Simon Trim, CEO at Sporting Group, believes the time is right for lotteries to step up their sportsbook game, with the tools now available to level the playing field with deep-pocketed, private competitors.
With the increasing costs of pictures and data, increases in taxation and the overheads of conforming to local licensing regimes (such as POC), it’s easy to see why so many sportsbooks are looking to change their business models to survive.
For lotteries with sportsbooks, the pressure is often even greater thanks to licensing reforms that have replaced their traditional monopolies with (semi) liberalised markets. The changes have opened the door to greater competition from private operators, who in many cases fly in the face of licensing stipulations to create an unlevel playing field.
Our recently launched Risk Management Services extends our pricing and content solutions to include risk management, client and bet management and back office operations. It’s fully configurable suite of modules empower existing operators to retain control of their brand to compete against increased local competition, grow revenues and maximise customer experience.
As a trusted supplier to existing WLA sportsbooks, we recognise that the challenges facing lotteries are complex. To succeed in their local market lotteries must offer content comparable to “.com” operators without the luxury of being able to realise equivalent economies of scale, whilst at the same time find ways to improve margin and maintain “scale” solutions for digital and retail channels.
It’s the lottery-supplier relationship that can deliver the growth and revenues to threaten the growing market share of tier one operators. However, to succeed, operators not only require a cost-efficient model for expansion but also the best quality content alongside the flexibility to differentiate.
Attempting to succeed in highly competitive sports betting markets with a “me-too” offer is an anathema. Commoditised solutions with little or no opportunity for differentiation may reduce operating cost but it isn’t an answer to the sort of competitive pressures described above – ultimately this ends up damaging rather improving the bottom line.
Operators need to trust their suppliers who come with a deep level of pricing and trading expertise, based on sound objective analytics and underpinned by best of breed algorithms.
Providers such as Sporting Solutions hold a unique position in the industry, having worked on both sides of the sportsbook fence, and this experience is crucial in providing lotteries with the tools they need to provide an engaging and profitable sportsbook.
RMS is one of these dynamic solutions that enable lotteries to build on their existing sportsbook with an outsourced, in-depth product that increases contribution by reducing operational cost and complexity whilst improving margin.
Developed to be agnostic to in situ platforms and so reducing ‘switching risk’, RMS integrates proven risk-management algorithms and unrivalled pricing across all major sports. Partners are supported by a configurable set of technologies and services that enable partners to tailor their engagement strategies and maximise the customer experience through local expertise.
Lotteries know their customers better than anyone, and so it makes little sense for a supplier in London, for example, to trade women’s handball in Denmark, where the lottery has a trading team already in place. Our “self-trade” software supports a differentiated strategic approach by giving partners the unique flexibility to use our software to trade local content.
Likewise, it makes little commercial sense for an operator to invest in multiple data inputs when we provide access to more official content than any other provider via our Connect platform, supplied alongside a range of trading tools and features to help partners run optimally within their local market.
RMS sets itself apart by foregoing manual, resource-heavy and report driven processes, and instead uses full automation based on cutting-edge algorithms developed over decades of trading high-volatility spread betting markets. RMS analyses both bet volume and customer profiling to make informed price moves and manoeuvre liability to a position at which the operator is comfortable.
These tools level the playing field with a private operator capable of investing heavily in analysts and traders, and give them an advantage when it comes to accurate, profitable pricing which guarantees strong margins.
With the latest tools and supplier relationships, lotteries need no longer be the forgotten man in sportsbook and can begin to retake market share locally where it matters most.