The current context of Betting sees Tote betting and pool structures act as a wagering practise mainly serviced by horse racing. To date, debate and opinion have centred on how to modernise the Tote for today’s audience, dragging pool systems into the 21st century.
To capitalise on its exponential growth in recent years, a small number of sports operators have chosen to take an unconventional leap into Tote betting to capture an audience of’ GenZ.’
Phill Adams, RPGG’s CEO, and his team have created a new esports betting platform for Puntt.gg to be unveiled next month, merging these two different ideals to tap into’ generation Z.’
Adams, who has nearly 20 years of experience in the betting and horse racing industry explained: “Two years ago, our sister company, DDL, was working on a tote system in Mauritius, Barbados and the UK. The developers, who are esports fans, were saying ‘we would love a product like this for esports’.
“They wanted more than the current bookmaker offering of ‘is Team A going to win or Team B going to win’. If the two teams are evenly matched, you’re talking about odds of 1.7 or 1.8/1.”
He added: “So as a company, we looked at the totes we were building and said to ourselves this would really work for esports. We could offer more bet types, have better returns and not worry about our liability if we get the odds wrong.”
One of the biggest problems with betting on esports is a lack of knowledge about the data and industry. Countless generations have had extensive data and knowledge of sports such as horse racing and football, but they are still in their infancy.
Tote betting could provide a solution to this new sector’s lack of knowledge, providing bookmakers with the baseline odds they need primarily because it’s determined by the punters own experience.
“Currently customers are only being offered fixed-odds bet on teams, and these definitely have their place,” stated Adams.
“However, in new areas like esports, fixed odds does have weaknesses. You need odd setters to be able to price markets up if you are a bookmaker and you price up a market you don’t understand, then you won’t be a bookmaker for very long.”
As mentioned earlier, the player-specific betting aspect is another technique that has yet to be tested on the market in esports. According to McKinsey’s 2019 study, The Sports Marketing Keys: Don’t get’ ganked,’ 45 percent of ardent US sports fans have a favourite player / streamer, compared to just 37 percent who identified three major teams–insinuating that the industry is more player-centered in terms of marketability.
Nonetheless, by introducing unique tote betting solutions on narrow odds, there is a possibility that a market that is still evolving will over-complicate by including markets on scenarios such as which player gets the most kills or gold in a CS: GO game.
“There is a possibility that customers will find this “tyranny of choice” too overwhelming,’‘ explained the RPGG CEO.
“We have teamed up with a stats Professor and an Artificial intelligence firm to help us build an AI model that uses past performance data to predict what the odds of each player winning a match are. This AI crunches through the available data and predicts the likelihood of each outcome.”
Finally, the reason tote betting in esports is known as a betting option is because businesses want to be the first to completely enjoy the potential benefits of competitive gaming offerings.
According to GameScape from Interpret, LLC, in 2017 the median age of sports fans is 28, which indicates that if bookmakers want to crack the generational gap that continues to rise in betting, then sports are obviously the target market.
Adams concluded by saying: “Bookmakers absolutely want to offer esports betting. They know there is money to be made from it. But it’s not necessarily something they can relate to in their day to day lives.
“There is an understanding from operators that there are a lot of people watching esports. But there is a mismatch between the people who work for bookmakers, who are generally people who like betting and that’s normally on football and horse racing.”
Major companies have now begun to find ways to use the network to communicate with Gen Z and up. Companies such as Puntt.gg, SIS and STS are all trying to open up new avenues within the industry. As the industry continues to grow, it is only a matter of time before more companies enter the world of betting on sports, whether through totes, exchanges or advanced fixed odds.