The evolution of Sports Betting: factors impacting the change on betting focus on British markets
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1 The evolution of Sports Betting: factors impacting the change on betting focus on British markets Dominic Atkinson Commercial Director at Tailorbet Limited
2 Agenda Pre-requisite overview: What is sports betting? The history of betting
3 Sports betting Sports Betting, or gambling as it is often referred to, is the wagering of money (the stakes) on an event with an uncertain outcome with the primary intent of winning additional money. Gambling thus requires three elements be present: consideration chance prize Typically, the outcome of the wager is evident within a short period.
4 Betting History We have always been betting: Roman emperors Chariot races The grey betting market Horse racing Grand National 300m William Hill starts trading Legalisation 1961 Pictures in betting shops 1986 Internet, 1993 Online betting William Hill FTSE 100, 2004 Exchanges, 2000 Betfair The future Peer to peer Social Live Interaction Personal Customised
5 How we used to bet ,000 Betting shops opened in Britain Countryside iconography 1986 UPGRADE, hot food and comfy chairs - Television Pictures Betting shops on every high street 1995 National Lottery Hysteria new bettors Vs. Loyalty to Horseracing 2001 Virtual Sports Outbreak of foot and mouth FACT - Tax on betting Cut from 10% to 9% creating a live mathematical conundrum for punters and settlers Abolished in 2002
6 Shops evolution 2000s Betting shop changes Independent shops decline Bookmakers own TV channel Escalation of rights costs Digitalisation Fixed Odds Betting Terminal (FOTBs) Source of revenue Legislation ( 100 a spin per every 20sec) Addiction (Loss 1bn per year) FACT William Hill 2,300 shops Ladbrokes 2,269 shops Coral 1,702 shops Betfred 1,350 shops
7 Digitalisation Pioneers who saw the potential in online betting Strategy Licence in Gibraltar in 1996 Favoured his users (<tax) Turnover 1b 0.5 m customers Founded in 2000 Online in 2001 Sold betting shops for 40m 20b turnover from online Bigger than William Hill & Ladbrokes combined FACTS Exponential growth Broadband improvement Accessibility and convenience New generation of punters solely online Online purchases in a cashless society Global Online Gambling fragmented regulations (80 Jurisdictions) Monopolies cover 25% of Europe 40% in Scandinavia
8 In-running betting In traditional betting, all bets must be placed before the event begins, giving everyone ample time to study the odds. New way to bet is while an event is in progress (primarily sports). In-run betting can be very popular for individual sports such as tennis allows punters to bet on different outcomes whilst a match is in progress Importance of LIVE PICTURES
9 Betting exchanges Betting exchange is an entity which provides trading facilities for retail or bookmaker customers to buy and sell contracts. These contracts are structured as binary options where the payoff is either some fixed amount of money or nothing at all, dependent on the outcome of a future event. Betting exchanges trade heavily on horse racing and sports events, but also offer markets on elections and other current events. Launched in 2000 Evolution of betting new concept Turnover of 1.5b in less than 2 years SUCCESS KEY FACTORS The early success of Betfair was its: Ability to move with the changing technological world No legacy within the company of traditional betting An innovation - new way of betting Enabled punters to lay outcomes for the very first time The company often referred to themselves as a software house
10 Mobile betting 4.3% of iphone s have Sports Betting Apps downloaded Q1 2013, 34 % of bets from mobiles, +298% Q User empowerment Gamblers on the go Football World Cup changed the betting landscape Football World Cup expected to be a major mobile event Second screen betting phenomena Apps within Betting shops Expected US$ 100bn by 2017
11 Times have changed How technology has changed our lives? How we approach technology? Do we embrace technology - innovation? How different generations relate to technology?
12 Sports rights MATCH FIXING Boom in betting increases match fixing High profile cases across multiple sports Leading to custodial sentences and substantial bans Betting website to report unusual betting patterns Risk of losing their licence Working closely with governing bodies to clean up sport DATA VIDEO IMAGE CONTENT STREMING
13 Changing legislation Legislation can be overwhelming Constant changes in individual territories Disjointed picture across the world The betting industry faces a difficult future Opportunity
14 Legislation close up Internet Gambling Enforcement Act in 2006 New interpretation of the 1961 Wire Act Online gambling companies returning to the US Consumption tax expected on 1 st December 2014 Consequences in remote gambling licences and job migrations The opinion of the Remote Gambling Association Transparency of offshore vs. onshore might be compromised
15 Full Circle
16 What s Next? Need to address the younger generation without forcing the older one out of their comfort zone
17 Thank you for listening Dominic Atkinson
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