BetMarkets Presentation


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Here is a document I presented to suggest a few guidelines to set up the BetMarkets 2011 agenda.

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BetMarkets Presentation

  1. 1. BetMarkets 2011 Agenda: Brainstorming Session Quentin Toulemonde OSBI Consulting February 2011
  2. 2. Agenda for this presentation <ul><li>What is BetMarkets? </li></ul><ul><li>Our analytical approach regarding this challenge </li></ul><ul><li>Next steps </li></ul>
  3. 3. BetMarkets is one of the top sports betting conferences in Europe <ul><li>Now in its 5th year, BetMarkets is aimed at gathering professionals and experts from the sports betting industry throughout Europe. </li></ul><ul><li>BetMarkets can be considered as a “think-tank” as well as a networking hub . </li></ul><ul><ul><li>Sessions allow participants to exchange best practices and to learn from specialists in various fields (operations, legal, marketing, etc.). </li></ul></ul><ul><ul><li>Special networking moments are spread throughout both days. </li></ul></ul><ul><li>The 2011 BetMarkets Conference will be held on the 8th and 9th of June 2011 in Vienna , Austria. </li></ul><ul><li>In 2009, BetMarkets Conference featured: </li></ul><ul><ul><li>25 sessions. </li></ul></ul><ul><ul><li>More than 35 experts, including 13 CEOs. </li></ul></ul><ul><ul><li>More than 250 delegates. </li></ul></ul><ul><ul><li>More than 10 hours dedicated to networking. </li></ul></ul>
  4. 4. Agenda for this presentation <ul><li>What is BetMarkets? </li></ul><ul><li>Our analytical approach regarding this challenge </li></ul><ul><li>Next steps </li></ul>
  5. 5. A common goal unifies all participants: increase their company’s profits <ul><li>As previously stated, all participants come from the sports betting industry and thus have high stakes involved in the overall market. </li></ul><ul><li>Two levers can drive a sports betting company’s profits up. </li></ul><ul><ul><li>Increase turnover . </li></ul></ul><ul><ul><li>Reduce costs . </li></ul></ul><ul><li>Our analytical approach breaks down both categories to precisely identify potential drivers for growth . </li></ul><ul><ul><li>Those levers are then transformed into collaborative, turnkey discussions. </li></ul></ul><ul><ul><li>For practical purposes, all issues can be interactively tackled either as a roundtable or as a more formal (although still communicating) session. </li></ul></ul><ul><li>However, sports betting should remain in line with a broader legal and ethical framework , which may feature topics such as: </li></ul><ul><ul><li>Integrity in sports betting. </li></ul></ul><ul><ul><li>Financially sustainable development of sports and sports federations. </li></ul></ul><ul><ul><li>Fight against pathological gambling. </li></ul></ul><ul><li>Such concerns can either be inserted within the overall agenda or be tackled separately . </li></ul><ul><ul><li>In one hand, they can be integrated in a transverse manner, by properly offering a counterweight to more business-related issues. </li></ul></ul><ul><ul><li>On the other hand, half a day (or more) can be dedicated to these “surrounding” topics. </li></ul></ul>
  6. 6. Five identified levers can be increased to enable further growth in turnover Increase in Turnover Turnover per bet # of bets per hour # of hours per player Penetration rate Targeted population Lever description Potential topics <ul><li>Encourage punters to stake a growing amount per bet. </li></ul><ul><li>Financial spread betting. </li></ul><ul><li>Betting exchange. </li></ul><ul><li>Increase the number of (winning or losing) interactions the punter has with the bookie, e.g. on an hourly basis. </li></ul><ul><li>Live-betting. </li></ul><ul><li>Number of offers on a single event. </li></ul><ul><li>Boost the time spent by the average customer on a given website. </li></ul><ul><li>May be turn dormant players into active ones. </li></ul><ul><li>Customer experience. </li></ul><ul><li>Product availability (24/7 target). </li></ul><ul><li>Raise the number of customers in a predefined geographical area. </li></ul><ul><li>New products (fantasy sports, social betting, etc.)). </li></ul><ul><li>Mobile betting. </li></ul><ul><li>Adaptation to cultural features. </li></ul><ul><li>Target a wider 18+ population. </li></ul><ul><li>Expand worldwide presence. </li></ul><ul><li>New-born and potential markets (Greece, Denmark, USA, South Africa). </li></ul><ul><li>Cross-border partnerships. </li></ul><ul><li>EU legislation development. </li></ul>Factor = x x x x
