Why in-play betting has become the profit engine for modern sportsbooks
In-play betting (commonly called live betting) has transformed from a niche feature to the profit driver of modern sportsbooks. In-play betting gives player access to interactive while the event is taking place, making them feel apart of the action, micro dosing wins or loses during one event. An example of this would be, X player to commit Y fouls in match Z.
DraftKings reports that in-play handle now represents 30-40% of total sports betting volume in US markets. FanDuel’s earnings consistently highlight live betting as their highest-margin product. This demonstrate the transformation happening in sportsbook and impact to profitability.
The question isn’t whether in-play betting is growing. It’s why and what it means for your iGaming operations.
After analysing operator data and market trends, the drivers of this boom are both technological and psychological. Understanding them separates operators capitalising on this shift from those still relying on pre-match wagering models.
The Technology Enabler: Real-Time Data and Odds Movement
In-play betting didn’t exist as a commercial product 15 years ago. The technology wasn’t there. Modern sportsbooks require real-time data feeds, automated odds calculation, and instantaneous settlement and infrastructure that only became viable in the last decade.
What Changed:
Live Data Integration: Sports leagues now provide official data feeds covering every moment of play, player positioning, ball movement, game clock, even biometric data for some sports. This granular data allows sportsbooks to create hundreds of in-play markets instantly. Sportsbooks often refer to these categories as ‘props’.
Odds Engine Sophistication: Modern betting platforms can calculate and update odds for 500+ markets simultaneously. A goal in football (soccer for the US audience) triggers instant updates across 50+ related markets (next goal scorer, total goals, corners, cards) within milliseconds.
Mobile Infrastructure: Betting in-play requires seamless mobile experience. 4G/5G connectivity and app-based betting eliminate the friction of desktop-based pre-match wagering. Players can place bets from stadium seats, living room sofas, or anywhere with connectivity. 10-15 years ago this would not of been so seamless.
Settlement Automation: Smart contracts and automated settlement eliminate manual payout delays. A live market settles within seconds of resolution, not hours.
Without this technology stack, in-play betting at scale isn’t possible. With it, operators can create thousands of daily markets with minimal operational overhead.
The Player Psychology Driver: Engagement and Control
Technology enables in-play betting. Player psychology drives its adoption.
Why Players Prefer In-Play Wagering:
Information Resolution: Pre-match betting forces players to predict outcomes with incomplete information. In-play betting lets them watch events unfold, gather information, then place informed bets. This feels less like gambling and more like trading.
Research from DraftKings’ Q3 2024 Earnings Report shows that players who engage with in-play betting have 40% higher session lengths and 25% better retention metrics than pre-match-only bettors.
Higher Engagement Frequency: A football match generates 5-10 pre-match bets per player. The same match generates 15-30 in-play bets. More bets per event = higher GGR opportunity for operators. Accounted with a product producing higher margins than pre-game bets is a lethal combination for NGR.
Perceived Control: In-play betting creates illusion of skill and control. Players believe they’re “trading” odds rather than gambling on chance outcomes. This psychological shift increases play frequency and willingness to place larger bets. Control is added to the players psychological state when they see real-time cash out potential fluctuating.
Emotional Momentum: Sports are emotional experiences. In-play betting monetises that emotion in real-time. A losing team trailing by 1 goal triggers bets on comeback outcomes. A player receiving a yellow card triggers discipline-related markets. Emotions drive impulsive betting decisions.
The Commercial Driver: Margins and Product Innovation
From an operator perspective, in-play betting is commercially superior to pre-match wagering across multiple dimensions.
Higher Hold Rates: In-play markets typically carry 5-10% operator margins versus 3-5% for pre-match markets. Players making rapid, emotional in-play decisions don’t shop odds across operators like they do for pre-match bets.
According to FanDuel’s 2024 Investor Presentation, their in-play betting margins exceed their overall sportsbook margins by 200+ basis points.
Lower Spread Exposure: In-play markets move so quickly that traditional arbitrage opportunities (betting both outcomes across operators) are minimised. Players can’t efficiently compare odds when markets shift every few seconds.
