22 minute read
US Market
by SBC Global
IGT: SERIOUS ABOUT SPORTS BETTING AND SERVICE
AS THE US SPORTS BETTING INDUSTRY continues to grow, IGT reflects on why the company is in the prime position to take on new opportunities
As legalised sports betting continues to gain momentum in the US, the IGT PlaySports platform continues to hold its position as a leading B2B sports betting solution in the market.
With IGT’s proven sports betting platform, products and comprehensive trading services coupled with partnerships with some of the largest sports betting operators in the world, it is clear to see that IGT is serious about sports betting.
IGT leveraged its decades of experience with betting outside of the US and was well-positioned for success with its sports betting platform technology prior to the US Supreme Court repeal of PASPA in May 2018.
Since then, IGT has built a customised solution for the US, award-winning hardware, and brought together a group of talented professionals comprised of sales, marketing, operations and an exclusive in-house trading team.
The customer-first mentality has long been essential to its entire business throughout lottery, gaming and digital and now it’s a vital component to its growing US sports betting offering. The company has long-term contracts with some of the largest lotteries in the world and holds more gaming licences than any other gaming
Matteo Carli, IGT’s SVP Global PlaySports, ETG and Poker
supplier around the globe, all backed by positive relationships with regional operators and regulators.
IGT is much more than a technology supplier; it works hard to build and maintain strong relationships with customers and serve as their growthdriving partner. IGT’s PlaySports team knows that trusted customer service is one of the most important drivers for its continued success.
“As legal US sports betting continues to take off, we know that our PlaySports customers are in need of even more than a proven platform and award-winning products,” said Matteo Carli, IGT’s SVP Global PlaySports, ETG and Poker.
“They are looking to IGT to provide our knowledge, expertise, and excellent service to make sure their sports betting operation is as successful as it can be. And that’s exactly what we do. Our USbased service team is committed to helping our customers optimise their PlaySports technology for the best possible player experiences and performance outcome.”
One of the ways that IGT is helping customers take full advantage of their PlaySports investment is through IGT’s innovative Sports Betting Academy.
While IGT offers comprehensive
in-person training for all operators, the challenges of the COVID-19 pandemic have pushed the academy solely online. This web-based training program is available to all operators who leverage the PlaySports platform
and its content is customised to match each venue’s specific business model.
“The ease and flexibility of the PlaySports virtual training tool has proved to be extremely useful in the last six months given the challenges the COVID-19 pandemic has brought upon IGT and our customers,” added Carli. “With restricted travel, size limits on gatherings and budget constraints, we’ve seen a dramatic rise in the number of our PlaySports customers utilising the extensive Sports Betting Academy to train their staff in a safe and convenient way.”
Casinos, lotteries, and racetracks of any size can all benefit from IGT’s Sports Betting Academy and its customised content. Recently, PointsBet took advantage of the academy when their retail location went live in Illinois.
The IGT PlaySports team was with them every step of the way providing
guidance during the program and ensuring the PlaySports platform could accommodate and support highvolume betting and a smooth launch at the Hawthorne Race Course in September.
“The IGT Sports Academy team complemented the online course work with live webinars and Q&A sessions for the trainees which proved very helpful during the training and at the point of go-live of operations,” said Jenn Saragnese, PointsBet Delivery Manager. “The IGT Sports Academy team provided outstanding support and availability throughout the pretraining and training phases for the entire PointsBet team.”
Once IGT designs the property and position-specific program, PlaySports customers can walk through a complete online, multimedia curriculum tailored to the individual’s specific role within the sports betting ecosystem. For instance, front-of-house service employees, traders, and compliance would all be assigned different training programs.
Saragnese added: “For its retail launch in Illinois, PointsBet enrolled its new hires and trainees in the IGT Sports Academy several weeks in advance of go-live. The courses were organised and segmented well, allowing users to enroll in the correct courses for their job role.”
When an individual completes their self-paced online training modules, they will have the opportunity to test their knowledge through a series of online quizzes in which the pass/ fail threshold can be set by the employees’ manager. People managers will have visibility to the subject matter individuals most readily miss and also that which is most quickly comprehended.