  7. 7. On the other hand, four actionable levers may drive bookies’ costs down Reduction in Costs Acquisition costs per client # of clients Federations-linked costs “ Missed” synergies Lever description Potential topics <ul><li>Attract and retain players at the lowest cost. </li></ul><ul><li>Marketing enhancement. </li></ul><ul><li>Targeted sponsoring improvement. </li></ul><ul><li>Increase the number of clients to spread fixed costs (e.g. acquisition costs). </li></ul><ul><li>Viral communication (e.g. word of mouth). </li></ul><ul><li>Web 2.0 opportunities. </li></ul><ul><li>Affiliates management. </li></ul><ul><li>Diminish the underlying cost to acquire the right to offer bets on an event (e.g. the French “droit au pari”). </li></ul><ul><li>French “droit au pari”. </li></ul><ul><li>Relationship improvement with federations (create a “win-win” situation). </li></ul><ul><li>Spread out fixed costs and increase product efficiency. </li></ul><ul><li>Capture economies of scale and scope. </li></ul><ul><li>Consolidation in the sports betting sector. </li></ul><ul><li>Recent M&A moves (e.g. Ladbrokes). </li></ul><ul><li>Product cross-selling. </li></ul><ul><li>Online/offline synergies. </li></ul>Factor = x + +
  8. 8. As a conclusion, several arguable topics already emerge from this analysis (1/2) <ul><li>Existing product offer. </li></ul><ul><ul><li>Champion financial spread betting and exchange betting as ways to generate bigger bets. </li></ul></ul><ul><ul><li>Benefit from live betting as a “high-frequency” product. </li></ul></ul><ul><ul><li>Gather feedback from customers to enrich the offer and to stretch playing phases. </li></ul></ul><ul><ul><li>Develop mobile offer to get as close as possible to the customer. </li></ul></ul><ul><ul><li>Increase product availability to (ideally) allow customers to bet on a 24/7 basis. </li></ul></ul><ul><li>Product portfolio. </li></ul><ul><ul><li>Assess the uplifting potential coming from new products, such as fantasy sports, social betting and skill games. </li></ul></ul><ul><ul><li>Develop product cross-selling to boost revenues in a given perimeter. </li></ul></ul><ul><li>Strategy / Corporate. </li></ul><ul><ul><li>Evaluate new or rising markets depth (Greece, Denmark, USA, Germany, etc.) and forecast future developments. </li></ul></ul><ul><ul><li>Promote cross-border partnerships as way to penetrate new markets. </li></ul></ul><ul><ul><li>Acquire best practices in affiliates and sports federations management. </li></ul></ul><ul><ul><li>Highlight the underlying rationale behind the current Mergers & Acquisition / Consolidation trend. </li></ul></ul><ul><ul><li>Consider potential for synergies coming from online and offline product mix. </li></ul></ul>
  9. 9. As a conclusion, several arguable topics already emerge from this analysis (2/2) <ul><li>Marketing. </li></ul><ul><ul><li>Mix traditional marketing with sponsorship to reduce acquisition costs. </li></ul></ul><ul><ul><li>Learn new marketing methods in a Web 2.0 environment, i.e. through the use of social networks, word of the mouth. </li></ul></ul><ul><li>Legal. </li></ul><ul><ul><li>Evaluate the situation regarding EU legislation. </li></ul></ul><ul><ul><li>Highlight the French “droit au pari” as a controversial subject. </li></ul></ul><ul><li>Operations. </li></ul><ul><ul><li>Offer more accurate, more numerous odds on a given event. </li></ul></ul><ul><li>Ethics and culture. </li></ul><ul><ul><li>Get a better understanding of a country’s punters’ features to further penetrate each geographical market. </li></ul></ul><ul><ul><li>Promote integrity in sports betting. </li></ul></ul><ul><ul><li>Ensure a financially sustainable development of sports and sports federations. </li></ul></ul><ul><ul><li>Improve fight against pathological gambling efficiency. </li></ul></ul>
  10. 10. Agenda for this presentation <ul><li>What is BetMarkets? </li></ul><ul><li>Our analytical approach regarding this challenge </li></ul><ul><li>Next steps </li></ul>
  11. 11. Next steps <ul><li>Finalize the list of tackled topics and suggest a proper classification. </li></ul><ul><li>Organize the various items in a logical and didactic way. </li></ul><ul><ul><li>In particular, should we deal with all the “transversal” subjects at once? Or should we spread them throughout the Conference? </li></ul></ul><ul><ul><li>Should we split the Conference in two streams (online and offline), as in 2008? </li></ul></ul><ul><li>Identify key speakers and stakeholders. </li></ul><ul><ul><li>Who should we precisely target to attend this Conference ? </li></ul></ul><ul><ul><ul><li>Insiders. </li></ul></ul></ul><ul><ul><ul><li>Outsiders. </li></ul></ul></ul><ul><ul><li>Who is the most insightful speaker on a given topic? </li></ul></ul><ul><ul><ul><li>Top management: CEOs, CFOs, etc. </li></ul></ul></ul><ul><ul><ul><li>Someone more involved in the operating process. </li></ul></ul></ul><ul><ul><ul><li>An outsider (e.g. a player, a consultant, a researcher). </li></ul></ul></ul>
  12. 12. Contacts <ul><li>BetMarkets 2011 website (info, booking) : </li></ul><ul><li>OSBI Consulting: Quentin Toulemonde, Consultant </li></ul><ul><ul><li>E-mail: [email_address] </li></ul></ul><ul><ul><li>Cell phone: 00 33 (0) 6 24 34 34 44 </li></ul></ul><ul><ul><li>LinkedIn: </li></ul></ul><ul><ul><li>Blog: </li></ul></ul><ul><li>Clarion Events: Chris Clarke, Event Director, Clarion Gaming </li></ul><ul><ul><li>E-mail: [email_address] </li></ul></ul><ul><ul><li>Work phone: 00 44 (0) 207 370 8594 </li></ul></ul><ul><ul><li>LinkedIn: </li></ul></ul><ul><ul><li>Corporate website: </li></ul></ul>