The sports betting industry, a multi-billion-dollar arena, is undergoing a transformation with a focus on personalization. Rob Fithian, CEO of SharpLink, shared the company's innovative strategy, highlighting how personalized experiences can enhance the sports betting journey and contribute to increased bookmaker profitability.
While the initial stage of attracting players through welcome bonuses has been refined by operators, the subsequent challenge lies in retaining these gamers. SharpLink addresses this by introducing a new dimension to the sports betting experience.
Fithian notes, "There is a vast audience for betting, but the experience can be somewhat one-dimensional and transactional. While today's technology provides real-time betting and security, it lacks the personalized touch seen in other industries, taking us back a generation."
Comparing the sports betting industry to tech giants like Netflix or Amazon, the SharpLink CEO underscores the rising consumer expectation for personalization across various sectors. However, sports betting enthusiasts often do not receive the same level of personalized offers as seen on major digital platforms.
SharpLink is set to change this landscape. The company aims to comprehensively understand user behavior and convey these insights to bookmakers, enabling the integration of personalized offerings into their programs.
Fithian states, "Numerous ideas surround the functioning of this mechanism. The next step involves developing a solution using generative AI and modernized tools, with the primary challenge lying in seamlessly connecting it to the sports betting system."
Is Everything Ready
According to Fithian, the personalization technology has been developed and is now in the testing and implementation phase. SharpLink is currently crafting BetSense, a personalization tool set to seamlessly integrate into sports club internal systems, offering bettors a tailor-made experience.
The first partnership in this venture is with Sahara Bets, utilizing IGT as a base. Fithian shares, “Sahara Bets became our first partner. They use IGT as a base. So we are thinking about how to integrate personalization into their user experience.” The anticipated operational launch with Sahara Bets is expected by March 2024.
BetSense acts as the behind-the-scenes orchestrator for sports bettors, generating targeted offers and promotions based on individual preferences.
For example, Fithian illustrates, “Let's say you're a New York Jets fan. You play for $50 and love to bet. Perhaps you place bets late at night. We receive this information from the player account management system, but it is anonymous through random identification numbers, so we do not know who the individual user is. We get this data from gaming markets and some stored user data, mix it all up and make some generative articles. We then analyze the gaming markets, matches and make some suggestions. When a gamer logs in, they will receive information about the game, maybe a double bet and analysis of the game.”
This approach enhances awareness, customer retention, and betting activity. Retention is the primary focus for bookmakers, moving away from merely attracting new users through welcome bonuses.
Fithian asserts, “We are less eager to find new users. We want operators to spend money on attracting players, and then we help increase betting activity for existing gamers.”
BetSense, as the essence of SharpLink's offerings, can integrate into operator systems, providing value through various services. The company is working with a limited data set initially, focusing on Sahara Bets, with the potential for scaling and growth. BetSense offers versatility, allowing operators to choose how to incorporate these personalized tools into their platforms, whether through APIs, dedicated pages, or smart widgets.
Much More to Come
The personalization plan marks the initiation, with BetSense embarking on its "1.0 era," expected to undergo 15 or more iterations to achieve the desired level of personalization. Fithian envisions BetSense as "the bot behind the bet."
Drawing on insights from a McKinsey study, Fithian highlights a significant 20% lift achieved through the addition of personalization in some industries, indicating vast potential. While this figure may seem modest, it underscores the considerable impact personalization can have on user engagement and revenue.
However, convincing operators to embrace a personalized revenue model poses challenges. Fithian acknowledges that the model is still evolving, and the approach may vary based on customer convenience. In some instances, SharpLink opts for invoicing upon revenue receipt, adapting its business strategy to suit customer preferences.
In terms of bettors, Fithian is confident that BetSense caters to a broad spectrum of sports betting users. The data-driven approach tailors offers based on user behavior, ensuring that casual bettors receive distinct offers compared to regular bettors engaged in real-time betting.
Fithian anticipates substantial outcomes from SharpLink and BetSense in the coming years. Supported by analytics, statistics, and forecasts, he hopes that the idea of personalization gains traction among other bookmakers, paving the way for scalable implementation across the industry.
