WagerWire, an innovative marketplace for open sports bets, found in a new study that 90% of current sports bettors would likely sign up with a sportsbook that offered a secondary betting marketplace as part of its product suite. Additionally, nearly half of the non-bettors surveyed said that this concept would make them more likely to start betting online. The findings come from WagerWire’s final release of data from a 2022 independent study conducted by Leger, a leading market research and analytics company.
Nearly 3-in-4 US bettors (72%) found the secondary market for bets to be an appealing product. In addition to driving increased signups, the study found it would also motivate gray-market and younger bettors to join the regulated market and increase the frequency and volume of the bets they make. When broken out by segment, 92% of gray market bettors and 92% of bettors ages 18-34 would be likely to sign up with a regulated sportsbook if it offered a secondary betting marketplace.
“The state of the US sports betting industry is, ostensibly, an arms race. Since the onset of the latest economic downturn in early 2022, operators have been looking for new strategies, new technologies and new products to create new revenue streams and sustainably acquire and retain users,” said Zach Doctor, CEO of WagerWire. “These data findings prove the demand for a betting marketplace that we already knew existed from our rapidly growing and engaged community. They also establish a firm proof of concept and roadmap for how operators can utilize our product to drive user acquisition, retention, engagement, and most importantly, drive more handle and revenue. It is now clear in the data that a thriving marketplace for active sports bets makes for a more robust and efficient ecosystem, and unlocks value for both the users and sportsbooks.”
The study found bettors would place more bets, riskier bets and larger bets if a secondary betting marketplace existed at their sportsbook.
76% - Likely to make more bets
76% - Spend more time on the sportsbook managing bets
73% - Likely to place riskier bets
72% - Place more bets with the intention of selling them before they are settled
72% - Likely to place larger wagers
Additionally, bettors said they would increase volume in all types of bets if a secondary marketplace was available at their sportsbook.
84% - Increase in parlays
84% - Increase in straight bets
80% - Increase in future bets
78% - Increase in prop bets
“We really view this as a fundamental economic principle and a natural evolution of the industry,” Doctor said. “Secondary markets exist in nearly every vertical because they give participants more optionality and access to competitive and transparent prices, whether that be for your concert tickets, stocks, sneakers, etc. WagerWire brings this proven concept to sports betting and empowers bettors to treat their bets as assets that can be bought and sold at any time at fair market-based prices. Bettors are no longer forced to decide between letting it ride, placing costly and inefficient hedge bets, or accepting a predatory cashout offer.”
Doctor continued, “This also directly feeds into our other priorities at WagerWire, to drive increased bettor education and responsible gaming. When users have more agency over their outcomes, it leads to the sharing of more knowledge, information and best practices. With WagerWire, bettors will benefit from an ongoing exchange of ideas and the real-life application of managing their bets responsibly, which in turn is going to help create a more sustainable ecosystem in which participants make smarter, safer and more strategically-sound decisions. We actually see WagerWire as a critical part of a consumer protection framework where bettors have access to offramps for their bets at fair prices.”
WagerWire’s mobile app is set to launch in the coming months with a free-to-play betting marketplace, syncing sportsbook accounts for real-time value tracking of bets, as well as original content and social features. This soft-launch will provide users the ability to explore and experience the secondary betting market while connecting with, learning from, and competing for prizes with other WagerWire community members.
The study was completed between July 8 - July 21, 2022, including 500 U.S. sports bettors and 200 non-sports bettors.
For more information on WagerWire and to sign-up for early access visit WagerWire.com, and join the community on Twitter @WagerWire. Stay tuned for additional data releases and research findings in the coming months.
WagerWire believes that all bettors should have proven, confident options at their disposal. WagerWire empowers you to take control of your actions and view your bets as a portfolio of assets that can be bought and sold at any time. Seamlessly sync your favorite sportsbooks to track the real-time value of your bets, stack rewards, and play with celebrities or friends.