With the second wave of the coronavirus, which has already led to renewed lockdowns in many countries, the challenges for the sports betting industry are entering the second round. Providers are again confronted with event cancellations, which can severely restrict the betting offer, as well as the access to local betting shops. It is therefore more important than ever for sports betting providers to get creative and adapt their strategy to the crisis.
One possibility that works well in this context is the multi-market strategy.
With a multi-market strategy, different markets are addressed at the same time with one or more brands running in parallel. In the case of different brands, these are often designed for different target groups (e.g. for cultural differences, sports preferences, etc.).
Operating on different markets at the same time is a well-known approach that many sports betting companies are already successfully using to address larger player segments and to reduce their own risk as a bookmaker through a more balanced book. In view of the current crisis, however, a multi-market strategy also has other important advantages:
1. Avoid dependence on a single market
Due to the current situation, there may be temporary lockdowns in many countries which may result in an associated loss of revenue. By positioning yourself as a provider more broadly and operating in different countries at the same time, you are no longer dependent on a single market.
Especially operators of betting shops, which had to be closed again and again in COVID times, can avoid a total loss of revenue by operating in different markets at the same time, as the official measures usually differ from country to country and lockdowns often take place with a delay.
Of course, in this context it is also advisable to expand your own online offer so as not to be dependent on the opening of the local betting shops.
2. Betting on different sports
Another advantage that speaks in favor of a multi-market strategy is the ability to focus on different sports at the same time. The popularity of individual sports varies from country to country. If there are particularly serious event cancellations in a popular sport or its top leagues, providers who only focus on a single market subsequently lose the offer which the majority of their customers bets on.
With a simultaneous presence on different markets, if the events of one sport are canceled, the popular sports of other markets can still be advertised and offered instead and at least part of the usual turnover is retained.
3. Promotion of local leagues
Event cancellations in the large, popular leagues usually hit sports betting providers the worst. However, a focus on local leagues, such as the 2nd league of the respective country, can be a great alternative here, provided these are properly advertised by the provider. Due to the presence in different markets as part of the multi-market strategy, the local leagues of the different countries can be used as a bypass for the cancelled main leagues.
These 3 approaches serve only as general examples for sports betting providers who are looking for suggestions for dealing with the COVID 19 crisis. The Arland experts will be happy to advise you individually on which options can be implemented for your business! If you are interested or have any questions, just write to us at [email protected]