The Chicago-based sportsbook Vigtory is scheduled to go live in the fall of 2020. The sportsbook has a short-term goal of operating in five states in the next 12 to 18 months.
One noteworthy difference between Vigtory and other sportsbooks is their in-house risk management and trading team. What this team allows Vigtory to do is to lower the vig for consumers, which allows Vigtory to lower the cost of each bet punters make.
Vigtory founder Sam Rattner stated that, if other sportsbooks are at -110 for an NFL point spread, Vigtory will be at -105 or more—amounting to at least $5 saved for every $100 bet.
FanDuel and DraftKings are currently dominating the online sports betting market in America. Both companies started out in the daily fantasy sports (DFS) market and have built a brand image which is widely recognized among dedicated DFS players, many of whom have already switched to sports betting.
FanDuel and DraftKings are both publicly traded companies, with millions of dollars in advertising budgets. Smaller sportsbooks like Vigtory who are looking to take on the big boys have to innovate with their offerings and services in order to compete for market share.
Typical bettors have historically been loyal customers, resistant to switching sportsbooks even in the face of better odds. For instance, in New Jersey, punters often stick to just two sportsbooks, despite having more than 20 available.
Vigtory hopes to sway the more serious bettors with their lower prices. Because pro bettors make multiple bets each day, the lower vig that Vigtory offers across the board could spell the difference between a win or a loss for the day. Rattner also stated that Vigtory’s larger wagering limits will help attract pro bettors, and lead them away from black market sportsbooks operating offshore.
Rattner has tapped the legendary gaming executive Scott Butera, who has handled the gaming businesses of both Carl Icahn and Donald Trump, to lead the Vigtory team. Butera’s last position was MGM’s director of interactive gaming.
Vigtory executives also touted their sportsbook’s loyalty programs, the benefits of which they say are unmatched by their competitors.
Some notable features of this loyalty program are exclusive access to sports events as well as suite of data products to help punters gain an edge against the house.
Such programs have typically been ignored publicly by most sportsbooks, despite most professional sports bettors relying on them for their daily grind.
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