Skip directly to search

Skip directly to content

 

How Tech is Changing Sports Betting for the Better

 
 

Innovation | Andy Davies |
18 November 2022

The World Cup is back (but leave the vuvuzela at home). In the coming weeks, 32 teams will clash for global sports’ biggest prize, cheered on by billions of fans.

But there’ll be more at stake than national pride. When sports fans gather, wagers follow. And we’re not talking rookie numbers: the global sports betting market was valued at USD 61.5 billion in 2021. With a projected compound annual growth rate of over 9%, this is expected to reach USD 114.4 billion by 2028.

The ways fans stake their money are changing almost as fast as the volumes being laid down. It’s a long time since the typical sports bet involved heading down to a local bookmaker for a flutter. These days, the biggest values are traded on online sports exchanges like Betfair in the UK or BetMGM in the US.

As player habits shift online, a new digital infrastructure is evolving to handle their money. Financial technology (FinTech) is a fast growing industry. As next-gen payment processing methods become more advanced, they change the customer experience of betting. Wagers have become more adjustable, while speedy pay-outs add a gratifying immediacy to proceedings.

But a quicksilver betting market requires nimble regulators. Sports betting’s customer experience is being shaped by the symbiotic relationship between FinTech’s giddy pace of innovation and the onus it puts on markets to stay compliant with laws across geographies. Let’s take a SitRep of the state of that user experience as it stands.

HOW CAN HARRY KANE MAKE ME RICH?

Before we get into the reeds of regulation’s interactions with tech, let’s look at the optimal sports betting customer journey for World Cup 2022.

1. Seamless onboarding

Much sports betting activity is not pre-meditated. At the outset of a match, an England fan may take stock of which players Gareth Southgate is fielding and construct an idea of how the first half might pan out. This educated premonition might lead her to reach for her phone and place her stake on an England goal within 45 minutes.

To keep her custom, her chosen betting app needs to make the journey from launch to wager as fast and frictionless as possible. This means a speedy sign-up and onboarding process, with the bare minimum of forms to fill out.

Time is of the essence in placing the bet. In practice, this means allowing mobile payment methods like Apple Pay. Today’s bettors have been given a vision of a world free from typing in their card details, and they like it. With just a press of a button and a quick glance at her iPhone’s facial recognition sensor, the bet is placed. Now for the match to start and the tension to ratchet up deliciously.

2. Real-time adjustments

Goal! After a fraught 45 minutes of deadlock, England’s number 9 outwits the opposite keeper and hoofs it into the net just before the half-time whistle. Our patriotic punter has seen her bet come good. The question now is whether to cash out, head held high, or parlay her winnings on another lucky prediction for the second half.

While she’s making her decision, the betting app is giving her the latest odds up to the minute. She’s also safe in the knowledge that if she does opt to take another punt, she can pull her bet at the very last moment.

Successful online betting apps allow for a completely dynamic experience, where adjustments can be made at will.

3. Instant pay-outs

Our intrepid football fan opts to take a splash on a 2-1 finish for England. But bliss intermingles with horror when England establish dominance in the second half with another goal in the 47th minute. Seeing a clear path to a 3-0 outcome, she decides to pull her newer bet and cash out on her original win.

All this time, the money has been stored in an e-wallet linked to her Apple Pay account. Almost as soon as she clicks the button to confirm her withdrawal, the money has appeared back in her online banking account. No nerves over funds getting lost, just jubilation at a win for her finances and her country.

WHAT’S GOING ON BEHIND THE SCENES?

A spread of factors has conspired to form this fun, profitable and safe experience. Let’s explore them.

1. Regulatory domain

Our UK-based bettor could enjoy such a smooth journey because she placed her bet in an environment where online gambling is permitted. Online gaming is now a well-established leisure pastime in Europe. This has allowed it to become a highly-structured and well-regulated industry, whose prevailing brands inspire trust and confidence.

That is not the case everywhere. In the United States, many states still prohibit sports gambling outright. Out of those states where it is legal, some only permit bets to be placed in designated physical spaces like casinos. But regulation never stands still in the US and betting companies are monitoring developments closely.

New markets are opening up that will massively increase the size of the industry. Countries like Brazil are reviewing their position on sports betting, with the regulatory details still being thrashed out. When these are complete, a proud footballing nation of over 216 million people will enter the market. Expect bet volumes to skyrocket.

2. Payment ecosystem

Our punter also benefited from a permissive payment ecosystem that allowed her to stake her bet using mobile payment methods. Again, this is not the case universally.

Each nation will place various limitations on how players can pay. In the UK for instance, gambling businesses are prohibited from accepting credit card payments. In Germany, PayPal is banned in the same way.

In the USA, the regulatory landscape is thornier still. While PayPal and major credit cards can generally be used, this is because they have been approved by each state’s government to sell payment solutions to the gambling industry in that jurisdiction. Newer payment and authentication methods will have to go through the same approval process in each location they wish to serve.

