How bookmakers can derive greater revenues with new pricing derivative markets
Pricing derivative markets that utilise powerful data can greatly enhance the greyhound and horse racing betting experience and help attract a younger audience to the sport, says Adam Conway, SIS’s Head of Trading
The volume of sports betting markets which bookmakers can offer has grown significantly over the years. This is particularly the case in football betting, where in-play opportunities have been providing customers with thousands of wagers for some time. It is interesting that these two sports, which are steeped in the betting heritage in the UK and across many parts of the world, are more restricted to the variety of markets they can offer. After all, we have seen from sports like football and tennis that pricing derivatives provide much-needed additional stimulation, as well as increases in betting revenue.
Operators can save time and labour
The issue often for smaller to medium sized fixed odds operators can be the labour and time-intensive nature of pricing derivatives in-house. Despite many deriving the markets from the race winner’s price, these markets need to be closely managed throughout the day, and often aren’t as accurate as they could be.
The availability of an outsourced trading service can take some of the hassle away from operators by allowing them to either outsource everything negating the need to assemble expensive large trading departments or they can do more for less by enhancing their current offering by adding additional specialist markets.
An end to end solution
At SIS, we have developed a new fully-fledged greyhound and horse racing pricing derivatives service to support our data and live-streamed pictures, ensuring an end-to-end solution for operators. This is possible following the recruitment of a specialist racing trading team, bespoke software, and sophisticated algorithms which are able to manage the derivative markets throughout the day, and allow us to build the markets to complement the race winner markets. Powered by a racing database built up over 30 years, the new service is designed to offer a full end-to-end service for retail and online sportsbooks of all shapes and sizes.
New markets available
As a result, operators are now able to offer alternative markets on greyhound racing and horse racing, which for many would not have been practical if priced in-house. By using a third-party provider, the costs and risks of offering derivatives have been reduced, and it becomes a much more profitable product. For instance, additional markets such as match bets will allow players to bet on one greyhound beating another, while customers can also wager on the distance the winning greyhound wins by and bet without the favourite.
Furthermore, customers can get to see what their returns will be on our forecast and tricast fixed odds markets, rather than having to wait until the end of the race. There’s also the opportunity to bet on the total performance of favourites at a specific greyhound meeting, and betting on the favourites against the entire field.
Engage new audiences
We firmly believe this will greatly enhance the racing betting experience, and for many it will help provide fixed-odds bookmakers with an effective derivatives product in which they can have confidence. In addition, customers will be able to enjoy casino-style ‘spin-and-win’ bets which can open up the sport to a newer audience less familiar with it. For instance, players can bet on the odd-numbered greyhounds against the even-numbered greyhounds, offering even money bets much like roulette.
The spin-and-win experience is already very well-received internationally, and we’re confident that players from across the globe will soon enjoy the racing equivalent as customers don’t need any specialist knowledge for these types of bets. And in the UK, where racing is exploring ways to make the sport even more attractive to younger generations, derivatives could help play a part in engaging with this new audience. Operators we’ve spoken to are excited by the opportunities these new markets bring and are rolling them out to their customers, and we expect many other operators to follow suit. Both greyhound and horse racing are popular across the globe, and the addition of these new exciting derivative markets can only enhance the betting customers’ enjoyment of the sport, wherever they are in the world.
For more information on the opportunities derivative markets can offer your sportsbook please click here