Nearly two decades ago, Clive Humby, a mathematician, coined the phrase “data is the new oil,” predicting that data would become the new wealth creator for the industry and economy. Fast forward to 2024, where the sports betting industry is faced with the task of fully utilizing the data available to it. Simon Trim, a strategic consultant at 10star, explores how optimizing data can improve business for sportsbooks.
While it may seem that the age of the internet and the use of data has contributed to growth within the sports betting industry, the reality is that data hasn’t been the driving force behind industry growth. However, it is likely that how operators utilize different forms of data in the future will determine the next generation of industry winners.
Trim suggests that future value growth for sportsbooks lies in the better use and interpretation of customer data. Currently, operators are sitting on a wealth of potential value through the information provided via the betting activities of their customer base. However, the tools available to sportsbooks to mine and refine this information are rudimentary at best, leaving much of its value untapped.
Trim argues that operators should incorporate how their prices change based on real-time exposure. By utilizing powerful algorithms to make automated decisions based on real-time information, operators can optimize their prices in real time, leading to increased margins, higher profits, lower volatility, improved brand differentiation, and a sustainable increase in market share.
In conclusion, Trim posits that proprietary data can power a new economic era for sports betting operators. However, it is how this data is used that will make the difference. By rethinking the use of customer data and leveraging real-time information, sports betting operators have the potential to drive industry growth and become the next generation of industry winners.