Betr and Compliance Management in Alternative Betting Products

Betr has committed to maintaining high standards of compliance, AML, and KYC while expanding into alternative gaming products like dual coins and sweepstakes, beyond the traditional framework of sports betting. Its legal head, Matt Kane, emphasizes that adapting robust regulatory controls is essential to avoid financial risks and maintain strong relationships with payment networks and acquiring banks, even when the legal classification of products varies.

Betr's Approach: Compliance from the Start

Betr began its operations in the regulated online sports betting sector, where strict licensing, customer identification, and internal controls rules apply. As it diversified into social formats, arcade, and prediction markets, the company decided to uphold those same standards, even if regulatory requirements might be weaker. Kane highlights that this philosophy strengthens Betr as it ventures into new verticals, avoiding the need to redefine processes with each launch. Robert Warren, compliance head, is key in the cross-company integration of this framework.

Compliance in Betting with Dual Coins and Sweepstakes

The adoption of coin models such as Gold/Sweeps Coins presents additional AML challenges due to fast-moving funds and ambiguous transaction patterns. According to Kane, the key in these hybrid formats is to maintain a risk-based approach:

• Start with customer identification and verification (KYC)
• Constant monitoring of activity goes beyond onboarding
• Analyze speed and patterns of purchases, redemptions, and rapid fund cycles
• Allocate compliance resources toward truly atypical transactions

This strategy allows them to provide a streamlined experience for most users without relaxing controls on suspicious operations.

Relationship with Banks and Payment Networks Amid Perceived Risks

Kane clarifies that alternative models — like sweepstakes — are often received with skepticism by top-tier acquirers, who may unjustly classify them as high-risk categories. He points out a common error: assuming that a different legal framework implies a weaker compliance program.

"A sweepstakes operator can have solid KYC, AML, sanction, and monitoring controls, even if regulations do not require all elements the same way as a sportsbook," comments Kane.

The key is to communicate to financial partners the reality of internal controls beyond mere product labels. Thus, Betr aims for banks and networks to consider each operator on its own merits rather than by category generalizations.

Acceptance of Payments and Sustainability of Approval Rates

Alternative products face the ongoing issue of chargebacks. Betr’s legal, compliance, and payments teams work together to protect payment channels without sacrificing user experience. Together, they cross-reference fraud data, customer behavior, and regulatory conflicts, prioritizing the sustainability of approvals over just the numbers: approving more payments only when fraud risk and disputes do not increase. This helps build long-term relationships with processors and banks.

How Should Payment Networks Evolve in Response to Hybrid Models?

Kane advocates for a subscription based on real risks and less reliance on general labels. Operators that can demonstrate robust compliance infrastructure, experienced personnel, and formal controls should be evaluated individually, regardless of the product category. Betr, due to its regulated gaming origins, aims to establish this new standard in emerging markets: new formats do not justify reducing compliance frameworks.

Normalizing High Standards: Lessons for the Industry

Kane, a speaker on the panel "AML Readiness for New Gaming Formats" at the SBC Summit 2026 in Lisbon, insists that being in an emerging format is not an excuse for a weak compliance program. Betr employs the same rigorous processes as in sports betting: licensing, internal controls, audits, and regulatory reporting, extending them to its expansion into daily fantasy sports, sweepstakes, and skill-based games. They believe operators should focus on concrete risks and build tailored controls, beyond classification ambiguity.

"The regulatory classification should not dictate the quality of your compliance program," summarizes Kane, reminding of the value of adopting discipline before legal obligation.

This approach protects both clients and relationships with banks and regulators, facilitating a sustainable business even in less-defined categories by law.

The SBC Summit: Context for the Compliance Conversation

The SBC Summit 2026 will be held in Lisbon from September 29 to October 1, bringing together 40,000 betting and gaming professionals for three days of conferences, networking, and trade exhibition. This event will discuss regulatory trends, payment innovations, and the future of hybrid products with the presence of international brands and speakers.