Why sportsbooks should consider offering multiple products

Wed, Aug 28, 2024
by CapperTek

Ever since online gambling became possible in the late 90s, a lot has changed – it's become possible to find sports betting and casino experiences on one platform. If you think that including casino games as part of your products is not worth it, you might actually be missing out on a great market opportunity. According to Statista, the online casino market was expected to grow to about $35.34bn by 2024 alone.

Such statistics only prove why you should consider diversifying your portfolio. The good side of it is that you won’t need to worry about whether or not you will find a market for your products – the market already exists. The only thing you might need to ensure is that you package your products in such a way that you can stand out in this competitive market. Otherwise, the benefits that can accrue from diversifying can go a long way toward driving your company’s success.

Benefits of diversifying products

Let’s take the slots online category, for instance. A recent study showed online slots were the most played casino games worldwide, welcoming over 85 million active players. That means that when you integrate such games into your platform, you have the potential to benefit from an already established customer base. Good enough, this can also be a way of increasing customer loyalty. When customers who previously interacted with your platform through sports betting find engaging casino games, they are likely to remain loyal. You know finding new players in our contemporary gambling industry can be quite an uphill task, right?

Perhaps you see no need to spend more money on adding another item to your platform. The point is that there will always be casino fans who favor sports betting and vice versa. Assuming your customers bet on sports 80% of the time and 20% on casino games, interacting with your platform will become inconvenient if they do not find both of these experiences. Just because one of the two contributes 20% (which might appear insignificant) to your income, it doesn’t mean you should ignore it.

Plus, besides diversifying revenue sources, it allows you to offer cross-sell opportunities at very little to no cost. The market you operate in will always determine the cost of acquiring a sports bettor or casino player. And some studies suggest that acquiring a new customer can actually cost up to five times more than retaining an existing one. As a sportsbook, you might consider taking advantage of your existing customer base to cross-sell your new casino product. For instance, if a customer betting on a sport notices a new casino game advertisement, they may be intrigued and want to try it. This way, you are able to receive more income from existing fans who are yet to explore your entire product portfolio.

What can you consider adding?

Besides online casino games, there are other industries that are coming up quite well. Esports is one of them. A recent Exploding Topics article revealed that over 285.7 million people actively participated in the industry, while 291.6 million were occasional viewers. Regions like Asia Pacific lead the trend, with 57% of all views coming from the area. Especially for platforms that are considering penetrating such regions, incorporating esports can be a great way to get started. This is without mentioning Gen Zers, who have exhibited a strong passion for this sport.

People have never been as connected as they are today. That also means that thanks to the popularity of the internet, they are paying attention to non-sports betting events such as politics, TV series plots, etc. As an online business seeking to stay relevant, you don’t just want to remain rigid to old patterns and trends - keeping an eye on shifting betting needs can help you enhance your competitiveness. Consider the 2020 US election, for example – it actually generated more income than any other event in all of Forbes’ history. Other events that welcome a lot of new players are award ceremonies like the Oscars and questions like who will take over after Pope Francis.

You also want to ensure your platform appeals to local preferences. Instead of just offering Premier League Football odds, you can regionalize content for local leagues like cricket in India. Personalization has a way of communicating to fans that you value their preferences and tastes. Remember, for any business to succeed, it has to ensure it offers products that are more tailored to meet customer interests, as this determines whether or not they will return. Actually, did you know that businesses that personalize can improve sales by up to 20% and reduce customer acquisition by up to 50%?

As you can see, sportsbooks have so much potential, especially with the technological advancements in our contemporary world. Online platforms have made it possible for companies to diversify their products and reach broader audiences conveniently. As we look at what is to come, we can expect the wider iGaming industry to be more engaging as providers continue adjusting to align with customer needs.