Q&A: Amelco CEO Paul Manning on white label competition and adapting for the US market

Since breaking away from the financial industry in 2007, Amelco has carved out a reputation as one of the tried and tested white label sportsbook suppliers in the online gambling industry.

Forming an early B2B relationship with UK bookmaker William Hill is described as a “pivotal” moment by Amelco CEO Paul Manning, as the operator branched out into betting.

“We found there was a fit that we hadn’t thought of before,” Manning tells EGR Intel. “It was high-volume, low-latency trading with data coming in, maths being done, and a price being calculated.”

Amelco’s pivot coincided with the industry’s desire to do more with in-play betting and to offer more markets, both of which couldn’t be done manually, so an opportunity arose for the firm.

Below, Manning talks to EGR about how the firm has developed since finding itself in the right place at the right time, and how legal US sports betting could change the game forever.

Amelco CEO Paul Manning

EGR Intel: Does Amelco still work in the fintech sector?

Paul Manning (PM): Yes we still work in the fintech side, we have customers and products out there but at that point in time, the financial sector was going through a rough time and betting just took off, so it was very good timing for us in that regard. I would say that 70-80% of our efforts go into betting, but there is still some crossover.

EGR Intel: Does Amelco have any offices outside of London?

PM: We have got one dev hub in Warsaw which has been going for around 18 months now, but that’s it. Our London office is our headquarters.

EGR Intel: The US opening up must have changed the strategy of the business considerably. How did you react to the PASPA ruling?

PM: We were pleasantly surprised. People thought it would happen but when it actually did, it was pretty quick. From our background in finance, a lot of us had spent time in places like New York and New Jersey so we were also pleased from a personal point of view that we would get the chance to get back out there and mix it up with the Americans again. From a strategic point of view, we have put a lot of time and effort into going over and speaking to potential customers. From a development point of view, what we’ve found is that our platform is almost accidentally perfect for the American markets – our system fits very well so we haven’t had to change too much on the dev side at all. The world got a lot bigger in that one day and its a great opportunity.

EGR Intel: There must be heavy competition between sportsbook suppliers competing for US contracts now?

PM: Yes, there has been a lot of meetings and a lot of travel. You can probably name the five or six suppliers that you think would be competing for that business, but there is also a lot to go around. I don’t think that just one supplier could cope with all of the opportunities that are out there, so there is a great opportunity for UK and European based suppliers. When competing for a contract, they don’t tell you who you are up against, but there is always bound to be a shortlist of two or three for each one.

EGR Intel: When you first entered into discussions with potential US customers, what was there perception of what sports betting in America would look like? 

PM: I think most are still trying to go with what their first impressions were. A lot of them have been saying to us that we don’t want a European-style sportsbook because it won’t fit the market, so we have had to explain that we aren’t forcing that – whatever you want is what you can start off with. A lot of them don’t want the 200+ markets for each event, they want the basics because they don’t want to confuse their customers and because they don’t think its necessary. We have explained that we can turn everything off until they need it, and then it can easily be turned back on again if need be. They do not need to take on content they don’t want. We are there to listen.

Amelco’s online sportsbook betslip

EGR Intel: There seemed to be this perception that European-style sportsbooks wouldn’t work in the US before discussions had even really begun. Where did that come from? 

PM: I was in Miami a year or two before PASPA opened up and people were saying it then, that America is completely different. I don’t know where it came from originally, but that has always been the view. I don’t know if it was because they had seen some demos before, where Europeans had gone over and failed to appreciate the differences.

EGR Intel: What do you think the major differences are between European punters and US sports bettors? 

PM: There is a much bigger appetite for multiples over there. A lot of it is also pre-match, but that maybe stems from what they have experienced before, whereas what we have seen in the UK over the last 10 years is that in-play has become the bulk of the product. That is a major difference, although I’m sure it will take off in America eventually. Also in the US, there are four or five major sports that everyone is interested in, whereas over here there are dominant sports like football, but you can also find what you want if you are looking to bet on badminton or volleyball, for example. In the US you are more limited.

EGR Intel: How can you get offshore bettors to make the switch to legal sportsbooks? 

PM: My view might be different from some others in that I don’t think those bettors will come back. But then again, there must be a vast majority of people who weren’t using offshore, so the next generation will naturally go to the legal sportsbooks. Would it be good to get offshore customers back? Yeah. Is the success of America going to depend on that? I don’t think so.

EGR Intel: Amelco has previously been considered media-shy. Is that changing?

PM: We have spent all of our time working on and developing the product. We now think it is time to shout a bit about it. It has been said before that it is the best kept secret in the industry, but we want to capitalise on that now.