SBC News Voice of the Sports Betting Industry
The debate around building a sportsbook in house versus the safety net of outsourcing is as old as igaming itself. But according to Tom Warburton, Commercial Director at Metric Gaming, modern solutions are now over-turning long-held assumptions, providing operators greater choice without the cost.
As the diverse and engaging experiences of other entertainment verticals illuminate a roadmap of opportunities to tackle sports betting’s challenges with loyalty, they also underscore the complex decisions operators face when selecting the right technology to seize them.
Not too long ago, the only way to guarantee any real product variety as a betting brand was to take matters into your own hands and develop a platform in-house. The alternative third-party provision, considerably cheaper it may have been, was also considerably less original in its look, feel and capability. You got what you paid for, ultimately. But far from being a hypothetical debate, this dilemma could often mean the future success or failure of your operations. It still does.
That’s because operating a sportsbook is no easy task. Beyond creating a recognisable and trusted brand, you need a trading solution that works with optimised customer experiences and strategies that make your offering stand out—all without haemorrhaging money on marketing.
Many have great marketing of course, but are unable to capitalise on it because of the product limitations imposed upon them. For larger operators managing global portfolios, the challenge is even more daunting, as they must navigate vastly different requirements and regulations in each jurisdiction. This makes the choice of platform, whether in-house, outsourced, or somewhere in between, a critical business decision.
Source of success
In recent years, some tier one operators have opted to take their technology back in-house. For these companies, the appeal is clear: the opportunity to control their own roadmap, innovate at their own pace and avoid dependency on external suppliers.
However, the risks are equally significant. Building your own platform is an expensive, complex and time-consuming process. It requires not just substantial financial resources but also expertise and the right personnel. When online sportsbooks first launched, companies had to transition from being retail bookies to technology companies overnight.
It wasn’t an easy process, and the ones that were quick to adapt are often now the most successful in the market. But even with that head-start, success is far from guaranteed. The stakes are high; get it wrong, and you could find yourself outpaced by competitors.
The alternative of course, is outsourcing. This comes with its own set of challenges and stigmas. Historically, outsourcing has been associated with cookie-cutter solutions that fail to meet the specific needs of diverse markets or brands. Many operators have had poor experiences with inflexible or aging outsourced technology, leaving them frustrated and dissatisfied. As a result, outsourcing’s reputation has been tarnished, often to the point that it is seen as a necessary compromise rather than a strategic advantage.
But to dismiss outsourcing entirely is to overlook its potential. Some of the most successful and innovative brands in the industry rely on third-party platforms. The key difference lies in how outsourcing is approached.
Suppliers like Metric Gaming are redefining what outsourcing can mean by offering a solution flexible enough to meet the unique needs of each operator. Instead of one-size-fits-all platforms, these providers deliver customisable, multi-tenant architectures that give brands the freedom to innovate while maintaining the reliability of an external provider.
The modern compromise
This hybrid approach is particularly compelling. It bridges the gap between the two extremes—building a platform from scratch versus settling for a pre-packaged solution. With modular architecture, operators can maintain control over brand identity, user experience, and unique features without taking on the immense risks of developing everything in-house. For example, operators can deploy bespoke IP, innovate in key areas, and differentiate their offering, all while reaping the cost and scalability benefits of outsourcing.
For large, multi-regional operations, this is a game-changer. Managing a global sportsbook across various jurisdictions comes with massive complexity. A flexible, unified platform can significantly streamline these operations, reducing costs and enhancing efficiency.
At the same time, the modular nature of modern solutions ensures that localisation, quality, and performance aren’t sacrificed. All of this is demonstrably proven via data too. We now have the option to view every single user session and understand customer behaviour, which we can then leverage using AI to curate the betting experience of every single customer at scale in real-time, and make better product and business decisions too.
What excites me most is how this approach shifts the narrative around outsourcing. It’s no longer about settling for less; it’s about forming partnerships that empower brands to compete at the highest level. By working closely with operators, suppliers can craft platforms that feel as though they were built in-house, with none of the associated risks or delays. This allows operators to focus on what they do best: delivering exceptional experiences to their customers.
In an industry where agility and flexibility are essential, this new wave of technology represents a turning point. For years, these buzzwords have been overused and under delivered, but now they’re finally becoming a reality. Outsourcing is no longer a compromise; it’s an opportunity. By leveraging the best of both worlds, operators can innovate, adapt, and thrive in an ever-changing market.
This evolution feels like a breath of fresh air. It’s not just about choosing one thing or another; it’s about finding the perfect balance. And that balance, when executed well, is the key to staying competitive and ensuring long-term success.
