Small but Mighty: The Rise of Microbetting
“Big things come in small packages,” goes the old saying.
That certainly could be the case for microbetting, which has enjoyed steady growth in the U.S. over the past few years. The spreading ubiquity of sports betting and rapid technological advances create a perfect storm for the once-niche betting category to make a big slash.
But what exactly goes into creating these high-speed, incremental wagers that bettors—and bookmakers—have come to love?
The Building Blocks of Microbetting
Microbetting markets cover outcomes that can come and pass in the blink of an eye. Every second matters, because an event with a microbetting option might be over in a flash.
To offer a marketable microbetting experience, sportsbooks need to get a lot of things right in a very short amount of time. Technology can power these quickfire needs when it’s deployed in the right way. The building blocks of microbetting include low latency, machine learning, reliable data, and intuitive user experience (UX), among others.
Fredrik Elmqvist, chief executive officer of ParlayBay, says, “A microbet involves a short-resolution time frame, where the next moment matters, and low latency is crucial for this to become a reality. This reduces lag and ensures bets are relevant in real time.”
Dylan Mitchard, vice president of revenue at Huddle, also recognizes the essential nature of low latency for a good microbetting product.
“The challenges of achieving sub-0.5-second data delivery are compounded by the need for some key elements,” he says. “The back end must be capable of quickly calculating probabilities that respond to shifting in-game events, making algorithmic efficiency and data accuracy critical, while low-latency data flow is essential.”
A minuscule delay can misalign betting opportunities with actual events in a game. Such mistakes can cost an operator quite a bit, both financially speaking and with regard to customer loyalty or trust.
Speed is just one element of the pie chart, though. Tomash Devenishek, chief executive and founder of Kero Sports, emphasizes the need for a holistic view, starting with the inputs that power microbetting.
“A strong microbetting market starts with robust, real-time event data,” he says. “It’s a rare capability among data providers. From there, it combines low-latency processing, market state engines for availability and settlement, and machine learning models to predict and update odds dynamically. Each piece seems straightforward, but execution is complex.”
Devenishek points to the relative lack of live microbetting products as evidence of the challenges involved in offering such wagers. It’s a heavy lift, and that’s just on the back end. Microbetting requires a deft touch to make it palatable for the end user, the bettor.
What Microbettors Want
Many sports bettors are familiar with betting platforms to some degree. What, then, do they want from microbetting?
Devenishek says bettors want two things when watching a live game: “something engaging and an experience that is frequently accessible. Microbetting meets both needs, breaking games into small, bettable moments that maintain interest and generate entertainment value. At Kero, our unique capability in contextual relevance tailors betting options to the game’s state, eliminating endless scrolling and providing bettors with real-time, highly relevant options.”
All of these concepts must be boiled down into something inherently usable by any bettor who wants to engage.
As Mitchard says, “The presentation layer in the operator’s mobile and web apps must be intuitive and responsive, minimizing in-play delay. Seamlessly integrating micromarkets with live media or broadcasts can enhance user engagement, particularly if odds update in sync with real-time video feeds or game events.”
Elmqvist echoes these needs for a fast, varied and user-friendly product. “An excellent microbetting product needs precise timing, rapid settlements, and an intuitive interface that boosts the experience,” he says. “An efficient, immersive UX is essential to match the fast-paced, adrenaline-driven nature of microbetting, ensuring that players get both variety and simplicity in their bets.”
Providing a seamless UX and speedy, responsive microbetting markets is obviously the goal, but it’s easier said than done. Technologies new and old are contributing to the sector’s rise and powering more feasible solutions.
Tech Makes Microbetting Possible
Any discussion of new technology in sports betting will inevitably intersect with the artificial intelligence (AI) orbit, and microbetting is no different. However, there’s an important distinction to be drawn between generative AI chat programs like ChatGPT and the technology that can drive sustainable microbetting in the long term.
“The term AI often substitutes for machine learning,” says Devenishek, “which spans various modeling approaches distinct from true AI. While AI simulates human learning and decision-making, what’s typically used in oddsmaking is machine learning, a different and more precise technology.”
Mitchard expands on this idea: “For pricing and trading, AI often isn’t the ideal solution due to complexity and the need for very specific, real-time predictions.”
Instead, Mitchard says stochastic modeling and targeted machine learning are more suitable to the goals of microbetting providers. The quickfire and variable nature of in-game events makes machine learning the better fit.
“Most existing architectures for pricing and trading aren’t equipped to leverage AI effectively for these high-speed, low-latency tasks,” he explains, “primarily due to AI’s dependency on vast amounts of data and its sometimes slower processing. However, AI shines in other areas like customer profiling and segmentation, where it can analyze customer behaviors and preferences.”
