In a strategic move designed to deepen ties within the sports betting industry, Genius Sports has unveiled an expansion into the free-to-play games vertical. This innovative offering is set to comprise a variety of gaming options including weekly and matchday games, tournament games, and daily retention games. The purpose of this multifaceted approach is to activate sportsbook brands and facilitate segmented daily player interactions, effectively broadening the reach of operators within the market.
Taking a step further to tailor to the unique needs of operators, Genius Sports is prepared to deliver bespoke free-to-play solutions. This custom service will not only involve designing gamification strategies but also the development of custom games. Operators can, therefore, count on a tailored experience that aligns with their specific objectives, ensuring a distinct market presence.
Moreover, to fortify the link between free-to-play games and sports betting, Genius Sports is integrating its robust advertising solutions. The goal here is to seamlessly transition players from the free gaming experience directly into the operators’ sportsbook offerings. To accomplish this with precision, Genius Sports will rely on advanced analytics and robust reporting within its advertising sector. These tools will empower operators to measure the impact of their paid media efforts meticulously, thereby optimizing their advertising strategies.
The launch underscores Genius Sports’ commitment to enhancing customer acquisition and bolstering brand loyalty. Josh Linforth, the Chief Revenue Officer at Genius Sports, highlighted the significance of the new suite of games: “From encouraging users to register for an account to giving them a compelling reason to return and then converting them back to bet, our new suite of games provides betting operators with incredible value across the full player lifecycle. We work in partnership with 300+ betting operators, and we’re excited to expand our partnerships through proven gamification solutions.”
The announcement of the free-to-play vertical expansion arrives on the heels of Genius Sports’ mixed financial results for the 2023 fiscal year. Notably, the company saw a 21% surge in revenue, totaling $413.0 million, comfortably surpassing the forecasted $391 million. This uplift in revenue was propelled by advancements in two principal operating sectors, particularly the Betting Technology, Content & Services segment, which rose by 31.1% and accounted for $274.2 million of the total revenue.
Furthermore, the reported adjusted EBITDA showed a considerable increase, more than tripling with a staggering 238.3% growth year-on-year, reaching $53.3 million and exceeding the anticipated $41 million. Nonetheless, Genius Sports incurred a loss of $85.5 million for the year, which, despite being substantial, marked an improvement compared to the previous year’s $181.6 million loss. The organization attributes this to an “improved underlying performance.”
Earlier in the week, Genius Sports also disclosed its continuing association with Football DataCo by winning a bid to extend its official betting data partnership. This agreement governs the procurement of data from prominent football leagues including the English Premier League (EPL), English Football League (EFL), and leagues governed by the Scottish Professional Football League (SPFL). With this victory, Genius Sports enters exclusive negotiations with DataCo, aiming to seal a deal that would last until 2029 and enable the distribution of data from over 4,000 UK football fixtures per season, enhancing the company’s position in the sports data and analytics sphere.
