David Meltzer shared insights into the future of gaming and professional sports during a keynote address sponsored by Wicked Games at SiGMA Asia 2024 in Manila, Philippines today. He focuses on the intersection of technology and sports, revealing the possibilities for industry innovation.
Emotional drivers of sports and gaming revenue
“Especially middle-aged people, they buy things not for logical reasons but for emotion,” Meltzer explained, comparing fans’ passionate participation in sports to the growing interest in sports betting and gaming. He emphasized the importance of understanding the emotional connection between fans and sports and how technology can enhance this connection to achieve unprecedented levels of engagement and revenue growth.
Meltzer’s keynote focused on the future of sports revenue, highlighting the exponential growth in fan engagement enabled by technology. He recounted a conversation with Dallas Mavericks owner Mark Cuban, who initially considered banning cellphones at basketball games because of concerns they were a distraction. However, the opposite is true and handheld devices are now integral to enhancing the fan experience.
“Think about what we can do to increase engagement and emotional attachment,” Meltzer said, noting that instant messaging, with no lag, has revolutionized sports betting. He also predicts that stock market features, including secondary markets, hedging, futures and options, will be reflected in professional sports, suggesting that sports betting will offer similar investment options in the future.
The role of technology in increasing fan engagement
The impact of AI and technology in taking the emotion out of games is another key point, with Meltzer pointing out that analytics can provide a more pragmatic approach to gambling that is accessible to everyone. He also spoke about regulatory changes that have resulted in a safer environment for sports betting, ensuring the integrity of the game and growing the industry.
Meltzer also discussed the potential of robots in sports, arguing that analytical robots could offer attractive revenue opportunities. For example, medical robots can predict the impact of injuries on player performance, providing bettors with valuable advice and analysis.
Looking at future investment opportunities in gaming and sports, Meltzer recommends considering what is successful and stable currently, and what is likely to thrive in the future. He also highlighted the sponsorship aspect of sport, noting that bookmakers have become the largest sponsors, using technology to amplify returns on investment.
The keynote concluded with a focus on in-person events, which Meltzer believes will remain the cornerstone of the sports and gaming experience despite the surge in virtual visits. He emphasized the unique value of live events, which enhance the emotional and experiential aspects of the game.
Meltzer’s final advice is to study history and human nature to understand the future of gaming and professional sports. He noted that the same evolving trends seen in the stock market will also be reflected in professional sports, pointing to continued innovation and revenue growth in the future.
