On June 10, prominent figures from Fanatics Betting & Gaming, Soft2Bet, Optimove, and the International Association of Gaming Regulators (IAGR) convened at the SBC Summit Americas to explore the direction of the gaming industry, covering topics from regulatory frameworks and player retention strategies to technological advancements and predictive markets.

This discourse occurred during the session titled “The Big Picture: Steering the Future of Gaming,” which served as the event’s inaugural panel in Fort Lauderdale.

The discussion was led by a panel that included Ian Botts, CTO of Fanatics Betting & Gaming; Andrew Cochrane, Chief Commercial Officer at Soft2Bet; Tomer Imber, Senior Sales Director for the USA at Optimove; and Kevin Mullally, the CEO of IAGR.

A recurring subject throughout the discussion was the notion that the US gaming sector is evolving from its nascent expansion stage into a phase characterized by greater sustainability.

Shifting Focus: From Market Share to Profitability

Cochrane noted that the US sports betting landscape is no longer primarily focused on aggressive customer acquisition and rapid market growth.

“The US is moving away from that land-grab mentality,” Cochrane remarked. “Initially, operators concentrated on brand awareness, market access, and customer acquisition predominantly.”

Instead, the emphasis is increasingly placed on the ability to establish sustainable business models that can effectively retain customers over time.

“There is a heightened emphasis on retention through product offerings,” he added. “Focusing on product development is now paramount.”

Imber shared that there is a wider transition within the industry towards profitability, emphasizing improved unit economics.

“The trend we have observed in recent years is the ongoing shift toward profitability,” Imber stated. “In the early days of the US market, operators focused solely on capturing as much market share as possible.”

Today, operators are attentive to whether their acquisition expenditures lead to lasting player value.

“Unit economics are increasingly coming into play,” he noted. “Operators are becoming more competitive with their acquisition costs compared to the lifetime value of the players they attract.”

Quality of Products Becomes Essential

As competition intensifies, panelists emphasized that product quality and user experience are becoming key differentiators among operators.

Botts underscored that every gaming product needs to excel in three critical areas: availability, performance, and security.

“Products must always be accessible,” he stated. “Customers deposit money at sportsbooks and casinos; they need consistent access to it.”

The second critical aspect is speed.

“Efficiency is crucial,” Botts emphasized. “Technology has evolved rapidly, setting a new standard for what is considered quick.”

Security is non-negotiable as well.

“When users want to access their funds or place a wager, their money should be readily available,” he said. “If not, they will not return to that platform.”

Furthermore, Botts argued that differentiation within the modern sportsbook industry is relatively minimal, making usability increasingly vital.

“The true differentiation lies in market depth,” he asserted. “Minimizing the barriers to access the desired products is essential.”

Regulatory Framework as a Strategic Edge

A prominent theme in the panel was the evolving significance of regulation within the gaming sector.

Rather than viewing compliance as a barrier, Cochrane contended that successful operators increasingly recognize regulation as a strategic long-term advantage.

“Regulation provides clarity, establishes boundaries, and can ultimately elevate industry standards,” he mentioned.

For Soft2Bet, compliance is integrated directly into product strategy instead of being treated as a secondary function.

“We regard compliance as integral to everything we do,” Cochrane remarked.

Speaking from a regulatory perspective, Mullally emphasized that regulators must also modernize their practices to keep up with industry advancements.

Historically, oversight relied heavily on paper-based workflows; this approach is now outdated due to the complexity and scale of today’s digital gaming frameworks.

“Regulators are seeking systems that offer a single source of truth,” Mullally explained.

He highlighted that regulators, operators, and vendors require shared access to real-time systems to efficiently automate compliance monitoring and risk detection.

Mullally pointed to artificial intelligence as a valuable tool for enhancing regulatory oversight capabilities.

“While in the UAE, we developed an AI tool that reviewed each operator’s terms and conditions daily,” he noted.

Innovation Versus Regulatory Challenges

The dialogue also addressed the conflict between innovation and regulation, especially within the fragmented US market.

Botts identified one of the primary difficulties for gaming businesses as navigating numerous regulators with varying standards and requirements.

“When too many regulators are involved, it complicates matters significantly,” he stated.

He cited emerging authentication technologies as an illustration. While many industries are swiftly transitioning to passkeys and trusted-device authentication systems, regulated gaming environments often adopt new technologies at a slower pace.

Mullally pointed out that regulators are becoming more cognizant of these challenges and may need to reconsider traditional product approval processes.

“Regulation should evolve alongside technology,” he argued.

Instead of strictly adhering to rigid technical standards, Mullally suggested regulators focus on validating whether products operate fairly and safely.

“If you want to introduce innovations that combine skill and chance, or employ augmented reality, present it to us, and we will determine how to regulate it,” he stated.

The Rise of Prediction Markets and Shifting Consumer Preferences

Prediction markets became a significant topic of discussion during the session, with panelists examining their rapid rise and potential implications for traditional sports betting.

Cochrane argued that the growth of prediction markets mirrors shifting consumer desires, particularly among younger demographics seeking more straightforward experiences.

“The appeal of prediction markets lies in their simplicity,” he explained. “It’s a binary choice — yes or no.”

In contrast, traditional sportsbooks often appear overly complicated to casual bettors due to the multitude of available betting markets.

Botts remarked that prediction markets differ from sportsbooks from a technological viewpoint.

“In a sportsbook framework, considerable effort is invested in setting lines,” he noted.

Prediction markets, however, operate more akin to brokerage systems where users bet against one another instead of against the house.

“It’s more of a brokerage-style environment,” Botts clarified. “That’s the technological basis for it.”

Mullally expressed concerns regarding the absence of consumer protections currently surrounding many prediction market products.

“We’ve dedicated decades to establishing consumer safeguards around gaming,” he cautioned. “Now we are witnessing some of those protections being circumvented.”

Anticipating Ongoing Consolidation

Near the panel’s conclusion, participants discussed the probability of further consolidation within the US online gaming market.

Cochrane asserted that market dynamics would likely drive weaker operators out over time.

“Some operators made poor technological choices initially, overspending on acquisition and failing to manage their costs,” he noted.

As regulations become stricter and competition escalates, consolidation is expected to persist throughout the industry.

“Ultimately, the successful operators will be those that maintain sustainable business practices,” Cochrane concluded.