LAS VEGAS – The Consumer Electronics Show put sports betting under the spotlight Tuesday with a panel discussion on its future and need for technology that matches other industries.
Eighteen months after the U.S. Supreme Court decided states could allow sports betting, 14 offered wagering at the end of 2019 with a half-dozen more on the horizon in 2020.
The significance wasn’t lost on the panelists at the Las Vegas Convention Center.
Consultant Sara Slane at the AGA Sports Betting Executive Summit in March 2019
“The fact that we’re even having this conversation at the hottest tech show in the world is amazing,” said sports betting consultant Sara Slane. “It speaks to how far the industry has come and how mainstream we are now. It’s going to attract all sorts of new innovation and development because of the new talent that’s paying attention to this space.”
Matt King, CEO of sportsbook operator FanDuel, said the inclusion at CES proves the importance of sports betting, especially considering the broader media landscape, money it generates, and how it affects fan behavior.
“If you look at our research across all trends, wagering, eSports and gambling have been on the top of every executive’s mind and impacts strategies from everything from advertising, sponsorships and media rights,” said Josh Walker, president of the Sports Innovation Lab, who introduced the panel discussion.
Slane, a former senior vice president with the American Gaming Association, said many in the technology and media fields didn’t pay much attention to sports betting before the Supreme Court action. That change is important for an industry that could use more innovation.
The quick growth of legal sports betting could spur ideas on the technology field can find involvement in an emerging market.
“Frankly, there’s plenty of room for innovation to happen when it comes to user interface and are there better customer experiences that can be created through apps with more seamless technology and products,” Slane said. “Is there a whole new market in sports betting that isn’t currently placing bets but would in the future? It helps draw that innovation thinking out.”
Slane said the casino industry has been reinvigorated through sports betting with a component that’s includes online and the traditional brick-and-mortar operations.
Sports betting was 2% of Nevada’s annual gaming revenue. Casino operators “weren’t paying a lot of attention and investing a lot of money” in research and development.
“It was only a couple of years ago you had mobile wagering happening on sports, and now the floodgates have opened,” Slane said. “We’re in an audience right now that is outside of gaming that’s far more technologically focused and where innovation can happen.”
Slane said Nevada gaming companies had other priorities to drive revenues, such as hundreds of millions of dollars for property renovations. She said other states, such as New Jersey, have led technology innovation because there was competition for market share with other states on the East Coast.
FanDuel CEO Matt King
“Their hand was forced, and they have fast-tracked innovative products with shared wallet and how quickly things get approved,” Slane said. “New Jersey has done more on in-play betting and in-person registration.”
King said the sports betting industry has technological disadvantages other industries don’t face. He cited how FanDuel can’t use Amazon Web Services because it operates across state lines in what would be a violation of federal law.
“What’s happening is the equivalent of the first generation of online banking,” King said. “The regulators have a lot of questions. You will see innovation pick up, but it’s not where it needs to be. You should see less friction in payment, easier sign ups and integration between media and betting in the future.”
King said for the average NFL game, there are 250 betting options, which can be overwhelming for the average fan. What the industry needs to figure out is how to build a user interface that makes “limitless betting digestible to the average fan” and make it customizable.
“We have to catch up with what a lot of other tech companies are doing (in other industries),” King said. “As we add more capabilities it will become more overwhelming if we’re not careful.”
Panel moderator Jeff Ma, a gambling consultant and handicapper, said the industry needs to make in-play betting work better so gamblers can place wagers in time without being rejected. That’s not a great customer experience.
As for markets doing it well, King said Indiana has moved quickly on provisional licensing and a competitive mobile market that is similar to New Jersey.
Scott Butera, president of interactive gaming with MGM Resorts International, cited Michigan as a good opportunity by following the model of New Jersey and Indiana, but with less competition so operators can invest in products and people.
Matt Primeaux, senior vice president of strategy for Fox Bet and Fox Sports Super 6, said Colorado is a state he’s excited about when it goes live because of its regulatory environment for innovation and low tax rate and use of mobile.
#exclusive – Sports betting and technology focus of CES in Las Vegas. –@BrianBuckWargo, CDC Gaming Reports. https://t.co/rICo7grbo2 @CES @Sara_Slane @FDSportsbook @Matt_W_King #CDCgaming
— CDC Gaming Reports (@CDCNewswire) January 8, 2020
“Ten years from now it will be a different industry,” Primeaux said. “Operators will take their unique selling point and maximize that. “
Fox Bet is tied to Fox Sports, and Primeaux said the company is focused on media and content.
“I think you will see not only betting on TV, but you’re going to see us taking what games are on TV and bringing it to your phone as well alongside betting,” he said.
Butera said sports media has about bidding on rights fees, but it now opens the door to original content centered around sports betting and gamification of smaller leagues.
