## 888s Chief Discusses the Trajectory of Sports Wagering
Howard Mittman, the leader of 888 Holdings in the United States, believes that sports wagering is becoming a significant cultural phenomenon in America. He perceives it as a combination of athletics, media, and gambling.
Mittman considers his position at 888 to be ideal for him. He has held this role since April and enjoys working where diverse elements converge. He has worked with technology and culture, fashion and culture, and now sports and culture.
He asserts that this provides him with a distinctive perspective on the direction of things.
Mittman has a substantial history of collaborating with prominent figures in the industry. He was a senior executive at Condé Nast, where he worked on publications like GQ and Wired. He also spearheaded Bleacher Report’s entry into sports wagering, launching their betting platform, BR Betting.
Now, working with 888, he is adding another major media brand to his portfolio.
Established in 1954, Sports Illustrated is a fundamental pillar of American media. The collaboration agreement with Authentic Brands Group was finalized in July 2021.
888 possesses a widely recognized brand and holds exclusive promotional and editorial integration rights for sports wagering and online gambling establishments. With the continuous expansion of the US sports betting sector, the potential for growth is substantial.
“My perspective on the current state of affairs is analogous to Web 1.0 and Web 2.0, [but] in terms of Betting 1.0 and Betting 2.0,” Mitman explained.
“Betting 1.0 was solely focused on acquiring customers. Betting 2.0 will prioritize retaining customers.”
Two sides of the same coin?
He continued by stating that sports wagering and media are inherently complementary. Media serves as the “entry point” for the company’s betting strategy.
Envision the industry as a continuum, with media entities on one end and sports betting operators on the opposite end.
“I believe some of the major players encompass one end of the continuum in terms of depth of experience, user base, and a multitude of other factors,” Mitman stated, referring to the betting competition.
“On the other end of the continuum, we possess robust brand recognition. We have a media property that boasts profound authority and consumer affinity.
“Our endeavor is to accentuate that connection by furnishing consumers with an experience that is both informative and captivating, by merging the optimal elements of content and entertainment.”
The difficulty for both parties is locating a compromise.
Utilizing Sports Illustrated’s Reputation
So how does Mitman guide 888 to the meeting point of the two divisions? It must begin with “fortifying the link between Sports Illustrated and online sports wagering.”
“We are collaborating closely with Authentic Brands Group and Arena Group and rejuvenating that betting area,” he stated.
“We are generating content and content-driven encounters that users can experience, peruse, and utilize products within our application.” Furthermore, there are a plethora of product-driven features that enable readers to submerge themselves in the material.
Fundamentally, it’s about utilizing Sports Illustrated’s authority. It possesses the confidence required to make the educational segment connect with bettors. “Beyond that, there is an entire collection of enhancements such as larger fonts, bigger buttons, and more blank space.”
Discussion of larger text and blank space might suggest this is a situation for constructing a streamlined sportsbook. That’s not the case. Sports wagering, due to regulatory and technical stipulations, cannot be as straightforward as an Apple interface.
“Design minimalism can only progress so far, and I believe we are going to continue to propel technological minimalism, but that’s layered on top of very essential rules and regulations, from the state level to banking laws,” he clarified. The obstacle for operators is to innovate within those stringent boundaries.
Conversely, 888 is improving the user experience with the assistance of Sports Illustrated sports wagering. “Content integration is crucial,” Mitman stated. “Having the chance to display Sports Illustrated writers is something we provide that others do not.”
“We believe that the learning process is a significant part of it, [by] removing obstacles for users, simplifying it so that content can be their entry point. It’s a major advantage. It’s something we’re actively working on in terms of the product.”
888 is making every effort to make it easier for consumers to wager, experience wagering, and learn about the industry, positioning the product as a distinguishing factor. With media and wagering integration in its early stages, there’s room to shape the story.
He continued, stating that the product could be a unique selling proposition in such a developing market. “One error the entire industry is making is simply transferring European products to the U.S. market.”
Many would argue that European products themselves were tailored for audiences who began with offline wagering; the accusation of sports wagering being glorified Excel spreadsheets persists.
American sports wagering may begin on the same path as its European counterparts, but Mitman believes that the established model is ready for a change.
Were observing, in fact, we’re already witnessing, some truly intriguing shifts that are steering us away from the European approach and closer to what you encounter in other tech firms in the United States.
