Business By The Books: Genius, Sportradar Aiming To Improve Sports Betting Profitability

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The sports betting industry’s two leading data suppliers both touted automatic live betting pricing tools last week that should improve profitability for their clients.

Sportradar called out its Alpha Odds product, which includes automated sports betting odds recalculation, boosted client profit by 10% on average last year.

Genius Sports, meanwhile, announced the launch of Edge, which automatically prices markets with maximizing profits in mind.

Genius giving sports betting an Edge

The Edge pricing tool can unlock “greater profit on every bet,” Genius said in its release. The program uses real-time liability and individual bet data to recalculate odds on the fly.

The hundreds of thousands of markets offered by sportsbooks annually necessitates an automated tool, Genius Product Director Thomas Holland said.

“This makes it almost impossible for trading teams to truly optimize pricing and ensure they are squeezing maximum margin out of every bet, especially where turnover is highest,” Holland said.

“With our early adopter partners live with Edge, margins have increased by 18%. We’re excited to roll this groundbreaking solution out across our sportsbook partners worldwide, transforming bottom-line performance.”

Sportradar’s Alpha Odds with 60 clients already

The Alpha Odds automated recalculation tool analyzed 17 million betting tickets across 60 Sportradar clients. Those clients saw trading efficiency improve by 11% compared to operators using its conventional odds product, according to the release.

“Since Alpha Odds introduction to the market in late 2022, Sportradar has transformed trading betting markets,” said Darren Small, senior VP of managed trading services at Sportradar. “The independent ISAE certification validates the performance of Alpha Odds and provides confidence to clients that the associated financial aspects of the solution are transparent and accurate.”

Founding family of theScore leaving PENN

The Levy family, which founded theScore and created the sports betting technology that today runs ESPN Bet, is stepping down from their Penn Interactive roles.

Penn bought theScore in August 2021 for $2 billion, which was seen as a lofty valuation at the time. Penn paid an 87% premium to theScore’s stock price in cash and stock for essentially the potential of theScore Bet’s platform and its ability to merge a sports news app with a sports betting app.

That kind of technology will eventually help Penn’s new sports betting partner, Disney‘s ESPN, let ESPN readers create bet slips in the media app that will populate into the sports betting app.

Benjie, PENN’s head of interactive and COO of theScore, Aubrey and Noah Levy will step down by April. John, the father of the family and executive chairman of theScore, will step down mid-February.

Fanatics up to 13 of 14 PointsBet states

PointsBet has transferred ownership of 13 of its 14 US state operations to Fanatics, PointsBet said on its fiscal Q2 conference call.

Illinois is the last remaining state, a Fanatics spokesperson told LSR.

The $225 million sale of the PointsBet US business should be completed by the end of the calendar second quarter, or by the end of June.

Underdog supports GRIT Act

Daily fantasy company Underdog announced its support for the Gambling addiction Recovery, Investment, and Treatment Act.

The GRIT Act, sponsored by US Rep. Andrea Salinas and US Sen. Richard Blumenthal, would take 50% of the money paid as federal sports betting excise taxes for gambling addiction treatment.

“There is a need for dedicated federal resources to aid problem gambling prevention, research, and treatment,” said Adam Warrington, VP of responsible gaming at Underdog. “The GRIT Act would direct existing tax dollars paid by legal operators to be utilized to fill the current funding gap.

“As there are currently no federal funds allocated for problem gambling, we at Underdog support directing existing tax dollars as online sports gaming and wagering grows in the United States.”

BBT launches ClutchBet in Louisiana

Australia-listed BlueBet launched its B2C American brand ClutchBet in its third state, Louisiana, last week.

Handle from ClutchBet operations in Colorado and Iowa hit $9.1 million in the fiscal second quarter, the BlueBet reported in its earnings presentation. That is up nearly 10 times from the previous year when the company was only in Colorado.

ClutchBet took 84,009 wagers in the quarter, up from 6,804 the previous year.

Gross win was more than $520,000 with net win of $66,000.

BetMGM extends partnership with RCR

BetMGM extended its partnership to serve as the official sports betting operator of NASCAR‘s Richard Childress Racing.

The agreement includes a “variety of marketing and activation assets.” BetMGM will serve as the primary sponsor of the No. 3 and No. 8 cars for select races, driven by Austin Dillon and Kyle Busch, respectively.