As alternative payment methods like Apple Pay achieve market share, players in more regions will benefit from speedier onboarding and pay-out times.

3. Anti-fraud safeguards

Our player could speed through the onboarding process because she was using a well-established service with an inbuilt anti-fraud architecture.

Gambling sites are popular targets for criminal activity. This can range from malicious bot attacks that take over real users’ accounts to money laundering for organised crime.

These sites also suffer from bonus abuse challenges. Some players will attempt to create multiple accounts to access to multiple introductory offers. This can result in significant costs to the business.

The most forward-thinking betting exchanges will have sophisticated software solutions in place that prevent and detect fraudulent use. Payment cards that show signs of suspicious activity can be flagged up and blocked pre-emptively. Automation solutions can algorithmically determine the likelihood of a fraudulent withdrawal request, eliminating the need for providers to review each withdrawal in turn.

By removing the need for players to prove their own legitimacy, sports betting sites can reduce risks while removing friction in the customer journey.

LET’S MAKE BETTING EVEN BETTER

This World Cup is set to accelerate sports betting’s transition from a traditional bookmaker model to a speedier, safer, digital way to play.

Endava has a suite of solutions to improve the whole customer journey. To find out how, get in touch with us today.

Andy Davies

Principal Industry Consultant, Payments

Andy is an enthusiastic, self-motivated, and innovative professional with over 25 years’ experience designing and delivering leading-edge payment solutions for the banking, retail, financial services, and public sectors. With extensive knowledge of card, bank, and alternative payment rails, his time in the industry and exposure to key players provides him with a unique insight into product innovation, regulatory drivers, security, and fraud requirements. Andy is a hands-on individual who is always striving to be at the forefront of the ever-changing payments landscape.

 

Related Articles

  • 18 November 2022

    How Tech is Changing Sports Betting for the Better

  • 28 June 2022

    Platforms: a Blessing or a Curse?

  • 25 October 2019

    Digital Transformation is still at the heart of innovation

  • 10 September 2019

    How The Rise Of The Smartphone Underpinned A Payments Revolution

  • 01 April 2019

    Can Tech Improve The T&L Experience?

 

From This Author

  • 23 June 2022

    A Payments View on Marketplaces – How to Be(come) Successful

Most Popular Articles

Current Challenges in the Transportation & Logistics Industry
 

Transportation & Logistics Insights | Brian Estep | 22 March 2022

Current Challenges in the Transportation & Logistics Industry

4 Buy Now Pay Later Trends Set to Disrupt the Industry
 

Payments | Annmarie Mahabir | 22 February 2022

4 Buy Now Pay Later Trends Set to Disrupt the Industry

How Tech is Changing Sports Betting for the Better
 

Innovation | Andy Davies | 18 November 2022

How Tech is Changing Sports Betting for the Better

5 Things We Learned at World Aviation Festival 2022
 

Mobility | Vojin Rakonjac | 23 November 2022

5 Things We Learned at World Aviation Festival 2022

Cyber Security Incidents in Australia Highlight the Need for a Balance Between Risk and Innovation
 

Payments | David Marsh | 23 November 2022

Cyber Security Incidents in Australia Highlight the Need for a Balance Between Risk and Innovation

The Era of Ecosystems and the Rise of Open Insurance
 

Insurance Insights | Robert Anderson | 22 November 2022

The Era of Ecosystems and the Rise of Open Insurance

Top Challenges in Warehouse and Distribution Centers
 

Transportation & Logistics Insights | Brian Estep | 01 March 2022

Top Challenges in Warehouse and Distribution Centers

Staying relevant in the buoyant cross-border payments market
 

Payments | Peter Theunis | 15 November 2022

Staying relevant in the buoyant cross-border payments market

How the Board Game Catan Conquered the Digital World
 

Innovation | Moritz Hampel | 27 July 2021

How the Board Game Catan Conquered the Digital World

 

Archive

  • 23 November 2022

    5 Things We Learned at World Aviation Festival 2022

  • 23 November 2022

    Cyber Security Incidents in Australia Highlight the Need for a Balance Between Risk and Innovation

  • 22 November 2022

    The Era of Ecosystems and the Rise of Open Insurance

  • 18 November 2022

    How Tech is Changing Sports Betting for the Better

  • 16 November 2022

    4 Ways Insurers Can Leverage Technology to Differentiate Themselves

  • 16 November 2022

    The future of banking in the Nordics – being digital and personal

  • 15 November 2022

    Staying relevant in the buoyant cross-border payments market

  • 15 November 2022

    3 Experts’ Insights on the Complicated Relationship Between Fintechs and Banks

  • 09 November 2022

    How Can Banks Create a Secure, Optimised Cloud-Enabled Architecture?

