“It’s impossible to be engaged in the betting business without taking risks – without risks there are no rewards,” is how Max Dubossarsky, COO at Betinvest, sees the unique potential of the industry but believes the key to turning those rewards into true success is to master control.
Betinvest, the award-winning international gaming solutions provider, is renowned for developing the latest technological products and solutions in betting but it has also become widely recognised for its position as a reliable industry leader delivering insight and expertise on how operators can achieve success in gaming. Currently the company is focusing on the importance of Risk Management, something which Dubossarsky believes is essential to anyone entering this business. “A unique feature of the betting business is the unavoidable presence of a vast range of risk levels,” he explained. “Without risks there are no rewards thus, the art of risk management is not in the elimination of risk, since that would also mean the elimination of rewards, but rather in controlling them. Misjudging risks is costly for bookmakers: not only are there financial losses, but the company can also have its reputation tarnished, lose valuable employees and see top managers fired. Also, as a possible finale, the company could end up bankrupt and completely lose its market share.”
For sector’s like Sports Betting, revenue can depend upon operators’ ability to manage risk along with creating an Optimal Player Experience, Betinvest is currently working with its clients to augment the these traits. Dubossarsky said: “We have developed and successfully implemented a whole range of procedures, software products and tools to enable us to quickly identify dishonest players and take action promptly 24/7. Our tools and risk algorithms enable companies to effectively combat multi-accounting, bonus hunting, arbitrage betting, bets placed as a result of courtsiding, middles and bets placed on rigged matches.”
He added: “We use a statistical analysis system which enables us to perform an in-depth analysis of financial outcomes over any time period (day, month, quarter, year) and from all possible angles, as well as to estimate profitability in advance. Where necessary, we can analyse any player or group of players, and the performance of any sport (on any live/pre-match service) right down to a specific tournament or even a match.”
According to the company, the selection above is far from being a comprehensive list of the tools and options available for risk management whether through Betinvest or one of its competitors. However, according to Dubossarsky, a combination of various tools and analysis methods will yield the best results when it comes to managing risks, forming predictions and minimising financial losses.
When questioned on best practice for operators in regards to where to focus Risk Management on within their business, Dubossarsky believes the key is understanding both the data behind big customers and studying the bets of unprofitable players. “It requires a systematic approach,” he said. “Simply placing limits on high-risk players will not lead to a successful, profitable business. Instead, you need to take an approach that combines risk reduction with a variety of promotions and retention campaigns for players who make high deposits. Working with high-risk players doesn’t affect any other groups of players. Using segmentation means that we can group players according to the level of risk they present, and then set different limits for each different group of players. In order for a business to grow, you need to pay attention to your profitable players and react to risks quickly to avoid losses.”
In recent months, the brand’s team of experts has been focused on how Betinvest can offer its partners a complete set of software products and tools, as well as round-the-clock technical support, ensuring complete control over the risks involved in this line of work and, as a result, increase their profits.
“Any operator with a large customer base will be constantly faced with the need to minimise the risks associated with betting in order to optimise their profits,” continued Dubossarsky. Therefore, a constantly evolving risk management system is required. Risk can be manipulated by developing and implementing various procedures which compensate for current or upcoming risks, as well as reducing and avoiding them. This entails constantly analysing and adjusting the sportsbook to ensure that it is viable and corresponds to international standards and sources, working with higher-risk players, and running marketing campaigns and promotions.”