What’s driving the high-stakes evolution of sports betting?

From AI’s game-changing role to Africa’s explosive potential, Maksim Afanasev, Sportradar’s Director of Sportsbook Services, breaks down the industry’s future in our exclusive interview.

Discover how tech battles regulation, his experience in African markets, and the innovations rewriting the rules of the game. Ready to bet on what’s next?

1. What are the current trends in the sports betting market, and how do you see the industry evolving in the next 5 years?

The first point I want to highlight is that sports betting is the most promising vertical in the gambling industry. While it currently generates less revenue than lotteries and casinos, it is projected to experience the highest growth over the next 5–7 years, with various estimates suggesting an increase of 25% to 40%.

1) Legalization and Market Expansion

One of the key drivers of this growth is legalization and the expansion into new markets. In recent years, we’ve seen significant regulatory changes, allowing for legal sports betting in previously restricted jurisdictions.

• North America remains a focal point. The United States has become the world’s largest sports betting market and continues to grow at a rapid pace. While lotteries generate three times more revenue and casinos six times more, sports betting is expanding faster than any other gambling vertical. I don’t necessarily believe that it will surpass these sectors, but its potential is undeniable. Canada is also actively refining its regulatory framework, fostering industry growth.
• Latin America is experiencing rapid development. The biggest milestone in the past 18 months has been Brazil, where sports betting licenses are now being issued, setting the stage for substantial market expansion.
• The UAE is a surprising and intriguing entrant. Traditionally known for strict gambling restrictions, the United Arab Emirates recently issued its first license for both retail and online sports betting. It will be fascinating to watch how this market evolves.
• Asia holds massive potential. Countries like Japan, India, Indonesia, and Thailand have enormous populations, rising disposable income, and a strong sports culture. These markets are strong candidates for legalization in the coming years and should be closely monitored.

2) Evolving Regulatory Approaches

Next major trend is the evolution of regulatory frameworks. I believe we will see a shift from purely populist, restrictive, and tax-driven policies toward a more balanced approach that considers industry growth, consumer protection, and long-term sustainability. While major successes today are limited, as regulators start collaborating and talking more to industry experts, there should be visible shift toward thoughtful, industry-friendly regulation in the future.

Technological advancements in regulatory processes are also gaining momentum. Many countries are transitioning to fully automated compliance systems, making industry oversight more transparent, predictable, and accessible while improving consumer protection.

3) Product Development and Technological Innovation, particularly artificial intelligence (AI)

Recently, I published a post summarizing my impressions from ICE Barcelona, where the exhibition reached a record-breaking scale. However, despite this growth, AI did not receive the attention it deserves. While companies are experimenting with AI, the gambling industry is lagging behind global tech trends. In a world where AI breakthroughs are announced almost daily, the betting industry is still slow to adopt these technologies, representing a huge opportunity for those willing to innovate.

Beyond AI, one of the most promising product directions is the convergence of sports betting and iGaming mechanics. Right now, traditional sports betting remains relatively static and less engaging compared to iGaming. I strongly believe that the next breakthrough will come from hybrid products that blend crash games, instant-win, casino-style gamification element, immersive, interactive betting experiences. These innovations could redefine how sports betting is consumed, making it more engaging and dynamic.

4) Operational Efficiency and Automation

Another inevitable trend is automation and efficiency improvements.
Greater automation will enhance profitability by optimizing operations and reducing human errors. However, this will also lead to job reductions, as many operational processes become streamlined. On the positive side, increased efficiency will allow more investment into user experience, product quality, and service improvements.

2. What innovations or technologies do you believe will significantly impact the sports betting industry?

I’ll start by expanding on my previous point about the evolution of the sports betting experience. The industry is undergoing a major shift, moving away from traditional models and embracing new formats, operational efficiencies, and advanced technologies. Here are the key areas where I see the biggest impact:

1) Product Evolution: New Betting Formats, Interactivity, and Virtualization

The traditional betting model—where users browse hundreds of events, select markets, place a bet, and wait for the outcome—feels outdated. The future of sports betting lies in dynamic, interactive, and engaging experiences that blend real sports events with virtual elements and gamified mechanics.

We can expect:

• New layers of interactivity that enhance engagement and immersion
• Improved visualizations and real-time graphic effects, making betting more dynamic
• Gamification elements that make sports betting feel more like an interactive entertainment experience

Many operators claim that betting is an entertainment industry, but when we look at the actual user experience, it’s clear that there’s very little entertainment value in traditional sports betting today. This needs to change.

