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Genius Sports launches revolutionary ‘Edge’ solution to increase sportsbook profitability

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Genius Sports Limited has introduced Edge, an automated pricing tool for sportsbooks to maximize profits across various sports events and bets. Unlike traditional risk management solutions, Edge recalculates odds in real-time to optimize profitability, resulting in an 18% increase in margins for early adopters.
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The introduction of Edge by Genius Sports represents a significant advancement in the sports betting industry, with the potential to disrupt current risk management practices. Traditionally, sportsbooks have focused on limiting player actions and minimizing losses, but Edge's promise to increase profitability through an automated, data-driven approach is noteworthy. The reported 18% increase in margins for early adopter partners is a substantial figure that, if replicated across other platforms, could lead to increased revenue and improved competitive positioning for Genius Sports.

From a market research perspective, the adoption of Edge could signal a shift in how sportsbooks operate, with a greater emphasis on data analytics and real-time decision-making. As sports betting becomes more prevalent and with the rise of in-play betting, the ability to dynamically adjust odds in real-time could become a critical differentiator. The scalability of Edge to handle unlimited events and bets concurrently taps into the growing demand for extensive betting options among consumers.

The financial implications of Genius Sports' Edge for stakeholders, including investors, are multifaceted. An 18% margin increase is a robust indicator of potential profitability, which could translate into higher earnings per share and possibly affect the company's stock valuation positively. For investors, the long-term benefits hinge on the widespread adoption of Edge and its performance relative to competitors' offerings.

It is also essential to consider the cost implications for sportsbooks implementing this technology, as well as the potential for increased customer engagement and retention due to improved betting experiences. If Edge delivers on its promise, Genius Sports could see an uptick in partnerships with sportsbooks, further driving revenue growth. However, investors should monitor the balance between technology investments and the returns those investments yield.

While the financial and market impact of Genius Sports' Edge is clear, there are also legal considerations to be made. The sports betting industry is heavily regulated and any new technology must comply with a myriad of jurisdictional regulations. The automated nature of Edge raises questions about its adherence to responsible gambling practices and fairness in gaming. Ensuring that Edge operates within the regulatory frameworks is crucial for its longevity and the prevention of potential legal challenges that could affect Genius Sports' operations and reputation.

Moreover, the transparency of the algorithms used in Edge and the communication of odds changes to bettors are critical to maintaining trust and integrity in the betting process. As such, Genius Sports must navigate these legal complexities carefully to avoid regulatory penalties or customer distrust, which could negate the financial advantages of the tool.

NEW YORK & LONDON--(BUSINESS WIRE)-- Genius Sports Limited (“Genius Sports”) has unveiled Edge, a first-of-its-kind automated pricing tool that enables sportsbooks to maximize profits across unlimited sports events and bets concurrently.

Unlike today’s industry standard risk management solutions which simply limit players and minimize losses, Edge is designed to unlock greater profit on every bet. By ingesting real-time liability and individual bet data, Edge dynamically recalculates odds at a fixture and market-type level, including betbuilder products.

Every price recalculation is correlated, meaning odds for all related betting markets are automatically optimized for maximum profitability – making it a game-changer for sportsbook trading teams.

“The explosion of betting content means sportsbooks offer hundreds of thousands of events every year,” said Thomas Holland, Product Director at Genius Sports. “This makes it almost impossible for trading teams to truly optimize pricing and ensure they are squeezing maximum margin out of every bet, especially where turnover is highest.

“With our early adopter partners live with Edge, margins have increased by 18%. We’re excited to roll this groundbreaking solution out across our sportsbook partners worldwide, transforming bottom-line performance.”

Edge is now available through Genius Trading Services (GTS) a fully managed trading solution or as a standalone solution to transform in-house risk management capabilities.

About Genius Sports

Genius Sports is the official data, technology and broadcast partner that powers the global ecosystem connecting sports, betting and media. Our technology is used in over 150 countries worldwide, creating highly immersive products that enrich fan experiences for the entire sports industry.

We are the trusted partner to over 400 sports organizations, including many of the world’s largest leagues and federations such as the NFL, EPL, FIBA, NCAA, NASCAR, AFA and Liga MX.

Genius Sports is uniquely positioned through cutting-edge technology, scale and global reach to support our partners. Our innovative use of big data, computer vision, machine learning, and augmented reality, connects the entire sports ecosystem from the rights holder all the way through to the fan.

Press:

Chris Dougan, Chief Communications Officer

+1 (202) 766-4430

chris.dougan@geniussports.com

Investors:

Brandon Bukstel, Investor Relations Manager

+1 (954) 554-7932

brandon.bukstel@geniussports.com

Source: Genius Sports Limited

FAQ

What is the new automated pricing tool introduced by Genius Sports Limited?

The new automated pricing tool introduced by Genius Sports Limited is called Edge.

How does Edge help sportsbooks maximize profits?

Edge helps sportsbooks maximize profits by recalculating odds in real-time to optimize profitability.

What is the increase in margins experienced by early adopters of Edge?

Early adopters of Edge have experienced an 18% increase in margins.

What are the two options for accessing Edge?

Edge is available through Genius Trading Services (GTS) as a fully managed trading solution or as a standalone solution to transform in-house risk management capabilities.

Genius Sports Limited

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