Egaming industry predictions for 2019 - including US expansion and innovation

Marc Thomas, partner, Propus Partners

2018 is unlikely to go down as a vintage year in terms of innovation within betting and gaming for a number of reasons. Firstly, most European operators were busying themselves with countless rounds of mergers, acquisitions and funding drives and this is likely to have stymied incubator and innovation resources. Secondly, new regulatory environments (as well as changes to current licensed regimes) meant that most development teams were flat-out concentrating on protecting existing businesses. Finally, and perhaps most importantly, 2018 was a World Cup year and both operators and suppliers concentrated their resources on marketing existing products as well as ensuring product stability.

That being said, there were a number of small innovations with BetBuilder/RequestABet advances being the most obvious within sportsbetting. From a formerly niche product, these services have become ‘must haves’ and it has been intriguing to see the various versions that operators are developing and launching augmented with a small band of new and agile development houses providing off-the shelf versions. Aside from this, SSBTs have seen some significant updates in UI/UX as UK operators and supplies alike plan for a post-FOBT world in early 2019 added to the increasing appetite for land-based gambling in Europe and beyond.

2019 is likely to be much more interesting with a number of drivers. Firstly, and possibly most importantly, operators will be increasing their US-facing development and this is likely to see a surge of interest in US sports both for domestic and international users. We expect to see a huge expansion in the use of algorithm-powered betting which is likely to expand the range of markets offered on NFL, MLB, basketball and ice hockey as well as some clever use of visualizations, real-time data and live streaming.

Alongside activity across-the-pond, we expect to see significant innovations on responsible gaming as UK and European operators look to use technology to combat problem behaviour in part to stave off further punitive regulations and improve the image of gambling. Finally we at Propus predict that 2019 will see some hitherto ‘minor’ sports become much more important in the product mix. Football and tennis are always likely to take the top spots, however we see cricket and golf improving rapidly as data is harnessed to create betting friendly products and services.

Rohini Sardana, head of product propositions, SIS

Growth of on-demand content

The rise of online streaming services has driven a culture of consumers expecting content at an instant, and with a competitive online betting landscape as well as other forms of entertainment, the sports betting industry has to work hard to keep bettor’s attention. Offering round-the-clock, regular betting opportunities accompanied with live pictures will deliver more revenues for operators. Short-form betting markets, such as greyhounds and horse racing, are ideal in meeting this trend as outcomes are often delivered within minutes of placing a bet, which is proving very popular with bettors across the globe.

Rise of esports

Betting on video-game competitions between professional teams and players is one of the fastest-growing verticals in the betting industry and 2019 will see it gain further mainstream use. Ironing out the integrity issues previously facing this sector will be the key for taking competitive gaming to the next level. Operators who are able to offer bettors live streaming on their sites will also be able to take advantage of this high-growth vertical and keep bettors on their sites for longer. These live events will also help to attract a new audience to many operators websites, so expect competitive gaming to make waves throughout the betting landscape.

US expansion gathers pace

Delving through the archive of EGR Intel predictions from last year, those who anticipated that the US sports betting market would open up will feel validated as their forecasts came to fruition. 2018 was a landmark year with the repeal of PASPA, but it’s safe to say that this territory will continue to gather pace with new states embracing sports betting. As the market grows and with the UK landscape having to adapt changing regulations, it wouldn’t come as a surprise to see some M&A deals take place, with those already active in the sector looking to take advantage of their size, position and first mover advantage in the States.