In addition, IGT’s Sports Betting Academy can be accessed on mobile devices, serving as a quick resource for PlaySports questions and troubleshooting at any time. After a sportsbook employee completes the online training, all course material is available to serve as a resource for common questions, technology troubleshooting, and a quick review of past training.
The material is strategically organised by topic and easy to navigate so that individuals can quickly source critical information at a moment’s notice.
PointsBet said that they appreciate having the course materials permanently in the Sports Betting Academy so that it's available for their new hires on an ongoing basis. They said being able to refer back to the training materials will ease the onboarding and training process in the long-term.
IGT continues to grow its US sports betting business every day, and despite the pandemic, it is well positioned to take on the opportunities and challenges that may lie ahead in 2021.
One thing is certain: IGT will continue to demonstrate its deep-rooted sports betting knowledge, excellence in technology, innovative hardware and customer-focused service through programs such as the IGT Sports Betting Academy. •
US POLITICAL BETTING: A MISSED OPPORTUNITY OR A RISK TO PUBLIC INTEREST?
UP UNTIL WORLD WAR II,
America had a highly active market around betting on the outcome of political events. But a modern day reluctance to give the go-ahead for legal political wagering is seen by some industry observers as a missed opportunity
The votes have been cast and new US President-elect Joe Biden waits in the wings to take his place in the White House, keeping a careful watch in the meantime on a mounting series of legal challenges from Donald Trump as to the veracity of the voting process.
While Trump may well be questioning the integrity of the election and the sources of Biden’s winning votes, there is no doubting the scale of global fascination around the event which manifested itself in one of the biggest betting markets ever witnessed.
What was widely touted as the most important American Presidential Election in decades, managed to attract in excess of $1bn in bets around the world according to some estimates, none of which were wagered legally with US bookmakers.
When we say ‘none’, there are two exceptions when it comes to betting on US politics. United States residents who want a flutter on the presidential election can do so via the Iowa Electronic Markets or via the website PredictIt, both of which have the blessing of the Commodity Futures Trading Commission (CFTC).
Thanks to ‘No Action’ letters issued by the Commission, the two can offer election markets for educational purposes. But other than that, the very thought of allowing political wagering seems anathema to state policy makers who fear that it could have, among other things, repercussions on voter activity and turnout. Even Nevada turned down a proposal to introduce it in 2013.
But is all this hand-wringing creating a missed opportunity? According to Sarbjit Bakhshi, Head of Political Markets at Smarkets, absolutely. Speaking during a high-profile panel session at the recent Betting on Sports
Europe – Digital event, Bakhshi joined Matthew Shaddick, Head of Political Betting, GVC Group, to address how the election was playing out and how markets had responded to the tumultuous political US landscape.
The Smarkets man was clear in his view that should political betting go legal in the US, it would be an enormous product, adding that it’s almost only by mistake that wagering on elections is banned stateside.
“It’s like the Wire Act or consumer protection,” he explained. “They don’t seem to match the political characteristics of political markets or trading. People bet on horse races because there are so many of them and they bet in high frequency and have all kinds of issues sometimes with those. Politics don’t.
“These are big, slow moving markets. The payoff is very delayed. There’s not a dopamine rush you get when you bet on an election that’s going to happen
in six months’ time or a year’s time. All the things that are stopping it being legal in the US I think are mistakes and if you could recognise political betting as its own thing, the dynamics of its customer base and the movements of it would be very different.”
Aside from the player protection
issue, Bakhshi considered the role that political betting would play in creating more wealth for states. “I think that the scope for tax revenues is enormous,” he said. “We know that in countries where it is illegal somehow gambling does take place so getting organised crime out of this would be fantastic. I think it’s a win-win.”
Bakhshi was also quick to emphasise the knowledge value inherent in betting on political outcomes. He noted: “People are genuinely interested in the data that we produce from our markets. We are talking to news media from around the world including the US who are interested in what the markets are saying and adding it to their existing sources of information that they have.
