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Affiliate Marketing in Sports Betting: Interview with Will Armitage

Jul 14, 2024

Affiliate Marketing in Sports Betting: Interview with Will Armitage

Introduction

  • Interview with Will Armitage, co-founder of Best Odds.
  • Discussion Topic: Changes and trends in the UK and US sports betting markets.

UK Market Focus

Sky Bet Changes

  • Sky Bet Club Changes: Sky Bet increased the weekly bet requirement from £25 to £30 for a free £5 bet.

    • Consumer Reaction: Mixed feelings; many long-term users are unhappy.
    • Financial Perspective: Sky Bet's UK online sports betting revenue is down by 20% in Q1 and Q2, online segment down 32%.
    • Responsible Gambling: Questions if the change encourages more spending.

  • Retention Tool: Compared to a loyalty program, this change could affect customer behavior and loyalty.

  • Possible Future Adjustments: Potential IT adjustments for deposit limits to fit consumer spending.

  • Will’s View: Proof will be in the results over the next year.

Market Landscape

  • Prominent Players:
    • Bet365: Consistently strong performer, no significant changes expected.
    • Sky Bet: Considered top for brand loyalty but must adapt strategies to maintain revenue.
    • Other Players: The entrance of The Zone Bet and TalkSport Bet, facing challenges in differentiation.

US Market Focus

Aggressive Marketing Strategies

  • Comparisons to UK: US market in an earlier, more aggressive phase with high opening bonuses.

    • Current Trends: Reduction in the extreme bonuses compared to last year.
    • Financial Prudence: Shift to a more sustainable business model for long-term success.

  • New Market Entries: States like Florida, Texas, and California have yet to regulate, creating future opportunities.

Responsible Gambling

  • Regulators and responsible gambling commentators impacting bonus strategies.
  • Tax Rate Considerations: Impact on market strategies, e.g., 51% tax rate in New York.

Micro-Betting Trend

  • Definition: Small, frequent bets on events during a game, e.g., next pitch/play in US sports.

    • Example: Jake Paul's involvement in Simple Bet.

  • Challenges:

    • Better Fatigue: Consumers may quickly tire of frequent betting opportunities.
    • Technology & Latency: Real-time betting requires precise and fast data, potential lag issues.
    • Margin/Rake: High margin can deter serious bettors.

  • Will’s Take: Skeptical about long-term viability due to these challenges, comparing it to online trading and binary options.

Conclusion

  • UK Market: Adapting to consumer behavior and responsible gambling concerns.
  • US Market: Rapid growth with evolving bonus strategies and regulatory impacts.
  • Micro-Betting: Awaiting market adaptation and technological advancements for true potential.

Will Armitage's insights provide a balanced view of the sports betting markets, touching on both consumer perspectives and financial implications.

Full transcript