How Major Sporting Events Influence Every Betting Site
Major sporting events are more than just huge TV viewing audiences. In addition to changing fan behavior, advertiser behavior, broadcaster behavior, sponsor behavior and the behavior of the online betting sites themselves, they can bring many people who normally would not be interested into the digital environment at the same time. While this could represent an opportunity for all the online betting sites, it represents pressure. All aspects of an online betting site’s operations will be affected by major sports events.
Market offerings can expand. Advertising and promotions can become more intense. Website traffic will grow. However, online betting sites will be held accountable for providing reliable technology, adhering to regulations regarding gambling and protecting the integrity of the games being played, with increased scrutiny.
Immediate Rise in Traffic and New Customers
The most obvious impact of a major sports event will be a rapid rise in interest among existing customers and an influx of new customers. Casual fans who may not have been interested previously in betting may now create accounts and wager on their favorite team(s) because their favorite team(s) have made it to a championship game, or if a favorite athlete is participating in a high-profile event. As a result of these additional customers, major sports events provide significant opportunities for customer acquisition for established online betting sites. Established online betting sites can present unique markets related to the high-profile event(s), educational materials about the sport/event and special promotions designed specifically for the high-profile event(s). With so many participants vying for exposure through digital marketing (i.e., search engine optimization/advertising, social media, sponsorship/affiliation programs), the established online betting sites will also spend significantly more on digital advertising and promotion to increase their visibility.
Established online betting sites want to acquire new customers. However, acquiring new customers is only half the battle; the new customers must be able to successfully register for an account, verify their identities, fund their accounts and withdraw winnings from their accounts while there is increased volume.
Increase in Offerings and Products
In addition to an increase in the number of customers creating accounts and placing bets on major sports events, the major sports events also create a demand for more diverse betting products. Customers may seek more than just a simple “yes/no” prediction of which team will emerge victorious. They may seek predictions based on individual player statistics and/or individual match-related occurrences, tournament-level occurrences, awards and other event-related occurrences.
For example, during a soccer tournament, some common types of soccer tournament markets include the group standings, total number of goals scored in the tournament, top scorer in the tournament, performance of specific players in matches within the tournament and which team wins the championship. Similarly, during a tennis tournament, common markets generated by tennis tournaments include each individual match, each set in each match and each round/stage of the tournament. Providing customers with multiple product options allows them to choose either the more complex products available for experienced customers or the simpler products available for casual customers looking to participate in a basic form of gaming.
Monitoring Team News, Player Injuries Etc…
To meet this added diversity of customer preferences during major events, trading teams must continually monitor team news and updates regarding player injuries etc… and real-time developments regarding the event. When new information emerges or when there is heavy concentration on one outcome, operators must rapidly update odds as needed.
Infrastructure Challenges Created by High-Volume Traffic
Because the large audience created by major events produces traffic volumes that are much larger than typical weekend traffic volumes, many thousands of users can log onto an online betting site simultaneously to review odds, fund their accounts and place bets over a short period of time. If the infrastructure of an online betting site cannot sustainably accommodate this level of traffic volume, websites may take longer to load pages or may be unable to process transactions.
Therefore, major events are critical tests of technical resilience. Online betting sites may increase server capacity prior to a major event and conduct stress testing of their payment processes to minimize downtime.
Increased Complexity Added by Live Betting
Live betting presents another layer of complexity. Priced must reflect current play on the field/court/etc.. Data feeds must be up-to-date and correct. Uncertain markets must sometimes be suspended. Technical issues can cause incorrect pricing or disputes regarding settlements.
Promotions Become Much More Aggressive Around Major Events
Competition for promotions typically escalates around major events since operators recognize that customers are comparing platforms aggressively. Enhanced odds, free bets, prediction contests and rewards tied to certain teams/players are examples of common promotions used to differentiate platforms from one another during major events.
However, while these offers can help distinguish an operator from its competitors, they can also confuse customers unless clearly presented. Customer confusion can lead to long term distrust toward an operator even after an event concludes.
Balancing Creativity With Compliance
Online betting operators face challenges balancing creative promotion efforts with regulatory compliance. An attractive promotion may draw attention to an online betting platform. However, confusing terms associated with that promotion may erode trust and potentially trigger complaints long after the conclusion of the major event.
Changing Odds/Risk Management
As mentioned earlier, major sports events can attract substantial amounts of money from large numbers of people who tend to favor popular teams or prominent athletes. Popular favorites are not always likely to win. Fans’ enthusiasm for a team/athlete can be influenced by national pride, media attention etc…
Trading teams react accordingly by developing strategies to limit the risks associated with operating an online betting platform. They modify odds as necessary in response to emerging information and changes in betting patterns. They strive to maintain competitive pricing. However, they must do so while dealing with breaking news close to the start of an event. Examples include sudden team changes due to injury/weather etc…
Risk Management Strategies Must Be Accurate
Risk management is crucial for all online betting operators. An operator must accurately assess potential payout obligations. It must identify suspicious activity and establish adequate financial and technological resources to deal with it.
Higher Volume Creates Higher Demand for Support Services
Since there are more users and higher volumes of transactions associated with a major sports event compared to regular weekends, there will be a corresponding increase in customer inquiries. Customers may require assistance regarding account verification, delayed payments, ambiguous promotional terms or settlement disputes. Additionally, new customers may have difficulty understanding industry-specific terminology or the rules surrounding an event.
Operator Response During Major Competitions
Operators may lengthen hours of operation for their customer service centers. Additional personnel may be hired or brought back onboard temporarily to assist with the increased workload. To provide clarity to new customers during live events, operators may develop new FAQ sections or “help” areas related to specific events.
An Operator’s Performance During a Major Competition May Determine Its Long-Term Relationship With a User
If an operator provides good service during a live event (e.g., resolving a problem promptly), it is possible that a user will use that online betting site again in the future. On the other hand, if a problem cannot be resolved (e.g., a delayed payment or disputed settlement), it is possible that that user will go somewhere else.
More Scrutiny Directed Toward Regulation and Responsible Gaming
High profile events put gambling advertising into the spotlight, resulting in increased attention from government regulators, political leaders and advocacy groups focused on consumer rights. Online betting operators must comply with laws related to age verification, advertising standards for gambling advertising, personal data protection policies governing deposits and withdrawals etc…
It is also increasingly important for online betting operators to emphasize responsible gaming practices when promoting special events featuring frequent promotional messages and emotional appeals (e.g., watching your favorite team play in the finals). Online betting operators should consider posting deposit limits for users on their websites during these times. Users should also see reminder notifications indicating how much time they have spent playing. Self-exclusion options should be offered. Links to organizations supporting problem gamblers should be provided. Finally, operators should track activity and suspend or restrict access to accounts demonstrating excessive loss/gaming behavior.
Demonstrating Commitment to Player Welfare
While meeting minimum regulatory requirements is expected of all licensed online betting operators, visible measures implemented by online betting operators can help educate users on what constitutes responsible gaming. Demonstrating a commitment to player welfare can help promote voluntary best practices and contribute to reducing problem gaming behaviors.
Disclaimer: This article is for informational purposes only and does not promote or encourage gambling. Betting involves financial risk, and laws and regulations may vary by location. Readers should gamble responsibly and only where legally permitted.