As betting markets evolve, sportsbook suppliers are increasingly looking beyond mainstream sports to capture growth from niche markets. In this roundtable, Jeevan Jeyaratnam, Chief Betting Officer at Abelson Sports, Gareth Crook, SVP of Sport at Pragmatic Play and Hristo Spasov, Director of Sports Betting at Codere Online, share how they define a ‘niche’ market, spot breakout opportunities and balance operational challenges with the potential for long-term growth.
How do you define a niche sport or market? Is it based on turnover, event frequency, geographical relevance, or something else entirely?
JJ: “Factors such as low event frequency, a requirement for specialised equipment and regional geographical and/or cultural relevance are intertwined and in part all contribute to defining a niche sport. Geography and cultural relevance are the two more significant factors in declaring a sport ‘niche’. Of course, sports can move along the continuum and break into mainstream consciousness; a niche sport may not be niche forever. Examples here include Padel and Crossfit, though perhaps these sports are considered to be predominantly breakthrough participant sports, with any commercial betting interest not reflective of the sport’s overall profile among the population.”
GC: “Ultimately, it’s a very broad question, but if we simplify it, a niche sport is usually defined by the number of customers, the number of bets, and the amount of money wagered on that sport within a given region.
“Where it becomes complex is that the definition of a niche sport varies significantly from one region to the next. For most European sportsbooks outside of the UK and Ireland, close to 90% of betting activity or revenue comes from just three core sports: football, tennis, and basketball. By that definition, the 50-plus other sports offered through our sportsbook, which collectively account for around 10% of turnover, could be considered niche.
“However, in the UK and Ireland, a sport that might be considered niche in continental Europe (like horse racing) becomes a major revenue driver. There are similar regional contrasts elsewhere: in North America, football (soccer) is still relatively niche, with betting activity dominated by American football, baseball, ice hockey, and basketball. And in certain parts of Asia, esports (which might be niche elsewhere) has become a major sport in its own right.”
HS: “Broadly, I would break it down into two types of Niche Sports. Firstly, based on local and geographical relevance, such as Pickleball in the US, or Pelota Vasca and Bullfighting in Spain. These are usually very localised audience markets with little net revenue relevance, but with big marketing importance. The second type is a sport or event with rapidly growing popularity within a bigger audience: this can be certain age groups or sectors of society that are particularly interested in an event or type of sport.”
We all saw how table tennis became an overnight staple during the pandemic. Do you see any other sports with that kind of breakout potential right now?
JJ: “Aside from Padel, another racquet sport that has really broken into mainstream awareness is Pickleball. Pickleball is another example of a high participation sport that still has limited betting appeal but does now feature some recognised competitions and player rankings.
“3×3 basketball, which became an Olympic sport and found its way into the living rooms of billions, is a simple-to-play variant of traditional basketball with major backing from Team USA. It’s also supported through Abelson Sport’s delivery pipeline via its partnership with Pro League Network, which runs and broadcasts a 3×3 basketball league called Str33t, backed by NBA legend Kevin Garnett. It is a fine example of how the betting industry can benefit from the latest sporting trends.
“Other sports, especially those underpinned by technology advancements, such as Drone Racing and SailGP, are also ones to watch in this space.”
GC: “Table tennis became an overnight staple during the pandemic largely because of availability. While most major sports were suspended worldwide, a number of governing bodies and associations collaborated to organise local table tennis tournaments that could be streamed at scale to sportsbook operators who were desperate for trading content.
“What’s fascinating is that even after the pandemic ended, table tennis has remained a fairly core product for many mid-to-large sportsbook operators. The reasons are clear: coverage and consistency. Thousands of table tennis events are streamed to sportsbooks every month, across different hours of the day, meaning 24/7 availability that caters to multiple time zones. That’s exactly why Pragmatic Play Sports ensures delivery of a market-leading table tennis product, complete with official data, live video streaming, scoreboards, stats, low-latency pricing, and in-play settlement.
“As for which sport could show similar breakout potential, esports is the best example. It’s comparable in many ways: extensive year-round coverage, thousands of events across multiple titles, and constant availability across time zones. We currently trade in excess of 40,000 individual esports events annually. The infrastructure mirrors that of table tennis; official data, low-latency pricing, fast settlement, and video streaming that allows players to watch and bet in real time.
“So, while esports might still be considered niche in some regions, its accessibility, volume, and engagement levels mean it’s very much on a similar trajectory to table tennis in terms of growth and mainstream adoption.”
HS: “It’s not quite the way that table tennis emerged overnight during the pandemic, but the next big thing in our eyes is without doubt eSports: football, basketball, and other electronic sports simulators have not only become extremely popular but have actually overtaken table tennis as the 4th most popular sport on our sportsbook.
“I would also highlight Padel as an emerging sport that could become the next “table tennis”. It is a fast-paced sport played across the globe, with familiar rules to punters, a very suitable match duration, and fast gaining popularity with amateur enthusiasts.”
