GI Huddle Podcast Episode with Darren Small Recap

Jul 14, 2024

GI Huddle Podcast Episode with Darren Small Recap

Introduction

  • Host: Tim
  • Guest: Darren Small, SVP Managed Trading Services at Sportradar
  • Discussing the role of Managed Trading Services (MTS) within Sportradar and its future

Overview of Darren's Role

  • SVP of Managed Trading Services (MTS)
  • MTS is viewed as a sophisticated Risk Management Service, not just a trading product
  • Manages regular limits, liabilities, individual accounts, events, markets
  • Uses an advanced engine and algorithms with AI models for real-time ticket processing

Key Processes

  • Ticket processing in real time via algorithms:
    • Assessing event, market, individual account liabilities
    • Monitoring latency
    • Ensuring integrity with integrity teams
  • Provides advisories within 20 milliseconds for ticket acceptance based on risk
  • Analytical aspects influencing quantitative analysts on sports/market performance
  • Importance of responding quickly and technology stack efficacies

Evolution of Managed Trading Services

  • Darren has been with Sportradar for ~15 years, 25+ years in the betting industry
  • MTS initiated with the focus on scalability and efficient risk management
  • Integration of AI and automation from the beginning
  • Addressing heavy operational demands with technology and AI
  • Industry's concern with automation, mitigated by blending AI with manual oversight

Role of AI in MTS

  • Identifies heavy tasks where automation is essential:
    • Customer profiling based on transaction behaviors
    • Assessing latency and likelihood of data exploitation
  • AI importance in real-time risk management and efficiency gains
  • Human traders shifted focus to exceptional cases and system improvements

Future of Trading & AI Integration

  • Sportradar’s problem-solving approach through technology
  • AI systems compartmentalized for varied client needs
  • Event profiling based on time-specific impact on turnover
    • Example: Monday Night Football vs. Saturday afternoon matches

Upcoming Trends and Technologies

  • Alfa Rods: Liability adjustment in pricing to improve trading efficiency
    • Adjusted odds based on financial position and customer profile
    • Granularity in risk mitigation
  • Viaplay acquisition: Enhancing integration of marketing services with MTS
    • Providing a Netflix-style customization for users
    • Moving towards personalized, fan engagement-focused models

Final Thoughts

  • Importance of customization and personalization in future trading models
  • Continual technological advancements to meet industry needs
  • Positive outlook on integrating AI and human analysis

Thanks to Darren Small for the insightful discussion on the GI Huddle podcast about Sportradar’s Managed Trading Services. Exciting times ahead in the realm of sports betting and trading services!