March Madness officially arrives today, and for the first time in history it will take place in a market in which more than half of US states allow legal sports betting.
With the American Gaming Association (AGA) projecting some $3.1bn in wagers on March Madness, one company offered advice on how sportsbook operators can retain a good percentage of what is expected to be many thousands of new customers signing up over the next three weeks.
Enteractive, which has provided loyalty and engagement services for the online gambling industry since 2009, on Thursday said retaining the new players will be key to maintaining growth in the current push to build a loyal customer base.
Mikael Hansson, founder and CEO of Enteractive, pointed to the successful launch of mobile sports gambling services in New York in January, which he said is an indication of an “enormous appetite” among US consumers for betting with the growing number of online sportsbooks.
However, while the Super Bowl brought impressive handles for the top three operators in the Empire State, there was a sharp dropoff in betting after the game. Hansson said it is a challenge to smooth out declines following big events.
“While iGaming operators such as Caesars, FanDuel, DraftKings and more are spending large sums on promotion, marketing and competitive odds to prompt high-speed growth as they enter these new markets in the US, they must keep a focus on retention of all those hard-won customers,” Hansson said in a statement.
In 2022, with 30 states plus Washington DC offering legalized mobile sports betting, Hansson said sportsbook operators can expect to see increased registrations from new customers around March Madness, but while this increased interest is good for business, successful growth will depend upon those new customers remaining active, rather than “churning” after the Final Four is over.
“There currently is a gold rush in the US sports betting market, and the eventual winners will be those brands that engage with their customers and build relationships for the future,” he advised. “Every brand in this sector must keep a clear focus on all aspects of their offering, ensuring that all the hard work in getting to market, and the expense of customer acquisition is not quickly lost to lapsing relationships.”
