August 14, 2024

Betting on UX — PointsBet COO Jake Williams on the Need for Streamlining Sportsbook Onboarding

By: Jacob Fortinsky

Th sports betting gold rush is in full swing. With over 30 states now offering legal wagering, operators are tripping over themselves to plant their flag and snag market share. But as any prospector will tell you, it's not just about staking your claim - it's about striking real gold. And in the world of online sportsbooks, that means acquiring and retaining happy, engaged customers.

The problem is that the current state of sportsbook onboarding is turning folks off before they even get started. Users are forced to navigate a gauntlet of signups, deposits, location checks, and identity verifications while bombarded with more betting options than a Bloomberg terminal. It's enough to make even the most die-hard fan throw in the towel before placing a single wager.

It's time for operators to put down the proverbial pickaxe and start panning for UX gold. The sportsbooks that win the next phase of the betting boom will be those that can simplify the onboarding process and get back to basics - creating an intuitive, frictionless experience that keeps users coming back for more.

Remember to check out this week’s full episode with Jake Williams, COO at PointsBet, here:

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The Current User Journey: A Long and Arduous Process

Imagine for a moment that you're a new sportsbook customer. You've just downloaded one of the many betting apps available, eager to lay down a few (responsible) wagers on the big game. But before you can even think about spreads and money lines, you're confronted with a dizzying array of signup fields, location prompts, and deposit screens.

The painful reality is that this cumbersome onboarding flow isn't the exception - it's the industry standard. You have to navigate through 100 form fields and seven different pages to even get started. And with each additional hurdle, the risk of user abandonment grows.

Each point of friction is another leak in the customer acquisition funnel. And in an industry where the cost per acquisition can stretch well into the hundreds of dollars, those leaks can add up to a massive drain on an operator's bottom line.

So where exactly does the sportsbook onboarding train tend to jump the tracks? While pain points can vary, there are a few common culprits that rear their ugly heads again and again:

  1. KYC Purgatory: The Know Your Customer (KYC) process is a necessary evil in the regulated betting world. But all too often, it devolves into a frustrating exercise that can bring onboarding to a screeching halt. Fuzzy license scans, address mismatches, and manual review queues can leave would-be bettors in verification limbo.
  2. Deposit Dismay: Once a user's identity is confirmed, the next hurdle is funding their account. But with many banks still wary of gambling transactions, even a well-intentioned deposit can result in a declined card. And while alternative payment methods like PayPal or Play+ offer a workaround, they can add yet another hoop for users to jump through.
  3. Location Limbo: In a mobile-first betting world, pinpointing a user's location is paramount to staying on the right side of state lines (and the law). But flaky geolocation checks can stop onboarding in its tracks, serving up false negatives that block eligible bettors. And heaven help the poor soul located close to a state border.
  4. Odds Overload: The sheer volume and variety of betting options can be paralyzing for new bettors. Moneylines, spreads, props, parlays - it can be too much even for experienced bettors. And without clear onboarding guidance, many users will simply tap out rather than attempt to wade through a sea of obscure odds.

Simplicity as a Competitive Advantage

In an increasingly crowded betting marketplace, how can sportsbooks differentiate themselves? The answer, counter-intuitively, might just be to do less. Or more specifically, to simplify. As Jake Williams astutely notes, "As boring as this may sound, I think the basics should become cool again."

It's a strategy that has paid off handsomely in other digitally native industries. Take Robinhood, the popular stock trading app. In an arena dominated by incumbents with cluttered, complex interfaces, Robinhood won over millennials with a radically simple user experience. Account setup is streamlined, jargon is stripped away, and placing a trade is as easy as ordering an Uber. By nailing the fundamentals of user experience, Robinhood was able to capture a massive chunk of the retail investing market.

There's no reason the same playbook can't work for sportsbooks. In fact, I'd argue it's now table stakes for any operator with aspirations of market leadership. Because in a world where every book is offering similar odds and betting options, user experience has become a key battleground. The sportsbooks that can deliver a frictionless, intuitive onboarding flow will be the ones that win the hearts and wallets of the next generation of bettors.

