Pinnacle Solution: The more profitable answer to those still ‘line copying’
Too much ‘line copying action’ was one of the reasons Pinnacle stepped into the B2B space back in 2018, allowing operators to benefit from its trading and risk management expertise – particularly on the esports side – rather than trying to compete against them.
Three years on and Pinnacle Solution continues to knock back an industry trend to follow market average prices and implement ‘heavy-handed’ player limitations which can lead to a huge waste of profits.
Making our partners more money is what we do, said CEO Paris Smith, who explained why Pinnacle Solution is now looking to build on its huge success in East Asia and now push into mature and emerging European markets, as well as Latin America.
She told SBC News that protecting themselves against line copying and scraping remains a key priority, yet Pinnacle Solution is also reaching out to those engaging in such activities – instead offering customised trading services as the better way to take back control of the bet flow to maximise profits.
SBC: Since founding Pinnacle Solution, how has the broader industry reception been to rolling out Pinnacle’s trading heritage in a B2B form?
PS: We were very confident the demand was there for what Pinnacle Solution delivers. We’d received various enquiries for data feeds and seen too much line copying action, so it seemed like a logical move to repackage our renowned trading function for the B2B market.
Although the sportsbook supplier space is fairly congested, there are very few with skin in the game when it comes to the managed trading service they supply. Our investment in the product and our understanding of the end user sets us apart from much of the industry, and we’ve seen great success to date in passing it on to partners to deliver hold and revenue gains.
SBC: What are the key opportunities you’ve seen in the market for Pinnacle Solution?
PS: The trend for both operators and suppliers in recent years to follow market average prices and be heavy-handed in limiting players is seeing millions of dollars of potential profits go to waste. We appreciate that this approach works for some business models, but we want to give partners the ability to realise more profit from the betting action they’re working so hard to generate.
Few out there have the risk management skills we do, and we’ve proven our model works across B2B partners with differing trading priorities. We’re a viable alternative to the homogenous solutions out there, and we’re confident that there are many operators who want to rethink their current arrangements.
Protecting our data is a current priority and to do this, we’re focusing on securing IP to better manage line copying and scraping activities against us. By monitoring and acting on this activity, we will be able to position Pinnacle Solution as the ultimate source for API price feeds and add more value to partners who take them.
We are reaching out to those who we believe are ‘taking’, ‘scraping’, or ‘copying’ Pinnacle lines so we can ensure that their true value is maximised, allowing for Pinnacle Solution to manage the bet flow and optimise profits for all partners.
SBC: How has your growth strategy changed in recent years? Are there specific regions and markets on the radar?
PS: The East Asian market has been successful for us to date, with the region’s product and sports betting demands well suited to our iFrame Solution and our esports and baseball offerings, but our premium trading service has global appeal. Making our partners more money is what we do, and we can service the best sports betting content to local market needs, wherever they may be.
We’re also increasingly looking to the likes of Latin America and Eastern Europe where we have a strong understanding of the space from a B2C point of view, and with an expanded sales team and increased product localisation, we’re excited to build out our footprint in due course.
SBC: Esports has been a major push for Pinnacle Solution in recent months. How do you see the current state of the esports betting market?
PS: It’s encouraging to see the majority in our industry now treating esports betting with the respect it deserves. We see it as a fully-fledged tier-one betting sport, capable of onboarding millions of bettors from outside the sports betting world, and it appears that its commercial appeal is leading to increased investment industry-wide.
It’s also been very welcome to start talking about esports betting on a more granular level over the past couple of years, which is a testament to the increased levels of education that decision-makers now hold. The sporting shutdown caused by the Coronavirus pandemic obviously helped with this, but on the whole, we’re seeing better products come to market and more bespoke acquisition from the esports communities.
From a B2B perspective, we completely understand that it’s expensive and risky to go all-in on esports without in-house expertise. However, the numbers speak for themselves and for those who don’t see an in-house solution being the right direction for their brand, we’re ready to offer them a product, proven in its trading performance and ability to engage with the unique esports audience.
SBC: The Esports Hub launch has underpinned your esports offering; what are its key benefits to partners and end users?
PS: The Esports Hub is a fast track to building authenticity with the esports community. We are committed to constantly evolving and improving our authentic experience for this audience. They want more than what’s currently on offer and giving them a tailored experience that fits with how they enjoy esports content gives them just that.
We consistently hear that plugging esports as an extension of the traditional sportsbook is not a good enough user experience. So, for those partners wanting to engage with this audience more effectively and build that trust through product, the Esports Hub can be the answer.
The revenue-driving and acquisition potential is huge, and with our esports trading service capable of delivering hold figures that match up with sports that are generally regarded as easier to profit from, partners can win on all fronts.
SBC: Outside of esports, what areas of growth and innovation are you seeing across other sports?
PS: Demand for live betting action remains strong, and for us as a supplier, that means we have to ensure we’re offering quality content around the clock in terms of both events and market breadth.
We’ll continue to stay true to our core focus of quality over quantity, though. We’re not looking to get involved in a race to the bottom in terms of offering every possible event going, but we will ensure that our 24/7 content is backed up by the Pinnacle DNA that allows partners to offer higher limits and sharper prices in the knowledge that we will deliver from a risk management perspective.
SBC: And finally, with the events calendar returning to some normality, how does this help you drive the B2B side of the Pinnacle business?
PS: It’s a huge help. We’ve spent the past 18 months honing our services based on feedback from our partners, as well as investing in better modelling and product upgrades. However, with the return to face-to-face events, we’re now able to engage on a far deeper level about what operators need from their sportsbook suppliers, whether they’re in Asia, Europe or Latin America.
We’re now building confidently towards ICE where we’ll be looking to showcase a slicker offering for our managed trading service and esports product. Pinnacle Solution is able to deliver something unique in the market by leveraging our trading heritage, and in person, we’re able to share more in terms of data and specifics that make these benefits more appealing to partners.