The continued expansion of regulated markets coupled with increased tax burdens has shifted the sports betting industry to favour third-party solutions, according to Kambi Group Chief Commercial Officer Ian Freeman.
Speaking exclusively to SBC, Freeman highlighted the growth enjoyed by its long-term customer 888sport, with which Kambi extended its partnership deal on Wednesday, as proof the ‘outsourcing model has never been so relevant’.
“The multi-year 888 extension is another acknowledgement that a flexible and scalable proposition is the only solution that can deliver a scalable and agile enablement capability to Tier 1 operators in regulated markets,” Freeman said.
“Since our relationship began, 888sport has seen a five-fold increase in the size of its sports business in some of the most highly competitive regulated markets in Europe.This illustrates the fact that the outsourced model is now aligning with market forces.”
“Our proposition is commercially and operationally compelling and we are absolutely delighted to continue to work with such a dedicated and professional team at 888sport,” he added.
Furthermore, when speaking to analysts during the firm’s Q2 results presentation on Wednesday, Kambi CEO Kristian Nylén remarked that the supplier’s customer pipeline had “never been stronger” due to an increased demand for a high-quality outsourced sportsbook.
“As more markets regulate, this is good news for us,” Nylén added.
The UK Gambling Commission recently reported growth in B2B online sportsbook revenues with the 12 months to September 2016 coming in at £615m, an increase on the £514 million recorded during the previous period.