaming regulations, NuxGame is ready to deliver a comprehensive and culturally attuned gaming experience.

 

Jack Smith

We have recently seen that the Brazilian government has now officially recognised GLI as a certified testing lab. As part of this we have made continued efforts to conform to GLI 19 and GLI 33 which are synonymous with other markets on a global level. In addition to that we have also been working closely with Serpro on data transfer requirements.

In terms of strategy, our stance remains the same as always. We are focused on collaborating with our operators to ensure that we give them all of the technical tools and capabilities to harness their own local expertise and continue to be successful. This is crucial in what will likely be a very competitive market.

 

Roman Bogoduhov

The country is still at the early stages of regulation, so setting rules and transforming them into business practices will take several long and hectic months. Traditionally, online poker is not the first vertical to be regulated, and this is the case for Brazil as well: our turn will come after sports betting and online casino games. What we are doing now is a lot of homework and preparation: connecting with the market stakeholders, getting to know the player preferences, specific market challenges, and software demands.

Product localisation and customisation are at the core of the EvenBet Gaming platform, and our offering has to be ready for the market launch. So, our business development team explores the market and identifies the features and solutions needed by the Brazilian operators and players, so that we can adapt our product to their needs.

Also, it’s crucial to mention that the Brazilian iGaming community is quite closed and somewhat wary towards foreign vendors and providers, preferring to establish partnerships with companies that demonstrate a proven success record in the local market. While regulation moves forward, we can take it slowly, creating fruitful relationships, showcasing examples of our partnership with operators in South America and educating the market on the business strategies allowing us to earn on poker.

 

 

In anticipation of the iGaming launch, which specific verticals do you believe will capture the hearts of local players, and have you identified any unique preferences or trends that are shaping your approach?

 

Denis Kosinsky
As part of our continuous improvement strategy, NuxGame conducts regular market research and player feedback analysis to tailor our offering and stay ahead of the tech curve. With our aims of delivering a diverse, engaging, and secure gaming environment that aligns with local player preferences, we have identified key verticals that are poised to captivate local players.

Mobile gaming is one of the largest growing trends worldwide and Brazil is no different. NuxGame’s platform has optimized games to present a seamless mobile experience, catering to this increasing demand. Looking at specific genres, live dealer games perform particularly well in Brazil. For these titles to flourish moving forward, it is important to ensure that there is a Portuguese-language option in addition to high-quality live streaming and a diverse array of experiences to engage as many players as possible. Brazil is also a large adopter of cryptocurrency and blockchain technology. NuxGame’s Web3 technology and cryptocurrency purchasing feature position us to leverage these technologies for secure and efficient gaming experiences.

 

Ihor Zarechnyi
Initial findings from Brazil reveal a strong preference among the local audience for online casinos and sports betting. Based on third-party market research, it appears that Crash games capture the attention of 79.61% of Brazilian players. Following closely behind are slots, with a significant 39.83% engagement. Leveraging these data and our experience in the LatAm market, we’re confident that Evoplay’s diverse game portfolio, particularly our sport-themed titles, will deeply resonate with this audience.

However, despite our solid foundation, we remain committed to further understanding the local business culture and refining player communication approaches for strategic success. We’re actively developing exclusive projects like Slotopia and Bingo to enrich our offerings and cater to diverse player demographics.

 

Roman Bogoduhov

Undoubtedly, sports betting will stay the top online vertical in Brazil. As the market expands, new technologies and advanced solutions are coming to the country, online sports betting has a chance to become more prominent than offline, thanks to live bets, mobile access, and fast and secure payments which become available as the regulation settles.

Traditionally, the lottery is the second most popular gaming activity. Still, the state has a monopoly here, so the operators and vendors will demand lottery-like games: bingo, scratch games, keno, etc. Live casino games, card games (including poker and blackjack), and new trends like crash games will follow the leaders.

Jack Smith
As we know in most established markets there is a traditional split between sports betting and casino with Brazil unlikely to differ. Brazilians have a huge affinity with Soccer and that is not going to change anytime soon with more operators vying for sponsorship opportunities with its biggest clubs.

