Benzinga - by Abbey Higginbotham, Benzinga Staff Writer.
In Benzinga’s recent Sports Betting, Gaming & Esports: A Deep Dive virtual event, Chad Beynon, head of U.S. research and sell-side equity analyst at Macquarie, discussed how in-play betting is transforming the sports betting industry. Beynon explored how this real-time wagering option changes fan engagement and the broader market.
The In-Play Betting Boom Beynon described in-play betting as a major driver of the sports betting industry’s rapid progress. This feature, which allows fans to place bets during live games, shifts from traditional betting methods. "The apps that started here were somewhat clunky. We’re seeing improvements on all the mobile apps, and new ones just came out," Beynon said.
Companies like Genius Sports and Sportradar are leading the charge by providing the real-time data necessary to make in-play betting engaging for users.
Boosting Fan Engagement In-play betting changes how fans watch games, not just how they bet on them. Platforms like Amazon now offer multiple ways to view games, including broadcasts that resemble video games.
"On Amazon, if you watch Thursday Night Football, there are a couple of different ways to watch it. One looks like you’re watching Madden, and one looks like the regular broadcast. Little things like that are engaging consumers," Beynon explained. These varied viewing experiences are attracting a wider audience and boosting overall interest.
Regulatory Hurdles And Opportunities Despite advancements, regulatory challenges remain a significant hurdle. Beynon stressed the importance of clear regulations in shaping the market. "The way that licensing works in the U.S. kind of restricts the number of players," he said. Regulatory clarity and expanding legal sports betting states could further propel the industry forward.
Potential Of Esports Betting Beynon also explored the untapped potential of esports within the betting landscape. As esports gains popularity, integrating it with traditional sports betting platforms presents new opportunities. "We’ve seen fits and starts with esports, particularly here in the United States," Beynon noted. "I think the restrictions right now are obviously highly skewed towards younger audiences." As the audience for esports continues to grow, its betting market could expand significantly.
Opportunities And Challenges Beynon is optimistic about the future, especially with the anticipated rise in online gaming and the continuous improvement of mobile betting apps. He pointed to DraftKings as a company that is setting the pace for the industry. "DraftKings kind of set the tone; that stock was up almost 150% last year," Beynon said. He believes other companies could see similar success as the market evolves.
Addressing responsible betting, Beynon highlighted concerns about college sports betting. "College prop bets kind of became a hot-button issue a few months ago," he said. "It sounds like something that could and should go away. It’s only one to two percent of total bets, but we really shouldn’t be putting these college student-athletes in a position where they’re getting feedback from people that lost wages."
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