US predictions for 2020 – including new betting innovations and more M&A

Bob Craddock, trading analytics manager at Amelco

New (and old) products for a new marketplace – As the US continues to expand and new operators enter the fray, brands are going to need to stand out in an increasingly crowded marketplace. Expect plenty of innovative products in the pipeline from those looking to make their mark with a new customer base. Plenty of established operators will also be bringing their tried and tested marketing models with them, and I predict we’ll see plenty of replays of what’s worked before with an American twist. In-play betting, cash-out and customer-led markets (such as request-a-bet) are likely to rocket up the charts as they become more established and familiar to US customers.

The rise of the machines – There’s been a lot of talk around the potential for machine learning (ML) in the betting industry, none more so than for pricing models. While ML no doubt has its place when it comes to pricing, I don’t think we’re focusing on its true potential; customer profiling is where ML will really come into its own. The value of being able to accurately profile customers as early as possible in their life cycle is a true game-changer. Operators can use this to maximise the potential value of a customer, tailor bespoke marketing to them (along with offers), and most importantly – ensure that any potential problem gambling behaviours are flagged immediately.

Responsible gambling – A hot topic at the moment, and certainly so in the UK where long-standing bookmaker practice is coming under increased scrutiny. As the US market expands, expect to see more of the same across the pond, with our industry yet again in the spotlight. Operators need to make sure they have their house in order and are able to stand up to any undeserved criticism. Machine learning will again have a key role to play here. Not only by identifying and flagging ‘problem behaviours’ early, but also ensuring that they’re not inappropriately encouraged to bet what they cannot afford. Player protection has never been more important, and we need to use the best of tech to embrace it.

Spectrum Gaming Group

The rise of skill-based gaming – Electronic gaming devices characterized as “skill-based” games that are not regulated will become more pervasive throughout the United States, garnering support from legislators seeking additional revenue as well as from retailers attracted by the prospect of additional revenue and foot traffic. This trend is also generating significant pushback from regulated offerings, particularly lottery games, based on concerns that such games cannibalize other forms of gaming.

More M&A – As mergers and acquisitions among gaming companies continue, more states will find themselves in a position in which their licensees operate facilities in nearby states. This will put pressure on states to develop more investment-friendly regulatory and tax systems to keep capital, jobs and revenue from flowing to more appealing jurisdictions.

Esports betting to remain minimal – Handle from betting on team-based leagues and players in competitive esports gaming will grow in international regulated markets. In the US market, esports betting will remain minimal as the domestic gaming industry continues to focus on traditional sports betting and will not devote significant resources to esports. However, regional gaming operators will increasingly view esports as an amenity, fuelled by the increasing frequency of esports-related events in gaming hubs such as Las Vegas and Atlantic City.