US predictions for 2021: Analytics to reign and the return of sports spectators

Enrico Drago, senior vice president, IGT PlayDigital

Continued growth across all online gaming verticals

I believe 2021 will bring continued growth across the entire digital gaming segment including sports betting, igaming, and online lottery. Coming off a year of unprecedented global growth in all three categories, I think we can expect this upward trajectory to carry on into 2021. Fueled by pandemic-related concerns and consumers’ growing preference for mobile and convenient forms of entertainment, this expansion will result in increased handle, new legislation and incremental innovation and policy changes that will drive the player experience forward. All the actions of 2020 have supported continued digital growth. The introduction of statewide igaming and online sports betting in Michigan may serve as another milestone and catalyst for further digital gaming expansion in the US. Tribes in Michigan will soon have the opportunity to offer igaming and online sports betting without having to renegotiate their individual compacts with the state; an attractive proposition for tribal casino operators.

Wider adoption of in-play betting

We will also see the wider implementation of in-play sports betting in the US. As the sports betting market approaches its third full year of regulation, the market, the technology, and the operators are ready to introduce incremental innovation that will enable more in-play wagering. It’s true that there are still some content streaming challenges that must be overcome, but there is consensus among many, including the leagues and national media enterprises, that in-play betting and micro-betting will take the US market to the next level in terms of fan engagement, and help operators capture additional market share from unregulated sources.

Analytics will reign in the next phase of sports wagering

Lastly, I foresee analytics playing an even larger role in creating bespoke offerings and driving player loyalty in the coming year. AI and other predictive tools will help operators provide more relevant and personalized experiences to their players, and promotional tools based on player behavior can drive player acquisition and increase retention. As more suppliers and operators offer digital gaming and sports betting, the strategic use of data will give one operator an advantage over the next. In today’s world of supreme optimization and personalization, leveraging the vast volume of available data will be essential in delivering the experience that players expect—a trend that will only continue to grow in 2021.

Simon Fraser, senior VP international for horseracing streaming provider XB Net

Virtues out of necessity

The novel coronavirus has acted as both a catalyst for systemic change which will endure (e.g. the channel shift to from analog to digital) and created short-term spikes in engagement (in virtual sports) which have receded as live sports have returned. As far as US sport is concerned, this one-way tide towards digitization has manifested itself in simplified and cost-effective TV coverage, shared resources, and a significant uplift in online betting and streaming. Of course, it’s not just in the States but also worldwide. Expect more of the same over the next 12 months.

Crowds to return in late summer

Fortunately for us, North American horseracing (across many states) was one of the few elite sports which was able to maintain both a solid timetable and high standards throughout the pandemic. From Gulfstream Park in Florida to Los Alamitos in California, our racetracks were able to stage racing behind closed doors, with the welfare of all participants paramount. Luckily, humans are not the key players in this sport. Elsewhere, the NBA’s Disney World bubble refused to burst, while the MLB and NFL managed to find enough flexibility in their schedules to keep their seasons going and even accommodate in-venue attendance. The general absence of spectators, however, has also highlighted how important live crowds are to the spectacle of live TV. Despite the promising efficacy and rollout of vaccines, the incoming Biden administration appears keen to promote more caution than its predecessor, so don’t expect racetracks and arenas to be near capacity until August at the earliest. And that’s assuming at least 75% of the general US public get vaccinated.

Tighter regulation to ensure Authentic racehorse syndication

Authentic, the winner of this year’s Kentucky Derby and Breeders’ Cup Classic, has flown the flag for the affordable merits and excitement of micro-ownership via racehorse syndication. Prior to the Derby, MyRacehorse (a US syndicate which offers shares in racehorses to the public) afforded over 4,200 people the opportunity to buy into a chunk of Authentic at $206 bucks per one-thousandth share of ownership. However, the US authorities need only look across the pond to find a range of high-profile cautionary tales to race horse syndication and its regulatory loopholes. Without robust state scrutiny and a commitment from the tracks to conduct due diligence to establish fit and proper people and organizations, ordinary “investors” may find themselves unprotected in an under-regulated area. MyRacehorse’s SEC-approved example must be followed this year.