Q&A: Daniel Kustelski, COO, WatchandWager
Daniel Kustelski, chief operations officer at California racetrack operator WatchandWager, on how he plans to drive online growth in the coming monthsÂ
Q: How has WatchandWagerâs online business performed in the past 12 months? Have you seen an uptick in deposits and play?
A: The online business has grown tremendously over the last six months. In such a short space of time we have more than doubled our DAUs and trebled handle. Deposits are on the same trajectory and most importantly we donât see the large withdrawals that typically occur on the Monday after a weekend of events. We are keeping new customers and getting more out of the existing customers through our focus on differentiating ourselves, great customer service, and specific targeted marketing on many channels to our customer base.
Q: How will you grow your online gaming business in the coming months?
A: Spring in the US is the run-up to the Triple Crown and with that comes many opportunities to get the attention of the casual bettor and for us to increase the handle of our own customers. Establishing better tools to communicate with our customers, implementing a great BI tool, and providing an acute attention to detail with all the creative execution will enable us to get the low hanging fruit for the business.
We are considering a new responsive site and betting app to improve the experience for our clients. We are engaging with some of the best online gaming suppliers to provide us with a product that will allow us an edge over other American sites. The true challenge lies in operationally working hard to provide easy financial transactions both in and out, good UX, easy bet placement, and great customer service.
Q: Any plans for daily fantasy sports?
A: We are still looking at this opportunity as added value to our current offering. Â We are hypersensitive to the regulatory challenges that face the DFS industry in the US. We are analysing our customer base and determining if our customers that reside in âlegalâ states are worth the effort. The challenge is that the DFS regulatory map changes constantly and there may be a point when we would simply rather focus our time, energy, and resources on our core product rather than daily fantasy. While I think there is some cross-over in customer base, there are differences in both demographics and psychographics that we must factor into this potential launch.
Q: What trends do you see emerging in the online gaming sector in the coming months, and how will WatchandWager capitalize on them?
A: Short term focus will be on more and better mobile offerings. Trends in general regarding how fans consume sports, their use of the second screen, and their influence by certain mobile-friendly social media platforms all create opportunities for WatchandWager to focus on creating a better product that is mobile-first.
Providing information is critical in the betting sector. People want access to lots of information and as an online betting company, we have to be able to provide it. I am not so concerned about providing the right information to the right customers as bettors sift through and find their own key indicators in a race, but to offer information that is easy to access, easy to manipulate, and can be repurposed is critical.
Q: What about legal sports betting in the US? Is it something you are keeping an eye on?
A: There is a groundswell of interest in sports betting now with New Jerseyâs storied case to legalize the activity. Various lobbying groups in Washington DC are also focussing on the legalization of it. I feel DFS provided a spark for this movement and created the conversations that led to the questioning of PASPA and the possible about-face. Itâs hard to ignore sports leaders in the US such as Adam Silver, Commissioner of the NBA, wanting it legalized.
The American Gaming Association has recently published reports that indicate over $149bn was bet on sports in the US illegally in 2015. Many Americans bet already and if you follow the reasons for regulating DFS, sports betting is primed for that same legislation. Especially considering the numbers that the AGA is reporting.
Iâm not sure though that the current legal online gaming expertise in the US has fixed-odds sports betting experience, so it will be interesting to see how the US gambling industry upskills in that regard.