Cannibalisation Prevention: Operators offer same-game parlays (SGP’s) and enhanced odds on in-play markets to retain players who might otherwise switch platforms. DraftKings’ acquisition of Railbird (a prop-building platform) directly targeted this, enabling parlay construction during matches for players, improving the product UX and capabilities.
Product Differentiation: All sportsbooks offer pre-match markets. In-play experience required speed of market creation, breadth of offerings, mobile UX, if brands execute this well it becomes the differentiation amongst brands. This drives technology investment and competitive advantage.
The World Cup Effect: Event-Driven Spikes
Major tournaments create temporary in-play betting booms that reveal underlying trends. As the 2026 World Cup enters the stage it will be interesting to see what product innovations are created.
The 2022 FIFA World Cup generated record in-play betting volume. iGaming Business reported that during World Cup matches, in-play handle surged 300-400% versus baseline football matches.
Why World Cup Amplifies In-Play Betting:
- Casual player participation: Non-habitual bettors engage with World Cup betting, and in-play format feels more accessible than pre-match, we offer see causal participation play out with high stakes horse racing (Grand National)
- Emotional investment: World Cup matches generate extraordinary emotional engagement, driving impulsive in-play decisions amongst crowds and players
- Media integration: Broadcast graphics now display betting odds in real-time, normalising in-play wagering to mainstream audiences, this has significantly impacted the exposure of in-play betting markets
The World Cup temporarily reveals what in-play betting’s future looks like when casual audiences fully adopt the product. This opportunity allows operators to increase their audience reach with innovative betting options mixed with entertainment value.
The Critical Question: Is This Sustainable?
Here’s where I shift from industry consensus and while in-play betting growth is sustainable, but it’s reshaping player behaviour in ways operators need to address carefully.
The Opportunity: In-play betting drives higher engagement, better retention, and superior margins. For operators, this is genuinely positive and it’s the most profitable product evolution in sportsbooks. This drives the desire for the product and potential casual participation to engage with operators.
The Risk: Rapid, emotional in-play betting increases problem gambling risk. Players make impulsive decisions during matches they’re emotionally invested in. The psychological distance between “placing a pre-match bet” and “betting repeatedly during an event you’re watching” is significant.
Research from the UK Gambling Commission indicates that in-play betting correlates with higher problem gambling prevalence versus pre-match wagering. CSR and responsible gambling is a pivotal accompanying message to reinforce player safety ahead of margins.
The Commercial Reality: Operators maximise in-play revenue by encouraging rapid betting, frequent decisions, and emotional engagement. However, there is a balance between the promotion of in-play and managing player harm.
This relationship between commercial optimisation and player protection defines the in-play betting industry’s next phase.
Strategic Implications for Operators
If you’re building an iGaming sportsbook, in-play betting is non-negotiable. But execution matters:
Invest in Technology: Real-time data feeds, rapid odds calculation, and seamless mobile UX aren’t luxuries, they’re required competitive features and can be costly to implement.
Differentiate on In-Play Experience: Market breadth, settlement speed, and UX quality separate winners from followers. This is where competitive advantage lives and many operators are competing on more market options.
Balance Profitability with Responsibility: Implement in-play betting limits, session controls, and affordability checks that protect vulnerable players without eliminating the product.
Monitor Player Behaviour: Track in-play betting patterns. Identify rapid-cycling bettors and implement intervention tools before problem gambling develops. We have not touched on exposures of the product but there are opportunists out there looking to find weaknesses in market value and must be monitored closely.
Final Thoughts
In-play betting’s boom is real, driven by genuine technology advances and legitimate player preferences. It’s also one of sportsbooks’ most profitable products with margins ranging 100-200% uplift vs pre-match markets.
But profitability and player protection can coexist. Operators winning long-term build in-play betting responsibly, not just aggressively.
How are you approaching in-play betting in your iGaming strategy? Are you optimising for engagement or balancing profitability with player protection?
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