Sportradar Announces Automated Odds Recalculation Tool, Alpha Odds, Boosted Client Profits by Average of 10% in 2023
- Sportradar's Alpha Odds tool resulted in a 10% average profit increase for clients in 2023.
- The tool allows operators to adjust betting prices in real-time to improve trading efficiency.
- The financial reconciliation aspect of Alpha Odds has been independently certified by auditors PwC.
- None.
Insights
Sportradar's Alpha Odds tool represents a significant technological advancement in the sports betting industry, demonstrating the potential to enhance profitability for betting operators. The reported 10% average profit increase for clients in 2023 is a substantial figure that may attract the attention of investors, as it suggests the tool's efficacy in improving the bottom line for users. The adoption by over 60 operators globally indicates a strong market uptake, which could be a positive signal for Sportradar's growth trajectory and future revenue streams.
Furthermore, the ISAE 3402 Type 1 certification by PwC adds a layer of credibility to the financial reconciliation processes involved with Alpha Odds. This certification may reassure stakeholders of the reliability and accuracy of the financial data, which is crucial for maintaining trust and potentially reducing the risk profile of Sportradar's offerings. From a financial perspective, the combination of increased efficiency and certified accuracy could position Sportradar favorably in a competitive market and might be reflected in investor sentiment and stock performance.
The sports betting market is increasingly competitive and data-driven, with operators seeking advanced solutions to gain an edge. The integration of artificial intelligence in Sportradar's Alpha Odds to predict game events and manage risk more effectively is a key differentiator. The ability to adjust betting prices in real-time, as evidenced by the 11% improvement in trading efficiency, demonstrates a strong value proposition for Sportradar's clients.
From a market perspective, the client roster and the volume of betting tickets analyzed (17 million) suggest that Sportradar is capturing significant market share. The efficiency gains and profit increases reported could serve as a compelling case study for potential clients, potentially driving further adoption. The market impact of Sportradar's innovation may extend beyond its immediate financial benefits, influencing industry standards for odds calculation and risk management.
The ISAE 3402 Type 1 certification is an international assurance standard for service organizations, particularly in areas such as financial reporting. Sportradar's achievement of this certification for its Alpha Odds solution signals to clients and regulators that its financial reconciliation processes adhere to high standards of operational control and accuracy. This can be particularly important in the highly regulated environment of sports betting, where financial transparency is paramount.
For Sportradar, this certification may reduce legal and compliance risks associated with financial transactions and reporting. It also provides a competitive advantage in jurisdictions with stringent regulatory requirements, potentially facilitating entry into new markets or reinforcing its position in existing ones. For stakeholders, this certification may be interpreted as a commitment to legal and regulatory compliance, potentially influencing investment decisions favorably.
Since 2022 and first to market, Sportradar has been transforming the status quo for trading betting markets
Achieves PwC ISAE 3402 Type1 certification, validating the accuracy of its financial reconciliation processes
ST. GALLEN, Switzerland, Jan. 30, 2024 (GLOBE NEWSWIRE) -- Sportradar’s (NASDAQ: SRAD) Alpha Odds, its automated odds recalculation tool which allows operators to generate bespoke betting prices in line with their risk exposure and liabilities, delivered an average profit increase of
Leveraging Sportradar’s advanced artificial intelligence capabilities, the pricing models within Alpha Odds more accurately predict the probability of a game event taking place, enabling operators to manage their risk more effectively. When combined with real-time and predicted liquidity, Alpha Odds allows operators to maximise trading efficiency in line with their trading strategies.
An analysis of 17 million betting tickets across 60 of Sportradar’s operator clients demonstrated the effectiveness of the artificial intelligence models within the odds recalculation service. Compared to the performance of the company’s conventional odds product, operators utilising the Alpha Odds solution were able to adjust their betting prices in ‘real-time’ to stabilise their trading operations and improve trading efficiency by
The financial reconciliation aspect of Alpha Odds has recently been independently certified by auditors PwC, with the solution achieving the International Standard in Assurance Engagement (ISAE) 3402 Type 1 for matching and client invoicing calculation systems. The ISAE 3402 Type 1 certification recognises the power of Sportradar’s computational practices and provides clients with visibility of key processes that are driven by the performance of the Alpha Odds solution.
Darren Small, Senior Vice President of Managed Trading Services (MTS) at Sportradar said: “Since Alpha Odds introduction to the market in late 2022, Sportradar has transformed trading betting markets. The independent ISAE certification validates the performance of Alpha Odds and provides confidence to clients that the associated financial aspects of the solution are transparent and accurate.”
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About Sportradar
Sportradar Group AG (NASDAQ: SRAD), founded in 2001, is a leading global sports technology company creating immersive experiences for sports fans and bettors. Positioned at the intersection of the sports, media and betting industries, the company provides sports federations, news media, consumer platforms and sports betting operators with a best-in-class range of solutions to help grow their business. As the trusted partner of organizations like the ATP, NBA, NHL, MLB, NASCAR, UEFA, FIFA and Bundesliga, Sportradar covers close to a million events annually across all major sports. With deep industry relationships and expertise, Sportradar is not just redefining the sports fan experience, it also safeguards sports through its Integrity Services division and advocacy for an integrity-driven environment for all involved.
For more information about Sportradar, please visit www.sportradar.com
Sportradar Contacts
Media:
Sandra Lee
Press@sportradar.com
Investor Relations:
Jim Bombassei
Investor.relations@sportradar.com
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