Judging sportsbooks by their coverage
eGaming operators have launched failed sportsbooks or simply avoided launching one altogether because of the sheer competition, observes Rasmus Soejmark of Every Matrix, who argues that as well as lidquidity, successful sportsbook will offer wide coverage of local markets...
Several online gaming operators have been unsuccessful or simply avoided sportsbook integration because of the shrewd competition. Entry barriers include innovation, intellectual capital, personnel costs, market leading and competitive odds, and a wider range of markets.
If a white label sportsbook manages odds and risk for the operator, offers him an integrated player and bonus system combined with a customised design, then differentiation becomes a question of odds and the range of markets available.
The typical poker, casino or bingo player is not a savvy sports bettor. In contrast to poker, bingo and casino games, which tend to be quite generic, a casual sports bettor wants to bet on what interests him. A wider range of markets now takes precedence over market leading odds assuming that margins and liquidity remain competitive in every market available.
A wider market offering has to do with localisation. In the UK, a sportsbook without horse racing will have a hard time keeping customers, while a sportsbook targeting players in Sweden must not only cover the local football action but also ice hockey and even exotic sports like bandy. In essence, local market coverage will enhance the overall user experience and be a source of entertainment around the local events.
However, the costs associated with competitive margins and liquidity in the many local markets are extensive, and act as a perfect illustration of this entry barrier into online sports betting. If the liquidity is nonexistent the sports bettor will not be able to place his bets. Either that or the odds will simply be ridiculous, and not worth a punt in comparison to what the local sportsbook offers.
It is paramount that operators identify the markets they are interested in, look at the margins and liquidity and then decide what white label sportsbook they want to work with. A good sportsbook technology and content provider should have odds, margins and liquidity in all local markets.