Casinos are widely recognized as major revenue generators, while sportsbooks are often seen as engagement tools or complementary offerings. However, with the right tools and knowledge, sportsbooks can be just as profitable as casinos.
GR8 Tech’s CRO, Sergey Ghazaryan, delves into the overlooked revenue channels that can significantly boost sportsbook earnings – beyond the well-known strategies like bonuses, loyalty programs, cross-selling, or commissions.
“A truly effective iGaming solution is an ecosystem – every element must work together to drive maximum profitability,” says Ghazaryan. “The more experienced the provider, the more refined and interconnected the ecosystem becomes, equipping operators with the tools they need to unlock less obvious revenue streams.”
Cashout: Enhancing Player Experience While Driving Revenue
Cashout is often seen as a player benefit. From a bettor’s perspective, cashout allows players to settle a bet before a game concludes and helps them secure a profit if their bet wins or minimize losses if the outcome looks unfavorable.
While a player-friendly feature, cashout is also a significant revenue driver for sportsbooks.
By giving bettors more control over their wagers, cashout increases betting frequency, boosts player confidence, and encourages reinvestment of winnings into new bets – keeping funds circulating within the platform.
It also helps operators reduce payout liabilities by offering cashout amounts lower than the potential final winnings and strategically adjusting offers based on real-time odds to maximize profitability.
“Most sportsbooks design cashout with players in mind but overlook advanced calculation models and analytics, making it less profitable. We’ve taken it further, turning cashout into a strategic revenue-generating tool for operators,” Ghazaryan affirms.
The feature generates revenue through flexible commission structures, where payout amounts fluctuate based on a bet’s likelihood of winning. Sportsbooks can fine-tune cashout profitability by conducting A/B testing, offering the feature selectively to high-value segments, and refining real-time calculation models.
“For our sportsbook platform, cashout is a retention tool and an important revenue stream. By integrating smart commission models and advanced analytics, we help operators maximize player satisfaction and profitability,” says Ghazaryan. “Cashout with dynamic commissions can increase GGR by an additional 2-5 percent.”
Boosting Profits with Odds Personalization
Operators should strike a delicate balance between maximizing revenue and maintaining player engagement. One of the most effective yet often overlooked methods to achieve the balance is through odds personalization.
By dynamically adjusting margins based on player behavior, preferences, and regional trends, sportsbooks can fine-tune their offerings to extract greater value without additional marketing costs or feature development.
“Odds function as key decision-making factors for bettors. Some players are highly sensitive to small odds variations, while others prioritize aspects like service quality, convenience, or brand loyalty. With insights, operators can tailor odds to maximize profitability without alienating customers,” says Ghazaryan.
There are two effective ways to personalize odds. First, operators can reduce margins to offer higher odds, attracting new users or re-engaging existing bettors looking for better value. Second, for players who aren’t as sensitive to small odds changes, like those betting to support their favorite teams, operators can slightly increase margins to generate extra revenue without affecting their experience.
“One of GR8 Tech’s case studies demonstrated that implementing personalized odds led to a 34% profit increase within a single quarter. The key to success is precise player segmentation, ensuring adjustments align with different betting behaviors.”
Increasing Profits by Boosting Multi-Bet Turnover
Parlay bets, or multi-bets, offer sportsbooks a significant revenue advantage due to their higher margins than single bets. Each additional selection increases the potential payout while maintaining a favorable edge for operators.
Encouraging players to place more parlay bets boosts overall betting volume and diversifies revenue streams.
Strategies such as Bet Insurance, which refunds stakes if one selection loses, and Parlay Boost, which enhances odds on multi-bets, reduce perceived risk and drive engagement.
Intuitive platform features like bet-building tools simplify the process, making parlays more accessible to experienced and novice bettors.
By overcoming barriers such as complexity, risk aversion, and lack of awareness, operators can tap into the full potential of multi-bet wagering. A well-executed strategy can significantly increase turnover and profitability and enhance player retention and satisfaction.
The Impact of Strong Risk Management on Additional Profits for Sportsbooks
Effective risk management is a crucial yet often overlooked revenue driver for sportsbooks. Minimizing fraudulent activity, optimizing odds, and managing liabilities more efficiently increase profitability.
Artificial intelligence is a crucial aspect of risk management. One of its key advantages is detecting patterns and anomalies in betting behavior in real time.
Fraudulent activities such as multi-accounting, bonus abuse, and arbitrage betting can cause substantial financial losses if left unchecked.
By implementing AI-powered monitoring systems, sportsbooks can identify and prevent fraudulent activities before they escalate, reducing unnecessary payouts and chargeback fees.
Automated fraud detection also lowers operational costs by decreasing the need for extensive manual review teams, allowing operators to allocate resources more efficiently.
“Beyond fraud prevention, AI-driven risk management enhances odds-setting and liability control. By analyzing betting trends, market fluctuations, and player behavior, sportsbooks can adjust odds dynamically to maintain a profitable margin,” Ghazaryan explains.
It’s a proactive strategy that unlocks additional revenue streams in an industry where margins are often thin. Sportsbooks can improve financial stability, increase customer retention, and drive sustainable long-term profits by staying ahead of evolving fraud tactics and leveraging AI to optimize operations.
Maximizing Profitability Through Innovation and Strategic Alignment
“Only when all elements are aligned–technology, analytics, player engagement, and revenue strategies–can a sportsbook reach its full earning potential,” Ghazaryan concludes.
Innovation and smart automation are key to staying ahead in the industry. Are you making the most of these less-known revenue drivers? Now is the time to optimize your sportsbook, enhance the player experience, and turn overlooked features into profit boosters.
