Industry predictions: esports acquisitions and streamer-style sports commentary

This year should see decisive action with regards to acquisition bonusing in the UK and beyond. An elimination of sign-up bonusing would be welcomed by both regulators and gambling-harm prevention organisations. Operators may also feel relieved due to the problems caused by matched bettors and bonus hunters. Sign-up bonuses discourage loyalty, and increasingly are leading to negative player value and defensive CRM strategies.

I would argue that, long term, it’s more effective to bonus members on loyalty by spotting bonuses based on player behaviour. Betting on Arsenal to win? Aubameyang has touched the ball 20 times during the first half, if he touches the ball 20 times in the second half you get a free £5 bet. Such rewards create a sense of excitement, are engaging and makes a site more sticky. We require genuine rewards for loyalty, not based on player losses, but CRM in its truest form, which is about customer empathy. The impact this would have on the industry’s reputation would be meaningful. A fresh approach is required and would enable operators to readdress the way they talk to and build relationships with existing customers.

Entering esports

2021 will see bolt-on acquisitions in the area of esports. I would see this as preparation for the inevitable explosive rise in the popularity of esports, rather than an immediate revenue booster. The importance of gaming on culture cannot be underestimated, it’s a channel for communication, virtual concerts and increasingly it’s where people are spending their time.

Customers of the future are not as interested in sports as previous generations have been. They will take Rocket League over the Premier League, and if you tell anyone under the age of 35 that you enjoy watching snooker, they will look at you like you are loopy. Esports requires specific expertise, plus cultural understanding, and it’s time to start getting your ducks in a row. As an aside, if ‘traditional sports’ want to retain audience share and interest in the future, they need to adapt and embrace cultural trends and developments.  Think graphic overlays, rewards and a more dynamic ‘streamer’-commentary style. Adapt or die!

Saving sponsorships

One development I hope we don’t see in 2021 is a ban on sports sponsorships for betting and gaming firms as part of the UK gambling review. A ban would take £100m out of UK sport and, in my opinion, would not be effective in reducing gambling-related harm.

Sponsorship is a global play; its impact domestically is diluted and is nowhere near as impactful as TV ads. Many Premier League shirt sponsors do not prioritise targeting UK consumers and this is true for sports betting and non-sports betting sponsors alike. The total UK GGR generated by four of the sports betting shirt sponsors does not even equate to 1% of total UK GGR. This indicates to me that sponsorship is not a major contributing factor to problematic gambling behaviour.

Let’s look at it sensibly and limit it to one betting or gaming partner per club for product category exclusivity. There is too much exposure for betting firms in UK football, so let’s adapt the rules to mean that you don’t see four or five different competing betting firms on the same LED system at the same match. A suitable reduction is in my mind an appropriate response.

Previously heading up 12BET’s European business, Rory Anderson works as a gambling industry consultant having previously headed up 12BET’s European business. His former roles include senior marketing positions at 888, Empire Online and PartyGaming.