In 2018, the introduction of sports betting took the industry by surprise, with unforeseen impacts on both sportsbooks and the technology companies supplying them with data. This new market has since grown into a massive industry with far-reaching implications.
Sports betting generated $4.3 billion in revenue nationwide last year in the United States.
That figure is particularly remarkable given that fewer than 30 states offered sports betting in 2021.
Yet, the influence of sports betting is surpassing our expectations. It seems that a larger number of individuals are now both watching and participating in sports betting, with the statistics supporting this trend.
In the 2021-22 NFL season, total viewership increased by 3 million, while the NBA saw a 19% rise in viewership.
In addition, the sports industry is experiencing growth in other areas beyond just viewership. Companies specializing in sports data and technology, such as Genius Sports and Sportradar, are expanding at unprecedented rates.
Given the large number of people wagering on sports in Illinois, it is crucial for gamblers to stay informed about the fast-paced developments affecting this expanding sector.
This is not entirely new to bettors in IL. We previously reported that DraftKings hired an in-house sports technology company to supply the betting lines last year.
So…what exactly does a sports tech company do?
That is indeed an excellent question – these companies assist different sportsbooks in maximizing their potential by providing cutting-edge infrastructure and the most competitive odds available.
In addition, they collaborate with individual sports leagues to guarantee fair competition. Describing itself as a company that on its website, Sportradar also emphasizes its partnerships with various sports organizations.
Bookmakers are provided with a wide range of services, including complete business solutions, essential content such as data, odds, statistics, and video streams, as well as comprehensive marketing and management services.
Genius Sports, the top rival of Sportradar, shares a comparable viewpoint on its official website.
“Why settle for being competitive when you have the opportunity to excel,” the statement reads. “We assist in maximizing your sportsbook by enhancing content, improving odds, and creating more engaging player CRM strategies.”
The growth of Genius Sports and Sportradar
With the understanding of the services provided by these companies, it is not shocking to see their success during the sports betting boom. Despite being smaller and newer than Sportradar, Genius Sports has just experienced its most successful year yet.
In just the first quarter, Genius Sports generated $85.9 million in revenue, marking a 59.9% increase from the previous year. Furthermore, their betting technology division saw a 27.6% year-over-year growth, reaching $49.7 million.
It’s no wonder that revenue numbers are so high, considering the size of the industry. In March alone, gamblers in Illinois bet nearly $1 billion on sports. When you factor in all the other states with legal wagering, it’s clear where the substantial revenue is coming from.
Over the last few years, Genius Sports has formed partnerships with various sports leagues and sportsbooks.
- NFL
- MLB
- Premier League
- PGA Tour
- NCAA
- FanDuel Sportsbook
- bet365
Although Genius Sports is performing well, it still has a significant amount of catching up to do compared to Sportradar. Sportradar’s market cap of $2.91 billion is almost five times higher than that of Genius Sports.
Leagues around the world can benefit from Sportradar’s integrity services, which include:
- The Asian Football Confederation
- CONCACAF
- FIBA
- Electronic Sports League
- International Olympic Committee
Is sports tech competition healthy for the sports betting industry?
The current surge in sports betting can be attributed to the digital revolution, which has elevated mobile technologies to unprecedented levels. Online betting represents just one aspect of this progression.
Despite this, more people are betting now than ever before, making these companies even more important.
Having companies dedicated to maintaining the integrity of sporting events is crucial. With a large number of people betting on games, the risk of match-fixing or dishonest play is higher than ever. The rivalry between companies such as Sportradar and Genius Sports should only enhance the quality of integrity services, which is essential.
Additionally, for bettors, this type of competition is crucial as it directly impacts the odds. If one company offers better odds than another, it will be quickly recognized and adjusted accordingly.
Accurate odds are essential for sports betting, and bettors rely on them to make informed decisions.