The inclusion of iGaming into the bill was hugely important as well as this represents a sizeable piece of the market. The likelihood is that we will likely see this continue to grow through traditional live dealers and crash games which have proven to be popular in the region as well.

At Sportingtech we recognize iGaming’s importance, hence why we are continuing to partner with local games providers to supply fresh new casino content that we feel will identify with the consumer. It remains to be seen how the landscape will change in the future but as always, our teams will continue to research the market and look for new innovative products to satisfy Brazilian players.

 

Massimiliano Vandelli

We foresee a diverse landscape of gaming verticals that will resonate with Brazilian players, driven by both traditional and innovative content. One area of particular promise lies in non-traditional games, such as crash games, which have demonstrated considerable appeal across Latin American markets. Our EasySwipe™ portfolio, in particular, stands out as a compelling offering for sportsbooks seeking to diversify into casino games. For instance, games like Goal Mine World, which allows players to personalize their gaming experience by selecting colours associated with the Seleção Canarinha (Brazilian national team), are tailored to resonate with local tastes.

Our widget integration within sportsbooks has already yielded remarkable results, fostering player loyalty and facilitating seamless cross-selling between sports and casino content. This underscores the importance of delivering fast and engaging casino experiences that complement sports betting activities.

While sports are expected to drive significant engagement, the initial interest from online operators targeting the Brazilian market indicates a growing demand for high-quality casino content as well. In response, our latest line of video slots, featuring titles like 12 Deadly Spins and Candy Drops, is poised to captivate avid casino enthusiasts seeking immersive gaming experiences.

 

Henrique De Simoni
Absolutely! With our company’s wealth of experience in the iGaming industry, I’ve been entrusted with spearheading our efforts in LatAm, particularly in Brazil. Understanding the local culture, speaking the language, and possessing a background in the B2C sector allows us to infuse our offering with user-centric experiences for enhanced player engagement.

I firmly believe that cross-selling will be the primary vertical to target. Seamlessly transitioning players from the sportsbook to casino presents a golden opportunity, especially in a country where sports hold significant cultural sway. While crash games have made initial waves, we anticipate slots to take centre stage in the long run. Our successful slot title, Coin Volcano, with its captivating theme, user-friendly gameplay, and vibrant graphics, exemplifies the high-quality gaming experiences we’re aiming to deliver in the market.


What are your overarching expectations for its trajectory? Are there specific milestones, challenges, or growth indicators that you foresee shaping the landscape in the coming years?

 

Massimiliano Vandelli
Looking ahead, we anticipate various challenges and growth indicators that will shape the trajectory of our operations in Brazil. Regulatory developments, including the implementation of iGaming legislation and associated licensing frameworks, will significantly influence market dynamics and operator engagement. Furthermore, evolving player preferences and market trends, such as the integration of sports and casino content, will present both opportunities and challenges for our growth strategy.

Primarily our aim is to secure significant exposure for our games with leading operators in the market. To achieve this, we are committed to fostering and strengthening our relationships with major partners in Latin America, who are poised to play a pivotal role in the market. We’re exploring opportunities for exclusive partnerships, developing sports-driven content, and creating bespoke games tailored to the requirements of major operators. By prioritizing localization, we aim to enhance player engagement and drive adoption of our offerings across the Brazilian iGaming landscape.

 

Jack Smith
Given the strong interest by what feels like the majority of the iGaming industry, it’s fair to say that everyone sees the growth potential in Brazil over the coming years. Research suggests that revenues will reach $2bn in 2024 and a projected market volume of $4bn by 2029. If those projections were to be correct, Brazil would solidify itself as one of the largest markets globally.

There aren’t specific milestones we are working towards but the continued increase of internet penetration in Brazil will play a crucial role in the development of the online gambling market. Smartphones are becoming more cost effective and available to everyone, and with the incoming legislation we will see the introduction of native apps to the iOS and Google Play stores. This will add an additional layer of convenience to the consumer.

