This Week's Sports Betting Update

Hello, we’ve taken a look at what’s news, trending and being talked about in the sports betting world this week. Grab a coffee, take five minutes and we’ll fill you in on everything you need to know.

One big story?

Were US election prediction markets a bigger winner than Donald Trump?

This week, American voters decisively voted for Donald Trump to return to the White House for a second presidential term. However, Trump wasn’t the only winner from this week’s election.?

The recently licensed derivatives exchanges made it possible for Americans to place legal bets on the outcome of the election for the first time.

One of those exchanges, Kalshi received approval to serve Americans via the federal appeals court just six weeks before the election. On the morning after the election, Kalshi was said to have taken ￡524.5 million in contracts for the election cycle, with bettors allowed to purchase yes/no political event contracts against one another at the current market price.

Although Kalshi is the only platform of its kind to secure licensing, grey market alternative Polymarket also proved hugely popular. The New Zealand-based, cryptocurrency-led prediction market raked in approximately ￡3.09 billion over the course of the election campaign.

One of Kalshi’s main arguments for its legalisation was its ability to fight election misinformation.?

The platform saw Trump become a heavy favourite in the weeks leading up to the election, despite all conventional polls having Democrat candidate, Kamala Harris, as a narrow favourite.

Click here to learn more about the volume of election wagers taken by Kalshi and Polymarket.

What you need to know

Commercial

• Czechia-based Livesport, the company behind the success of Flashscore, has acquired Spanish-facing real-time football data platform BeSoccer. Livesport has paid an undisclosed sum to acquire BeSoccer, expanding its monthly user base by as much as 25 million football fans. More
• Bally’s Corporation has brokered a move to sell off its interactive business in Asia. The firm made a Form 8-K filing with the US Securities and Exchange Commission, citing plans to sell its ‘Carved-Out Business’ which has a sizeable presence in the Japanese iGaming market across four brands. More
• Super Group, the owner of Betway, experienced a profit decline of 20.3% in Q3 2024, despite record-high revenues for this quarter. Operating profits fell to ￡7.1 million, attributing the decline to an adjusted Ebitda loss from the US market, one of the main drivers behind its exit from US states with legalised sports betting. More
• Kambi Group’s new CEO, Werner Becher, has fronted up to near-term headwinds as the firm seeks to transition to a modular product range. Becher, who replaced Kristian Nylen in Q3, revealed some commercial and strategic progress in its modularisation roadmap, including the Odds Feed+ partnership with Hard Rock Digital. However, the loss of sizeable partners Kindred and LeoVegas was a blow to the group. More

Regulation

• The Dutch government has conducted a review into the country’s Gambling Act, concluding that it’s failed to meet vital player protection goals. The review summarised by saying the measures weren’t up to scratch on responsible gambling. It also described the framework as na?ve to put the care responsibilities of bettors solely in the hands of operators. More

People news

Martin Lewis’ charity launches campaign to help banks tackle problem gambling

Martin Lewis’s Money and Mental Health Policy Institute, founded and chaired by the finance journalist and TV host, has unveiled a new programme designed to support banks with tackling the issue of problem gambling.

The scheme, the Gambling Harms Action Lab, which is funded by a regulatory settlement from the UK Gambling Commission (UKGC), is a three-year programme aimed at collaborating with current account providers to design and implement new tools to address gambling harms.

Click here to hear from Helen Undy, CEO of the Money and Mental Health Policy Institute, on the need for action to encourage banks to build their own systems and tools to support bettors.

This week's talking point

UK gambling analysts anticipate future tax hikes

The leading UK gambling stocks bounced on the London Stock Exchange after gambling duties were left untouched in the Autumn Budget 2024.

This rally comes after the major firms shed ￡3 billion in market value earlier in October after rumours that the Treasury was weighing up such proposals.

However, the Autumn Budget 2024 did state consultations would commence in 2025 around bringing remote gambling under one tax umbrella. Gambling analysts at Jefferies investment bank believe the wording implied a tax rise, with a potential harmonisation of betting duty at the 21% currently charged on remote gaming duty.

Racing Post’s industry editor Bill Barber noted the persistent calls for even bigger hikes to gaming duty by the Social Market Foundation (SMF), which believes remote gaming duty should be doubled to 42%.

Click here to learn more about the issue of UK gambling duty, including calls from Liberal Democrat leader Sir Ed Davey, who supports the SMF’s call to raise an estimated ￡900 million for the Treasury.

This week's insight

Why margin management is vital for sportsbooks to make a success of Esports betting markets

With more online sportsbooks embracing Esports as a new betting market, it’s important for operators to be mindful of the risks associated, according to Aleksandr Glotov, senior product manager at Bayes Esports.

Glotov believes margin management is one of the most important tools for sportsbooks, giving them a sense of control over their products and potential returns. Bayes Esports developed its Bayes Odds Marketplace to enable operators to do exactly that.

The Bayes Odds Marketplace displays specific betting markets within an Esports event and allows sportsbooks to apply manual margins or take a blanket approach in a templated fashion.

Glotov says sportsbooks that wish to adopt Esports as a unique selling point may wish to offer more competitive odds, especially during high-profile Esports events. Similarly, some operators may prefer a high-margin approach to mitigate high-risk events.

Click here to learn more about the Bayes Odds Marketplace and its ability to align with sportsbook strategy on Esports betting markets.

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