Strategic Localization
In 2025, DraftKings and FanDuel remain the dominant players in the rapidly expanding sports betting sector, holding a combined market share of over 72%. However, competitors like BetMGM, Caesars, and Fanatics are making significant gains.
Fanatics Sportsbook has emerged as a formidable challenger, fueled by its acquisition of PointsBet’s US operations. According to Eilers & Krejcik Gaming (EKG), the sportsbook expanded its market share from 0.5% to approximately 5% over the past year, solidifying its position as a rising competitor.
With sports betting now legal in more than 38 states, the sector offers vast opportunities for operators willing to localize their strategies. State-by-state regulations, customer preferences, and popular local sports vary significantly, making it crucial for sportsbooks to tailor their offerings.
Localization of sportsbooks extends far beyond incorporating regionally appealing branding. True localization demands an in-depth understanding of local betting preferences, habits, and legal requirements. This includes tailoring payment methods, adapting odds formats, creating region-specific promotions, and integrating responsible gambling measures to align with cultural and regulatory expectations.
Different regions have unique sports betting preferences shaped by local influences. In the US, American football is the most popular sport among bettors, while soccer and basketball dominate in Latin America. In Europe, soccer and horse racing attract significant interest, reflecting the diverse betting habits of global audiences.
In our recent interview, Edward Bedrosian, Chief Regulatory and Compliance Officer at Xpoint, emphasized the importance of seamless geolocation integration in ensuring compliance.
By actively engaging with new customers and asking them what they would want from a geolocation provider, Xpoint gains valuable insights that help them stay agile and refine their technology to better meet user needs.
The seamless integration of geolocation technology allows operators to ensure compliance without disrupting the customer experience, making it possible to offer localized campaigns while staying within legal boundaries.
In-Person and Digital Customer Acquisition
While digital marketing and technology-driven personalization dominate the conversation, the value of in-person interactions remains significant, especially in building trust and fostering long-term loyalty. Blending digital tools with face-to-face engagement allows operators to connect with users on a deeper level, catering to diverse preferences and enhancing the overall customer experience.
In one of our Sports Betting Conversations interviews, Jai Maw, President and Co-Founder of Betting Hero, shared insights into their customer acquisition, retention, and development strategies.
Betting Hero has transitioned from a purely offline affiliate model to a hybrid approach, combining in-person interactions with digital solutions. This strategy shows the importance of a customer-focused approach in a highly competitive market. With over 500,000 customers gained mainly through on-site activations at places like casinos, sports bars, and tailgates, Betting Hero highlights the power of personal connections in fostering trust and loyalty.
Jai emphasized that operators who actively listen to customer feedback and develop offerings that cater to their needs will lead the industry.
In August 2024, Betting Hero’s growth gained momentum with its acquisition by Hero Group - a newly formed entity led by Co-Founders Jai Maw and Jeremy Jakary, with financial backing from GeoComply. This strategic deal strengthens Betting Hero’s ability to scale its industry presence while staying committed to customer engagement and innovation.
Through continuous consumer analysis and feedback, Betting Hero has identified critical pain points and crafted solutions that extend beyond transactional interactions. Their hybrid model blends a smooth digital experience with personal support, including an upcoming app that offers both self-service tools and access to VIP managers for more tailored assistance. This dual approach ensures that both tech-savvy users and those requiring more support are equally well-served.
Data-Driven Marketing
As competition for attention intensifies, leveraging data to deliver personalized experiences has become essential for sports betting customer acquisition. By utilizing advanced data analytics and AI-driven algorithms, operators can gain deep insights into bettor preferences, anticipate behaviors, and craft tailored promotions. From odds boosts on favorite teams to customized bet suggestions, these strategies enhance customer acquisition by creating a more engaging and personalized experience.
FairPlay Sports Media, a leading provider of sports data and technology solutions, demonstrates the power of data in enhancing user experiences. In a recent Sports Betting Conversations interview, Stuart Simms, CEO of FairPlay Sports Media, shared how the company prioritizes three key data sets: probabilistic and predictive data, odds fluctuations, and behavioral insights. Leveraging AI and advanced deep learning neural networks, FairPlay Sports Media develops proprietary odds and market forecasts that often outperform traditional consensus lines. This innovative approach equips users with real-time insights, enabling smarter and more informed betting decisions.
DataArt developed a comprehensive media content suite that utilizes real-time analytics to provide precise and engaging insights during live events, significantly boosting viewer engagement. The accompanying consumer solutions suite elevated our client’s platform into a leading hub for data-driven sports content, attracting over 100,000 paying subscribers and expanding media visibility.
The Role of Personalization
As the online sports betting industry continues to grow, leveraging technology for customer acquisition is becoming essential for sportsbooks striving to stay ahead. Personalizing the user experience through data-driven insights and predictive analytics helps not only attract new bettors but also nurture long-term engagement.
Personalization is a key element often overlooked by sports betting apps, even by major players. Most apps fail to tailor their home pages or offers based on a user’s betting history, missing an opportunity to increase engagement. Customizing content - such as feeds reflecting a bettor’s favorite teams or sports - can significantly enhance the experience. Additionally, integrating AI and predictive analytics can help deliver more relevant promotions and betting suggestions, creating a more engaging and personalized environment.
DraftKings’ impressive 13% year-over-year revenue growth in Q4 2024, reaching $1.39 billion, highlights the success of its innovation-driven customer acquisition strategy. By leveraging proprietary technology, strategic cross-selling, and AI-powered customer insights, the company continues to drive growth while optimizing acquisition costs.
Harry von Behr, Managing Director of Spotlight Sports Group, spoke on the pivotal role of technology and content in both acquiring and retaining customers. The company utilizes localized content and cutting-edge technology to deliver engaging betting experiences that are customized for specific markets.
Conclusion
Adopting strategic localization, data-driven marketing, and personalized technology is essential for driving customer acquisition and long-term engagement. Using advanced analytics, AI, and tailored strategies, sportsbooks can gain a competitive edge, build loyal customer bases, and ensure long-term growth. Combining innovative technology with in-person connections further strengthens the bond between sportsbooks and their users, ensuring continued growth and success.
Looking to enhance your sports betting customer acquisition strategy? DataArt offers innovative solutions designed to optimize user engagement, streamline personalization, and drive targeted customer growth. Discover how DataArt’s sports betting solutions can accelerate your customer acquisition strategy.
