Early Payouts is a feature that is not offered by all sportsbooks but for those that do, it allows bettors to be paid out as a winning bet if certain conditions are met, regardless of the final outcome.
As an example, an Early Payout might be triggered in a soccer match if the team you’ve bet on leads by two goals at any point during the game. As such the condition is met and the bet is immediately settled as a win. Bettors then receive their winnings instantly despite the fact the game is still continuing.
We take a deeper look at the positives of including Early Payouts as part of your sportsbook and why this feature helps to make Altenar one of the leading providers in the world.
How Early Payouts work
Altenar sets up the relevant configuration in agreement with the operator, who can choose the sport, category, parameter and type that should have Early Payout enabled.
The Early Payout indicator then appears on the championship view, on the sport menu next to the selected leagues, on the event view and also on the betslip and bet history.
The criteria can be applied to pre-live singles and also multiples, so the selection will be marked as a winner if included as part of an accumulator, with the remaining selections playing out as normal.
The promotion should not be confused with Cash Out, which involves the player choosing to lock in a winning return or minimising losses while the event is taking place. The Early Payout, in contrast, is automatically activated when the criteria is met and the player receives their full winnings plus stake.
While football is the most popular sport for Early Payouts, the promotion can also be offered across a range of other events including:
-
American Football: 17 points ahead
-
Basketball: 20 points (NBA) or 18 points (other leagues) ahead
-
Tennis: Two sets ahead (five-set match)
-
Baseball: Five runs ahead
-
Ice hockey: Three goals ahead
Front-end labels can be used to indicate which events and markets offer the Early Payout promotion, meaning operators can use this as a promotion around the most important events for their player base.
Problems Early Payout solves
The Early Payouts feature is starting to become an industry standard across all sportsbooks and without this technology, there is a risk that your sportsbook is not providing something that is regarded as a minimal requirement for bettors.
Without Early Payouts, players do not have the same level of reassurance or loss mitigation and, equally, without the more instantaneous return of funds, may not place the additional bets they would like to.
Benefits of Early Payout for users
From the operator’s point of view, implementing Early Payouts brings a whole host of benefits to the brand.
With increased customer satisfaction comes an increase in the level of loyalty. In addition, Early Payouts are also useful for attracting new customers and providing a competitive edge over rival sportsbooks who do not have such a feature. Furthermore, it also increases customer engagement as an instant payout on winnings encourages bettors to place additional bets and thus helps to retain high-value customers.
Let’s take a look at the benefits for both bettors and sportsbook operators in greater detail:
Immediate Gratification: The addition of Early Payouts can significantly enhance the customer experience by providing immediate gratification. When customers receive their winnings without having to wait for the event to conclude, it can create a positive perception of the sportsbook, fostering loyalty and encouraging repeat business.
Risk Mitigation for Bettors: Early Payouts can act as a safety net for bettors, allowing them to secure their winnings before the outcome of the event is officially determined. This can be particularly beneficial in scenarios where the bettor is uncertain about the final result, but their bet is currently winning.
Attracting New Customers: Early Payouts can be an attractive feature that sets a sportsbook apart from its competitors. By promoting this feature, a sportsbook can attract new customers who might be drawn to the convenience and perceived fairness of early payouts.
Building Brand Reputation: Offering Early Payouts can enhance the sportsbook's brand reputation as one that prioritises customer satisfaction. This positive reputation can translate into increased word-of-mouth referrals and a stronger market presence.
Enhanced Engagement: By offering Early Payouts, sportsbooks can keep customers more engaged, as they may be more likely to place additional bets with their early winnings. This can lead to higher overall betting activity and increased revenue for the sportsbook.
Comparison with Competitive Solutions
Altenar offers the ability to offer Early Payouts on numerous sports, which can help your sportsbook stand out against competitors who may only be focused on soccer. Offering the same promotion on basketball, tennis, ice hockey, baseball and NFL ensures your sportsbook appeals to fans of all the most popular sports in a variety of markets.
Some sportsbooks are wary of implementing the Early Payout feature because of the financial risk with potential losses occurring if the final result changes after an Early Payout has already been actioned. While that is a possibility, the positives out-weigh any perceived negatives, especially with bettors often likely to reinvest their winnings.
Conclusion
In summary, without an Early Payout feature your sportsbook is likely to be perceived as behind any of your rivals. With the additional benefits of providing customer satisfaction, loyalty, engagement and an increase in bets placed by customers, your sportsbook simply cannot afford not to provide this feature to your customers.
Speak to your account manager to learn more about how this product can be used in your region, or get in touch with our sales team to learn how this and many more features can help your brand grow.
