Smarkets to deliver high-volume, low-margin sportsbook
CEO Jason Trost says the firm aims to prove there is “no difference between an exchange and sportsbook”
Smarkets CEO Jason Trost has pledged to deliver a high-volume, low-margin sportsbook in the UK and US markets, EGR Intel can reveal.
The Smarkets sportsbook, first mooted back in February, is set to be launched in the UK in the next couple of months, with prices drawn directly from the exchange but presented in a traditional fixed odds format.
“I don’t think there is a difference between an exchange and sportsbook and we plan to prove that with this new product,” Trost told EGR.
“You get the benefit of the exchange with the great price but you don’t get confused by a back and lay price, and don’t have to worry about trading. Ideally we will have the sportsbook and the exchange side by side and you can use what you want – because our philosophy is what’s the difference?”
Smarkets already makes close to 60% of its revenue from proprietary trading, meaning it is essentially part-sportsbook by definition, although the model has drawn some criticism.
However, Trost said the new product would benefit customers by offering razor thin-margins, and simple, easy-to-use interface.
When asked whether a Pinnacle-style model could be sustained in highly-regulated and competitive markets, Trost replied: “If it can’t be done, I will fail.”
“Pinnacle do a good job of high volume low margin but it’s a half solution. You can’t put up a better offer, you have to wait for their traders to put up a price you want.
“It’s a half-baked trading platform. Granted its better priced than William Hill, but that’s not hard.”
Instead, Trost said the combination of an exchange and sportsbook side by side could appeal to all types of customers, with a launch in the US in the pipeline.