2) Development of New Commercial Operating Models

Beyond product evolution, the industry needs to experiment more with operational models. I will list two concepts that I find interesting and that already exist but I’m sure we will see more innovative concepts in the future.

Mini-Apps Integrated into Ecosystems. We are already seeing iGaming mini-apps embedded within platforms like Telegram. While the UX is still evolving, this model has significant advantages:

• Seamless onboarding – simpler registration and KYC processes
• Integrated payments – streamlined transactions with minimal friction
• More accessible and intuitive betting experiences for casual users

This approach lowers entry barriers, making betting services more integrated into users’ daily digital habits.

Betting Marketplaces. The Asian market has already introduced betting marketplaces, where users visiting one resource get access to several operators and betting conditions. While the execution isn’t perfect yet, the concept is promising. If refined and adapted to different regulatory environments, betting marketplaces could become the next big innovation in the industry.

3) Technology-Driven Operational Efficiency

Last year, I completed my MBA, where my final thesis focused on identifying inefficiencies in sports betting operators and ways to enhance their economic performance. After speaking with top executives from major B2C operators, one thing became clear: Sports betting operators remain highly inefficient in almost every aspect of their operations.

This is why I believe that the most crucial innovation won’t be a single technology—but rather a fundamental shift in how operators run their businesses. If they don’t embrace new technological solutions, many of them won’t survive in the next decade.

Here are the three key areas where I see the most urgent need for technological transformation:

Marketing: Smarter Spending, AI-Powered Strategies. For some operators, marketing expenses account for 30–50% of revenue—yet most of that spending is inefficient. Many brands blindly pour money into TV/radio ads, sponsorships, and media buys without accurately measuring ROI. Even in digital marketing, very few operators truly understand the effectiveness of each traffic source at a granular level.

Modern marketing should be one of the most digitized areas of business operations, powered by AI solutions and smart analytics.

Payment Optimization & Crypto Adoption. Just like marketing, payment processing remains one of the most expensive aspects of sports betting operations. Transaction fees significantly reduce margins. Additionally, slow processing times create friction in deposits and withdrawals, leading to frustrated users and decreased engagement. The industry needs to embrace payment innovation by optimizing and automating transaction flows to minimize costs and accelerate payment processing. And exploring cryptocurrency adoption to reduce fees and enhance global accessibility.

Automating Customer Support & CRM. Many operators still rely on human agents to handle relationships with their clients, without proper automation in place. The problem is human error and inefficiency: high-value players getting ignored or mismanaged, long waiting time, inappropriate service and responses etc. The solution is to finally implement that AI-powered CRM for personalized, real-time, data-driven engagement that automates interactions while keeping things human-centric. Invest in adopting algorithms that can detect behavioral patterns, proactively offer bonuses, and tailor communication in a way that maximizes engagement.

3. What were some of the most significant challenges you faced while working in African markets, and how did you overcome them?

If I had to sum it up in one word, it would be instability. Let me break this down into specific aspects of instability that I encountered while operating in African markets.

a. Regulatory Uncertainty

When entering a new market, it’s often unclear how the regulations work in practice. Many legal provisions are open to interpretation, and in some cases, even regulators themselves struggle to provide clear and consistent guidance.

Adding to the complexity, regulatory frameworks change frequently—sometimes unpredictably.
We’ve seen this in Kenya, where the betting bill underwent multiple revisions, with ongoing efforts to reshape regulations. Uganda and Rwanda have followed similar patterns. In Nigeria, there was a prolonged debate over whether a federal or state license holds more authority, creating additional uncertainty for operators.

For businesses, this constant regulatory flux makes long-term planning extremely difficult. Success in such environments requires adaptability, proactive risk management, and a high tolerance for regulatory uncertainty.

b. Macroeconomic Instability

Beyond regulation, economic volatility is another major challenge. Many African countries experience significant currency fluctuations, which can lead to substantial financial losses.

For example, in Nigeria, the Naira experienced severe devaluation, leading to major financial setbacks for businesses operating in the country. A similar situation occurred in Ghana, where the Cedi depreciated sharply. For foreign investors who bring capital in dollars or euros, this volatility makes the region less attractive for investment.

This economic instability adds another layer of complexity when managing budgets, forecasting revenue, and setting long-term financial strategies

c. Challenges in People Management

Another significant challenge is hiring and managing talent.

Recruitment difficulties. Identifying high-quality candidates early in the hiring process can be challenging. I’ve seen cases where candidates performed exceptionally well in interviews, answering questions perfectly, but once they started working, their actual performance didn’t match expectations. Some even managed to ‘prepare’ for interviews in a way that didn’t reflect their real abilities.

