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The competition between prediction markets and sportsbooks is intense and there is some evidence that the former is encroaching on the latter’s customer base.

A survey by Fullstory, a behavioral data analytics company, says that amid the evolution of yes/no exchanges, 60% of bettors said prediction markets are altering how they use sportsbooks with 35% admitting that they’ve reduced usage of traditional sports wagering platforms as access to sports event contracts increased.

“Consumers are being presented with more options for how they can participate in online gaming, creating a more competitive landscape where a seamless digital experience is increasingly becoming part of the value proposition,” said Jason Wolf, president of Fullstory, in a statement. “The brands that understand how consumers are navigating, comparing, and engaging with their platforms in real-time can identify where friction is getting in the way of trust and retention.”

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Lottomatica CEO Guglielmo Angelozzi described its merger with Cirsa as a “low-risk proposition”, during an investor call detailing the deal on Wednesday.

The Wednesday announcement promised the merger of the two listed gaming giants would create the second-largest listed global gaming and sports betting operator, with a pro forma adjusted EBITDA of approximately €2 billion ($2.3 billion).

Angelozzi, who is set to lead the combined company as CEO, told analysts on the post-announcement call that the deal was expected to be a “low-risk proposition” given the consistent growth demonstrated by both Lottomatica and Cirsa in recent years.

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“The industry has a content problem,” he says. “There are thousands of games being released and too many of them are variations of something that already exists.

“Part of the reason is economics. When games take months and significant money to develop, people naturally become risk-averse. Building on something that already works becomes the safer option.”

For Curwen, tackling the problem therefore means changing the risk-reward equation behind game creation. If creators can develop and test ideas more quickly and at significantly lower cost, an unsuccessful experiment becomes less consequential – and taking a chance on something genuinely different becomes easier to justify.