Pro League Network CEO on spicing up sports betting
Pro League Network co-founder and CEO Mike Salvaris argues for a total revamp of an increasingly stale sports betting market
Sports betting has become boring. The post-PASPA gold rush is well and truly over. The prospect of a Missouri opening here or a Minnesota there may give the heart a flutter, but the real prizes — Texas and California — remain a glimmer in the distance. And as such, books must now resign themselves to the quotidian task of operating within the same old states, offering the same old markets, eking out share gains where they can.
In any given state, FanDuel and DraftKings hold upwards of 75% market share (add BetMGM and Caesars for about 90%), with a myriad of operators in their wake. But don’t expect consolidation anytime soon. A large number of smaller players have a successful ‘other’ business — for example an international sports wagering business or a brick-and-mortar casino — propping up their online sports betting (OSB). This cross-subsidy will enable smaller competitors to keep playing their hand, hoping that some quixotic mix of growing intra-state penetration, improved product, as well as existing competitors will deliver enough share to be worthwhile.
Many operators smell opportunity in improving the OSB product, which, for the most part, still lags internationally. We can see this across several dimensions: Deeper rewards integration (Fanatics), compelling ‘companion’ content (Betr), or speed of processing (Tipico), among others. What consumer segments value and any product differentiation will ultimately decide who wins.
There is one area of potential differentiation that I believe is massively overlooked: live content. ‘Watch and wager’ — de rigueur in most other countries — has yet to really materialize in US sportsbooks. On the surface a curiosity, given that this behavior has demonstrated success in the US since the early 2000s via licensed advance deposit wagering services (ADWs) in horse racing. In 2022, over 60% of the $12bn in US pari-mutuel handle went via a watch and wager experience. It’s no great secret that video keeps users engaged and betting on platform.
Yet it’s easy to see why things haven’t taken off this way. Caesars’ NFL Watch and Bet notwithstanding, major sports have been cautious about showing live content on-platform and/or restricted by existing rights agreements — and may continue to be so. However, you don’t need a major sport to have an impact. Table tennis generated over $255m of handle just in Colorado in the three years to April 2023 — good for over 2% of total handle. What it could generate if the stream were seamlessly integrated into a platform ought to be a tantalizing thought for operators — especially those unable to get more than a few points of total market share.
Finding the fun
Niche sports have, for the most part, sucked for casual bettors. Most of it poorly produced (Russian table tennis shot on an iPhone, anyone?), most of it targeted towards hardcore fans. But there is a new breed of alternative sport that is not the Wide World of Sports snoozefest. Slick, entertaining production, aimed at a broad audience and already proven to have appeal via sizeable social channels (I’m looking at you, SlamBall, Karate Combat, and yes, our PLN sports like SlapFIGHT Championship and CarJitsu.) Accessible to casual sports fans, these sports can really drive engagement: Our minigolf property, the World Putting League, has consistently seen average watch times more than 45 minutes over a two-hour stream. Plus, many sports offer clock and calendar advantages — enabling books to offer something compelling midweek or during the offseason.
Adoption of alternative sports won’t be a panacea, but it will be a way that books can gain that all important differentiation, with something already proven to be valued by a large and engaged audience. Plus, they’re fun. And don’t we all need a little bit more of that?
Mike Salvaris is co-founder and CEO of the Pro League Network. He has spent 20 years at the intersection of sports and wagering, including the development of physical gaming and racing facilities, operating digital gaming platforms and advising leagues and teams. He was a member of the sports practice at McKinsey & Company and a former commercial litigator.