Sports betting has been on a fast track to mass adoption across the United States ever since the Supreme Court’s monumental 2018 ruling in Murphy v. NCAA. As soon as 2022, it is projected that 32 states could offer legal sports betting and with it, generate almost $6 billion in revenue. Even with the pandemic bringing traditional sports to a grinding halt earlier this year, betting didn’t stop. Rather, esports stepped in to fill the void.

Esports betting has ballooned since the onset of the pandemic. The sector alone is expected to reach $14 billion in gambling revenue this year; European bookmakers have already seen a 40 times increase. With traditional sports such as baseball, basketball and soccer playing again, the sports betting industry has massive opportunity ahead.

In order to capitalize on this interest, industry players must reconsider the importance of the technology that powers their streaming in order to drive betting handle, and thus bottom-line revenue. Today’s platforms are riddled with delays which leaves all parties susceptible to leaving money on the table. To solve this problem and successfully progress to the full potential of sports betting and “micro-wagering” — betting on every pitch in a baseball game, every down in a football game and so on — streaming technology must change and become a priority.

Next-Level Gamification

The opportunity to amplify the fan viewing experience has increased tenfold this year, since watching live sports in person is off the table for now. Broadcasters and sports leagues alike have the chance to create a more engaging and interactive virtual viewing experience — bringing the stadium experience into living rooms and mobile devices across the country.

These gamification elements can come from features such as Q&As, trivia games or even a chance to purchase merchandise from a team. But one of the largest categories is certainly sports betting. If leagues can provide the opportunity to bet within a game on every play without leaving the live stream, revenue opportunities will skyrocket. Bringing true in-game micro-wagering to viewers allows them to place bets not just on an entire golf tournament for, example, but on whether or not Tiger Woods will make this putt.

The PGA Tour recently announced an expanded relationship with DraftKings to include betting integration in golf events designed to drive fan engagement. The true test for these kinds of gamification features, however, is whether or not streaming services will find the sweet spot to ensure they can minimize delays and support a simultaneous influx of online viewers. Lackluster streams will not cut it for viewers who are looking forward to placing their bets and engaging with others while streaming an event.

The age of cord-cutting has led to an increased number of fans tuning in via live streams. Yet, these viewers have become accustomed to seeing a tweet or push notification about the winning touchdown before it happens on their screen. While this may lead to dissatisfaction for some fans, it can be downright devastating for bettors.

In order to incorporate successful in-play or micro-wagering betting operators must work hand-in-hand with streaming platforms to provide a synchronized, real-time stream with no delays. Accomplishing this is easier said than done. During this year’s Super Bowl, fans streaming the game experienced delays of anywhere from 45 to 55 seconds, rendering many betting opportunities moot.

The success of betting/platform integrations all circle back to the necessity of using technology that provides a real-time experience. At the end of the day, this technology will drive user engagement and have a substantial bottom-line impact.

Increasing Take With Tech

With today’s subpar streaming technology many sports leagues and betting operators are using, hundreds of millions of dollars in total wagering is being left on the table. When most “live” streams are riddled with delays, operators are forced to cut potential betting windows short, thus, less time for users to engage with the content and less time to generate revenue for all parties involved. In addition, real-time streaming removes the possibility for fraud or courtsiding because the streams are coming in too fast.

Right now, fans are able to bet on the outcome of games, and maybe on specific outcomes of quarters, halves or innings, but true micro-wagering is not possible. This kind of instantaneous action is even more important in fast-paced events such as esports. For example, no fan is going to be comfortable placing a bet on the outcome of a FIFA livestream if their stream is 20 or even sometimes 60 seconds behind a fan elsewhere. The popularity of legalized sports betting across the country is the meta-level of a real-time streaming requirement, with tangible consumer dollars on the line.

The “old normal” of live sports doesn’t look like it will be back for a while, as in-person viewing is not going to be plausible for the foreseeable future. Even if games start allowing fans, many viewers will be tuning in from the comfort of their own home rather than an arena. Ultimately, all parties involved must take a hard look at the technology being used and consider how it’s holding the betting and sports streaming industries back from maximum success.

