The evolution of sportsbooks in 2024: what’s next?

Having spent over a decade in technology and more than half of that time in igaming, I’ve witnessed first-hand the rapid evolution of the sportsbook sector.

My journey, predominantly focused on developing sportsbook products – such as the high-performance GR8 Sportsbook – and maximising their revenue, has offered me a unique vantage point to observe and anticipate industry trends.

This experience has not only deepened my understanding of technical nuances but also sharpened my ability to sense where the industry is heading next.

Navigating technological parity and profit maximisation

Currently, at the start of 2024, the industry seems to be at a technological plateau. Despite the buzz around innovation, a closer look reveals that the advancements are more incremental than revolutionary, and most companies are technically on a par with each other. While all are technically adept, nobody’s significantly breaking new ground.

The focus has subtly shifted from pioneering technology to quickly maximising profits. The rise of iFrame sportsbooks exemplifies this trend. While innovative in their own right, these products are primarily tools for market penetration and revenue generation, not introducing something really new. On the other hand, operators need to keep users continually engaged.

In this domain, modern technology plays a pivotal role. Intricate gamification mechanics, momentary or even predictive bonus communications and other features like that are now standard in leading sportsbooks. These advancements, driven by artificial intelligence (AI) and machine learning (ML), have transformed user engagement from a static to dynamic, almost personalised experience.

AI and ML have opened the doors to a new era of user engagement where every interaction is an opportunity to deepen the user’s connection with the platform. However, it’s a double-edged sword; as much as these technologies enhance user experience, they also raise the stakes in terms of the sophistication and resource investment required to stay competitive.

The competitive dynamics of the sports feed market

An interesting thing is also happening in the global sports feed market. Large feed providers compete intensively for exclusive rights to various sports leagues and events, blocking access for others in case of a successful contract. This strategy created a market closely resembling the world of streaming services: just like we have no choice but to buy several subscriptions to keep track of all our favourite content, the sportsbook operators are under constant pressure to maintain multiple feed providers while still risking losing some of the content in case of inaccessibility of any of them.

This shift towards exclusivity also changes the dynamics of how sportsbook operators engage with their users. The focus is no longer just on offering a variety of sports but on delivering unique content that can’t be found elsewhere and aiming to cater to specific interests and preferences. Otherwise, users would hop between platforms, reducing loyalty and increasing churn.

Market saturation and the need for differentiation

Adding to these challenges is the surge in the number of companies offering sportsbook platforms. Just from what I’ve seen at events last year, the number of platform providers seems to have almost doubled. Many of these newcomers are former providers of standalone services and products like feeds, iFrames, etc, transitioning to offering fully-fledged platforms.

However, developing a robust and efficient sportsbook platform is a complex task and, with this influx of new players, concerns about the quality and sustainability of these platforms are inevitable. Operators already navigate a sea of options, where distinguishing between high-quality and subpar platforms becomes increasingly challenging as everyone communicates the same set of capabilities and features. The difference, though, quickly becomes apparent in operation.

In this crowded and often confusing landscape, we at GR8 Tech want to bring some transparency and simplicity through a strong focus on personalisation. We understand that each operator has specific needs and challenges, hence, we offer highly customisable solutions that address and cater to these individual requirements. This is something that only comes with significant experience and deep industry knowledge, which we are proud to have, backed by a substantial legacy in the sports betting business.

Anticipating the future: major trends and opportunities

With all these factors, the industry is at a crossroads, anticipating significant changes. While the exact nature of these changes remains uncertain, it’s clear the current trajectory is unsustainable. There’s a palpable sense that a shift is on the horizon, one that will redefine the sportsbook landscape.

I don’t think the technology will be the direct game-changer. Instead, it’s more likely that technology will become more affordable and accessible, and present an opportunity for innovation in business models. The sportsbook industry is ripe for a revolution in its operational approach, and 2024 might just be the year we see this transformation.

We at GR8 Tech often ponder what this shift may look like. Our current “lifetime partnership” approach is already quite fresh; in an industry where many are racing to sell a one-size-fits-all solution, we take the time to understand and respond to the unique needs of each client. We also make sure to invest heavily in technical superiority, and while it may not be a direct cause of change, it most certainly will be a decisive factor in any breakthroughs.

But what is really next in the sportsbook domain?

I believe we can discern several major trends to look out for in 2024. First, the continued evolution of user engagement strategies, where AI and ML play an even bigger role in creating personalised experiences. GR8 Tech, for instance, is working on the improvement in our CRM that will allow operators to build communications not based on what has already happened to the player but react in advance, creating a truly personalised journey.

Second, the intensification of competition for exclusive content may see two simultaneous ways of resolution. One is through products like our GR8 Feed, which provides the capability to trade literally anything in addition to aggregating content from all top feed providers. The other is through innovative ways to leverage each bit of content, leading to new models of content distribution that cater to evolving user preferences.

Last but not least, the push for differentiation will become paramount. The demand from operators seeking to tailor their services to the unique preferences of their audience will push providers to explore or realise they’re not standing up for this massive challenge.

At GR8 Tech we are up for it. I’m excited about what 2024 will bring to the sportsbook industry and invite everyone to explore it together, starting from ICE London. GR8 Tech is exhibiting at stand S9-165 so join us to witness how we’re addressing the challenges, helping betting businesses grow and setting new standards in the evolution of sportsbooks.

Oleksandr Feshchenko is the chief revenue officer at GR8 Tech. He is responsible for implementing the company’s business model and product development including sportsbook, casino products and in-house CRM.

Feshchenko’s deep understanding of the industry and many years of experience on the B2C side of the business enable him to anticipate market demands and utilise the company’s resources to create products to meet them.