David Bretnitz, VP of Sales at Kambi, recently discussed the company’s unique sports betting product offerings; how these offerings have helped tribes; the process for integrating and launching a sportsbook; and what the future of sports betting looks like. Here is what he had to say…
How does Kambi position itself as a leader in the sports betting industry, specifically within the tribal gaming sector?
One of the biggest things we do is take a consultative approach with tribal operators. Each tribe is wholly different than the next – whether it’s the communities that rely on them or the different assets that they utilize to generate revenue. Because they all have different needs and strategies, it’s important for us as a supplier to listen to them, take a consultative approach and really understand who they are, what their goals are, and then bring along a product offering that matches, and hopefully exceeds, their expectations.
What has been the observed impact of sports betting on the revenue streams of your tribal partners? Are there any particular success stories or standout examples?
It’s really based on their individual operations – each has different goals and success is measured differently. We take a lot of pride knowing each of our tribal partners has experienced success partnering with Kambi. I would say there are a few notable properties that really stick out. Beyond Seneca Gaming in New York State, Kambi’s first tribal partner – is ilani, which is an operator that is part of the Cowlitz Indian Tribe, and the third casino in Washington State that has built a sportsbook. It’s retail only right now, but they’ve had a lot of success pulling in players from across the border in Oregon.
One of our largest success stories is new Kambi operator Potawatomi Casino Hotel in Milwaukee. Dominic Ortiz and his team have built a premier sports destination in the heart of Milwaukee complete with one of the largest and most advanced sportsbooks in the country. Obviously I can’t speak to their specific revenues, but if you look at what they do and who they are, they are probably one of the most successful retail sportsbooks in all of the U.S. – not just tribal operators, across the commercial sector as well.
How does Kambi ensure that its technology remains at the cutting edge for tribal gaming operators? Are there any recent innovations you’re particularly excited about that will benefit your tribal partners?
One of the most important things we have is a compliant product and offering, so that when new states open, we are able to move swiftly and quickly into those jurisdictions. While the tribes and how they operate are all different, a lot of the players that they attract are relatively similar. A player at a commercial sportsbook would be looking for the same things at a tribal sportsbook. The fact that we give all the tools and resources available to us to our tribal operators – they have the same offerings. One of the most unique selling propositions that we have on the Kambi side is that we have a product offering that can compete against the DraftKings and the FanDuels of the world, and we benchmark ourselves against them versus just benchmarking ourselves against other B2B operators, where I think we clearly win. Kambi’s Bet Builder product is one of the best, if not the best, in the industry. That limitless aspect to the sportsbook gives tribal operators’ players the ability to wager a much smaller stake for a much higher payout. It makes sportsbooks more open and accessible to the larger masses of people, versus just skilled players.
Our managed trading services, Tzeract, is a company that was recently established within the Kambi umbrella and is our AI trading arm. Being able to price up and offer markets in a more effective and streamlined way, is super important to make sure that players are able to wager on cutting-edge technology, as well as have that limitless sportsbook offering.
Beyond that, we look at the front-end technology from the user experience and user interface. Shape Games is a company that we acquired a few years ago, and they are able to build out a bespoke front end that is unique to tribal operators and what they are looking to do – whether it is bringing in Class II gaming, offering that on the casino side of things or having a free-to-play offering. For states that are not yet regulated but whose operators want to acquire customers in a meaningful way, we are able to support that and plug it all into one platform – an easy-to-use and functional front end – an important thing for our tribal operators.
How does Kambi successfully integrate tribal preferences into its products?
In a variety of ways. For instance, if tribes have commercial partnerships with major league sports teams, we can highlight those partnerships. Kambi is also able to price up and offer markets that are unique to their local establishments and venues. We’re able to provide a localized offering to meet their expectations, but is also relevant to their community as a whole.
How does Kambi leverage data analytics to enhance operational efficiency and player engagement for its tribal partners?
Being a worldwide company, Kambi sits on a wealth of data. We can extrapolate that out and help them by passing all of the bet details through a data warehouse – whether it’s betting behavior, specific markets that are most important, or taking the risk data and profiling those players so that our tribal operators are able to market to the right groups. We can utilize all of that data to the benefit of our partners, whether that’s from a marketing standpoint or for operational efficiencies. Being able to have that data shared across our network is super important and it allows us to have sharper risk. It also allows us to have a more relevant offering when it comes to the trading side of things. Anybody can say, “We have thousands and thousands of markets that we offer,” but if they’re not relevant to your players, it’s pointless to have them. We are able to take all of the bet data, and data we gather from players, and pass that back to the operators themselves so they can use it for their benefit.
How does Kambi ensure that tribal gaming staff are fully equipped to manage and operate sports betting on property, and what kind of training and ongoing support does Kambi provide to your partners?
That’s a great question. Even as we are working through the contracting process, when we get close to having an imminent deal in place, the operator is assigned a Partner Success Manager. That role provides a strategic liaison between the key stakeholders within the tribe and the key stakeholders within Kambi. The Partner Success Manager’s job is to make sure that operators are fully supported all along the way. What they will do is set up weekly cadence calls throughout the integration process. The operator will also have an Integration Manager and a Delivery Manager.
Once we are ready to set up our service on property, we send out a team for whatever amount of time is necessary ahead of launch to be able to set up kiosks, image those kiosks, (meaning add our technology), and train the staff in a live environment. Beyond that, the operator will have virtual training with key stakeholders within Kambi, and then hands-on training prior to launch. That would be for cage personnel, ticket writers, cashiers that are accepting and paying out those wagers, and for slot technicians that will be most likely be managing kiosks – giving them all the tools and resources that they need in case there are any issues. And then just making sure that the teams in general have the confidence to operate the sportsbook. If our partners aren’t successful, then we are not going to be successful based off the way our simple revenue-sharing model works.
How do you see the landscape of tribal gaming and sports betting evolving?
With the acceptance and adaptation of tribes moving towards a more digital world, most have realized that it doesn’t cannibalize the brick-and-mortar revenues – they can be very complimentary to each other. Tribes can leverage their databases and retail assets online in the digital world, and it really gives them that extra connection point with players. More importantly, a lot of people talk about the omnichannel experience – when you can have all these different verticals plugged into one place. Tribes can communicate with their players – whether that’s on property in restaurants, across entertainment venues, in the retail or online sportsbook, through a Class II component, or with statewide mobile depending on the jurisdiction. Being able to communicate with players, leverage their experiences and reward them, that’s really the future – an omnichannel experience. It’s leveraging what has been built in the brick-and-mortar space and taking that digital. It allows tribes to compete in a meaningful way with the commercial operators that are already established in the space.