If streaming platforms can provide a synchronized real-time stream to masses of people, the potential of legalized sports betting in the U.S. could be realized.

Jed Corenthal is chief marketing officer at Phenix, a Chicago-based streaming technology company.

To say it’s a surreal time in the sports world is an understatement. With the majority of sports cancelled or on hiatus for the foreseeable future, it’s uncharted territory for owners, leagues, players, broadcasters and especially fans.

The 2020 NFL Draft on April 23 is no exception to this new reality, and the league has needed to make drastic changes. Moving from glitzy Las Vegas to a remote TV studio without eager, excited fans — not to mention without the NFL hopefuls who have been anticipating the moment when their name is called out and they shake hands with the commissioner — will reshape how we watch and consume sports in this new environment.

The draft is expected to have a surge of sports-deprived fans tuning in live, as it’s one of the only sports-related events yet to be canceled. The technology providers livestreaming the event need to deliver a seamless, synchronized and latency-free real-time viewing experience, or they will see a flood of complaints across social media.

The platforms that are able to deliver a topnotch experience will not only win over fans, but will also have a plethora of new opportunities to increase the bottom line.

Hurdles to Clear

The live streaming of sporting events is too often associated with latency and a lack of bandwidth to support large audiences due to inadequate tech solutions. Viewers who live-stream sports have come to expect to see a tweet about a touchdown before it actually plays out on their own screen.

During this year’s Super Bowl, fans streaming online experienced delays anywhere from 45 seconds to 55 seconds, leaving many viewers frustrated as big moments were spoiled. Now imagine how severe these delays can be when the NFL must integrate live video from all 32 team headquarters for the draft. If the streaming tech isn’t up to par and the stream is delayed, fans will miss the exact moment when their team’s pick is revealed and draftees will miss the exciting moment they have always waited for when their name is called by the commissioner.

Ahead of a sporting event that is an integral part of the NFL tradition and prides itself in creating major lifetime moments, it’s vital for streaming services to find this tech sweet spot and ensure they’re able to minimize delays and support an influx of online viewers simultaneously. Otherwise, the NFL will find itself with a massive group of frustrated sports fans.

There is an especially big opportunity this year for live-streaming providers to deliver more than just a real-time experience. Platforms must rethink what it means to “watch” sports in an environment where fans will be watching alone and integrate further opportunities for interactivity, which will drive engagement.

In order to improve the viewing experience and keep fans engaged for longer periods, providers should integrate interactive features and tools to reshape that experience — taking it from just one viewer sitting at home alone to others across the country in real time. This can be done through features such as live chats, in which fans can share their thoughts on a particular team’s draft pick, or live polls via social media to ask viewers to predict who the next player selected will be.

Integrating interactive features into realtime live streaming heightens the social aspect and makes watching much more enjoyable as viewers can share the moment with others remotely — call it the “social living room.” But this is only possible if streaming technology is delivered in real time and in sync so everyone can watch at the same time. If a viewer in New York is 15 seconds ahead of their friend in Kansas City, that could be all the time needed to spoil who the Giants will be taking during the first round.

Better Streaming, More Revenue

By 2024, it’s expected that 91 million consumers will use live video streaming, giving brands and advertisers a newer way to reach their audience as well as creating a massive opportunity for them to increase revenue through better streaming technology.

As more viewers cut the cord and move to streaming platforms to watch sporting events, the opportunities continue to grow for providers. Yet the increased revenue potential can only be achieved by consistently providing an ability to successfully deliver top-notch, interactive, real-time streaming experiences. The live stream of this year’s NFL draft, which is expected to garner a huge audience, is an opportune chance for providers to capitalize on this.

Brands must prioritize their streaming solutions to ensure they are not only latency-free, but also engaging and interactive viewing experiences for fans. Those able to do this will be able to increase their bottom line and move into the next threshold of sports entertainment.