“Why not make it legal? Why not let Americans take part in it? I think it’s a fantastic opportunity – it is billions of dollars of revenue that we’re talking about. And it would be fascinating for the rest of the world to see what Americans think about all kinds of political bets.”
GVC’s Shaddick agreed, saying: “Billions and billions of taxable pounds is how I would describe it. The US
political system is almost a dream for bookmakers the way it’s set up. I mean – you’ve got primaries for both parties for every congressional senate seat, governors’ race and presidential election. You can probably bet down to state level in some of the bigger states like California and New York I imagine.
“Some of those state elections would generate enough media interest to offer betting markets
on. It would be an enormous nonstop product because once the presidential cycle is out of the way you’ve got primaries coming up for midterms. You’ve got governors’ races and speculation about what Trump’s going to Tweet about and so on. No doubt in my mind it would be a huge opportunity.”
Opportunity or not, it is highly unlikely that policy makers’ appetite for political wagering will alter any time soon. Yes, potentially there are big bucks to be made and some significant budgetary gaps that need filling across most US states. But as of now, it’s just not deemed to be in the public interest. •
TIDE CONTINUES TO TURN AGAINST ILLEGAL BOOKIES BUT THERE REMAINS WORK TO BE DONE
THANKS TO THE ACTIONS of the American Gaming Association and responsible stakeholders, the illegal betting market in the US is on the wane. But while the tide is turning, a sea change remains a distant prospect
Despite a rampaging pandemic and the distraction of a bitter Presidential Election, US sports betting has managed a comeback of Lazarus proportions during recent times, with monthly revenue records continuing to tumble. But while this is all good news for the fine upstanding purveyors of legal betting, how is the fight progressing against the illegal bookies who remain out of sight, but everpresent?
For a quick sitrep we turned to Casey Clark, Senior Vice President, Strategic Communications at the American Gaming Association. The first thing we needed to understand was how the industry is performing in its fight to turn sports bettors away from the illegal bookies? Is it doing better at this stage than expected and what’s being done to reinforce the message that the legal option is the right one?
He responded: “With the expansion of legal sports betting, consumers are steadily moving toward the legal
market. AGA research found that average spending with illegal bookies dropped 25% last year in states with legal sports betting. With more than $28bn having been wagered legally in the US since the court invalidated PASPA, it is pretty clear that consumers are migrating to the safe, regulated, legal markets that have opened closer to home.
According to Clark, the AGA’s research indicates that while 74% of bettors say it’s important to exclusively bet with legal operators, 55% unknowingly wagered with illegal operators last year. Clearly there’s still work to be done.
“Playing with legal, regulated operators is a key part of responsible sports wagering, so we have resources available so everyone can see what options are available to them in their jurisdiction,” he advised. “The AGA is also leading an industry wide educational effort through our 'Have A Game Plan. Bet Responsibly' public service campaign, which educates consumers on not just where, but also how to bet responsibly.
“We are proud to partner with the NHL and NASCAR on this important initiative and look forward to partnering with more leagues and teams as they embrace the shared responsibility that comes with the sports betting opportunity.”
The COVID pandemic has been disruptive in all areas of the business, specifically regarding the cessation of sporting events which created huge pressure on bookmakers to identify new markets. We asked Clark how this might have hampered efforts to keep bettors away from the black market?
“First, I’d say that the legal market
has done a good job, as it always does, in being nimble and finding ways to engage American sports bettors,” he said. “Regulators permitted new bet types, and operators across the country worked to offer innovative entertainment opportunities people come to them for.
“This was true during the total sports shut down, and certainly the record handle numbers we’re seeing in September and October are indicative of a legal industry serving a growing customer base. We estimate that the amount Americans have legally bet on sports through mobile channels has more than doubled year-over-year in every month since July 2020, while US
igaming revenue has more than tripled every month since April.”
Clark acknowledged that during the sports shutdown caused by COVID-19, illegal, offshore operators tried to fill the void by offering bets on everything from the weather to shark migration patterns.
“These unregulated operators took advantage of unknowing consumers by pitching mainstream media to give the appearance of legitimacy,” he
commented. “It may make for good clickbait to entice people to bet on the likelihood that their friend’s marriage survives the pandemic, but mainstream media outlets linking to offshore books is a problem to say the least.
