Q&A: Betgenius MD on new product development and plans for the US market

After collecting four gongs at the EGR B2B Awards in June, including the coveted Sports Betting Supplier of the Year, Betgenius managing director Matt Stephenson is in an upbeat mood. “It was a fantastic night for us but nothing more than we deserved, despite extremely tough competition in all four categories,” he tells EGR Intel.

Founded back in 2001, Betgenius has steadily evolved with the times. Building on its foundations in trading services, today its offering spans a turnkey platform solution, live data feeds, and a full suite of digital marketing services built specifically for online betting and gaming operators.

As a division of the larger Genius Sports Group, it has also seen its international profile increase rapidly, growing its market share in regulated markets across Europe, Africa and Latin America. On the back of this recent success, Betgenius is now looking towards the US sports betting market which, as Stephenson points out, is a longer term play and not simply a rush to gain first-mover advantage.
“We have a bright future ahead of us in the US but know that it’s going to take time for the sector to develop,” he says. If Betgenius can mirror its recent achievements on this side of the Atlantic, the future could be very bright indeed.

EGR Intel: Congratulations on winning four categories at the EGR B2B Awards last month. What does winning these sorts of awards add to the Betgenius brand?

Matt Stephenson (MS): We’ve been a leading sports betting supplier in several key areas for many years but have gone about our work relatively quietly and without putting ourselves forward for awards. That’s changed a bit in the past of years and it’s brilliant to get such pertinent recognition from the industry.

The biggest win of the night was undoubtedly scooping the overall Sports Betting Supplier of the Year award. This was easily the most competitive category of the entire awards so winning it is a very proud moment for our company. It is recognition of how we’ve matured and evolved over the past few years, and of the hard work put in by all our employees around the world. 

EGR Intel: In your opinion what is it about the past year which has made it a successful one for Betgenius?

MS: It would be inaccurate to put our recent recognition down to simply the past 12 months. Our revenues have been roughly doubling year-on-year for the past three years, which is some feat given how competitive our market has become.

Over the past few years we have made some crucial acquisitions that have helped to power this growth and have invested significantly in the quality of sports data that powers our in-play trading products. This approach, combined with our vast trading experience and unique algorithms, has set us apart and given our clients a real boost when it comes to sportsbook margin.

EGR Intel: What makes Betgenius different to other sports betting suppliers?

MS: It comes down to two things: the quality of product and our unflinching commitment to providing the best customer service possible. For us, a big part of the latter means giving operators the tools and flexibility to take control over the parts of their operations they don’t simply want to outsource. We have never been a white label, one-size-fits-all solution.

Our trading technology and services, have generated long lasting, symbiotic commercial partnerships which have gone from strength to strength. In certain situations, we are handed the trading reins and in others we act as more of a strategic partner to help clients drive their own approach using our software. 

EGR Intel: Where is the biggest area of expansion for Betgenius over the next 12-24 months

MS: With the launch of products such as High Availability Cash Out and BetBuilder (in partnership with Sportcast) in the past 18 months, we have demonstrated an ability to identify the changing demands of sportsbook customers and act swiftly to provide an innovative solution. We have plenty more innovation in our roadmap over the next year or two, but perhaps the biggest focus from us in terms of product will be our turnkey sportsbook solution. The offering that we are building is designed to address many of the gripes that operators have with existing platform solutions, including lack of flexibility and customisation. 

EGR Intel: It has been almost a year since the launch of BetBuilder, how has this product been received?

MS: BetBuilder has already been a great success. Almost every major operator now has some form of same-game accumulator product but the combination of Sportcast’s pricing expertise, our delivery capabilities and a slick and intuitive UX makes BetBuilder one of the best on the market and certainly the leader as a B2B product.

In the run up to the World Cup it was integrated and live with bwin, Betsson, Betfred as well as SportPesa and Nairabet in African markets, and there are many more ready to be rolled out. The numbers generated by our partners during the tournament were exceptional so everyone is excited to see how it performs when the new domestic seasons kick off this month. We will also be rolling out new sports and better functionality to keep our customers ahead of the pack in this new battleground. 

EGR Intel: You’ve been heavily active in the US through your Genius Sports division. What are you focusing on now and what opportunities are there for the Betgenius division?

MS: As a business that specialises in sports data and safeguarding the integrity of sports, Genius Sports naturally played a major role in the journey towards sports betting legalisation in the States. We have long argued that progressive regulation was the only way to kill-off the huge illegal US market and better protect both consumers and the integrity of US sports.

Now that PASPA has been repealed, we believe that US legislators have a unique opportunity to create a regulatory framework that provides benefits to all stakeholders perhaps better than any other market in the world. And with in-play the product which will ultimately drive market’s growth, using sports data authorised by the rights holders will ensure betting markets are powered by the fastest, most accurate source of information available.

EGR Intel: Where do you see the biggest opportunities for Betgenius in the US market?

MS: A trend which is starting to play out and that will undoubtedly accelerate in the US is the supply of sports data to sportsbook operators. As part of the Genius Sports Group, Betgenius has invested heavily in this area and distinguishes itself from the competition with the quality and veracity of the data that powers our sportsbook solutions.

Given the powerful position of the major US leagues, and the appetite already shown by state legislators such as New York, Pennsylvania and Indiana to mandate the use of official data for live betting purposes, we believe that long-term security of supply will be of growing importance in the US as the market matures.

EGR Intel: What do you think are the biggest challenges of rolling out sports betting in the US market?

MS: Planning for our future in this market has been underway for many years and our Santa Monica office in LA office, where we have been located since 2016, is now home to over 100 people working across the group. We have done this to overcome one of the major challenges European businesses face, which is fully understanding the US betting market, the culture and ensuring localised delivery capabilities are in place from day one.

From a market entry perspective, the big challenge will be that the model is going to be different for each company and in every state. European B2C firms are converting to B2B suppliers to get a foothold in the U.S. market, but many U.S. licence holders may well be wary of taking a sportsbook solution from a company which could end up being a competitor in the long-term.

Finally, a major hurdle to overcome for operators will be working out how to truly differentiate. Take the UK for example, where a competitive environment that has driven up the range and quality of betting products, and where ‘me-too’ sportsbooks delivered by white label B2B firms have failed to gain traction.

The same will apply to the US in the long-term: sustainable market share will be won by those who invest in creating something unique – with unique UX and a carefully considered trading strategy being the most critical factors.