Post-probation period changes. Another challenge is employees changing behavior after passing the probation period. In some cases, it felt like dealing with two completely different people—one before and one after the probation phase.

Talent Development & Reflection Culture. Even after hiring a strong candidate, one of the most difficult aspects was establishing a culture of open communication, reflection, and learning. In many workplaces, particularly in regions where hierarchy and authority are strongly emphasized, employees are often hesitant to discuss mistakes openly. Failure is sometimes seen as something to hide rather than analyze, and as a result, learning opportunities are lost. There can be a fear of appearing incompetent or risking job security, which discourages employees from engaging in honest self-reflection or constructive discussions about inefficiencies.

This mindset creates a gap between execution and learning—issues are resolved in the moment, but there is little emphasis on understanding why they happened and how to prevent them in the future. Without structured feedback mechanisms, the same mistakes tend to repeat over time. For any business to scale and succeed, learning from failures is just as important as celebrating successes.

4. How do you think the African sports betting market differs from other regions like Europe, and what strategies would you recommend for operators looking to enter or expand in the African market?

It is crucial not to view Africa as a single, homogeneous market. Instead, operators must differentiate between individual countries, as each has its own regulatory landscape, betting behaviors, and technological infrastructure.

That said, there are several common patterns across the region:

• A strong passion for football – by far the most popular sport for betting
• A preference for small-stake, high-odds accumulator bets – many users wager small amounts in hopes of a big payout
• The continued importance of retail betting and cash transactions in certain regions, despite the growing adoption of digital payments
• Low average revenue per user (ARPU) compared to other regions.

Despite these shared trends, African markets differ significantly in terms of UX/UI preferences, payment habits, and product demand. A strategy that works in one country does not necessarily translate to another. A winning approach in Kenya does not guarantee success in Nigeria.
In some countries, mobile money dominates (e.g., M-Pesa and Airtel in Kenya and Uganda), shaping deposit, withdrawal, and KYC flows. In other markets, banking apps are the primary transaction method, creating a completely different user experience. Misaligning payment options with local habits can lead to major adoption barriers.

It is crucial to test websites and apps with actual users on the ground to validate whether navigation is intuitive and users can understand the interface. Solutions that European-based product managers and developers consider naturally clear often receive criticism in African markets due to different user habits.

Beyond UX/UI testing, it is equally important to test products on local hardware. Africa is a heavily Android-driven market, but not dominated by mainstream brands like Samsung, Huawei, or Xiaomi. Instead, devices from Tecno, Infinix, Itel, and Oppo are widely used. Operators must ensure their platforms run smoothly on these devices, as performance issues can directly impact user adoption and retention.

For operators looking to expand in Africa, a regional approach is more effective than a scattered one. Instead of launching in multiple disconnected markets, it is often strategic to enter neighboring countries first, where cultural, economic, and behavioral similarities allow for smoother adaptation.

Additionally, even if an operator has a successful in-house platform in one region, they should be open to exploring third-party solutions in another—especially if a local provider has a proven track record of success.

5. How can operators use data and analytics to increase player engagement and improve the overall betting experience?

The ways operators can use data and analytics to enhance their product, service, and ultimately player engagement are virtually limitless. However, despite the ongoing technological advancements, many operators still undervalue data or completely ignore its importance. While working with large datasets can seem complex, there are relatively simple strategies that every operator should implement.

1) Understanding the Audience

Everything starts with analyzing data. And each operator has tons of it:
• Where the client comes from (traffic source/combination of sources)
• Which areas they navigate first and which buttons they click
• Where they get stuck in the registration form and how long it takes to complete registration
• How often the client forgets their password and how difficult it is to restore access
• What errors occur during critical transaction: deposits, bet placement, withdrawals
• How many bet rejections happen and why
• The actual win/loss ratio vs. the mathematically expected outcome

Once operators systematically study their data, they quickly realize two things: (a) there is a wealth of useful and relatively easy-to-interpret data that you can turn into action (b) the audience is far from homogeneous.

Companies often create customer profiles, and marketing decks typically highlight 3–5 generic types of bettors. However, this approach is outdated, as the reality is far more complex. The customer base consists of hundreds, if not thousands, of segments and micro-segments, each with distinct behaviors and motivations.