  • 08 November 2022

    Tech is Good for You: How Wearable Edge Devices Changed Healthcare

  • 01 November 2022

    How Microservices Can Upgrade the Customer Experience

  • 25 October 2022

    How Technology Can Help Monitor the Circular Economy

  • 18 October 2022

    Why it’s time for banks to let go of legacy IT

  • 11 October 2022

    Buy vs. Build in Banking: Which Option is Right for You?

  • 04 October 2022

    The Rise of Super Apps: How Banks Can Compete

  • 27 September 2022

    AI Art in Game Production – an XDS 2022 Table Discussion

  • 20 September 2022

    Payments Data Monetisation is Key to Driving Sustainable Growth

  • 13 September 2022

    Navigating the Healthcare Ecosystem

  • 30 August 2022

    hey y’all! I’m Ashley Grant

  • 23 August 2022

    5 Ways to Fix Your Data Spine in Banking

  • 16 August 2022

    De-risking Digitalisation

  • 09 August 2022

    hi, I’m Brian Estep

  • 02 August 2022

    hey! I’m Lia Rollman

  • 19 July 2022

    The New Ways of Issuing Cards

  • 12 July 2022

    Scores on the Door: Rating Autonomous Vehicles

  • 06 July 2022

    Data-Driven Impact: Don’t Settle for Less

  • 06 July 2022

    We’re in Nottingham – a Q&A on Endava’s New Delivery Centre in the UK

  • 05 July 2022

    hey, I’m Chris Hart

  • 28 June 2022

    Platforms: a Blessing or a Curse?

  • 23 June 2022

    A Payments View on Marketplaces – How to Be(come) Successful

  • 21 June 2022

    Intelligent Commercial Underwriting

  • 14 June 2022

    The Future of Supply Chain: What’s Next?

  • 31 May 2022

    The Future of Autonomous Vehicles in T&L

  • 26 May 2022

    hello! I’m Hannah McCarthy

  • 24 May 2022

    Going Native: Why Cloud-Native Services are Essential

  • 19 May 2022

    How to Tackle Legacy – Breaking Down Walls Between Change and Run

  • 17 May 2022

    Advantages of a Yard Management System

  • 12 May 2022

    Are Phones About to Become the New POS Terminals?

  • 10 May 2022

    The Digital Economy is an Upgrade of Smart Cities and Communities

  • 05 May 2022

    hello! I’m Sumita Davé

  • 03 May 2022

    Physical Automation in the T&L Industry

  • 28 April 2022

    zdravo! I’m Andrej Kotar

  • 26 April 2022

    Open Banking in the US

  • 20 April 2022

    hello! I’m Paul Maguire

  • 19 April 2022

    Digital Automation in the T&L Industry

  • 12 April 2022

    How Do Banks Embrace Embedded Finance – Have the Fintechs Already Won?

  • 06 April 2022

    ESG Data Architecture is a Business Imperative – How to Get Started

  • 05 April 2022

    hi! I am Roy Murphy

  • 05 April 2022

    Modernizing the Shipping and Cargo Process

  • 30 March 2022

    The Metaverse Evolution and Learning from the Games Industry

  • 29 March 2022

    Do Androids Dream of Trading Electric Sheep for Digital Wood? An Introduction to Automated Game Design

  • 23 March 2022

    Real-Time Payments in Australia – Why Corporates Should Get on Board

  • 22 March 2022

    Current Challenges in the Transportation & Logistics Industry

  • 16 March 2022

    bok! I’m Sanja Cvetkovic

  • 15 March 2022

    Rapidly Transforming: Healthtech Trends in 2022

  • 08 March 2022

    How to Digitize Warehouses and Distribution Centers

  • 01 March 2022

    Top Challenges in Warehouse and Distribution Centers

  • 28 February 2022

    Tackling CIB Legacy at its Core

  • 23 February 2022

    salut! I am Isabela Buhai

  • 22 February 2022

    4 Buy Now Pay Later Trends Set to Disrupt the Industry

  • 15 February 2022

    salut! I’m Natalia Ciobanu

  • 14 February 2022

    Product-Led Innovation – a Q&A with Joe Dunleavy

  • 01 February 2022

    Buy Now Pay Later: Will Regulation Burst the Bubble?

  • 31 January 2022

    Innovation Will Spur Ireland’s Race to the Top

  • 28 January 2022

    The Value of Digital and Automation in the Product Returns Process

  • 26 January 2022

    Virtually Disrupted? Keeping Pace with Accelerating Customer Expectations

  • 19 January 2022

    The 3 Big Ps in Modern Insurance: Personalisation, Prediction and Prevention

  • 18 January 2022

    An Introduction to Mobility as a Service in the US

  • 12 January 2022

    Buy or Build? A Game-Changing Question in Insurance

  • 12 January 2022

    hello! I’m Paul Willoughby

  • 11 January 2022

    Payment Service Providers 2.0

  • $name

We are listening

How would you rate your experience with Endava so far?

We would appreciate talking to you about your feedback. Could you share with us your contact details?