The landscape of sports betting showcases some of the most rapid regulatory changes currently seen across various states in the US, particularly with new restrictions on NCAA player proposition betting. States are approaching this matter differently: Maryland and Ohio are implementing outright bans, while others like New Jersey and New Hampshire limit betting to in-state colleges. Operators must adapt swiftly to these varying rules to maintain compliance and a seamless customer experience.
However, the issue of regulatory complexity spans well beyond NCAA sports. Operators are confronted with a fragmented global landscape, where even shared regulatory intentions can lead to divergent rules and timelines, compounding the challenges of compliance with market-specific mandates.
Kambi, an internationally recognized sportsbook partner, illustrates how these regulatory shifts impact operational demands in the gaming sector. Before its entry into the French market, Kambi developed a Regulatory Mapper tool designed to promote efficiency, ensuring that regulatory mapping can be effectively reused as new jurisdictions impose regulations, thereby easing future market launches.
Paul Finnigen, Kambi's director of operational compliance, emphasizes the hurdles posed by navigating multiple layers of regulatory complexities concurrently. Despite the daunting nature of keeping up with regulatory transformations, he asserts they shouldn't hinder growth potential.
Finnigen notes, “Over the past few years, we’ve seen regulation become significantly more complex. Regulators are emphasizing responsible gambling, reporting, technical certification, marketing limitations, and localized betting rules, with evolving requirements even after a market’s launch.”
Kambi's approach to overcoming these challenges exemplifies how regulatory hurdles can transform into growth prospects through expertise and technology. The Regulatory Mapper is not a temporary fix but a tool ensuring ongoing compliance across various jurisdictions, allowing operators to quickly adjust to local regulations.
Additionally, their Dynamic Filtering Engine empowers operators to manage sports, leagues, bet offerings, and player access efficiently according to specific local requirements.
Finnigen believes that integrating regulatory knowledge into their technology and operational frameworks allows compliance to serve as a growth facilitator. Kambi’s certifications—SOC 1, ISO 27001, and WLA-SCS—back this approach by establishing validated control measures, streamlining certification across various markets.
“Many of those regulatory capabilities have already been implemented and proven in practice before operators enter new markets,” Finnigen notes.
Kambi regards compliance not just as a legal obligation, but as a competitive edge. A key component of this strategy is their Turnkey Sportsbook. This model allows operators to avoid the expense and complexity of in-house platform development or coordinating with multiple suppliers. Instead, they gain comprehensive access to an integrated solution encompassing trading, risk management, and regulatory implementation.
Finnigen points out, “Our Turnkey Sportsbook removes much of the complexity associated with launching in regulated markets. Rather than coordinating multiple suppliers or building capabilities in-house, operators gain access to a managed platform designed for swift market entry.”
Post-launch, operators can shift their focus from technical hurdles to brand development, customer acquisition, and adapting their offerings to local markets. “Having a single technology partner also simplifies day-to-day operations,” Finnigen adds, explaining how this reduces the need for managing various integrations when regulations shift.
Long-term success in new markets will hinge on offering distinct sportsbook products, which Kambi underscores by integrating AI-powered trading into their offerings. The 2026 FIFA World Cup serves as a prime example of this shift. Kambi aims to deploy fully AI-driven trading throughout the tournament, improving on previous efforts that relied on only partial AI integration.
The event also highlighted changing bettor preferences. Engagement with high-margin products like Bet Builder and Live Bet Builder surged, indicating a demand for personalized betting experiences. Finnigen reports that Live Bet Builder accounted for 20% of live bets during the tournament, compared to just 3% during the 2022 World Cup, reflecting a shift toward products requiring rapid pricing and intuitive design.
Kambi believes that operators that effectively choose adaptable technologies will lead the industry in the coming years. Finnigen asserts, “If operators want to scale successfully over the next five years, they’ll need technology that’s built to adapt. Regulation will continue to evolve, so operators should prioritize flexibility, scalability, and compliance expertise.”
The future landscape will favor those who not only enter markets efficiently but also leverage new technologies effectively, utilizing AI, automation, and data analytics to optimize operations and deliver compelling customer experiences.
