The rapid changes in sports betting regulations in the United States are exemplified by the recent restrictions imposed on NCAA player proposition betting. With various states implementing diverse rules—ranging from outright bans in Maryland and Ohio to restrictions only affecting in-state colleges in New Jersey and New Hampshire—operators face the urgent challenge of maintaining compliance while ensuring a seamless customer experience.
This issue is not confined to U.S. college sports, as operators tackle an increasingly fragmented global regulatory environment. Even when regulatory goals align, the differences in rules and timelines can complicate compliance, forcing operators to adapt to a complex web of jurisdiction-specific requirements.
Kambi, a prominent sportsbook partner, has experienced firsthand the impact of regulatory changes on operators and the broader gaming industry. Ahead of its launch in France, Kambi developed a Regulatory Mapper designed for future markets, allowing easier adaptation as new jurisdictions regulate, ultimately reducing the effort for future market entries under similar requirements.
Paul Finnigen, Kambi's director of operational compliance, identifies the management of these multiple layers of regulatory complexity as a significant challenge for operators. Nonetheless, he insists that navigating these evolving regulations need not hinder growth.
"Over the past few years, we've seen regulation become significantly more complex," Finnigen stated. "Regulators are placing a greater emphasis on responsible gambling, reporting, technical certification, marketing restrictions, and localized betting rules, with requirements continuing to evolve long after a market launches."
Kambi's introduction in France showcases how regulatory challenges can be turned into opportunities by utilizing expertise, technology, and proactive planning. Instead of crafting one-off solutions, the Regulatory Mapper ensures compliance across various jurisdictions.
Additionally, Kambi's Dynamic Filtering Engine facilitates quick and consistent management of market availability tailored to specific local regulations, allowing operators to adjust sports, leagues, betting offers, and player participation as required.
This integration of regulatory expertise into the operational framework transforms compliance into a pathway for growth.
Leading suppliers like Kambi embed regulatory knowledge within their compliance, technology, and operational areas. This integration allows regulatory issues to be addressed throughout product development and market entry processes, not just as obstacles encountered at the end.
Kambi's certifications, including SOC 1, ISO 27001, and WLA-SCS, provide a strong base of validated controls, facilitating smoother certifications and market entries across different regions. According to Finnigen, many of these regulatory standards have been tested and applied before operators enter new markets.
“When regulatory expertise is built into the platform and operating model, compliance becomes an enabler of growth rather than simply a legal requirement,” he explained. “Operators can enter new markets more efficiently, respond swiftly to regulatory updates, and lessen the operational load on their internal teams.”
Thus, compliance may be shifting from a mere cost of doing business to a competitive edge. The real task for operators lies in establishing an operating model that consistently cultivates this advantage across jurisdictions. Kambi sees its fully managed Turnkey Sportsbook as fulfilling this requirement.
Kambi’s Turnkey Sportsbook operates on the idea that not every operator should develop all sportsbook functionalities independently. This end-to-end solution combines trading, risk management, and regulatory implementation into one managed platform, negating the need for operators to invest heavily in in-house capabilities or struggle with coordinating multiple specialized suppliers.
Although integrating various suppliers might add flexibility, it poses challenges in managing complex technology environments and requires constant investment in specialized expertise to keep pace with shifting regulations and customer demands.
"Our Turnkey Sportsbook alleviates much of the complexity associated with entering regulated markets," noted Finnigen. "Operators access a comprehensive solution designed to facilitate efficient market entry from the outset."
The advantages of this system extend beyond the initial launch phase. With trading and most regulatory implementations managed, operators can concentrate on brand building, customer acquisition, and local market adjustments.
"Having a single technology partner also streamlines everyday operations," Finnigen added. "Operators are not burdened with managing multiple integrations or coordinating different suppliers when regulations change, thereby launching more effectively while delivering a consistent player experience across regions."
While regulatory expertise is essential for market entry, enduring success depends on providing a unique sportsbook product once operators arrive. Kambi has integrated AI-powered trading into its sportsbook offerings to meet growing demands for personalized betting experiences and instant responses to in-play events.
The upcoming 2026 FIFA World Cup serves as a key example of this evolution. Kambi previously announced plans to implement entirely AI-powered trading for the tournament, an increase from the 60% deployment in the past. This transition aims to offer operator partners the necessary speed, accuracy, and scalability demanded by dynamic betting markets.
"If operators intend to scale successfully over the next five years, they’ll need technology designed for flexibility," Finnigen emphasizes.
This tournament also evidenced shifting player habits. Throughout Kambi's network in established and emerging markets, engagement with high-margin products like Bet Builder and Live Bet Builder has surged, as bettors seek more personalized match engagement.
Finnigen noted that Live Bet Builder represented 20% of all live bets during this tournament, a stark contrast to the 3% seen in the 2022 World Cup. Popular player market options, including "to score or assist" and "player shots on target," underscore the necessity for rapid pricing, quick bet settlement, and user-friendly products.
Selecting the right partner remains critical for operators. Kambi believes the industry's long-term leaders will be those that embrace technology which adapts to changing market conditions, customer preferences, and competitive challenges.
"For operators to succeed in scaling over the next five years, they’ll need technology that’s adaptable," says Finnigen. "Regulatory frameworks will continue to evolve, making flexibility, scalability, and compliance expertise fundamental in their decisions, rather than optional add-ons.
“A platform should empower operators to enter new markets efficiently, adapt to regulatory shifts with minimal disruption, and ensure a consistent customer experience across different jurisdictions.”
Finnigen concludes that adaptability will be a defining competitive edge in the industry.
"The operators who thrive won’t only be those that penetrate the most markets," he elaborates. "They’ll be those who most effectively incorporate new technologies, leveraging AI, automation, and data for informed decisions, enhanced efficiency, and attractive experiences that keep players engaged and returning.
