There is a method to the same-game parlay madness afflicting sports betting sites, and part of it is simply servicing demand, according to several operators in Ontario.
One panel at last week’s Canadian Gaming Summit prompted a defence of the same-game parlay (SGP), a product described as “high margin” because players lose them more often than they do straight bets.
Ontario sports betting is rife with SGPs, even if they go by another name. One of the reasons why is that people want them.
“For us, people love betting same-game parlays,” said Kris Abbott, the Canadian country manager for Betano. “So it's really a reply to the demand. I'm never an advocate for betting parlays, but, if people enjoy it, go for it.”
Ante up
The same-game parlay has indeed almost become something like table stakes for operators of sports betting sites, particularly those who cater to the most casual of players. The capability to let people bet on multiple outcomes in one game has proven to be alluring to bettors, and profitable for operators.
Sportsbook technology provider Kambi Group PLC noted in February that around 30% of all pregame bets on the last NFL season with its partners (such as BetRivers and Unibet) were placed via its “Bet Builder” product, which powers same and multi-game parlays.
Those table stakes are yielding significant returns for operators, who were already winning around 20% to 30% of parlays in general. As of the end of May, New Jersey sportsbooks reported winning almost $215 million from approximately $1.1 billion in parlays during the year, or a hold of 19.7%. Meanwhile, the win percentage for all completed events during the year was less than half that, at 8.5%.
Exactly how much of those winnings are same-game parlays is not disclosed, but it’s probably safe to say it was a fair amount. The promotion of SGPs by operators and their comments about their profitability to shareholders suggests as much.
According to an investor presentation, FanDuel saw 2.8 million in same-game parlay bets on Super LVI in 2022 and had around four out of five of its customers that year place an SGP.
The operator sees an appetite for the SGP in Ontario, too, as the FanDuel app in the province has several at the ready on its home page. On Monday, for instance, the bookmaker had several already manufactured for the day’s baseball action.
“I think they're very sustainable,” said Conor Murray, vice president of marketing at FanDuel, when asked about the SGP craze at the gaming summit. “What's left out of the 20% to 30% is the fact that the stake is way, way lower. Like when you look at moneyline bets, you have people placing $100 or $200. These [SGPs] are typically $5, $10 bets.”
They don't always hit
Murray said the reason SGPs are so compelling (in addition to the promise of a heftier payout) is the entertainment they provide, as bettors will have to track multiple outcomes during a single game.
“It's an incredibly complex product to build,” Murray added. “There's a lot of volatility with it. And part of that is that the margin needs to be higher.”
The panel, moderated by Steve McAllister, the editor-in-chief of Gaming News Canada, was about new media and the “intersection” of sports betting and content.
A good amount of sports betting content these days has to do with same-game parlays, although some try to guide players toward a smarter SGP (even if that is a bit of an oxymoron).
“Part of that educational component is also making it clear that it's a shot in the dark,” said Jared Beber, CEO at Sports Venture Holdings Inc., the company behind Bet99. “And that's why when they hit, we're going to celebrate them. But by no means are we actively promoting like, ‘Hey, the only way to bet is same game parlays.’ Certainly, the reason the margins are so high on it is because they don't hit, always. They do sometimes.”