“That’s why part of our work is focused on educating reporters and media outlets about how editorial coverage of offshore operators perpetuates predatory, illegal markets.”
While any form of federal involvement in sports betting has been considered anathema by some industry stakeholders and observers, there are some who suggest that they have a part to play in that they have far more considerable resources to chase down illegal operators.
Clark believes that while the regulation of legal sports betting should be left to the industry’s 4,000 experienced state and tribal gaming regulators, the federal government plays and should play an active and important role in combating illegal gambling.
He noted: “The AGA works with federal law enforcement to enhance our collective understanding of the illegal market, and we encourage the federal government to continue prosecuting offshore operators, as they have successfully done over the last two decades.
“The Department of Justice has also made clear that it is illegal for companies to accept advertising revenue from illegal operators. This is another important enforcement mechanism that should be utilised at the federal level, as limiting the visibility of illegal operators is important to continuing to diminish their market share.”
Keeping America’s bettors safe
through responsible gambling initiatives and driving out illegal operators will be a big talking point at this year’s Betting on Sports America - Digital. In conclusion, we asked Clarke what would the association’s message be to delegates ahead of the event?
He answered: “The entire sports betting ecosystem - from operators and media to sports teams and leagues - shares a responsibility to promote responsible gaming and educate consumers on the importance of betting only within the safeguards of the legal, regulated market.
“This means holding ourselves
accountable as an industry by investing in responsible gaming research and education, making responsible gaming programs widely available, and self-regulating when it comes to responsible advertising.
“The success of the sports betting market is dependent on our shared commitment to responsible gaming, and our partnerships in Have a Game Plan are a great step forward in collaborating to educate consumers about how to bet responsibly.” •
GAMBLING AS A SUSTAINABLE ACTIVITY IS THE ULTIMATE GOAL IN LATIN AMERICA
THE RETURN OF FOOTBALL
IN LATIN AMERICA is part of a new golden era for the sport that each person in the region has in their DNA, said Andrea Rossi, Betsson Commercial Director for Southern Europe and Latin America
While sportsbooks take hold in the region, encouraged by a new regulatory wave, football is taking advantage of adding a new entertainment dimension to expand its popularity in the age of digital transformation.
The momentum that football and the betting industry experience in Latin America gives a glimpse to operators and teams that there might be a longterm future for both to coexist, even if 2020 was unexpectedly full of chaos.
Representing the betting sector, Betsson celebrates its road to recovery and expects “a 2021 of resilience and full of sports events, such as the Copa América and the Eurocopa”.
“Logically, the relationship between bookmakers and sports teams is extremely important as a source of investment to maintain and further develop the sport and escape the crisis together,” said Rossi.
As a sponsor of Peru’s Liga 1 Movistar, and having signed advertising agreements with regional media to boost the brand’s exposure during both the Copa Libertadores and CONMEBOL’s qualifying games for the 2022 World Cup, Rossi assured that the “Latin American market has no reason to envy
Andrea Rossi, Betsson Commercial Director for Southern Europe and Latin America
the European one”.
“Perhaps, from the point of view of the player’s value, Europe stands out. But on a potential market level and sports fans, Latin America exceeds expectations,” he added.
The Swedish operator emphasised the relationship with the regional markets. Recently, the Suaposta brand in Brazil rebranded to become Betsson, while the group also acquired a 70% stake in Colombia’s Colbet, reinforcing its territorial reach across the continent.
“Just like in other jurisdictions from the region, Colombian clients prioritise localisation and product personalisation. This builds trust and boosts transparency,” explained Rossi, adding that Betsson is applying a multibrand strategy throughout the continent to focus on each market.
Several countries have already started opening their markets and Betsson is ahead of the trends to build brand awareness once the regulations are in place. “We’re already well positioned in some markets, but in others we are still moving forward,” Rossi confirmed. “Latin America is big and not all countries have mature regulations.”