There is also the retail opportunity, which has been hidden in plain sight for a number of years, so it will be interesting to see whether operators transition into retail to penetrate players who are limited to cash only transactions.

 

Ihor Zarechnyi
With the market’s upcoming launch, we anticipate a notable surge in activity. However, like any new endeavour, this journey may be accompanied by challenges and will require thoughtful, well-balanced actions from regulatory authorities and market participants.

We maintain a positive outlook based on predictions that Brazil’s online sports betting, casino, and bingo market could soar to nearly $3 billion in revenue by 2027, positioning it among the world’s leading markets.

As we navigate rapid growth, it’s important to acknowledge the potential risks, including market overheating. However, armed with a robust strategy and a line-up of games that culturally connect with Brazilian players, we’re well positioned for success in further solidifying our standing in the LatAm market.

 

Henrique De Simoni
The average Brazilian spends over nine hours on the internet per day, signalling a profound digital presence ready for exploration. As such, we’re poised to leverage this extensive online engagement by ensuring our high-quality games, coupled with robust gamification elements, provide unparalleled slot experiences.

In anticipation of numerous new entrants and potential mergers and acquisitions in the market, we’re gearing up for increased competition. With over 134 companies vying for licences in Brazil, each capable of operating three platforms, the landscape is primed for expansion, with an estimated 402 regulated betting sites anticipated. Despite the challenges ahead, we’re optimistic that our expertise and ability to resonate with the Brazilian audience will set us apart. The best is indeed yet to come!

 

Roman Bogoduhov

Now the Brazilian iGaming market is shaping, and once the project is launched and adapted to the local preferences, it’s relatively simple to compete and acquire players. The operators will win with attractive bonuses and promotions, well-thought campaigns, and in particular social media marketing and influencer-based advertising. Brazil is one of the biggest influencer markets in the world, according to the statistics, up to 45% of consumers here trust social media platforms and recommendations. At this stage, I will not be surprised if Instagram and TikTok are literally invaded by sports betting and casino placements.

During this initial bountiful period, operators must keep in mind long-term goals. Given the difficult history of long and painful payouts and the lack of local or at least Portuguese-speaking customer support, these two operational aspects are irreplaceable for building trust and long-term engagement and are currently in the top three reasons for player churn.

 

Denis Kosinsky
With regulation finally being implemented, we can expect Brazil to become a favorable market for growth and sustainability. Early insights signal toward rapid expansion fuelled by the recent legislation, while its young, tech-savvy population’s strong interest in digital entertainment means it is poised to become one of the biggest markets worldwide. Pivotal to success in the market will be player acquisition and retention strategies that provide a superior user experience. Initiatives such as loyalty systems, player battles and brand customization will be critical in retaining players and staying competitive.

We’re closely monitoring growth indicators such as user engagement metrics, market share expansion, and the adoption of new gaming technologies to adapt our strategies for sustained growth. Furthermore, responsible gaming, at its core, is the most important contributor to making the gambling industry sustainable in the long-term. To play our part in this, NuxGame will be focusing on ethical practices to foster a safe and sustainable gaming environment.

Stemming from complex regulatory frameworks, compliance requirements and heightened competition, encountering challenges in a new market is unavoidable. Through our dedication to innovation, customer satisfaction, and strategic partnerships we can address these obstacles before they arise and ensure a smooth launch into the regulated Brazilian market.

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Interviews

Social media: the new frontier for betting engagement?

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Social media: the new frontier for betting engagement?

 

Since the dawn of the internet, social media platforms have been a great way for people to stay in touch. And as mobile technologies have continued to advance, we’re now more connected than ever. In fact, you’d be hard pressed to find someone who doesn’t have a social media presence nowadays.

From Facebook and Instagram to LinkedIn and even TikTok, social media apps have become a staple of our daily lives. So, it’s no surprise that gambling brands are looking towards such platforms as a means of tapping into new audiences.

We spoke to Allan Petrilli, Managing Director of Acquire.Bet, and Troy Paul, CEO and Co-Founder of SGG Media, to ask whether social media is going to become the next battleground for audience engagement.

