Both have legal sports wagering, but this deal does not cover either state. That concept could be a bit foreign to a US bettor but will be familiar to punters in the UK and beyond. Instead of betting against the house, a betting exchange allows bettors to wager against one another on an open market.
A bettor offers odds they want on a certain game or outcome, and others may take that bet. The exchange, like Smarkets, usually takes a small commission on winning bets as its business model. Some in the US are high on the prospects of sports betting exchanges moving forward. But we have yet to see one deployed; the most famous one, Betfair , has not yet gone live in any US market for sports betting — it does have a horse betting exchange.
The problem with exchanges in the US is that they would have to be ring-fenced by state. Finding the critical mass to make an exchange work will be difficult in smaller states like Indiana and Colorado. It would be easier should bigger states like California and New York open up to online betting. In any event, Smarkets would like to bring its betting exchange to the US, and this is likely the first step toward accomplishing that goal.
Dustin Gouker has been a sports journalist for more than 15 years, working as a reporter, editor and designer -- including stops at The Washington Post and the D. He came across a site that offered trading on election outcomes and the NFL. Jason was really interested in exploring financial trading on things like politics and sports —not just on currency or financial outcomes.
But that site had a clunky user experience, it felt counterintuitive and he wanted to build a better way. Jason moved to London with his cofounder Hunter and they started coding the platform. Our approach to sports trading is from a financial perspective versus our competitors who come to the problem from a gambling background. Our users value the clear layout and design of Smarkets, and with that the journey through the site. Another big bonus is the pricing. In the beginning —and it still is now— the key question for us was what pages are our customers looking at and what markets are most popular with them.
We want to know what events are popular. We care about where our users come from in terms of geography —where they physically are— and what sites are referring them to Smarkets. We hold bi-annual open house events at our offices and Jason has gone out to Liverpool, Manchester and Birmingham to meet users. We had met the team at White Bear Yard.
We were attracted by the interface. We have the GoSquared dashboard on a large screen on the wall of the office alongside monitors showing live performance of the platform. Because it is real-time. All our screens on the wall show real-time data so GoSquared fits in nicely. On GoSquared, we can see busy times. We see patterns of behaviour by time of day and days of the week very clearly visualised.
We use GoSquared to see where the traffic is concentrated. In the next six months, the World Cup in Rio is going to be huge for our business. We are working on partnership deals for that. We keep developing the product. As an exchange, Smarkets facilitates peer-to-peer betting where users set their own odds and bet against each other. Smarkets monitors activity in real-time across its website and markets. The greatest challenge they face with analytics is having an accurate real-time picture of how many users are on the site and which event pages are most popular with visitors.
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