Speaking on a ‘Time to Shine? The New Sporting Outlook’ panel during the SBC Digital Summit North America, Trim argued that it was “virtually impossible” for US operators with a limited budget to compete in regulated sports betting markets.
Although the use of white-label models has allowed smaller operators to take their product live quickly in grey or black markets, Trim insisted this was not a viable business model for a regulated market.
He explained: “White-label models will be successful in low-cost jurisdictions where you don’t have to pay tax, you don’t have to worry about the social responsibilities to customers and you don’t have to worry about your pricing.
“The problem is that when you try to deploy this in a regulated market, it becomes a lot harder to cover your costs – virtually impossible actually.”
Trim believes smaller independent sportsbook operators can overcome this challenge by focusing on differentiation.
“The main part is differentiating your price. Rather than a one-size fits all approach, you are going to need to have price, trading and risk management capabilities,” Trim commented.
“This will mean you can differentiate your offer relative to the competition.”