 

BetMGM recently made the news after partnering with the social media platform X, formerly known as Twitter, in a deal which has made the operator the first online sportsbook embedded within a major social media platform. In your view, what could this agreement mean for the industry?

Troy Paul: It is a very smart play for BetMGM. If operators want to reach the new generation of gamblers, aged 21 to 40, they MUST establish a solid presence on social media.

Ultimately, social media is where this generation gets their news, sports updates, scores and share content with their groups of friends. Ignoring the power of social media would be a big mistake.

 

Could partnerships with social media platforms be the way forward for gambling operators to reach new demographics of players? If so, what impact could such agreements have on player engagement, and subsequently, player acquisition costs?

Allan Petrilli: Deals such as the one signed between BetMGM and X, or DraftKings and Apple Sports, are examples of sports betting brands getting more creative in how they plan to boost brand awareness and consumer trust. They are deviating away from the more traditional advertising models such as TV and other forms of above the line media.

Focusing specifically on the BetMGM agreement, X is a vibrant, passionate community that is heavily engrained in sports. It really seems like a great fit for what BetMGM is trying to do from a brand perspective.

X is also a hotpot of bettors, and this will ensure they are more heavily engaged with the brand. When it comes to lower customer acquisition costs (CAC), that is yet to be determined, as they haven’t released specifics of the deal. As it always goes, it depends on what they paid…

Troy Paul: Absolutely! Partnerships between social media platforms and gambling operators will be key for those who want to communicate with the more digital conscious bettors. If you then compare this to advertising verticals such as television and radio, social media advertising is also much more cost-effective.

 

Affiliates can be an effective way to engage with bettors across social media platforms. How can gambling companies better use affiliates to build a social media following?

Allan Petrilli: Micro-influencers are becoming more popular than ever as a significant driver of affiliate traffic, and this is due to their strong follower engagement and brand loyalty.

Many affiliate companies have SIGNIFICANT social presence and have already established their own communities. These types of partnerships can effectively give brands access to a whole new demographic of customers in a more organic fashion.

Operators needs to continue to offer their social partners a more organic way to drive traffic, with shareable bet slips, better deep-linking and more thoughtful partnerships. As these partnerships become more commonplace, operators, affiliates and social media partners will need to collaborate much more closely to find the most effective strategies to build new communities.

 

As more operators turn their attention towards social media as a marketing tool, how can they best stand out from the crowd? Could we soon see more brands getting creative with their campaigns?

Troy Paul: Social media should be used to create a COMMUNITY of sports fans, and sports gamblers. You cannot create a community by sending only ads. You must create fun, readable, informative CONTENT and occasionally drop in an ad or sign-up link. Content is King in this regard.

As the sports gambling world continues to mature, the smarter, savvier operators will continue to use social media as a means of retaining their customers and creating a social media-led community of loyal customers that not only enjoy their content but also continue to bet via their brand.

Allan Petrilli: Standing out from the crowd isn’t going to be an easy task. You really need to establish your brand identity. The real question is: who is going to be the Paddy Power of the US market, right?

In the US, I think that so far, we have seen quite a buttoned-up approach to social media. I do expect that to change, but I think that change will be quite slow at first. This is where micro-influencers could play a major role, they could really offer a big win potential for sportsbooks and casinos.

Just from what I have seen, I think that many brands can take a much more localised approach on social media. The power for targeting is there, the time is not to have creative, offers, etc that match the local bettor to better engaged, convert and retain them.

 

With that in mind, what role can multimedia assets, such as video and audio, play in driving brand recognition?

Allan Petrilli: Creative content, along with more engaging offers, are the lifeline of any campaign or branding exercise. Brands need a strong mix of branded video, user-generated content, live and pre-game content, and cross-platform retargeting strategies to get the most out of what they do. It’s all about striking that balance and delivering content that the end-customer finds interesting.