Rossi also highlighted that entering these markets should be seen as a long-term goal and “not just a race.” He FOR PLAYER VALUE, EUROPE STANDS OUT. BUT ON A POTENTIAL MARKET LEVEL AND FOR SPORTS FANS, LATIN AMERICA EXCEEDS EXPECTATIONS
said that it’s necessary to build trust, work on localisation and understand the local culture - all things that need both attention and time to develop.
Echoing these thoughts was Andre Gelfi, Managing Partner at Betsson Brazil. He said: “From a unique internal position, with a local team and a 100% dedicated business, we make a difference in terms of positioning and customer base development. We gain experience in advance learning and adjusting to a unique value proposition that’s interesting for each country.”
In addition to developing anticipatory strategies, one of the biggest obstacles to overcome in these markets is user distrust in online transactions. However,
Betsson - nominated for 10 prizes at this year’s SBC Awards - has taken this factor by offering multiple options, as well as possible retail solutions, to generate the highest brand confidence.
“We’re sure that as time goes by, those markets with little access to the online world are going to go deeper, it has already happened in other regions,” said Rossi.
Confidence can also be bolstered by industry awards, which highlight the most outstanding companies of the year and those preferred by players.
“Having 10 nominations for the SBC Awards makes us proud, it recognises the hard work that we do at Betsson every day,” Rossi continued. “Our mission and ambition is to offer the best gaming experience in the industry. Receiving such recognition is proof that we’re going in the right direction.”
The company’s increased diversification has not only achieved promising results in a year of cancellations and closures, but it has also attracted new players.
Andre Gelfi, Managing Partner at Betsson Brazil
In addition to integrating different streaming solutions from giants like Betgenius and SIS, esports has emerged as one of the go-to verticals in Betsson’s offering: “It was a segment that we started promoting to customers during the lockdown, looking for something to offer, and we had a very good response from our customers. It’s something interesting, a new product with great potential.”
The positioning of the brand will also depend on the ability to adapt to the regulations of each jurisdiction. Rossi believes that there are no tricks in terms of compliance, but rather a clear strategy.
“We have an active, hard-working team dedicated to the regulatory side,” he said. “The important thing is to be able to adapt to what is asked in each case, and that’s why a transparent relationship with the authorities and regulators is important.”
Gelfi added that “interacting and understanding legal needs and concerns is something that is done locally, dialogue is essential in order to shorten the reaction time as much as possible”.
Betsson’s experts also analysed the possible consequences that the region is facing with regards to advertising and IT’S TRUE THAT LATIN AMERICAN MARKETS SEE SPAIN AS AN EXAMPLE, WHICH HAS A VERY VALID AND EFFICIENT FRAMEWORK, BUT I HOPE THEY OVERSEE THE NEGATIVE PART
sponsorship restrictions, similar to those that came into force in Spain.
Taking into account that Colombia’s regulation replicated some of the measures in Spain, and that there are several Latin American countries that could follow this trend, are operators facing a similar challenge in Latin America?
“It’s true that Latin American markets see Spain as an example, which has a very valid and efficient framework, one of the best out there. I hope they oversee the negative part, which are these new proposals regarding marketing limitations,” said Rossi.
“These restrictive measures expose players to illegal sites, where there is no way to educate and raise awareness on how to play and the available tools to control gambling and manage spending in order to avoid problematic behaviours.
“Betsson knows how important this is – at the upcoming SBC Awards, Betsson is shortlisted for both Socially Responsible Sportsbook of the Year, and also for Socially Responsible Casino of the Year.”
Gelfi added: “The greatest challenge for the regulator is to expand the market in a way that channelises revenues into the regulatory framework - which is the basic goal of every government - in a healthy way. Gambling as a sustainable activity is a great goal.
“There are alternative ways to control without harming sports and licensed operators. In Brazil, the vision is to allow the development of the market with advertising and sponsorship to generate resources and make it a thriving regulated local industry.” •
THE GREATEST CHALLENGE FOR THE REGULATOR IS TO EXPAND THE MARKET IN A WAY THAT CHANNELS REVENUES INTO THE REGULATORY FRAMEWORK IN A HEALTHY WAY
