Kambi is partnered with seven tribal operators in various parts of the United States , including Four Winds casino in New Buffalo , Michigan
Constant Change
Nylen affirms that Kambi Group ’ s strategy for success in the U . S . is always evolving so as to accommodate a market that is similarly progressing . As part of this flowering , Nylen says the company has begun offering its services including the stand-alone Kambi Bet Builder and sport-specific odds feeds on a modularized basis so as to elevate elements of an operator ’ s sportsbook .
“ Our belief is — and our sales pipeline demonstrates — that the majority of operators in regulated markets across North America and beyond will continue to require a full turnkey solution , and our focus remains on continually enhancing our full sportsbook offer while simultaneously having the flexibility to provide stand-alone elements for those looking to raise the standard of their own sportsbooks ,” Nylen says .
“ We are always looking to provide our partners with greater flexibility , while limiting these individual elements only to our complete service is to limit their potential . Alongside increasing our total addressable market with operators looking to elevate their existing sportsbook , this will also enhance the levels to which we are able to serve our existing partners .
“ As well as providing individual modules from our sportsbook for operators to enhance their platforms and capabilities , we are also opening our platform to enable operators to plug other content into our sportsbook . This will greatly enhance the ability of operators utilizing our platform to bring their own trading to bear . As an example , I would offer taking control of the trading in a particular sport to leverage existing in-house expertise .”
One of the biggest debates currently gripping United States sports betting operators involves the employment of in-house technologies versus the utilization of outsourced solutions . Nylen says his view on this matter is that it is not as straightforward as “ one or the other ,” and to frame any such discussion in this way doesn ’ t accurately reflect a landscape that has changed drastically over the course of the last few years .
“ My view is that , as the industry continues to mature , we will continue to see more outsourcing of specific products ,” Nylen says . “ To our knowledge , there isn ’ t an operator on the market that doesn ’ t outsource any aspects of its sportsbook , whether it ’ s incorporating third-party pricing feeds or making use of an external bet builder .
“ The question should be to what extent the operator wants to outsource certain components of their sportsbook such as platform , odds compiling , risk management , the sportsbook front end or player account management platform . The extent of this outsourcing will come down to the strategy of each individual company , but there are none operating today with a 100 percent reliance on proprietary technologies .”
Looking further into the future , Nylen says the North American sports betting market is “ evolving rapidly ,” and will likely look “ drastically different
in the years to come ,” owing to the premiere of new technologies and offerings . He adds that artificial intelligence ( AI ) and automation are to be key elements to this evolution , as these are finally moving beyond being mere buzzwords into becoming hugely influential to the development of the core sports betting product .
“ Kambi has already taken the first steps on this journey by progressing our sportsbook beyond the market with our third-generation trading and shifting from algorithm-assisted human trading to human-assisted algorithmic trading ,” Nylen says .
“ Trading with algorithms , which represents true automation , enables us to greatly expand the number of available bet offers , fuel the creation of new products and increase the breadth of the combinability we are able to offer through our sportsbook . This AI-powered trading was successfully launched ahead of the 2022 FIFA World Cup and stress-tested at scale in powering our entire pre-match offering .”
Pleasing Possibilities
Nylen says the U . S . sports betting scene has come a long way since 2018 , but still has plenty of room for growth , especially with the prospects of legalization in several major states , including Texas and California . He notes that California , with its population of over 39 million people , would instantly become one of the largest markets should it legalize online sports wagering while it moreover hosts a huge tribal gaming presence that could stand to hugely benefit from having the right partnerships in place when regulation does arrive .
Nylen also describes Brazil as another major potential market for Kambi Group as it looks to grow its provision of sports betting technologies . He says the company has already signed a partnership arrangement with local operator Rei do Pitaco , and is now furthermore intent on leveraging its sports betting technology once regulation passes .
“ Rei do Pitaco is the largest daily fantasy sports operator in the country after achieving more than 13 million app downloads , and will continue to grow its reach through sports betting once regulation allows ,” Nylen says .
“ With a population of more than 200 million people , Brazil has the potential to become one of the world ’ s biggest regulated sports betting markets , and it is widely anticipated that legislation could be enacted over the coming months .”
22 Global Gaming Business JUNE 2023