Data analysis by sports odds intelligence firm Bettormetrics shows that the leading US sportsbooks are potentially losing “tens of millions of dollars” in revenue due to the length of suspension times during live sporting events contests.
Suspension is when a sportsbook periodically shuts down betting lines in a sporting event to readjust the odds based on activity within the event (a basket, touchdown, goal, penalty, key injury, etc.).
According to the findings, FanDuel led the top three sportsbooks in potential revenue loss, leaving an estimated $1.45 billion in handle on the table with an average suspension rate of 15.8% (84.2% uptime) per fixture.
DraftKings, although best in class, leaves a potential $249 million in handle with an industry-leading suspension rate of 4.8% (95.2% uptime). The analysis was done leveraging NBA betting data for the 2023-2024 season.
“While suspension is an inevitable occurrence in sports betting as traders necessarily evaluate the risks surrounding new situations within games, some sportsbooks are more systematically cautious than others. It’s this situational nuance that leads to more sportsbooks looking at risk instead of the potential rewards around improving its average uptime” said Robert Urwin, CEO and co-founder of Bettormetrics.
“In looking at our NBA data of the top three US sportsbooks, it’s clear to see the suspension strategies and the risk management perspectives of each book’s trading desks. While FanDuel is potentially losing out on the most revenue, based on its incredible volume, with a few optimizations it can dramatically increase its margins and create distance between itself and DraftKings as the definitive leader in the US.”
Each sportsbook handles suspension differently and for different periods of time, says Bettormetrics. Depending on the length of time the odds are suspended, sportsbooks lose the opportunity to accept new bets and can potentially lose active users to other sportsbooks, should odds be shut down for extended periods of time.
“Every operator is looking for ways to grow their margins, increase wagering and reduce customer attrition. While many sportsbooks externalize their focus on the cost of user acquisition, suspension can help a sportsbook find new revenue from within by becoming more efficient than their competitors,” said Sabin Brooks, Commercial Director of Bettormetrics.
“In the US, market share is gained in very slim percentage points. By understanding and addressing these crucial trading efficiencies, sportsbooks can potentially gain billions in lost revenue. A poor suspension strategy is very bad business for customers and shareholders alike.”
Original article: https://www.yogonet.com/international/noticias/2024/05/09/72084-data-analysis-finds-us-sportsbooks-lose-millions-in-handle-due-to-poor-suspension-strategies
