Chief Operating Officer UK and Online at Sportech Ian Hogg talks to Jenni Shuttleworth about his new role and about the hot topics facing the sports betting industry right now


Why did you decide to make the move to Sportech?
The chance to work for a company with as strong a history as Sportech was simply too good an opportunity to turn down. The Football Pools is an iconic brand in the UK and following the company’s recent acquisition of Scientific Games Racing (SGR), Sportech is now one of the leading suppliers of pools or tote betting in the world, processing over US$13bn in bets every year and with a presence in over 30 countries. I was extremely keen to get involved with Sportech as the company has a clear ambition to drive significant growth in the next few years.

What has your new role entailed so far?
I started on October 5th following the acquisition of SGR and it has been a very busy period since. Obviously I’ve had to meet all of the team both in our Liverpool and London offices and get a deeper understanding of all the products and services we provide.

A major component of my role as chief operating officer is overseeing the integration of SGR into the enlarged Sportech Group and that has involved going over to the U.S. to meet as many of the staff as possible. We are very much focused on this integration process and that will be taking up a good deal of my time.

Since I joined we have experienced many milestones including the biggest ever single winner of The Football Pools, Michael Elliott, who scooped over £3m at the beginning of October.

What is your background in sports betting?
I’ve worked in the betting industry since 1997 when I joined Arena Leisure Plc and was one of two executive directors that led the expansion of the company from a single racecourse valued at £14m to a racing and leisure group valued at over £160m.

In 2002 I launched At The Races as managing director and then in 2005 I founded the chain of Better betting shops. It was my vision to provide a better level of service to customers of High Street bookmakers and I raised enough money to establish the Better chain in London and the South East. We eventually opened 43 shops, winning the prestigious title of Bookmaker of the Year in 2009 and merged with Jenningsbet later that year.

In addition to my role at Sportech, I am also chairman and owner of the Fox Poker Club, London’s first ever poker club, on Shaftesbury Avenue.

How does tote betting complement the online gaming industry?
The Football Pools is an iconic brand in the UK, but we do have to fight the misconceptions that it is an old-fashioned form of gambling. There has very much been a renaissance in the Pools over the past three years with some huge wins and it’s worth bearing in mind that tote or pools betting is the most popular form of sports betting in the world. In many markets outside the UK it’s the only legal form of sports betting. This gives pools betting a massive worldwide audience.

Much of our business is now online and we also offer a B2B solution to sportsbooks who are interested in providing a margin enhancing pools service to their customers as an exotic bet football bet.

Sportech has a strong history for doing business with integrity and is constantly giving money back to sport. The Football Pools was the world’s first football gaming company, founded in 1923, paying out over £10 billion in winnings to customers and has donated over £1.1bn to good causes over the years.

In recent years, we have launched many schemes with the official football sporting bodies including The Premier League with Premier League Health and Premier League into Work, and The Football League with the Every Player Counts scheme. We’ve donated almost £6m to help grass roots football. The chances are if you support a football team in the UK then over the years The Football Pools has helped it along the way.

Are we seeing an increase in gaming companies offering tote betting because it is legal and a foot in the door to some markets?
First and foremost, tote / pools betting is the most popular form of betting in the world, so it is obviously highly attractive for operators to have a tote proposition.

In terms of regulation, tote / pools betting is attractive to governments on a number of levels, but the fact that pools competitions play out over a longer time period than other forms of gambling, which reduces the risk of problem gambling, is undoubtedly appealing to policy makers.

For operators, it’s attractive as it offers big prize funds to attract customers but guaranteed margins. This can help to offset some of the risk of fixed odds betting.

The pools business model of the exotic bet (small stakes-high rewards) also offers customers the potential for great value.

Which are your biggest markets and which markets are showing the most potential?
Following the SGR acquisition, the enlarged Sportech Group is one of the world’s leading suppliers and operators of tote / pools betting in the world. We process over $13bn in bets every year and have a presence in over 30 countries, so we have a number of markets that will be very important to us over the coming months and years.

We are one of only a handful of European betting companies with a license to operate in the US, so that market is going to be very big for us. We have also entered into a joint venture with Playwin, one of the world’s leading lottery operators, to launch Sports Hero, a multi-platform sports prediction and fantasy gaming brand in India this year. As one of the world’s largest economies this promises to be a very interesting market in the next few years.

What are the biggest issues facing the sports betting industry?
The sports betting industry and especially online gaming– in comparison with many other sectors – is still young and is constantly evolving. There were negative reports this summer due to cricket’s spot fixing scandal, but that simply backs up the need for the industry to operate within regulated markets.

Saturation is definitely a major issue and the market is more crowded than ever with more and more new companies entering an already crowded space. Consolidation is going to play a big part within the industry as businesses struggle to compete in the current climate and, of course, we have already seen some significant mergers and acquisitions this year.

The Government is yet to really play its hand in the betting industry, but there is obviously a danger that under current UK taxation law, more firms will look to move offshore, while the sale of the Tote is also a development we at Sportech are watching very closely.

Is there a return on investment on sports sponsorship?
For the right sponsorship, yes of course. There are plusses and minuses – it can be great for brand awareness and brand trust, but it can also be a very crowded space. Take a look at football shirt sponsorship – virtually every other Premier League shirt is sponsored by a gaming company.

It’s the same in horseracing, what big races aren’t sponsored by a different betting company? The key is that these opportunities don’t come cheap and the question has to be asked if better value can be gained elsewhere. If firms invested the huge sums they do in sports sponsorship back into technology and sophisticated new-age marketing, the results would be different. I’m convinced companies would save spend and see a better return.

How do you believe that tote betting can grow even more?
As I’ve already said, tote betting is the most popular form of sports betting in the world and Governments are keen to embrace it. That said, there are lessons to be learnt from other countries.

Small outlay-massive return bets are desirable to bettors around the world and you only need to look at product offerings in countries like Australia to see that more can be done in other areas.

Which sporting events are the most popular in terms of betting?
Football. Football. Football. If it was a boxing match, the bout would be stopped. Racing’s market share of sports betting has dropped from somewhere around 50/60 per cent into the 20s, but it is still a comfortable second slot and is obviously more popular in certain countries like the UK.

After football and racing, it is event dependant with the Ashes in cricket, Masters or Ryder Cup in golf, World Cup in Rugby, Wimbledon in tennis, etc.

Which area of sports betting needs the most improvement and how will this come to fruition?
In the UK it has to be racing. I was at Arena Leisure and At The Races for years and I absolutely love the sport. It needs to be modernised, though. It doesn’t sell itself well enough and there are countless political issues which cause problems from both sides.

Racing For Change has had a lot of critics, but it is very difficult to change and requires everyone involved in the sport to work together to improve its appeal and popularity.

How do you anticipate the sports betting industry changing in the future?
Some people are comparing the US opening its doors with the gold rush of the 19th Century. Although, this is an exaggeration, things will change if and when the market becomes more open but betting companies will be forced to raise their game. Following our acquisition of SGR, we have a license to operate in the US, which puts us in a strong position.

The focus for betting companies in the future also needs to be about product, simplicity and education. There is so much competition out there that if you can offer customers the best products, in a simple format with good levels of information and education you will retain them as well as attracting new ones.

A greater focus on more markets, more choice, improved technology, smart phone apps, etc. We all need to be faster, quicker, slicker and embrace the lessons learnt from other sectors.