AI and innovation will define future betting operators: Expert
As regulation tightens across the UK betting sector, artificial intelligence (AI), product innovation and long-term investment are becoming increasingly important for operators. Rising taxes, affordability checks and stricter compliance requirements are placing greater pressure on operators to manage costs, protect margins, improve player protection measures and maintain customer experience.
Remote gaming duty increased to 40 per cent from 1 April 2026, while a 25 per cent rate for remote betting will come into effect from April 2027, increasing costs for operators. At the same time, affordability checks, financial risk assessments and other responsible gambling measures introduced under the Gambling Act White Paper have brought greater regulatory scrutiny across the sector. Against this backdrop, innovation is moving beyond surface-level product changes and towards areas such as artificial intelligence in risk management, pricing and operational efficiency.
In an exclusive conversation with SiGMA News, Charles Lee, CEO of UK-based operator kwiff, looks beyond regulatory pressure to examine what comes next for the betting industry. In Part One, he discussed how rising taxes, affordability checks and stricter compliance requirements are reshaping the market. In this second part of the interview, Lee explores innovation across product and technology, the role of AI in risk management and responsible gambling, and what will define a future-proof betting operator by 2030.
SiGMA News: Where do you see genuine technological innovation happening today, beyond surface-level product tweaks, and how will AI reshape risk management and responsible gambling frameworks?
Charles Lee, CEO at kwiff: There are diminishing returns from surface-level tweaks such as adding more markets or making small feature variations. There is still value in these changes, but real innovation takes time, especially in sportsbook, where player behaviour does not change overnight. Even genuinely strong features need time to be adopted. A product can be made more flexible or intuitive, but players need to understand it, trust it and naturally incorporate it into how they bet. That evolution does not happen immediately after launch.
Innovation becomes more meaningful when the product starts to simplify the experience. At the end of last year, Flex was launched as a feature that allows players to add protection to one or more selections in their Bet Builder bets, so the bet can still win even if one or more selections fail. Players can choose how much protection they want, allowing them to stay in the game even when results do not go their way.
Over time, the model is likely to move towards players asking for what they want in a more conversational way, with the product building the bet for them. This removes friction and shifts away from the traditional sportsbook interface, although the transition will be gradual.
On the AI side, meaningful innovation is already happening behind the scenes, particularly in risk management, pricing and operational efficiency. This will continue to develop quickly. AI will also play a bigger role in responsible gambling, especially in identifying harmful patterns earlier and more accurately. However, balance remains important. This process cannot be fully automated, and human input remains critical. The real opportunity lies in using AI to make systems more efficient, accurate and proactive, while maintaining the right level of human judgement.
SiGMA News: In an environment of inflation and reduced discretionary spending, how exposed is the UK betting sector to broader macroeconomic pressures?
CEO Lee: It is always a concern. When the cost of living rises and people have less disposable income, it affects every industry, and betting is no different. That said, betting and gaming sit within the broader entertainment sector. People will still engage, but there is clear pressure on share of wallet and average spend. That is something operators cannot directly control. What can be controlled is how the business is run.
If revenue per user is under pressure, operators need to be smarter about player acquisition, how cost per acquisition (CPA) is managed, where investment is placed across channels, and how costs are balanced. It becomes a question of efficiency and flexibility. With a strong product, a clear brand and a disciplined operational approach, businesses can adapt to these conditions.
Macroeconomic pressure will reduce spend, but operators that remain agile and commercially sharp will still be able to perform.
SiGMA News: Are boards and investors currently prioritising long-term infrastructure investment, or is short-term profitability still dominating strategic decisions?
CEO Lee: The board and shareholders are taking a long-term view, with the focus placed on building a strong and sustainable business rather than chasing short-term profitability. Profitability has been delivered, but with the changing tax environment, there are no guarantees. This makes forward planning essential, particularly when deciding where to invest, where to build, and what can create a genuine competitive advantage over the next two to three years.
Operators that focus purely on short-term returns will eventually face challenges. They may generate cash in the near term, but it is difficult to balance that with building a strong product, a clear brand and a genuinely player-first experience. The businesses that perform best over time will be those that invest properly, think long term and continue delivering value to players.
SiGMA News: Do you believe the current direction of UK regulation strikes the right balance between consumer protection and commercial viability?
CEO Lee: The industry can do more to communicate the level of player protection that is already in place. Television is awash with time-out advertisements, but there is much more happening with innovation at operator level, often supported by data and technology. Much of this is not always visible to players. For example, tools such as Curfew allow players to take control by blocking access to services during times of their choosing.
One area that has improved significantly is the relationship with the regulator. It feels more collaborative than it did a few years ago, which is positive progress. There is more dialogue and openness, and that is how it should be. There are also several valuable workshops, both online and in person, that help strengthen these relationships.
That said, the market has not yet reached the right balance. The biggest issue is channelisation. If regulated operators are heavily taxed and constrained, while unlicensed operators can still access the market, including advertising in the Premier League, it creates an unfair environment. Strong player protection is essential, especially for the small percentage of vulnerable users. However, most people engage with betting as a form of entertainment, and over-regulation risks damaging both the player experience and the competitiveness of the regulated market.
The balance, therefore, needs to be carefully managed. It is important to protect the player, but also protect the market. Without that balance, there is a risk of pushing players towards the black market, which undermines the entire system.
SiGMA News: Looking ahead to 2030, what will define a “future-proof” betting operator: regulatory alignment, technological capability, capital strength, or something else entirely?
CEO Lee: It is a combination of factors, but a few areas stand out. Owning the platform is becoming increasingly important because it gives operators greater control, not only over the product, but also over how they innovate and differentiate. Alongside that, a clear strategy is essential. Operators need to define what they are offering players and why players should choose them. A strong brand, effective marketing and a compelling product all matter, but they must work together. Players need to understand the proposition, see the value in it and enjoy the experience, while also feeling protected within a well-regulated environment. Scale will also play an important role.
More consolidation is likely over the next few years, and operators will need a certain level of scale to compete effectively. However, the key factor remains innovation. It is a term that is often overused, but operators that deliver genuine innovation will create experiences that stand out, rather than offering another generic product.
The operators that succeed will be those offering something genuinely different and engaging. A future-proof operator combines technology, innovation and clear strategic focus to deliver a distinctive, high-quality experience while balancing regulation and commercial sustainability.
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