In the world of wagering apps, traditional user interfaces have remained largely unchanged for decades. However, companies are now revolutionizing the industry by focusing on improving user experience and introducing innovative features. One such area of innovation is social betting, which aims to appeal to the younger, digital-native generation of bettors. By combining social media and wagering, bookmakers seek to enhance customer retention and lifetime value. Additionally, the emergence of influential bettors and the integration of social elements within betting apps have opened up new avenues for growth and engagement. This article explores the concept of social betting, its impact on the industry, and the opportunities it presents for operators.
The Evolution of Social Betting:
Historically, bettors would discuss their top picks with friends, but this interaction was not embedded within bookmakers’ apps. The integration of social media and wagering has transformed the landscape, offering a more immersive and socially-driven betting experience. Social betting platforms enable users to follow prominent bettors, share bets, and engage in discussions about betting strategies. The influence of social media culture has elevated respected bettors to the status of influencers, attracting large followings. Copying bets has become a popular trend, with the number of copy bets comparable to the “likes” received on traditional social media platforms.
Prominent Examples and Market Share:
Sportsbet, an Australian bookmaker, introduced “Bet With Mates” in May 2021, allowing users to pool bets and create shared betting groups. This product enhances the social aspect of betting and provides a seamless way for friends to participate in bets together. The success of social betting is evident in the market share statistics, with social betting apps capturing 10% of the total wagering app downloads in Australia as of September. Among the social betting apps, Dabble dominates the market with a 76% share. Dabble has positioned itself as a social media app for bettors, fostering a community-driven environment for sharing bets and engaging with influential bettors.
The Investment and Valuation Landscape:
In October, Tabcorp invested AU$33 million in Dabble, acquiring a 20% stake in the company and valuing it at AU$165 million. Dabble’s valuation now surpasses that of Bluebet and positions it as a significant player in the industry. With annual revenue of AU$47 million and 150,000 users, Dabble has attracted a predominantly young user base, with 80% falling within the 18-35 age bracket. The app’s interface resembles popular social media platforms, featuring an activity feed showcasing shared bets and user commentary. Prominent bettors, including celebrities and influential figures, have amassed significant followings on the platform, fostering a content creator culture.
The Potential of Social Betting in the US Market:
In the United States, operators have been grappling with the high cost of customer acquisition. To address this issue, operators are exploring innovative methods to reduce acquisition costs and improve customer lifetime value. Social betting represents a promising opportunity in this regard. By introducing social elements into their offerings, operators can enhance engagement, foster a sense of community, and increase customer loyalty. This approach aligns with the critical need to improve customer lifetime value in the nascent US market.
The advent of social betting has revolutionized the wagering experience, offering a more engaging and socially-driven platform for bettors. By integrating social media features, bookmakers aim to enhance customer retention and increase lifetime value. Social betting apps have gained significant traction, capturing a substantial market share in Australia. Dabble, in particular, has emerged as a dominant player, attracting a young and vibrant user base. The investment landscape reflects the potential of social betting, with Tabcorp’s significant investment in Dabble.Looking ahead, social betting holds promise in the US market, where operators are seeking innovative ways to improve customer lifetime value. As the industry continues to evolve, social betting is poised to reshape the wagering landscape and create new opportunities for both operators and bettors.