Strategies for Streamlining Sportsbook Onboarding

So what does a streamlined sportsbook onboarding process actually look like? While there's no one-size-fits-all solution, there are several key strategies operators can employ to grease the skids:

  1. Ditch the Ditchwater UX: First and foremost, sportsbooks need to take a hard look at their existing user flows and ruthlessly eliminate any unnecessary steps or fields. Every bit of friction should be scrutinized and justified. Does a user really need to provide their mother's maiden name to place a bet? Probably not.
  2. Embrace Automation: Manual processes should be automated wherever possible to keep things moving. The right technology can supercharge document verification, address lookups, and even funding approvals. The goal should be to get users from signup to bet slip with as little human intervention as possible.
  3. Guide the Way: A little hand-holding can go a long way for new bettors. Contextual onboarding tooltips, interactive walkthroughs, even a well-timed tutorial can help users navigate the betting process with confidence. Don't just throw users into the deep end - give them a life jacket and some swimming lessons.
  4. Make it Mobile: With the vast majority of bets now being placed via smartphone, a mobile-first mentality is a must. That means designing onboarding flows that are intuitive and efficient on a small screen. From streamlined form fields to biometric authentication, every interaction should be optimized for the mobile user.
  5. Test, Test, Test: Finally, operators need to make user testing a core part of their product development process. And I'm not just talking about a few internal QA sessions. Real users should be recruited to stress-test onboarding flows early and often. Only by seeing where actual users get tripped up can sportsbooks hope to plug the leaks.

The Future of Sportsbook User Experience

Looking beyond the immediate horizon, it's clear that the sportsbook user experience is poised for some major disruption. As mobile betting continues to explode and new technologies come to the fore, the onboarding flows of today will likely look positively archaic in just a few years' time.

One area ripe for innovation is personalization. As sportsbooks collect more data on their users' betting behaviors and preferences, there's a huge opportunity to tailor the onboarding experience to the individual. Just as Netflix serves up personalized video recommendations and Spotify curates custom playlists, sportsbooks could soon be greeting users with bespoke bet suggestions and tailored tutorials. The end result would be an onboarding experience that feels less like a chore and more like a concierge service.

But perhaps the most exciting frontier is the convergence of betting and live sports. With the rise of in-play wagering and the growth of streaming, it's not hard to imagine a future where placing a bet is as simple as talking to your TV. Voice-based interfaces, augmented reality overlays, even brain-computer interfaces could all redefine what it means to onboard a new betting user. In this brave new world, the idea of filling out a lengthy registration form on your phone will seem as antiquated as writing a check.

Of course, all of these innovations will bring their own set of regulatory and technological challenges. But one thing is certain - the sportsbooks that can navigate this shifting landscape and keep their eyes trained on the user experience will be the ones left standing when the dust settles.

Conclusion

I know we've covered a lot of ground here, from the pitfalls of the current onboarding paradigm to the bleeding edge of betting UX. But if there's one thing I hope you take away from this deep dive, it's this: simplicity is the new secret weapon in the sportsbook arms race.

In a market that becomes more crowded and competitive by the day, the operators that win will be those that can deliver a seamless, friction-free user experience. And that all starts with onboarding. By streamlining signups, automating verifications, and making the process as painless as possible, sportsbooks can get new users in the door and betting with confidence.

But this isn't just about moving the needle on KPIs or juicing quarterly revenues. It's about fundamentally reshaping the relationship between bettors and bookies. Because when you strip away all the bells and whistles, sports betting is still a form of entertainment. And the sportsbooks that can make the experience of signing up and placing a bet as enjoyable as watching the big game itself will be the ones that earn lifelong fans.

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What is Novig? How does Novig work?

Novig is the first prediction market for sports. We were tired of betting against sportsbooks that take 10% cuts of winnings and limit/ban winning users, so we built a peer-to-peer exchange where you compete directly against other users in the Novig community rather than against the house.

When you place orders on Novig, you are weighing in with your own knowledge, research, and opinions on sports events, so the odds on our platform reflect what the Novig market believes is the fair value of a given event. We are distinct from traditional sportsbooks in that we allow users to offer their own odds (ie, name your own price) if you don’t like the market odds, which you can do by placing a “Make Order” on the Order Slip.  

We have two different modes: Novig Coins and Novig Cash. Novig Coins are unredeemable and are used to play for fun, and Novig Cash is a virtual currency that can be used to enter sweepstakes for the chance to win cash prizes. No purchase is necessary for Novig Cash.

What’s the difference between Novig Coins and Novig Cash?

Novig Coins are used to play for fun. They provide the opportunity to express one’s predictions on sports events, win more Novig Coins, and compete against the Novig community. Novig Coins can be purchased in the Novig App, and they can be claimed daily or when one’s balance is below 100 Novig Coins. They are unredeemable and non-transferable. 