Troy Paul: Video-led content is super important if you want to drive brand recognition. The savvier operators will use platforms such as Instagram, YouTube, Twitch, TikTok and other video platforms to create those communities and establish a solid following. Millennials and Gen-Z have been shown to enjoy this quicker, more engaging form of content so it’s worth tapping into the world of video content.

 

When it comes to promoting odds and betting statistics on social media, how can the industry as a whole ensure that player protection remains at the forefront of any social media activity?

Allan Petrilli: The first thing that sportsbooks and casinos need to do is look at how they are targeting their customers and how they are informing their bettors about exclusion lists. The power is there, it just needs to be used properly.

More educational content is also a very important factor when looking to ensure that responsible gambling remains at the forefront of your social strategy. Throwing around $5000 sign up bonuses without ensuring players understand what they are getting into is a potential issue. That doesn’t always need to be in the ad, but brand should at least be introducing better landing pages and terms for players to be aware.

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Interviews

Mexico in 2024: Committed to the cause

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Mexico in 2024: Committed to the cause

 

Mexican bettors demand localization on a different scale. An American approach to sports betting means they differ from other LatAm markets that have moved to decimal or fractional odds. As the population increasingly embraces a mobile-first approach, Altenar’s Sales Manager, Diego Salas, explores why the provider is best placed to meet the unique needs of Mexican operators in the flourishing market.

 

What is your view of the market at the moment and what makes it so promising?

Over the past three years, Mexican operators have experienced a significant migration from predominantly land-based, brick and mortar operations to an online-focused business model. As a result, more than 70% of sports betting revenue now comes from online customers, with internet and smartphone adoption becoming more widespread across LatAm’s second largest population. The increase in mobile penetration follows the emergence of a younger, more tech-savvy demographic with a median age of 30. They are engaging in sports betting in a more social way.

In keeping with this shift online, we entered 2024 with the release of our white-label mobile app which can be customized and places the sportsbook at its core. Approved across Apple Store and Google Play, it offers accelerated time to market, robust security and options for features such as Early Payout, Bet Builder and Player Specials. The mobile and online channels appeal to a new generation of bettors that require accessible, easy to follow sportsbook products at their fingertips. The app promises an ever-increasing number of sports and competitions with a network of official data partners delivering both quality and speed of data.

 

How does Mexico differ from its neighbouring markets?

Mexico is a distinct market compared to other Latin American countries and stands out due to its diverse sports culture. It is well known that soccer is the most popular sport in LatAm and at least 90% of bets still come from matches. However, in Mexico, bettors’ tastes are more diverse. Football sits among basketball, baseball, and the NFL as highly popular sports.

Unlike some of its neighbours, Mexico uses an American approach to odds, instead of the European decimal and fractional odds format. Altenar anticipated this difference by offering a flexible, localized platform to cater to specific preferences of Mexican players. Its user interface for Mexican players offers an American odds format to demonstrate provide intuitive navigation.

 

What will 2024 look like for Altenar in Mexico?

There can be no doubt that LatAm is a major topic of discussion in the industry. The gates are set to swing open to Brazil later in the year and Mexico itself is awaiting some regulatory updates following the legalization of online betting in 2014. As a result, Altenar acknowledges the need for boots on the ground in the continent.

We have just opened a Uruguay office to ensure we can best serve our operator partners across LatAm. We know it is important to them to access people working in the same time zone, who are integrated in their communities. The office will oversee operational aspects and instil confidence in our partners that they will have a team that is more easily accessible than other competitors.

In March and April, we will be at the IV International Gaming Convention in Mexico (12 – 14 March), SAGSE Latam in Argentina (20 – 21 March) and GAT Expo in Colombia (9 – 11 April). Our priorities at these events will be fostering our partnerships in the market and ensuring we are attuned to the regulatory developments across each country. Brazil and Chile are in the process of developing regulations and we are watching those closely, adapting accordingly. We will also be showcasing our flexible platform and features at these events, including our turnkey solution, SSBT and new tools such as Betting Insights, Bet Mentor and Bet Boost. Events are an invaluable way for us to refine our strategies moving forward and we look forward to meeting people over the next month.

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