Why Does Your Sports Betting Business Need a PAM System?
The iGaming Next New York conference just wrapped and we saw a lot of buzz around fan engagement and retention for sports betting businesses. And this is not a surprise. In 2020, DraftKings shared that their average customer acquisition cost (CAC) is $371 per user. For the New York market, where only nine licenses were issued, some experts predicted CAC as high as $1,000-$2,000 per fan.
Since the current acquisition cost is relatively high, operators are trying to find new ways to keep users engaged and increase the fan lifetime value. A robust player account management (PAM) system is a key element that can help realize that strategy.
What Is PAM?
A player account management system is an all-in-one solution to automate and run each aspect of your sports betting business smoothly. The typical feature set includes everything from payment, risk management, and advanced CRM for back office and retail operations.
Ample Opportunities
A PAM allows you to manage all your bettors across all channels, product verticals, and jurisdictions from one admin panel. Beyond this, your business can befit from:
#1 Hyper-personalization at scale
A PAM aggregates all bettor activities from all available channels, including bets made, emails sent, slot transactions, etc. The result is a comprehensive view of what each bettor is doing which allows you to segment and target users with personalized campaigns and relevant content.
#2 Capacity for a Large Number of Transactions at a Lightning Pace
A PAM provides integration with manifold payment gateways and a single shared wallet feature to which all payment streams are linked. This allows for all types of transactions including deposits, withdrawals, and account checks to be processed without affecting response time. This is especially important during high peak seasons.
#3 Maximized Operational Activities
A PAM system helps you automate time-intensive processes like KYC, fraud and risk management, and transaction tracking which frees you up for more critical business decisions. Additionally, this system offers a broad spectrum of pre-built promotions and bonus options for effective marketing campaigns.
#4 Quick Rollout to New States
In our recent interview with Daniel Kustelski, co-founder and CEO of games-as-a-service provider Chalkline, he outlined the importance of a state-by-state approach for operators in the United States:
“There are 25 states where sports betting is legal. And that poses a massive challenge for these brands just getting simple things right like state-level marketing, state-level activations. It’s hard. A lot of the operators are juggling a lot of balls, and one of them is just getting operational in this particular state. Then, we’ll worry about tweaking the top of the funnel and the funnel down to getting people to sign up and deposit into my sportsbook. But it’s really that localization, that regionalization. I think that’s a challenge for all operators.”
Setting up new infrastructure for each individual state can take time and issues arise. Furthermore, an operator will have to repeat that process on a regular basis.
“Everybody thinks of the United States as 50 states, 50 sets of rules, but actually it’s a 260 jurisdiction, 260 sets of rules. When you start to include all the sovereign nations, which are the tribal reservations. In each of those tribal reservations, they have its own compact, their own rules, their own regulations. So it’s an unbelievable number of regs we have to try to keep up with.” — Matthew Holt, CEO of US Integrity, shared his opinion in our webinar about game integrity and fraud prevention.
PAM systems provide out-of-the-box functionality that requires only minor adjustments to launch in new markets and helps you address the increased number of regulated markets.
#5 Enabling Responsible Gaming
Modern PAM systems are usually equipped with data-based algorithms to automatically detect problem gambling and a variety of bettor protection tools. Among some of these tools are:
- bettor’s personal limits on deposits and betting sessions
- monitoring excessive gambling and behavioral changes
- fraud & risk rules engine and much more
This way a PAM helps you ensure compliance and safety for the end-user.
Scale Your Betting Business Profitably
There is still ample time to leverage the high growth the sports betting industry is experiencing in the United States. PAM systems have significant potential for creating exceptional bettor experience and engagement at every step of the journey, resulting in increased revenue for your company.
By Russell Karp,
Vice President of Media and Entertainment Practice at DataArt
