Sustainable User Engagement in Sports Betting: Challenges and Solutions

Harmonious relationships between wagering data suppliers, bookmakers, and bettors are crucial for the industry’s success. These connections must be as sustainable as possible to engine the global machine.

In this article, Gaminator experts describe the main challenges related to cooperation between the sphere’s parties and explain ways to overcome the obstacles to achieve new heights.

High-Margin Offerings as Growth Blockers

Sustainability allows niche companies to meet the audience’s current needs while leaving room for quick adaptability, favouring future customer generations and categories.

This approach benefits a business in a long-term perspective, ensuring the following:

• diversity;
• flexibility;
• resilience;
• effectiveness.

High margins are among the main obstacles to successfully covering the client base’s requirements and preferences. Consumers are vital for any project since they generate income for operators and data suppliers, and ignoring them is one of the biggest failures.

Many bookmakers used to acquire new customers by boosting brand awareness. They massively launched advertisements with content that was almost identical at its core. Lots of funds were spent on such marketing programs, but their outcome has become increasingly weak due to the lack of personalised interaction with users.

In recent years, the focus has shifted to short-term options in the form of same-game parlays (SGPs) with too-high margins. These offers do not contribute to strengthening relationships with bettors and improving their experiences.

Such an approach causes the following challenges:

1. Decreasing customer interest. For the client base, wagering is just a type of entertainment. If SGPs on a specific website lose convenience, affordability, and other advantages, players can start shifting to different platforms and amusement niches.
2. Issues with tightening regulations. Many European countries have implemented stricter rules for managing the gambling segment or are planning to do so. Operators should develop alternative betting offers to be safe in case of new limitations.
3. Losing profits through outsourcing. Bookmakers often work with intermediaries to get sports data, specific products, or supplementary services. Although hiring an analytical division is too expensive for many brands, relying entirely on 3rd parties is also ineffective, leading to identical content and increased expenses.

Gambling platform owners can still improve their clients’ experiences by promoting social concepts, ensuring high-quality support, and complying with regulators’ requirements. Nevertheless, these benefits will quickly fade unless the main offer changes for the better.

Situation in the US Betting Sector

Many local providers of sports data and niche solutions have never worked directly with end clients. Thus, these organisations hardly understand the audience’s current needs, which leads to the similarity and low value of the products they sell. With each upgrade of information packages, the cost rises, but the quality never improves.

The main issues within this approach include:

• high data price;
• generic coefficients;
• expensive promotion.

Such obstacles have led to a situation in which operators have no other choice but to exit the market. Their investments do not pay off since the revenue obtained does not cover costs like licensing fees, taxes, operational deductions, spending on suppliers’ services, etc. Even if the manager makes substantial profits from SGPs, it is a temporary benefit, as customer churn will probably reduce earnings soon.

Significance of Fresh, Sustainable Practices

To overcome obstacles and foster the betting sector’s growth, the following aspects are vital:

• better price differentiation;
• more profound use of analytics;
• comprehensive odds-creating expertise.

With these nuances implemented, bookmakers can adapt their coefficients and other elements to the customer base’s needs. Operators will thus have access to the latest trends related to clients’ behaviour and preferences. Entrepreneurs who understand when the audience bets, what sports it often chooses, what precedes and follows that, etc., access new heights in price forming.

Another substantial element in this ecosystem is a specialist data provider. Such corporations must have rich expertise in:

• trading;
• developing odds;
• creating risk-management solutions.

The industry requires an innovative approach to using niche information. This strategy leads to more sustainable and harmonious relationships between the segment’s participants. Betting platform owners must avoid the abundance of expensive, unfavourable options and ensure the service consumers lose at a slower rate.

Differentiating Offers Through Reduced Margins

Producing better pricing models to make punters win frequently requires comprehensive knowledge and professional risk assessment. These factors deliver voluminous turnover and more impressive RoI rates.

Other advantages of such a strategy:

• minimised audience churn;
• progressive price differentiation;
• reduced acquisition expenditure;
• sustainable growth in market share.

Responsible operators and specialist data suppliers cooperate to ensure all the benefits through real-time consumer analytics and deep practical knowledge of trading. This strategy benefits all the parties involved, including end customers, leading to strong relationships with them and higher engagement rates.

The Main Things About Sustainability in Sports Betting

The qualitative and smooth interaction between data providers, bookmakers, and gamblers ensures advantages for everyone and fosters the industry’s development. The current situation in the segment, especially in the US market, must be changed to overcome challenges and bring more long-term benefits to the involved parties.

Let us review the central notions from the article:

• Sustainability allows companies to meet the audience’s current needs while leaving room for quick adaptability, favouring future customer generations and categories.
• High margins are among the main obstacles to successfully covering the client base’s requirements and preferences.
• Short-term offers in the form of excessively expensive same-game parlays (SGPs) complicate strengthening relationships with bettors.
• Improved price differentiation, more profound use of analytics, and comprehensive odds-creating expertise are vital to fostering the sector's growth.
• Specialist data providers must have extensive practice in trading, developing odds, and creating risk-management solutions.
• Producing affordable pricing models that make punters win frequently requires in-depth knowledge, which results in voluminous turnover and better ROI rates.

Feel free to contact our managers if you want to receive a comprehensive business consultation and place an order. We are here for you 24/7.