Sports betting operators in the US need to prepare now for the huge revenue opportunities that igaming will provide when legislation permits, according to experts at SBC Advisory Partners.
The consultancy service, which will be exhibiting at the upcoming SBC Summit North America, believes the figures coming out of New Jersey underline the importance of sports betting and igaming working in tandem.
NJ’s Division of Gaming Enforcement report for October showed that sports betting generated revenue of $84.2m for operators during the month, while the win from igaming was $127m. The seven brands that run both a mobile sports book and online casino contributed more than $145m of those sums.
While the relatively slow progress of legislative change means that opportunities in the online casino space are currently limited, SBC Advisory Partners believes the early trends indicate igaming will be bigger than sports betting in the US within five years.
Steve Schrier, a member of the SBC Advisory Partners network, explained: “What happens in Europe doesn’t necessarily translate to the unique US market, but figures from New Jersey demonstrate that cross selling casino products to sports betting customers will be a vital tool for operators to get the most out of their vast marketing spend.”
The success of the igaming markets in New Jersey, Pennsylvania and Michigan, and the tax revenues they have generated, means further states where mobile sports betting is live are likely to follow suit and legalise online casinos.
Dan Phillips, also in the SBC Advisory Partners network, added: “While the rollout of igaming isn’t mapping that of sports betting exactly, the door is now open for those discussions that may enable the regulation of online casinos in the future.”
Once the legal framework is in place, operators will have the opportunity to create lucrative new revenue streams by marketing slots and live dealer casino games to their existing customer base, helping to increase player lifetime values and avoiding some of the unsustainable acquisition costs that have been experienced in the US.
SBC Advisory Partners Managing Director Anton Kazsubowski said: “Sportsbook operators can look forward to huge opportunities as igaming rolls out across the US, but they need to prepare for fierce competition by ensuring the right platforms and partnerships are in place ready to launch at the earliest possible date.”
SBC Advisory Partners Chairman Rasmus Sojmark added: “Early mover advantage will be vital as igaming launches in more states. Having a good online casino platform, the right content and an effective cross-selling strategy in place from day one is set to be crucial in driving revenue, retaining betting customers and acquiring players from the opposition.”
The SBC Advisory Partners team has a combined experience of more than 100 years in the betting and gaming industry, with a number of the experts in the network having a track record of successfully helping igaming brands to launch in new markets.
The consultancy is ideally placed to fill any gaps in the specialist knowledge required to expand into the online casino space in newly-regulated states, and to provide expert advice to sports book operators planning to add igaming to their product offering.
To discuss how the team can assist with strategic planning, supplier selection, and marketing and operational advice, visit SBC Advisory Partners at Stand 425 during SBC Summit North America at Meadowlands Exposition Center, New Jersey on December 1-2, 2021.