While machine learning can shoulder much of the tech lift required to offer enticing markets at speed, there’s a lot more that goes into a holistic microbetting platform. Providers have to integrate directly into a sportsbook’s existing tech stack, and that needs to look and feel good to the user.
“Microbetting is positioned to grow through flexible integration methods,” says Elmqvist, “whether it’s adding a lobby or tab in sportsbooks, embedding widgets, or using an API data feed, ultimately making it adaptable to operator preferences.”
Elmqvist also says microbetting markets are a natural complement to traditional sports betting. “It gives sportsbooks a competitive edge and helps retain players who want fresh, exciting options,” he says.
Microbetting fits neatly into the sports betting ethos, but it adds some extra flavor. The thrill of engaging with a minor moment within a game or match gives a unique thrill that a standard pre-game bet can’t create on its own. This makes for a natural integration point to expand on a sportsbook’s existing portfolio.
Mitchard speaks to the specific approach Huddle takes to bring microbetting to sportsbooks: “We offer low-latency data processing for real-time updates and accurate pricing using Monte Carlo models, allowing microbetting to be seamlessly unified with the sportsbook’s main market offerings. This integration ensures that microbetting feels cohesive within the sportsbook, enhancing the user experience with fast-paced, accurate betting options on specific in-game events.”
Devenishek says, “Kero integrates seamlessly into sportsbook tech stacks via a data feed or a modular front-end SDK which merges in-play elements like streaming and match trackers into a ‘live-game mode.’”
As microbetting companies integrate their offerings into a sportsbook’s tech stack, they must also factor in the impact of oddsmakers.
The Human Element
Machine learning and integration methods are undoubtedly crucial to a reliable microbetting portfolio, but the influence of oddsmakers on a sportsbook’s success cannot be understated. Microbetting requires a human touch, like almost any other betting market.
“For microbetting, oddsmakers must react to in-game events almost instantly to keep the experience engaging and accurate,” says Elmqvist. “Odds must be adjusted quickly, as players expect to place bets in real time and see immediate results. This rapid response includes real-time, data-driven odds, leveraging machine learning to adapt to in-game changes.”
He also emphasizes the need for “microsettlements,” which give bettors an accurate and rapid result for each microbet.
“Oddsmakers need to find the sweet spot in settlement timing to maintain accuracy while meeting player expectations, providing a seamless experience that maximizes both excitement and fairness,” he explains.
The collaboration of man and machine is essential for microbetting to work effectively and keep users coming back.
The Future Of Microbetting
Microbetting is still a young industry. Technology that can power micromarkets at scale and speed is available; businesses like ParlayBay, Huddle and Kero are taking full advantage and crafting the solutions that will bring microbetting to the forefront.
What, then, do the next few years look like for this growing sector? There’s a lot of upside, according to the experts.
“Microbetting is set to grow significantly, expanding across more sports and bet types,” says Elmqvist. “Products like our Hot Bets merge the excitement of micro markets with popular betting frameworks like same-game parlays and bet builders. This lets players enjoy the thrill of real-time betting in formats they love.
“While microbetting is especially popular with the cadence of U.S. sports, it’s only a matter of time before it becomes an essential part of sportsbooks worldwide. With football and cricket markets already live, we plan to add esports and tennis by early 2025 to meet this rising demand. We believe micromarkets are the future of sports betting.”
Elmqvist likens Gen Z’s lean toward fast-paced content like 15-second videos to microbetting. “Its quick, evolving nature fits perfectly,” he says.
Mitchard sees microbetting as a high-upside segment of the betting world: “Micros are still potential-driven, while player props, particularly in regions like Latin America and parts of Europe, have already matured. Look at the NBA, where there’s now a very clear collection of genuine superstars—players people want to bet on specifically. It’s important to touch on these little nuances to get an understanding of the big picture here.
“The trend is really about the nuance of why catering to micros and player props is important for the sportsbooks themselves. The nature of sports is increasingly trending towards instant gratification and increased fan engagement. If you’re looking at these offerings as the future (so to speak) of betting revenue, then it is important to build a product that can create, price, and settle those markets in real time.”
Finally, Devenishek of Kero Sports says, “Microbetting is set for substantial growth given that it is the first U.S. export in the industry, where it is now the fastest growing in-play category. The product will expand internationally through Kero as we continue to lead in product innovation both domestically and abroad, and in a few years, it will be a sportsbook mainstay.”
