Choosing a sportsbook provider for your online casino

The online sports betting market has been growing for years and forecasts remain bullish. In Latin America, global GGR is estimated to reach 3.4 trillion dollars in 2025, a 261.5% increase over the 1.3 trillion recorded in 2020. Choosing a sports betting provider that guarantees the proper functioning of this vertical is essential: it is not only about competitive odds, but also about an adaptable front-end, reliable streaming, experienced trading teams, risk management and a solid live offer.

With so many differentiating factors, we have split the analysis into episodes. This first chapter focuses on the foundation of any strategy: raw data providers, known as feeds, responsible for the analytics and odds comparison that will make it possible to design effective operations tailored to each operator's risk level.

What are feeds or raw data providers?

Raw data is the first link in the value chain. Companies like Sportradar, Betgenius, Sporting Solutions, LSports or IMG gather information from very diverse sources —live broadcasts, sensors, tracking devices, official records and manual observation— to obtain a complete picture of the performance of each event. Sportsbook providers like Kambi or Altenar license that data, the analytics and the odds comparisons that will form the basis of their offer.

Data collection

Live broadcasts contribute sport-specific statistics: key plays, possessions, shots, goals or fouls. In disciplines like football, basketball or rugby, sensors and GPS or RFID devices are added to capture the trajectory and speed of the ball or the movements of the players. When these technologies are not available, analysts present at the stadium —or following the broadcast— record all the information manually. Accuracy and speed in data collection are essential to feed real-time calculation models.

Odds calculation and comparison

With the full statistical base in hand, an analysis is applied that includes averages, deviations and other descriptive measures to evaluate performance. Predictive models, supported by machine learning and data mining, turn statistics into outcome probabilities. Those probabilities are assigned an odd, after incorporating external factors such as injuries, roster changes, weather or expert statements.

The house margin is reflected in the sum of the implied probabilities: the closer it sits to one hundred percent, the more competitive the odds and the greater the risk for the operator. Adjusting that balance is the key to offering attractive prices without compromising profitability.

The role of the sportsbook provider

While the feed is the raw material, the sportsbook provider adds value on multiple fronts: market positioning, front-end design, risk control, price management and affiliation tools or widgets. In upcoming episodes we will cover each of these aspects, as well as the importance of streaming, probability advisory and model automation.

Trends and challenges

The demand for real-time data forces providers to process and distribute information almost instantly. At the same time, artificial intelligence and automation make it possible to optimize analysis and offer increasingly personalized services. For the operator, understanding these trends and choosing a partner capable of meeting them is decisive.

Make your rules

This episode opens a series on the criteria for choosing a sportsbook provider. Coming up, we will go deeper into variables such as streaming, risk management and front-end integration. If you want to know the industry in depth and apply a competitive sports betting strategy, do not miss the next installments.