TDA are trying to open up avenues for new ways of replacing lost revenues. The powerhouse brokerage firm, did away with online commissions last month. The reason being, they were trying to stay competitive with other firms that also eliminated the commissions’ fees. On October 3, 2019, TDA made the bold move of slashing online commissions to zero. It was a way of staying competitive but the losses equal hundreds of millions per quarter. The brokerage firm is trying to get a piece of the burgeoning sports betting pie. The industry is expanding with recording lightning speed.
TDA Realizes That Sports Betting Could Be A Way To Recoup Losses From Lost Commission
TDA’s Chief Operating Officer Vijay Sankaran told ‘Business Insider’ that the company has been conducting focus groups comprised of its current client base. Sankaran said the early indicators are that sports betting and other types of gambling are something that their clients would really welcome. Sarkaran said, the company is in it’s very early exploratory stages. However, the feedback TDA is getting from their focus group participants is very ‘encouraging.’ Sarkaran said that the research will go for some time before they decide on what specific products they will introduce. The COO said from the feedback TDA received from focus group participants, they were very ‘engaged.’ and TDA feels sports betting would be a great source of new business for us.’
Sports Betting Is An Untapped Industry For TD Ameritrade As They Weigh Their Options
TDA’s Chief Financial Officer Steve Boyle said tossing out online commissions cost the brokerage house a literal fortune. Boyle said the losses resulted in a $240 million dollar loss per quarter.’ Boyle said now the company think tanks, are constantly exploring ways of generating new business opportunities. This is not the first time that a brokerage house has put their toe in the water of sports betting. Earlier this year TDA teamed up with ESPN to offer TDA clients a tool to evaluate fantasy football performance. Boyle said that added online feature had received only positive feedback from their clients. The results also indicated there could be a real desire for sports betting among their clients. TDA competitor ‘Interactive Brokers’ introduced a simulated sports betting exchange to their clients last summer. The results have been very good says a representative with ‘Interactive Brokers.’
Jake Williams With Sportradar Says Sports Betting Is A Rapidly Expanding Industry Nationally
The Vice President of Legal Regulations at Sportsradar Jake Williams says that the expanding sports betting industry is exploding nationwide rapidly. Williams added that ‘the sports betting industry is just such an emerging industry with so much opportunity. That’s why it’s attracting all different types of businesses to it daily. It does come with some challenges Williams says, there are a lot of rules and regulations. In order to make money, one has to play their cards wisely.’