• One-time bettors who place spontaneous bets and never return.
• Fans who bet only on specific teams or leagues.
• Players looking for maximum value, chasing specific odds and market conditions.
• Bettors who enjoy the process itself, regardless of the outcome.
• High-frequency users betting daily, at night, or only on weekends.
• Customers interested only in major tournaments like the FIFA World Cup.
• Risk-takers vs. conservative bettors looking for safe, low-risk bets.
• etc.

And that’s just tip of the iceberg. Digging into data helps operators identify these segments and truly understand who their players are. If combined with customer development interviews, this provides even deeper insights into user motivations.

2) Personalizing Content and Communication

With the knowledge about their clients(background, interests, motivation to bet etc.) operators can create a fully personalized experience for each player:
• Tailor CRM strategies (notifications, emails, bonuses) based on user preferences
• Use dynamic segmentation to adjust the frequency and type of communication (e.g., some users may need daily offers, while others only once a month).
• Fine-tune targeted ads and marketing campaigns based on actual interests rather than generic assumptions.

Many operators still take a mass-market approach, sending the same push notification to their entire database—like a generic Premier League reminder on Friday night. This is ineffective. A more personalized strategy, where each player receives content relevant to their interests, leads to higher engagement and retention.

3) Optimizing Product and User Experience

Data analytics helps improve the core product:

• Personalized recommendations (e.g., showing tennis odds to a tennis bettor instead of football, presetting an accumulator bet with selections that will likely be of interest to the client)
• UX/UI enhancements based on user behavior analysis
• Odds modeling optimization, catering to different betting styles

The true power of data lies in understanding your audience and creating personalized experiences. Operators that rely on outdated, mass-market approaches risk losing customers. Those who embrace data-driven strategies gain a competitive advantage by delivering a more relevant, engaging, and seamless betting experience—ultimately increasing player engagement and profitability.

6. Why are iGaming events and conferences important for the growth and development of the sports betting industry?

The sports betting industry consists of a diverse range of players—B2C operators, service providers (payments, platforms, CRM, and more), affiliates driving traffic, marketing agencies supporting business growth, sports federations, regulators, and many others. I’m probably not listing them all, but the key point is that there are very few opportunities where all these professionals can gather in one place.

These events provide a unique environment for industry representatives to collaborate, showcase products and services, discuss challenges, and observe market trends. While the reasons for attending may vary from person to person, I would highlight three key aspects that make these events valuable.

• Networking and fun. For me, networking is the number one reason to attend iGaming events. The industry is global, with experts and professionals spread across different parts of the world, and there aren’t many chances to meet in person. These events create an unparalleled opportunity to connect with friends, peers, competitors, and even rivals—all in one place.

Beyond reconnecting with familiar faces, I’ve found that every event introduces me to new experts and professionals, opening new doors. The mix of structured meetings and spontaneous encounters makes networking a powerful tool for both business and personal growth. And we shouldn’t forget about fun aspect here. This year I tried not only to work but shoot a bit of fun content that I shared on LinkedIn afterwards.

• Sales & Business Development. This could easily be the top reason for many attendees, but since I’m personally a people’s person, I put networking first. From a business perspective, sales are arguably the most significant driver behind attending iGaming conferences. A well-prepared company can maximize its sales potential by scheduling meetings in advance, ensuring they make the most of the event.

The sales process often doesn’t conclude at the conference itself, but the connections made and leads generated provide a strong foundation for follow-ups afterward. In short, these events offer an immense opportunity to meet potential clients and partners, which can translate into business growth. The fact that you see more booths, bigger and glossier booths every year speak for themselves.

• Industry Insights & Learning. Staying up to date with the latest industry developments is another key advantage of attending these events. However, this has become increasingly challenging due to the sheer scale of modern iGaming conferences. For instance, the last event in Barcelona covered over 120,000 square meters—roughly the size of 16 soccer fields. Just walking past all the stands would require covering over five kilometers, which could take an hour or more given the crowd.

If you want to engage with exhibitors and learn about their products, spending 20–30 minutes at each booth makes it practically impossible to cover everything in detail. That said, conferences also offer insightful panel discussions and keynote sessions, providing updates on regulations, future industry trends, and technological advancements. Despite the scale, these events remain one of the best places to gain firsthand insights into the latest developments shaping the industry.

Interview conducted by Nasif Balinda

About Post Author

Iwo Bulski

Issues related to the gambling business is engaged in more than 30 years. My empirical experience gives me the opportunity to present events and companies from this business with full knowledge and industry knowledge.

See author's posts

Iwo Bulski

Issues related to the gambling business is engaged in more than 30 years. My empirical experience gives me the opportunity to present events and companies from this business with full knowledge and industry knowledge.