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PINNACLE SPORTS - MARGIN WARNING

PINNACLE REPUTATION

 

Pinnacle-Sports have long been one of the most respected sports-betting companies in the world. They have endeared themselves to customers with low margins, high limits and one-rule-for-all. Unlike with mass  leisure bookmakers, Pinnacle accept bets from professional gamblers, betting syndicates and arbitrage players alike. The one-rule-for-all means both losing and winning clients are given the same betting limits!

 

 

PINNACLE USE DYNAMIC ODDS

 

Pinnacle-sports use dynamic odds, meaning weight of stakes will dictate current market price. This works very similar to the stock exchange, in that buyers and sellers (supply and demand) move the price in different directions. In best of two (Asian h’cap) sports-betting, a bet (buy) on one team is equivalent to a lay (sell) on the other.

 

 

PINNACLE BUSINESS MODEL

 

What you see is what you get. Pinnacle offer a no frills service, they don’t entice customers with bonus, rewards, or payback. It’s very different to the usual business model applied by leisure bookmakers who target losing customers with carrot dangling incentives. 

 

To keep operating costs low, Pinnacle work out of ‘’no tax’’ Curacao

 

To keep banking / payment processing costs manageable, Pinnacle limit free payment withdrawals to just one per month. For more withdrawals the customer picks up the tab!

 

Pinnacle use revenue share agents/brokers, who in turn open anonymous (numbered) betting accounts for players. In this situation customers belong to the agent and not Pinnacle. The logic:

 

* Increase turnover without undue costs, the agent is responsible for settling and it’s own banking costs.  

 

* Increase reach, agents are taking clients from countries which are normally restricted!

 

Pinnacle also offer B-2-B (API) solutions for partner websites. These operate under the partners own  name, and they can set limits & margins to suit.

 

 

PINNACLE BRIEF HISTORY

 

It’s not in our interest to spill the beans on the owners of Pinnacle, but lets just say things have changed a lot of the past 20 years. Originally Pinnacle was set-up to challenge the US market, but arrests and indictments led to a change of direction.

 

The main interest of Pinnacle is Football (soccer to Americans) betting. In fact, most betting agents offer football only to their customers, with US sport taking a back seat role. Long gone are the days when Pinnacle derived 65% of it’s business was from the US market.

 

Back in 2014 Magnus Hedman acquired 80% of Pinnacle for a reported £160m (meaning total value 200 million). When we compare that to Tipico (sold with €1.2 billion valuation - working grey German market) and Skybet (£3.4 billion) it makes the company seem somewhat weak!

 

Conclusion - Working with low margins, many affiliate programs & diverse partners is clearly having an effect on the bottom line (profits).

 

 

PINNACLE INCREASE MARGINS

 

We have noticed, what used to be 1.95 1.95 (97.5%) in WTA tennis is now 1.93 1.93 (96.5%). The same handicaps are being offered at between 95.5% to 96.5%. Lower end WTA matches are 1.91 1.91, and even leisure bookmakers such has Bet365 are out-performing Pinnacle on many tennis margins.

 

At the time of writing, Pinnacle are 1X2 (96.7%) in tonights Finland match. That puts them behind Leisure bookmaker Expekt (97.1%). On the same match, SBO are returning 98% (1.96 1.96) on the Asian h’cap market, that compares to Pinnacle (1.95 1.95). In fact, five of the Asian h’cap bookmakers we use have higher odds than Pinnacle!

 

It’s not just football and tennis where we noticed a rise in Pinnacles margin, it’s nearly every sport. And, while Pinnacle are likely to mask margins in big games and leagues, it’s time to consider customer loyalty!

 

CONCLUSION

 

As professional punters you should never be solely relying on Pinnacle. It’s time to smell the coffee, and like with any business proposition consider your best options. Use Agents platform with access to all Asian bookmakers. Make better use of the lower commission exchanges, and use leisure bookmakers that are easy to expose!

 

PS - When you subscribe to PREMIUM BETS, we will happily go through all options with clients - admin@betting-analyst.com