While the sports betting industry can be immensely profitable, there are always problems in any business. The announcement made by Betway to leave the US market shows that the market is competitive. From a PPH bookies perspective, this situation provides key information for doing to navigate the market, and achieve longevity in the industry.
The Competitive Landscape
Betway was a well-known company in the European space. Their exit from the US market speaks to the competitive nature of sports betting in America. Cracking this market is more than just about having a great tech platform or a good promotion. It takes significant market access, alliances and a heavyweight publishing strategy. Despite spending heavily and executing splashy partnerships with some of the biggest sports leagues and teams in North America. Betway couldn’t mark up more than a low single-digit percentage of the handle in any one state and often failed to register at all. Sometimes accounting for less than 1% of the handle.
This signifies that the bookies need to peruse the market firmly before entering. The U.S. market is dominated by a handful of big players namely FanDuel, DraftKings, BetMGM and Caesars. That account for about 85 percent of the national handle. To go up against these titans, it takes money, ingenuity, and intimate market knowledge.
While the need for high quality data cannot be overemphasized
One of the main lessons learned through Betway’s evolution is the role of top-notch betting data. This is where well-rounded and accurate data comes into play. Greatly improving the betting experience and providing the bettor with the information they need to make an informed decision. Which, of course, not only helps grow a tolerant customer base, but also creates a positive reception of any brand.
Partnering with any sufficient data providers is must. VIP Pay Per Head, for example, has partnerships with top betting and sports data companies, allowing it to offer the tools and support needed to stay competitive. Having the best data at your disposal can be a primary factor in the success of your betting venture in such a saturated market.
Adapting and Planning Strategically
The exit of Betway is a cautionary tale about the nature of market entry. Bookmakers need to do their homework before they can enter a new market. It is important to assess whether the context of the market suits their business capabilities and goals.
For example, Betway had a decent tech platform and a lot of promotion, but did not get much market share. It proves that a well thought-out strategy is needed for brands with a local and flexible touch. In addition, Pay Per Head bookies must consider if their experience and contacts are favorable to breaking into a different market.
Technology and Partnerships Utilization
Coming into the market is one thing but having the technology and partnerships to ensure success is another. Still, it couldn’t hold on with the advanced tech platform and the partnerships it had forged with major sports teams and leagues. Which means that you need to constantly optimize the technology and partnerships as per market needs.
If you are a Pay Per Head bookie then all you need is a service provider like VIP Pay Per Head. From advanced technology to a wide array of betting options and excellent customer support. These providers present bookies with everything for both the user-end as well as the bookie’s end. In a single box thus making their operation much easier to manage as compared to traditional methods and a lot more competitive.
Long-Term Vision
The final lesson from the Betway case is to apply your long-term vision. A sound start can not save you from a harsh failure. It requires constant innovation, customer engagement, and adaptation to market dynamics. As a bookie, your success relies on creating a profitable and sustainable business model that will endure over time.
Spending on customer loyalty schemes, creating a better user experience and building a powerful brand are essential for long-term success. Also, to ensure that you will always ensure your betting business still relevant. You need to keep up with the market trend and constantly update your strategies.
How to Build a Sustainable Business
There are important lessons for Pay Per Head bookies to learn from Betway’s retreat from the United States market. The competitive nature of the market, the value of having quality data, planning your strategy as well as utilizing technology and partnerships will all lead to success. However, by taking a leaf out of Betway’s book and being proactive and knowledgeable in your approach, then you can succeed in the harsh world of the sports betting industry and flourish as a bookie. Providers such as VIP Pay Per Head offer the tools and support needed to ensure long-term success in this ever-evolving industry.
