Genius Sports operator partners report 18% margin leap following Edge launch
Supplier’s product director explains focus on limiting players has led to non-optimal pricing strategies as he lauds quality of new pricing tool
Genius Sports has launched a new automated pricing tool that the supplier claims has led to an 18% increase in margin among early partner adopters.
The New York-listed firm has unveiled the tool, Edge, as part of its existing Genius Trading Services solution to improve risk management for operators.
The supplier said the product is able to take real-time liabilities and bet data and recalculate odds across multiple markets, including bet builders.
Genius Sports said the growth of sports betting markets worldwide had left trading teams with difficulties in optimising pricing.
Speaking to EGR, Genius Sports product director Tom Holland explained how the supplier decided what problems to solve, and how Edge has demonstrated reported gains.
He argued that sportsbooks have become focused on risk management strategies, such as limit setting and player profiling, which take up a “vast amount of a trading team’s time and resource”.
Holland said: “The growth of in-play betting created issues for bookmakers as often they couldn’t scale operationally to meet the content demands of punters. This meant often that automated solutions would be onboard that separated liability management from pricing.
“A lot of these operational tasks are really about limiting the exposure a book has, which is also not the optimal pricing strategy.
“This leaves money on the table for operators. They end up offering less optimal pricing and rejecting more bets, compounding the issue further.”
On early results being delivered by the product, Holland added: “We have been very focused on proving our hypothesis. We spent cycles investing into a fantastic reporting suite as well as approaching early adopters.
“These have shown to be good bets to make as time after time, we see fantastic results. Early adopters are showing significant upticks in margin and reporting shows this would have similar impacts for those not currently on the system.”
The launch of Edge follows Genius Sports’ debut of its BetVision tech in September which aims to further mesh the worlds of live streaming and sports betting.