Is the online sports betting bubble about to burst?

A recent Rolling Stone article asked this question. But based on this quote, I’m betting on the states and the bookies.

To succeed, the major sports books must begin to focus equally or more on retention versus acquisition. See below for what I think are the key challenges in generating online sportsbook loyalty:

1️⃣ Fierce Competition and Switching Behavior: Sports bettors frequently switch and use multiple platforms to chase odds, promotions, or bonuses. Loyalty efforts must offer unique and tangible value to keep players engaged.

2️⃣ Limited Brand Differentiation: Most sportsbooks provide commodity-type features like bonuses, betting markets, and user interfaces. To stand out requires innovative strategies with a heavily personalized player experience.

3️⃣ Overly Focused on Acquisition Over Retention: The industry is in growth mode and emphasizes acquiring new customers with rich sign-up bonuses rather than rewarding long-term high-value players. This will erode loyalty and fuel switching behavior over time.

4️⃣ Increasing Customer Expectations: Players expect a highly personalized and seamless experience from promo to app. Optimizing “generosity” to fuel personalized offers requires advanced analytics, robust CRM strategies, and personalized customer journeys.