Jeff Morris: “The sports betting market is in flux; loyalty is shifting all the time”

We sit down with YouGov Vice President Jeff Morris to discuss the company’s latest data that slices open the current sports betting market in the United States, and specifically what player preferences are. Are younger bettors ready to swear their allegiance to a single brand, or are they still only finding their way? Who is set to benefit from this "fickleness" and who is set to lose? The US market is in flux, and loyalty is shifting all the he time. Morris helps us figure it out.

Q: Why do you think the report is important, and to whom it makes the most sense to heed its findings?

The market is in real flux at the moment. We have brands coming in and out, individual states at completely different levels of maturity, and within that there is technological change that impacts everyone. What this report focuses on is one of those technological changes, live streaming, and showcases how impactful it can be. Our findings demonstrate its importance and also its nuances.

Q: We saw many interesting trends in the report, from how young consumers interact with betting to how certain brands tend to have an edge with specific age groups. Yet, it all feels very volatile. Do you think that this trend of shifting preferences would continue and do you think that the next shifts are predictable?

Things are volatile and each state proves that when the numbers are released that show considerable movement in some states where it could take a while until the market settles. The arrival of ESPN and Fanatics brands are shaking it up further, so without doubt change is going to continue. Brand loyalty is clearly only skin-deep right now, with so many bettors, especially younger bettors, revealing a propensity to switch about and try new options, particularly if those options look to offer genuine value. Are the next shifts predictable? You’d be brave to call it, but we might just be seeing a few trends coming through in our data with this interest in live streaming being one of them.

Q: One of the biggest takeaways is that sports fans are now keen to have live streaming as an available option on their sportsbook. How do you think sportsbooks can capitalize on this knowledge?

Live streaming is definitely an important finding from the study but there is an important nuance here in that it seems to be most effective for less popular sports that don’t offer as many options to viewers. Streaming the big game on a handheld or mobile device via a sportsbook isn’t what customers seem to be looking for. Instead providing access to more exotic sports that people want to bet on is key.

Q: In a similar vein, consumers seem to be very keen on creating accounts with sportsbooks that are associated with a streaming service. Does this mean that ESPN will eventually take the lead and there is little that other companies can do to stop it?

If a streaming service is the only way for people to access certain sports then the provider may do very well, assuming they can also motivate viewers to wager, potentially by opening up access to the stream only when a wager is placed on the contest. Overpaying for rights that are not viewed, don’t attract bets, or only attract light gamblers will be expensive mistakes. So there is a fine line for sportsbooks here and while signing up as many customers as possible seems attractive this obviously only works if the long-term customer value outweighs both acquisition and ongoing costs.

Q: What are YouGov’s predictions for the US sports betting market, and when can we expect the next report in?

The only prediction we would make right now is that there will be more change and flux as the market is nowhere near a steady state. It will continue to be impacted by macroeconomics, national politics, state legislation, individual brand strategies, technological development, game development, and many other factors. We will continue to monitor these changes, and indeed already do so in our monthly national subscription tracker but intend to specifically return to the topic of streaming later this year.

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