When you choose to launch or grow a niche market, what usually drives that decision? Is it operators asking for it, betting trends, data, or things like TV/streaming coverage?
JJ: “From an Abelson Sports’ perspective, we support purveyors of niche sports through our delivery network. ALT Sports Data, for example, manage official rights on behalf of alternative sports rights holders and build betting markets and engagement tools to broaden appeal. In contrast, Pro League Network creates, produces, owns, and distributes its sports – owning the IP allows for greater freedom but does mean that you are also responsible for driving interest. Coffin Wars and CarJitsu are building growing, loyal fanbases and both sports have specialised rules or equipment which means these are very much spectator sports, not high participation sports, but that only aids the betting appeal.
“Another factor that might influence an operator or platform when considering integrating a niche sport is localisation. Hypothetically, if you were allowed to offer sports betting in India, you would certainly want to have some pricing around Kabadi and chess. Kabadi is growing in popularity and the first World Cup to be held outside of the subcontinent occurred earlier this year in the UK, but it’s without doubt a niche sport outside of India.”
GC: “When we decide to launch or grow a niche market, the main driver is what we perceive to be the growth potential of that sport. For sportsbook platform providers like us, operating across multiple jurisdictions, the real danger is underestimating the potential of a product. By the time it becomes mainstream, you’re scrambling to integrate it and risk being left behind.
“Our recent launch of a market-leading esports product is a good example. We recognised the sport’s strong long-term growth potential and rolled out a comprehensive esports solution for all our global operators to ensure we were ahead of the curve.
“Of course, potential operator demand is also a major factor. A good example here would be padel. We’ve seen increased appetite from operators for trading coverage because padel is becoming a widely adopted recreational sport, which naturally increases familiarity and betting interest among consumers. As media coverage and live streaming of paddle tournaments grow, that interest continues to build. Watch this space!
“That said, not every televised or streamed sport is destined to become a viable betting product. You see this every Olympic cycle: sports such as swimming or squash attract short-term attention but rarely generate the sustained engagement or betting turnover needed to justify full integration. So, while we monitor trends and media exposure, the key driver remains our long-term assessment of a sport’s scalability and commercial viability for operators.”
HS: “It is our personal experience and opinions that drive the decisions most of the time. Within our trading team we have variety of experts that follow the sporting world very closely. They are also punters themselves – so the combination of “like the sport & would bet on it” is the key to making the decision. To launch a new sport you need to ask the following questions: a) Is it easy to understand, b) are there a variety of outcomes to bet on, c) does it have similarities with well-known sports, and finally, d) is there sufficient TV/media coverage? If you have the answers that you want, you go for it!”
Smaller markets can be riskier and attract sharper players, so does that change how you price and automate them, or even where and how you display them in the sportsbook?
JJ: “It is true that offering betting markets on niche sports means that the mix of sharp player turnover is likely to be greater. As such, reactive market management and lower maximum stakes are encouraged, certainly in the early stages of a product introduction.
“Especially true of “newer” sports like Drone Racing and Padel, where reliable historic datasets will be limited in scope and usefulness, there is likely to be an element of feasibility testing before traders feel fully confident.
“Another element to consider when adding new sports to an offering, is to ensure that punters are educated as to the settlement rules. A bad experience with misunderstood rules or settlement will not engender punters to revisit a sport.”
GC: “Yes, absolutely. Smaller or niche markets do require a different approach to pricing and display. The main challenge with niche sports is that there is often less reliable information about the competition, event, or participant, which makes accurate pricing more difficult. As a result, operators typically trade these events with lower limits and are more cautious about exposure, as the markets can be more volatile and susceptible to sharp action.
“In general, you’ll see a lower risk tolerance for niche sports than for major sports such as football, basketball, or tennis. This is reflected in both betting limits (the amount an individual user can stake) and price volatility, since the markets are far less liquid and it’s harder to eliminate inefficiencies in the odds. The variables that go into pricing (form, team news, weather, and available data) are often less comprehensive or slower to update for niche sports, which naturally increases risk.
“In terms of how these markets are displayed within the sportsbook, they’re not hidden, but they don’t receive the same level of prominence as the core revenue-driving sports. That said, modern sportsbooks are moving toward personalisation and segmentation. A user who consistently bets on niche sports will increasingly see a front-end experience tailored to their preferences. This forms part of our personalisation ambitions here at Pragmatic Play Sports.
“For example, I personally bet mostly on rugby union and golf (both of which could be considered niche from a global perspective) but my front-end experience can still prioritise those sports for me. That’s the value of a segmented, data-driven approach to sportsbook presentation: the product adapts to the bettor, rather than the other way around.”
HS: “Absolutely. New sport markets are volatile and dangerous due to lack of long-term statistics, therefore the models are being updated in real time as the play goes on, so you need to constantly experiment with the market positions and continually update your stats database to adjust the odds. With all this, naturally there is increased risk, so it needs to be managed carefully.”
