Exclusive: Betdaq aims to launch fixed odds sportsbook in Q3
Exchange operator says sportsbook will help improve acquisition costs, but exchange betting will be remain its first priority
Betdaq is planning to launch a fixed odds sportsbook product later this year as part of a broader strategy to broaden the scope of the business beyond just exchange betting, EGR can reveal.
The site last week pledged to double gaming revenues after integrating the GVC games library, and next plans to add a sportsbook towards the end of summer, according to MD Shane McLaughlin.
The sportsbook will utilise GVC’s existing technology and trading function for the sportsbook, rather than using exchange liquidity for pricing, as Smarkets is planning to do.
The product is currently being beta tested in-house by the Betdaq team.
McLaughlin stressed that the firm was still firmly committed to exchange betting, having seen strong growth since cutting commissions to 2%, but said the sportsbook launch was a way to reduce acquisition costs with very little marginal cost.
“The reality is we already run a full sports betting operation from our offices in Dublin and we can add a sportsbook to our offering by taking on very little cost to our overhead,” McLaughlin said. “We probably need to add two to our headcount and the other costs are very low.
“With improved sportsbook and casino we feel we can get better ROI on marketing spend by acquiring into sportsbook and gaming and doing cross-sell and education into exchange rather than trying to acquire from the mass market straight into exchange.”
The MD said a sportsbook would also help the firm improve its share of wallet.
The planned launch means all four major exchange operators in the UK have now revealed plans to Smarkets currently beta-testing its SBK sportsbook product, and Matchbook CEO Mark Brosnan saying last year the firm wanted to introduce ‘sportsbook-exchange hybrid’ concepts in 2019.