Industry software provider BetConstruct has addressed one of the biggest challenges for a sportsbook – accepting “unlimited” bets without risk – through the development of its BetCloud solution.
Based on a “principle of synergy” for BetConstruct’s growing stable of operators, BetCloud is part of a global network in which each of these operators can share risks with each other.
We spoke to BetCloud Product Manager Alik Harutyunyan who explained the story behind the solution, how an operator joins the network by depositing into a virtual ‘BetCloud bank’ and why it is is suitable for “absolutely any type of operator regardless of its size, limits or region”, before providing an example of how this works in practice – for the benefit of both the operator and the player.
SBC: What is the story behind BetCloud – why did you develop it?
AH: We want our partners to achieve their desired success. This desire pushes us to come up with innovative solutions to the problems they may face in the industry.
The same attention and respect are at the basis of our relationships with any of our partners. We treat them equally regardless of size, standing in the industry or market reach. They may not be the biggest revenue generators but there can be a solution to that.
The story of BetCloud began about two years ago when we decided to address one of the most challenging sportsbook problems in the gaming industry; accepting ‘unlimited’ bets without any risk.
On our way to finding a solution, a few questions arose such as how to increase bet limits by several times and accept larger bets? How to eliminate risk when winning the bets? How to deal with slowdown and requests?
We already had an idea regarding how it should work. So, we built our BetCloud on the principle of synergy. BetCloud works via a global network where each BetConstruct operator can share risks with others.
However, once the objective for BetCloud was outlined, it was only a matter of time and programming before BetConstruct was ready to deliver a pertinent product.
SBC: What are BetCoud’s workflow and main components?
AH: In a nutshell, an operator becomes a part of BetCloud network by making a deposit which the system recognizes as their virtual BetCloud bank. When a player places a large bet exceeding an operator’s limitation, the over-limit portion of it gets automatically distributed among BetCloud network of operators who are ready to accept this bet.
There are also a number of settings that allows our partners to pre-set the bets they are ready to accept. Since bank deposit exists, it allows sharing the bet without any slowdowns and requests. It goes without saying that all transactions made in BetCloud’s virtual bank are recorded.
SBC: What problems does BetCloud solve for operators?
AH: BetCloud is a B2B product and is suitable for absolutely any type of operator, regardless of its size, limits or region, as well as any other factors. It comes as an online marketplace for operators to share the risk of large bets. This new marketplace allows operators to increase profits, either by servicing bets they would previously have declined, or by accepting bets from BetCloud that they did not have to sell initially.
All in all, the risks associated with larger bets can be managed by sharing the bet with other operators. Furthermore, BetCloud enables to receive all expenses associated with losing bets, in proportion to the amount of the bet passes to the BetCloud.
By entering the BetCloud family, smaller operators who are not the largest revenue generators can share the risk while making their sportsbook more competitive in their region and attracting larger players.
Bigger fishes of the industry not only support the BetCloud ecosystem with zero financial risk, but also encourage their regular players to go all-in who can later be converted into VIP level.
SBC: What’s in it for the players?
AH: Let’s look at the things from a player viewpoint. It’s the midst of football season. The player’s favourite team is on the field. The player is a die-hard fan, ready to push all their chips in and keep fingers crossed. Most of the time the operator is a total killjoy rejecting the bets they are not comfortable with. In fact, by limiting players bets, operators limit their own revenue!
With BetCloud players quench their drive for gambling and keep coming back to the operator who’s ready to offer max bet. Plus, higher bets give credibility to operator and inspire confidence to players because they know that their bets will always be accepted by the operator and paid in the case of a win.
SBC: Can you give us an example of BetCloud in practice?
AH: You start off with an initial deposit that becomes your BetCloud bank. Over time, with your revenue flow all the over-limit transactions will be performed through this bank deposit.
For example, having a €200 limit, you accept a €500 bet with 2.0 coefficient. Since your clients see you are ready to accept such large bets, they trust you. And the player is happy in the knowledge that their bet is fully taken. In fact, you will only accept €200 within your limit. The remaining €300 portion will be shared between BetCloud operators from your BetCloud bank.
In case the player loses, you keep the accepted €500 bet, but €300 will be subtracted from your initial BetCloud bank deposit. Conversely if your player wins, BetCloud will return to you €300 x 2.0 initial coefficient for a total €600 to your BetCloud bank deposit.
So it is noticeable that under the risk here is only €200 accepted within your limit. The worst case scenario is, if a player wins, you only pay out the €200 times 2.0 portion from your balance. Still, the best part is that BetCloud will cover the remaining €300 portion times the same 2.0 coefficient.
SBC: And finally, what features can we expect from BetCloud in the near future?
AH: The benefits of BetCloud are recognized beyond BetConstruct’s family of operators. We had requests from non-partner operators to join BetCloud network.
That’s why the API integration method is in the pipeline. The BetCloud manual method already exists for all interested operators, but in the near future we will be happy to integrate all operators into our large and exemplary BetCloud family automatically. They will be able to share their risks with us.