Right after representatives from DraftKings, BetMGM, and Penn Interactive left a session Wednesday at the SBC Summit North America at the Meadowlands Exposition Center, another panel took the stage.
Some of the new panelists participating in the discussion, “Exploring the Converging World of Media & Betting,” had paid attention to the previous speakers.
Geoff Reiss, general manager of Yahoo Sports, especially took notice, calling the gaming company reps “really smart guys.” But Reiss had questions about the money spent in the sports betting arms race to acquire first-time depositors.
“There’s a bunch like them (the previous panelists) who are all rationalizing these really big acquisition costs right now,” Reiss said. “Because they’re looking at arbitrage and crazy-big acquisition cost is getting too big. The problem is, that bettor they’re bringing in is going to have three, four, maybe five different accounts, and only one of those guys is going to capture 60 percent of the market.”
The companies that eventually dominate sports betting markets are to be determined. But the proverbial genie has not only left the bottle, but smashed it. Sports betting has become an indelible part of sports, with leagues and teams striking partnerships with gaming companies, major networks hosting gambling shows, and airwaves flooded with ads for mobile apps.
ESPN Vice President, Sports Betting & Fantasy, Mike Morrison noted that sports betting is still “rolling out across the country and it’s not fully nationalized yet.”
But it’s now impossible to ignore and ESPN’s coverage reflects the burgeoning presence of sports betting companies and their influence. “I think from a national editorial storytelling standpoint, it (gambling on sports) has been there for a very long time,” Morrison said.
ESPN and other national media outlets are still formulating their coverage of sports gambling. But for those just getting started, navigating the wealth of available information can be daunting.
Covers, a sports betting website launched in 1995, acts as a clearinghouse of content for both new and veteran sports bettors. Jason Logan, a senior industry analyst for the site, said Covers provides “an unbiased approach” that’s much needed.
“There’s a lot of bad information out there,” Logan said. “There are players in the space without responsible gambling messages. … We’re trying to say, there are smarter ways to bet on sports.”
And there are increasingly more options for the way information related to sports betting is generated and used.
Kelly Brooks, CEO and founder of Quarter4, develops advanced sports analytics and predictive intelligence. In the two years since its inception, Quarter4 has developed real-time predictive analytics that can be generated every three seconds during a sporting event.
But the infrastructure that can support Quarter4’s products isn’t ready for this type of content.
“There are latency issues from networks,” Brooks said, “and that comes back to betting time. That processing, that pair processing, there are a lot of things that are hurdles to real time data mining in the North American market. We’re going to get there, but I think people need to start thinking about the big picture.”
While some may question the relationship between broadcast networks and gaming operators, it’s clear that both parties can benefit from the new paradigm. Gaming companies can attract new bettors via broadcasts with gambling content and networks may increase viewership as bettors stay tuned until the final score is decided.
“There’s no question that betting creates another level of engagement in a live sporting event,” Morrison said. “Sometimes it goes beyond the outcome. I think that’s why you’re seeing the leagues and teams and other in the sports industry getting heavily involved. It’s fantastic from a ratings standpoint and driving a higher level of interest.”
