SPORTRADAR


Sports betting presents new revenue stream for casino operators


Jacob Lopez Curciel, MD of managed sportsbook service at Sportradar, explores the growing potential of sports betting for operators


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he past year has been somewhat of a tipping point for the sports betting industry. Not only have new regulatory measures opened the sports betting market up to a wider global audience, but advancements in technology have continued to give consumers easy access to online sports betting platforms. There’s no doubt that regulated online sports betting is growing with more than 85.5% of this year’s online betting activity in Europe, by revenue, expected to take place on websites or apps which are licensed and regulated in the country where the betting activity takes place.


On the opposite side of the pond, as of August 2022, sports betting is live and legally offered through retail and/or online sportsbooks in 30 US states, plus the District of Columbia. Outside of the US, there are further growth opportunities with countries in Latin America, with a lot of focus on Brazil, which is expected to regulate for sports betting in the near future.


INCREASING POPULARITY OF ONLINE SPORTS BETTING


In 2021, the global sports betting market had a turnover of more than €1.4 trillion so as the regulatory tide starts to turn around the world, the global online sports betting market alone is projected to grow at a CAGR of 10.23% between 2022 and 2027.


This presents a huge opportunity for casino operators looking to widen revenue streams now, and in the future, since improvements in technology will only see the market opportunity grow further. Such growth is being fuelled by the digital shift and increased popularity of online gaming, owing to the rising penetration of smartphones and connected devices throughout the world.


Improved connectivity made possible by 5G technology, and the prevalence of online streaming is providing sports bettors with more opportunities to engage with their favourite sports round-the-clock. What’s more, there’s an increased level of choice for their entertainment, from traditional sports betting, to esports and virtual sports events.


SECURING A FOOTHOLD WITHIN THE MARKET


What’s clear is that there’s an opportunity not to be missed for those looking to expand their business into sports betting. For casino operators, they already have


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an established and engaged customer base, so tools like Sportradar’s ORAKO solution make it easy to expand the player offering by providing operators with a quick route to the sports betting market without the need to heavily invest in additional technology.


But as appetite for sports betting grows amongst casino operators, those looking to break into the market must also carefully consider the cultural and regulatory nuances of the country they wish to enter and apply a regional approach.


Consideration must be given to make sure that the betting offering aligns with customer interests in that specifi c country or region. Using the deep customer insights available through ORAKO, operators have the ability to create an offering tailored to their customers’ preferences. While the sports betting


opportunity is global, consideration must also be given to ensure betting activity is compliant with regulations across the jurisdictions in which you wish to operate. ORAKO is compliant in all major jurisdictions for instance.


In other words, the solution can extend global reach and support safe entry into new and emerging markets. This rapid and safe set-up provides everything needed to launch a sportsbook offering, allowing operators to focus on


engaging with sports fans to acquire new customers and retain existing ones.


Sports fans are an incredibly engaged betting audience, and as more and more operators realise the opportunity, we anticipate that sports betting will become a key offering of most online casinos in the next few years – and a growth driver for those who expand their businesses into this area.


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