Other organizations have observed what 888 has witnessed in its collaboration with Authentic Brands Group. There’s a conviction that Sports Illustrated material will assist in retaining users and linking wagering with the brand’s overarching strategy.
“Some of the initiatives we’re undertaking involve transforming the cover into a non-fungible token and granting Sports Illustrated Sportsbook users access to tickets and events,” Mitman remarked. “For us, it’s all about maintaining users with the Sportsbook 2.0 model; we’re truly focused on that now.”
**Focusing on a Mature Audience**
With Maxim, Yahoo, ESPN, and NBC Sports all vying for viewers, who constitutes the target demographic? Seasoned bettors are part of the ideal audience for Sports Illustrated Sportsbook, but they’re not the sole focus.
“Actually, we’re developing a product for sports enthusiasts who are 40, 50, 60 and beyond, who might wager casually or might not even be aware of wagering.”
“The Sports Illustrated brand truly connects with these older consumers,” Mitman highlighted.
“You possess trust and a long history, and journalistic credibility (among those 40 and older). That’s where the content truly resonates.”
This is a collection of individuals whose households possess substantial financial resources, but their proficiency in technology is comparatively limited. Nonetheless, their commitment is exceptionally strong.
In essence, their long-term worth will be more significant, and participants are less susceptible to being enticed by rival brands’ proposals. Furthermore, elevated household income translates to increased entertainment expenditures.
“According to our internal investigations, these customers exhibit an average revenue per user (ARPU) that is four to five times greater than users under 40, hence we are actively focusing on serving them,” he stated.
This will result in elevated customer acquisition expenses. “[However] we are convinced that it is worthwhile because we anticipate that the LTV will ultimately compensate us.”
This target audience can be reached through a diverse array of channels. Television, newspaper advertisements, and outdoor advertising are all appealing options. Digital channels are equally effective; the 40-60+ demographic is nearly as engaged online as younger consumers.
“You might not observe us allocating significant resources to TikTok in the near future. But I believe other platforms such as Facebook, Twitter, and YouTube are effectively attracting older consumers.”
**888’s Casino Strength**
The brand possesses ample potential for expansion. 888, the parent entity of Sports Illustrated Sportsbook, is a “genuine global leader in online casinos.” Icasino’s total addressable market is considerably smaller than sports wagering.
However, in the second quarter of 2022, revenue generated from six states was nearly equivalent to the total revenue derived from gambling in 31 states.
Mittman strongly believes that Sports Illustrated’s sportsbook venture into the gambling realm – commencing in Michigan this January – will be a “genuine multiplier” for the enterprise. “This could be our most significant product edge,” he stated.
“We believe this is a domain where we can not only contend but potentially have an opportunity to triumph, and win on our own terms,” he added. “We’re not the leading players, but we believe we can develop a clever, sound, profitable approach that will propel us to the second echelon. Casinos will pave the way.”
What can we anticipate from the Sports Illustrated casino? Mittman promises a distinctive gaming experience tailored to Sports Illustrated. After all, 888 possesses “world-class” technology and gaming studios to utilize.
“I perceive it as sports betting being the starter, and the casino being the main course,” he said. “In the United States, we’re going to be increasingly focused on sports betting, and the states where we can leverage both sports betting and casino opportunities.”
What’s next?
This will naturally make states that permit online casinos more appealing to 888, while it will also consider tax rates when formulating Sports Illustrated’s sportsbook expansion strategy.
Crucially, the number of licenses available will influence Mittman’s thinking. “The fewer licenses there are, the more valuable they are to individual operators.”
Wed prefer to engage in direct competition with a limited number of operators in less competitive markets rather than a large number,” he stated.
“We’re concentrating on states that align with our standards. Don’t anticipate us being present everywhere. We’re not aiming for global domination.”
888 will be selective, picking states where they can establish a loyal customer base.
“We have a clear strategy, focusing on areas where we can compete effectively and make a significant impact,” Mitman added.
As 888’s US head, he holds a pivotal role in shaping the future of American betting and gaming. And he’s not the only one.
Rumors are circulating that Disney will enter the sports betting market through ESPN, while Fanatics is prepared to launch their own product utilizing their extensive database.
It appears everyone is discussing sports betting 2.0, where maintaining existing customers is more crucial than acquiring new ones.
This only adds to Mitman’s enthusiasm.
“The media is finally recognizing the importance of [retention]. I’m pleased that others are realizing this, as it validates our perspective.”
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