Keeping watch

The Apple Watch was briefly heralded as egaming’s next big opportunity, but almost a year on from launch success has been limited. But is the clock ticking on Apple’s latest device or is it time for operators to make a move? David Bartram investigates

Despite being launched to much fanfare last April, the Apple Watch has failed to capture the public imagination in the same way previous Apple success stories – notably the iPod, iPhone and iPad – have done so.

Although Apple has shipped nearly 7 million of the devices in the first two quarters since launch, the wave of activity among sportsbook operators on the Watch – which briefly suggested it could make as big an impact on the egaming sector as the iPhone and iPad before it – has swiftly died down.

But that is not to say the Apple Watch, and the raft of other smartwatches which have recently hit the market, cannot become an important channel. The last couple of months has seen more operators add Apple Watch functionality to their mobile sportsbooks, while new approaches and the promise of a Watch 2.0 launch later this year could yet see the devices emerge as material revenue streams.

“It is early days and everyone – not just the egaming industry – is still trying to figure out use cases and functionality,” says Fintan Costello, founder and managing partner at Revenue Engineers. “I believe it is too early to judge the apps for the Apple Watch,” he adds. Just as operators took months and even years to find the best ways to exploit the opportunity offered by smartphones, it could be that the Watch must bide its time before it becomes a staple of any operator’s product suite.

Early launches

When the Apple Watch first launched last April, a number of operators were quick to roll out products on the new device. First to join the party was William Hill, which updated its flagship sportsbook app to include Apple Watch functionality a few days before the Watch’s consumer release. “It’s exciting to launch new products at any time, but particularly as there won’t be any other operator who will be in the marketplace before us,” a Hills’ spokesperson said at the time. “Wearable technology is developing all of the time and Apple Watch gives William Hill the chance to connect with our customers in a new and innovative way,” he added. Hills had been first to market on the Watch after putting together a small team which created a prototype product in just four days.

Among the early releases it soon became clear that trying to fit an entire sportsbook onto the Apple Watch was not going to be viable. Another of the operators quick off the mark was Coral, which rolled out Apple Watch functionality developed by Playtech in time for the launch. The app took a stripped down approach to the smartwatch, with a particular focus on letting users cash out on the Watch.

Then there was BetVictor, which rather than trying to adapt its primary sportsbook for the Watch instead added functionality for its popular InstaBet app, which prompts users to wager on enhanced prices against a countdown clock. “Our Instabet App is the simplest and easiest app on the market and the perfect fit for the Apple Watch,” Turlough Lally, BetVictor’s director of mobile, said at the time. “Our customers will now be able to receive Instabet alerts and notifications on their watch and, with its simple one touch design, bet directly from their wrist,” he added.

False dawns

While it was impressive several operators were ready with Watch functionality in the days immediately after release, there was a sense that the roll outs were more about flexing tech credentials, rather than creating products of genuine value. Shortly after Unibet launched its Apple Watch app, the firm’s CEO Henrik Tjärnström told sister publication eGaming Review its Watch product showed the firm was committed to staying ahead on technology. “We’re at the forefront of mobile trends and we definitely plan to stay there,” Tjärnström said. “We are one of the first to offer functionality on the Apple Watch which shows that we’re at the cutting edge of technology.” However, less than a year on from release, Unibet does not plan anything more than support for the current product in the medium term, primarily due to a lack of user adoption.

Second coming

In recent months, as the Watch approaches its first anniversary, a number of operators have launched more considered products focused on finding a way to maximise its potential in the egaming sector.

Betting exchange operator Matchbook released such a product in October, which it said was the first to take a predictive and personalised approach to smartwatch sports betting on the Apple Watch. The product is powered by a personalised algorithm which the firm said would create a “highly personalised experience”, including recommended markets unique to each user. “Our customers tend to be both tech savvy and early adopters of new gadgets,” Mark Brosnan, Matchbook CEO, said. “As such, we have developed what we believe to be the first personalised betting experience on your wrist. This gives bettors the opportunity to make and adjust their bets on the go, without having to pull out their smartphones,” he added.

Another operator to make a later move onto the Apple Watch is Betfred, which launched its product in December. Betfred’s development portfolio manager for mobile technologies Stuart Magowan says delaying the release by several months allowed for a more considered approach. “Before we committed to the build, we looked at the competitor offerings and noted the reviews coming back from their customers,” Magowan says. “Armed with this info, we then went about setting up some focus groups to see where we could leverage a bespoke watch app, the result being that it would be useful as an accompaniment to our watch live platform,” he adds.

Magowan says that although it is still early days, the first user reviews have been extremely positive. “Cash out and in play are the driving forces within our industry, and being able to use your Apple Watch to bet on in play and cash out when ready is seen as a big positive for us.  The challenge we now face is to implement the roadmap that will improve the app,” he says.

Looking forward

With Apple releasing the 2.0 update of its Watch OS in October, and a new version of the Watch itself expected in Q2 2016, new possibilities could open up. For instance, Watch OS 2.0 has already made it possible to display better quality animations on the Watch, potentially opening the door for casino and other gaming on the device. According to Costello, gaming operators which rely on third party suppliers have tended to lag behind on innovation. As these operators catch up, it is possible that casino, bingo and poker operators might eventually produce that killer Watch app.

First, operators must learn from the early versions of their products. DataArt’s head of iGaming solutions Igor Kozhurenko says minimising user interactions through greater automation would be a good first step, given the limited screen real estate on offer. He also says the best products will be those which tap into the inherently personal nature of the device.

Costello agrees that if operators can continue to innovate, there is no reason the Watch cannot have a bright future. “I’m extremely bullish on the smartwatch trend and expect to see the watches get exponentially better in the next three years,” he says. “From a sportsbook perspective the winners will be the ones who simplify the offering though the smart use of AI.” Even if the first year of the Apple Watch has yet to transform the egaming sector, it may only be a matter time before its impact is felt.