There are many benefits of a behavioral science approach for policymakers, industry operators and gambling customers.
These tools are a core component of a sustainable business model;
Research shows that gambling customers who engage with consumer protection tools have greater loyalty to operators.
Open gambling markets with competition between operators provide customers with a greater ability to seek points of differentiation. Simultaneously, policymakers must justify the increased availability of gam bling with requirements for effective consumer protection measures.
GGB: How important was legalization of sports betting in the U.S. to Kambi?
Nylen: In Europe, online and mobile sports betting has been very prominent, and Kambi has two and a half decades of experience of working with operators there. Because of this experience, we were ready when the U.S. came online. That was always part of our plan when we formed Kambi back in 2003.
We have been developing the product over so many years, it gave us a big advantage over what has been available here in the U.S. The depth and the breadth of the products has been much bigger in the U.S. that anything another company offers.
gambling customers What are some of the Kambi products in sports betting and what are the companies that you’re working with? We offer pricing and risk management, and we can build the front end of the sports betting site if that’s what the owner wants.
In many cases, the operators have us build the front end and the back end of their sites.
We have been very successful so far in the U.S. signing some very important clients.
We of course have DraftKings and Rush Street Interactive, both of which have huge market access in the U.S. We have Parx in Pennsylvania.
We have a couple of our European clients who have U.S. businesses, 888 and Kindred. We’ve signed Mohegan Sun and Jack Casinos from Ohio.
Of course, your biggest deal so far is with Penn National.
Why is that so important for the company? One of our big targets when we started was to get involved with one of the multi-state operators, and except for the DFS companies, Penn National was one of the most prominent. They took their time in making a decision, about two years.
We were very fortunate that we had a good, strong track record in the U.S. and a strong credit. At the moment we’re operating their sportsbooks in Indiana, Iowa and Pennsylvania.
gambling customers As a European company, how long did it take you to understand American sports?
Benefits for Stakeholders As a Scandinavian company, we’ve had lots of experience with ice hockey. Basketball has been very popular all across Europe for many years.
And (American) football is growing massively in popularity in Europe. They’re selling out the stadiums in London four times a year.
So on all these sports, we’ve had a strong offering for a long, long time.
The big challenge for us in the U.S. was to understand more deeply the college sports. We’ve always covered the top colleges but to manage a local offering, we’ve got to go much deeper.
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