Brian Bennett fought an “800 pound gorilla” working for a challenger brand in the social casino space, but that experience will inform his efforts to make Betfred USA Sports a major player in the sports betting sector. It could become very important.
The social casino boom of the early 2010s, which began with then-Caesars Interactive's investment in Playtika in 2009, opened up new audiences for the gaming industry and sparked a wave of M&A. DoubleDown, Big Fish Games, Product Madness, and Buffalo Studios were among the companies sold at significant multiples.
Smaller challengers tend to have to fight for market share, leading market leaders to look to them as acquisition targets to further strengthen their strong positions.
Brian Bennett has joined the fray as vice president of marketing for slot developer Rocket Play. Rocket Play was one such challenger, a company that was eventually acquired by slot manufacturer AGS. With this, Bennett, who previously worked for strategy game developer Kabam and casual publisher Booyah, shifted to his real money gaming career.
After a stint in AGS' interactive division and then as an investor and advisor, he was named chief operating officer of Betfred USA Sports in 2019, joining the wave of sports betting spreading across the United States.
Fighting an 800 pound gorilla
Sports betting appeals to a completely different audience than social casinos and is likely to have an even more transformative and disruptive impact on the established real-money gaming sector. However, Bennett points out that the market dynamics of the two industries are very similar.
“Obviously we're talking about a completely different user base, a completely different target customer, different technology, but I think it's very similar in terms of the macroeconomic forces at play,” he said. I will explain.
“I regularly find myself back in the position of fighting multiple 800-pound gorillas. This is very similar to how the social casino market plays out.”
Just as the likes of DraftKings, FanDuel, BetMGM and Caesars Sports dominate the betting market, while the likes of Playtika, Scientific Games and Aristocrat dominate the social market, companies like Rocketplay are looking to carve a niche market. I am struggling.
“Now it’s very similar to that,” he continues. “Betfred is always up against some really big companies with big brands and big budgets on a regular basis. We choose our role and try to do what it takes to be successful. It is.”
Betfred and the Bengals bare their teeth in Ohio
This means companies need to seize opportunities strategically and there is no appetite to attack state markets as aggressively as some of their peers.
For example, the partnership with the Cincinnati Bengals announced in July provides an entry point into the Ohio market starting January 1, 2023, providing the kind of opportunity Bennett and Betfred were looking for. becomes. This will be the first time Betfred will take part in the first wave of launches in the state.
This means companies must fight to secure a foothold in the state with smaller brands and smaller budgets, Bennett explains. “In order not to be number one, [wave] “It’s challenging,” he admits.
“In addition to partnering with a large brand, one of the state's largest brands, this is the first time in Ohio that we will be standing with other brands on January 1st, a universal start date. We are finally on a level playing field and ready to compete.”
He says this is a great opportunity for Betfred to grow significantly. “We're going to put a significant portion of our marketing budget toward Ohio, as opposed to a place like New Jersey, where we're going to find ourselves bigger and more competitive.”
Maryland's mobile market has room for further growth
States gearing up for a universal start date are a big part of Betfred's growth plans. Maryland, which is eagerly awaiting the launch of mobile wagering, offers a similar opportunity to Ohio.
In Old Line State, Betfred has partnered with off-track betting restaurant Long Shots to give it a physical presence and is also set to secure a mobile sportsbook license.
“We think there is a very good chance that we will be in the first segment in Maryland as well, and as a result we will put in the marketing budget that we need to be successful in Maryland,” Bennett said. added.
As a smaller player without the deep pockets of brands competing for supremacy in each state, Betfred's approach is to pick its battles. However, this does not mean that established markets are simply off-limits. The company will change its strategy based on market conditions, as Caesars prepares to cut spending and Churchill Downs and others to exit sports betting altogether.
In states such as Colorado and Arizona, for example, Betfred will take a more pragmatic approach after initially focusing on bonuses. “Frankly, that's not a recipe for success, so we've scaled back some of that,” Bennett said. “If you try to compete on a very transactional basis, if you try to take away customers strictly based on bonuses, there's no loyalty there. They're just going to move on to the next guy.
“There are bonus hunters who are doing that across all of the different operators. is moving much further toward building deeper connections.”
emotional connection
Betfred's playbook focuses on understanding the players and focuses on the intermediate level and VIP crowd. For more casual bettors, Betfred is “really useless.” Because they are more likely to jump from bonus to bonus.
“Instead, we want something to be able to move up that hierarchy and serve the frequent players and VIPs. In markets like Colorado, Arizona, and Iowa, we're really looking at that level. We believe we can compete because we are small, nimble, able to focus on our core target groups and serve them better than some of the larger players.”
He continues that this group is not necessarily made up of players focused on sportsbook products. Instead, Bennett views these customers as customers who are looking for a higher quality experience overall. They value strong customer service, where any issues are addressed immediately and you enjoy an exceptional experience.
This last component is important for Betfred. “There we have a lot of sports sponsorships that allow us to offer suites and VIP level stuff. [like] Handshake and autograph sessions with players.
“we [can] We're really leveraging that to give our VIP players a better experience. And we're discovering that there's something there and we can make it Betfred's calling card. ”
Of course, these tangible rewards are also an easier sell than customer service, and Bennett points out that it's almost the last thing prospective customers look for when choosing a sportsbook. I am. As an acquisition hook, it is “unplayable''.
This means that bonuses still play a role as a way to get players to try Betfred. This allows us to analyze individual behavior, develop personalized customer service through dedicated account managers, and develop them into high-value players.
iowa on the horizon
Through a process of constant improvement and adaptation, the company recently migrated its Iowa sportsbook from Sportradar's Optima to OpenBet, aligning it with Betfred's offerings in other states and positioning it to compete in the market.
This means they are gearing up for a concerted marketing effort for the NFL kickoff in September. “We’ve never done much before, so we’re looking forward to this football season finally starting marketing in Iowa.
“We were doing very well at the casinos in northwest Iowa, but were not competitive at all online. We are excited to finally give it a try online.”
Of course, Betfred is brick-and-mortar based, starting out as a chain of betting shops in the UK and expanding that into online operations. But Bennett acknowledges that real success in the U.S. has to come online.
“We believe in retail,” he said, noting its location in Sioux Falls, South Dakota, where most of its business comes from. “By the time they drive across the border, they’re at the casino.
“I think in certain circumstances, retail can be very successful. We want to have that anchor point,” he added. “It’s great for branding and for customer experience. […] You can do a lot of things with that location. But clearly we are not naive. We know that real success comes online. ”
And Bennett, who has already spent years shunning the 800-pound gorilla in the social casino sector, brings unique experience to Betfred's push for market position.
