Reality TV is creating a new breed of bettors
The X Factor and Big Brother provide operators with a previously-untapped pool of bettors, but the TV shows are mainly a great PR tool to achieve the kind of coverage that sport could not offer
IT’S OFTEN SAID there is no such thing as bad publicity, and X Factor creator Simon Cowell probably agrees.
Despite a slew of negative press about both the media mogul and the vocally challenged contestants John and Edward (pictured), this year’s UK edition of the X Factor has been a huge success, attracting a record number of viewers.
But it’s not just the programme that is benefiting from the press coverage “ gambling operators are also getting a PR boost, with daily media reports carrying details of the latest favourite and the odds on offer with the major players.
But how much is this betting on reality TV really worth to the industry? “It’s always going to be the case that although it’s relatively big money, it’s tiny compared to sport as a whole, especially football and horseracing,” says Betfair spokesperson Michael Robb.
“The truth is that it is most useful as a PR tool. It lets us get stories out there in different parts of the press that sports betting would not allow us to do.”
And it’s a growth market “ despite the fact that Big Brother’s popularity is on the wane and the show has been cancelled after 2010, Betfair still facilitated £6m worth of bets on this year’s show and so far £2.7m has been wagered on the X Factor winner.
“Our year-to-year growth in this area is huge, it has been between 20% and 30% in the past two or three years. My guess is it will be even higher this year,” Robb says.
Rupert Adams at William Hill says the media coverage is partly fuelling this growth.
“A year ago we took £20,000 on Britain’s Got Talent “ a lot of people watching the show didn’t realise you could bet on it. This year we took over £1m on Britain’s Got Talent,” he says. “A lot of these people are now betting on the X Factor. This year in particular it has been very profitable because there have been shocks in just about every episode.”
The notorious John and Edward twins have not only polarised opinion on whether the X Factor is a talent or popularity competition, they’ve also changed punters’ voting habits, Robb adds.
Difficult cross-sell
Adams adds that reality television punters are more loyal to operators, though moving them over to other markets and products isn’t easy.
“We are getting repeat business on it, but they don’t seem to be punting on sport, it remains to be seen next year when the Grand National comes along and people have their one bet a year, whether they have that bet with us as well.”
Ladbrokes spokesman Nick Weimar adds that reality television betting also attracts a higher percentage of women than sports or casino. Ladbrokes is also breathing a sigh of relief after the departure of John and Edward, having taken big bets on the pair to win when they offered odds of 150/1 during the early stages of the competition.
“We wouldn’t have had a good Christmas if John and Edward had won,” says Weimar. “It is hard to price up this kind of show. As bookies we looked at them and thought they were pretty awful and it is a singing show, but then the public went and got behind them. But it’s worth the gamble and people reading the papers want to know who the favourite is so it’s worthwhile from a PR perspective.”
Alternatively, bookies might have an even better festive season if the anti-X Factor single Killing in the name by Rage Against the Machine beats the X Factor winner to the Christmas number one spot.
This article first appeared in the January edition of eGaming Review.