Amy Howe knows how to make news. She first made a splash by stating that she was worried about how the industry spends money to attract users. This was soon after becoming CEO of fantasy sports and betting company FanDuel Group. She is one of a few women in the gambling industry who are making waves and doing things their way.
“If you look at how we’ve been using our money in our client acquisition costs relative to the value of the consumer, we obsess about that” Howe stated in an interview with CNBC after New York State started mobile sports betting in January. “We want to make sure that we’re addressing the correct demographic and the biggest possible audience, but we’re doing that in a way that is financially reasonable.”
The CEO of the multinational gaming company Entain, Jette Nygaard-Andersen, is similarly outspoken. She is unhappy about what she views as excessive spending. This was regarding sums spent on advertising, marketing, and promotions in the American online gambling sector.
Nygaard-Andersen and Howe, two women gaming CEOs appointed last year have revolutionised the sportsbook and online gambling sectors. Both of which have always been dominated by men. From a corporate and cultural standpoint, both recognize the significance of their respective responsibilities in the wider context.
“I just don’t define myself as a female CEO,” Nygaard-Andersen said. She wants to alter the industry; both in terms of the work she does on the product side and most definitely in terms of how it’s viewed from a diversity and inclusion viewpoint.
She and Howe are also pressuring the industry to consider its financial practices.
The CEOs’ cost-related worries are valid, and they brought investors’ nagging concern to the fore. How much can you spend on client acquisition for gaming?
In an effort to win clients, sports betting organizations frequently provide customers with substantial promotions. These include sign-up bonuses or risk-free initial bets. However, those advertisements reduce earnings. In areas, like New York, businesses must pay taxes on these campaigns as gaming income rather than marketing expenses.
The main American rival of FanDuel, DraftKings, is under pressure to determine how to become profitable. Jason Robins is the company’s founder and CEO. In earnings calls, analysts urge Robins to discuss marketing budgets and customer acquisition costs. In August 2021, Caesars CEO Tom Reeg unveiled the Caesars Sportsbook app with an attention-grabbing $1 billion marketing expenditure. He went on to provide projections for a return on that investment by 2023; which is a common goal for profitability among American sports betting sites.
Nygaard-Andersen has advocated for several methods of customer pickup. She cites a tactic that makes use of the attractiveness of the leisurely features of gaming entertainment; such as free-to-play games. It’s paying off, according to Nygaard-Andersen, who recently spoke with CNBC. Entain had double-digit growth in 2019 and a 25% increase in its global client database in 2018.
“That really aligns us with other businesses that are customer-focused disruptors with rapid growth, like Netflix and Google” she said. “And like them, we continually consider how we might say, evolve our product. How we might innovate on behalf of the clients, using our technology.”
According to MGM Resorts, Entain and MGM Resorts who jointly run BetMGM, have seized market leadership in the states where it conducts business for online gambling and casino games (more infos on casinosjungle.com). They are also vying for second place in sports betting.
Fresh possibilities
Entain recently announced that it will invest GBP100 million in an innovation lab called Ennovate. It aims to promote cutting-edge technology from all over the world and plans to collaborate with nonprofits to adapt those advancements for environmental or societal benefits. Ennovate will be part of Entain’s global innovation network.
Given the emphasis on using technology to entertain and even inspire clients, Nygaard-Andersen believes it is critical that the technology itself is devoid of biases in programming sets of data and the AI that runs the platforms. The underserved groups are the focus. It definitely applies to women and young girls.
When Nygaard-Andersen mentions Entain’s commitment in Girls Who Code, a group devoted to eliminating the gender gap in technology, she becomes animated. “You can start early if girls become interested in tech. Girls can become superstars the moment they realize this”, she added.
Howe is as passionate about extending opportunity as Nygaard-Andersen is. She expresses her excitement over FanDuel’s parent company, Flutter, publicly announcing an ambitious aim to have 40% of the firm’s executive roles filled by women by 2026.
“Women make up 50% of sports fans, right? But barely 15 or 20% of women partake in sports gambling,” Howe says.
Supporting female athletes, promoting women’s sports, and “targeting women gambling fans in a very authentic way” are priorities, according to her.
Howe also makes it a habit to support, guide, and connect with other women. Numerous women at the most recent MIT Sloan Sports Analytics Conference gave Howe credit for hiring, promoting, or linking them to high-level positions in sports.
One FanDuel worker reportedly said, “She’s not my boss so I don’t answer to her but she is THE BOSS.”
Howe reiterated her dedication to an inclusiveness strategy, which she thinks will benefit the business for many years to come. “It motivates me to be a better leader if I know I’m in a position I can give back to others”, she said. “I firmly believe that over time, it will help our business and our sector succeed.”
Supporting female athletes, promoting women’s sports, and “targeting women gambling fans in a very authentic way” are priorities, according to her.
Howe also makes it a habit to support, guide, and connect with other women. Numerous women at the most recent MIT Sloan Sports Analytics Conference gave Howe credit for hiring, promoting, or linking them to high-level positions in sports.
One FanDuel worker reportedly said, “She’s not my boss so I don’t answer to her but she is THE BOSS.”
Howe reiterated her dedication to an inclusiveness strategy, which she thinks will benefit the business for many years to come. “It motivates me to be a better leader, if I know I’m in a position I can give back to others”, she said. “I firmly believe that over time, it will help our business and our sector succeed.”