The power of derivatives in horse and greyhound racing
Adam Conway, Head of Trading at SIS, examines the popularity of derivatives in horse and greyhound racing and why they are so appealing to bettors across international markets.
Traditionally in regions where there is little or no horse and greyhound racing heritage, betting on these sports will have taken a back seat to more popular forms of betting content such as football.
However, during the last few years market trends have shown that this is no longer the case, with the live-action and short-form betting opportunities that horse and greyhound racing has to offer, gaining traction with new audiences in regions across the globe.
Derivatives are helping to play a key role in this trend, with operators internationally offering derivative markets such as match bets, betting without the favourite, odds vs evens, etc. to their bettors now more than ever due to the simplicity of these betting types.
In contrast to typical betting markets, derivatives are compiled by traders off-track with the value of each market being derived from the value of other prices or betting opportunities. These markets have led to greater engagement, with bet types such as place betting, cover betting, and favourites vs outsiders appealing to all types of bettors.
The availability of an outsourced trading service (such as SIS Trading Services) has taken the hassle away from operators needing to produce in-house derivative prices, which can often be labour-intensive and costly for those with smaller budgets.
Many operators are taking the advantage of either outsourcing everything or complementing their existing operations with the addition of specialist support.
The appeal of derivatives
The reason for the appeal of derivatives to international audiences new to horse and greyhound racing is simple: it is the ability to present these markets to certain customers in a more accessible and relatable format. With derivatives, bettors can engage with horse and greyhound racing content without the need for superior knowledge of the betting product.
While new audiences may not be completely familiar with how horse and greyhound betting works, racing derivatives can be presented to bettors in a familiar casino format, such as in roulette or a 50/50 style – a form of betting that is easier to understand.
In certain parts of Africa and Eastern Europe, for example, numbers betting is hugely popular. Racing derivative markets can therefore be presented to operators’ customers in the region in a similar style, with a focus on the horse or greyhounds’ numbers, with markets available also including odds vs evens or inside vs outside.
Reinforcing the simplicity of betting on these events through these derivatives to new audiences is key. If the derivatives are positioned correctly with the relevant messaging, new audiences may even find certain racing markets more appealing than betting on other sports.
Our Trading Services team is very experienced in offering derivatives to international operators. Our traders have a specialist knowledge of racing and are backed by our in-house developed algorithms, to deliver quality prices.
With SIS Trading Services, which includes our Managed Trading Service (MTS), operators can entrust our dedicated team of specialist racing traders to provide a robust pricing product for their customers and receive an end-to-end solution with the most comprehensive range of markets and pricing for both horse and greyhound racing.
These markets range from match bets to betting without the favourite, additional place markets and much more which all encourages greater engagement amongst all types of bettors and helps to complement traditional betting markets.
There is a lot more to come from derivatives and we are always looking to expand our range of markets, especially as the demand for horse and greyhound racing content continues to grow internationally.
The demand for quick-fire, regular betting events from bettors internationally, will no doubt continue to grow, heading into 2021 and beyond.
It is increasingly clear that a 24/7 offering is paramount within today’s marketplace, allowing operators to remain engaged with bettors, and horse and greyhound racing content is the perfect product to offer given the high frequency of events from all around the world.
As part of that offering, derivatives will remain a key component in broadening the wide range of markets available and in helping to expand horse and greyhound racing’s appeal to new audiences internationally.