Novig Cash is a virtual currency that is used to participate in Novig's sweepstakes. Novig Cash is free to claim and Novig Cash won from gameplay can be used to enter additional sweepstakes or redeemed for cash prizes, subject to eligibility verification, minimum and maximum redemption limits, and all requirements in the Sweepstakes Rules and Terms of Use.

It can be collected for free as a bonus with purchases of Novig Coins or via one of our alternative methods of entry. No purchase is necessary to obtain Novig Cash. Please see our Sweepstakes Rules for complete details. 

What happens if I win Novig Cash?

If you win Novig Cash by participating in sweepstakes games, you may redeem the Novig Cash for real cash prizes, subject to minimum and maximum redemption limits, but you must verify your eligibility and comply with all requirements, in accordance with our Terms of Use. The current minimum redemption of Novig Cash is $20, and the current maximum redemption of Novig Cash is $5,000 for a single redemption and $10,000 per day, except in New York and Florida where the maximum daily redemption is $5,000.

What are sweepstakes?

Sweepstakes are promotional games with prizes for the winners. They are used to promote the sale of products — in our case, Novig Coins — and have been legitimately used by businesses in the United States for decades. 

Unlike traditional sports betting where you wager real money on sports outcomes, sweepstakes involve no real money gambling. A sweepstakes is a game of chance where participants can win prizes without any requirement to make a purchase. Participants use Novig Cash to play sweepstakes games for the chance to win prizes.

Why use Novig instead of traditional sportsbooks?

We are the platform where winners play. Our research indicates that players are over 10x more likely to win on Novig compared to our competitors. On other platforms, if you are consistently winning, you are likely going to get limited or frozen out entirely. At Novig, winners are welcome. 

We also offer faster in-game trading, more transparency, and a number of innovative features like Make Orders, liquidity screens where you can view multiple levels of the Order Book, position tracking, and a generous rewards program.

What markets does Novig offer?

We offer moneyline, spread, totals, and player prop markets in NFL, NBA, NHL, MLB, NCAAF, NCAAB, NCAAW, and WNBA. In the coming months, we will expand our offerings to include other sports (tennis, UFC, golf, soccer) parlays, SGPs, and other exotic markets.

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What does it mean to “set your own odds”?

On Novig, you don’t have to just take the odds that the market is offering. You can set your own. 

For example, let’s say you want to put 1000 Novig Coins on the Cowboys to win against the 49ers and you see that the best odds are currently -330 for 49ers and +240 for the Cowboys. Instead of just taking the Cowboys at +240, you can change your Order type to Make on the Order Slip, and enter in whatever odds you’d like, say +300. 

Those odds are then offered to the rest of the Novig community so the 49ers odds would update to -300 and when another player on the app takes the other side, you will be notified that your order is filled and your payout would be 4000 Novig Coins, instead of 3400. If your order remains unmatched, it will be canceled automatically when the game starts, or you can cancel it from the Portfolio screen at any time and the Coins will be returned to your wallet.

Where is Novig available?

Novig is available to users 21+ across the United States, except in the following states: AL, CO, ID, LA, MI, MT, NV, and TN. Eligibility may vary month-to-month, and you are responsible for determining whether you are located in an eligible jurisdiction. For more information on eligibility and availability, see our Terms of Use and Sweepstakes Rules.

How does Novig actually make money?

It's a great question and one that gets to the heart of how we're different from traditional sportsbooks. Our revenue model is actually quite simple. We make money in two ways.

First, we act as a market maker on our own platform. That means in addition to letting users trade directly against each other, we're also providing liquidity and acting as a participant in the market. This helps keep markets active even when user liquidity is low and solves the “cold start problem” from day one. 

In other words, if you want to participate in a niche market where there isn’t any counterparty, we will serve as the counterparty. In the most liquid markets — like NFL moneyline markets — we expect the vast majority of trades to be directly peer-to-peer where we don’t take a cut, but in less liquid markets, we expect most trades will be against Novig, where we will have 1-4% spreads. 

Second, for our highest volume users - think professionals and hedge funds - we have a fee structure. But for the vast majority of users, we're not taking a cut at all. When two users play against each other, we're not touching the winnings. That means if you put up 100 Novig Cash and your buddy puts up 150 Novig Cash, the winner gets 250 Novig Cash, whereas on virtually any other platform the house would take 8-10% of the winnings, so you’d only get 230. 

This is a complete paradigm shift in the industry. We're the only platform in the world that doesn't take a cut from most of our users' winnings. It's a game changer, and it's at the core of our mission to build the fairest, most transparent platform possible.

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