Latin America is emerging as a prime destination for global sports betting operators. With new regulations transforming markets like Argentina, Brazil, and Peru, operators are racing to gain market share. However, winning in this lucrative region requires more than cutting-edge platforms or engaging front-end experiences. David Arnold, Director of Risk at Kambi, outlines five critical pillars operators must prioritize for long-term compliance and growth in this dynamic landscape.

Prioritizing Sports Integrity

Trust is the Foundation: The sports betting industry hinges on the trust customers place in the integrity of sporting events. A breach in this trust could destabilize the sector and jeopardize its sustainability.

Effective Integrity Systems: Operators must implement robust systems for detecting, reporting, and preventing match-fixing at its earliest stages. Kambi leads in this area, employing a 24/7 sportsbook control team and an in-house integrity database that ensures at-risk events are excluded from offerings.

Collaboration is Key: Sharing information with industry bodies like the International Betting Integrity Association (IBIA) is crucial. Kambi, the first sports betting technology supplier to join IBIA, flagged suspicious activities in 50% of all 2024 alerts, underscoring its leadership in sports integrity.

Mastering Liability Management

Protecting Margins: Liability management may lack the glamor of user interfaces or market depth but is essential for consistent sportsbook profitability. Ensuring a healthy margin is foundational for delivering engaging user experiences.

Handling Complexity: As betting options expand, such as with Bet Builder tools and correlated selections, managing liability becomes increasingly sophisticated. Kambi’s advanced risk functions have proven effective, such as during the Copa América, where innovative markets like "player shots on target" were introduced while maintaining strong financial performance.

Revenue Protection Tools: Operators must balance offering a compelling user experience with safeguarding revenues. Kambi equips its partners with tools to consistently achieve both objectives.

Deploying Customer Intelligence Effectively

Diverse Betting Dynamics: Unlike casinos, where outcomes are standardized, sports betting involves unique dynamics for each bettor and bet. Effective categorization and analysis of customer behavior are essential.

Advanced Forecasting Models: Sophisticated algorithms can assess customer activities, driving personalized marketing and bonus strategies. These insights deepen customer relationships and optimize sportsbook offerings.

Actionable Insights for Partners: Kambi uses powerful in-house algorithms to provide network-wide insights, enabling partners to refine their strategies and deliver tailored experiences.

Adapting to Regulatory Complexity

Fragmented Landscape: The regulatory environment in Latin America is rapidly evolving, with countries like Brazil and Peru enacting comprehensive betting laws. Argentina continues to regulate on a province-by-province basis.

Flexible Tech Stacks: Operators need adaptable platforms capable of meeting diverse regulatory demands. Delays or failures due to incompatible technology can jeopardize market entry.

Kambi’s Leadership: The company has demonstrated its agility by achieving rapid market entries in jurisdictions such as Argentina, Colombia, and Peru. Its pedigree in adapting to regulatory requirements has been proven across the Americas.

Achieving Speed to Market

First-Mover Advantage: Speed to market is critical in Latin America’s competitive betting industry. Operators must deploy platforms that enable swift regulatory compliance and rapid rollouts.

Track Record of Excellence: Kambi has facilitated first-to-market launches in US states like New York and Colorado, while achieving quick timelines in Latin American markets. This ability to pivot quickly is a cornerstone of its success.

Conclusion

Winning in Latin America’s burgeoning sports betting market requires a strategic focus on integrity, liability management, customer intelligence, regulatory adaptability, and speed to market. Operators equipped with forward-thinking strategies and robust platforms are best positioned to capture market share in this dynamic and fast-growing region. As Kambi’s expertise shows, a combination of innovation, compliance, and agility will be essential for sustained success.