The goal of risk management for traders is to maximize long-term profitability. However, many operators and suppliers in today’s tech-innovation world are using risk management to simply restrict losses through limit setting and player profiling. This is because operators don’t have control or agility to adjust pricing dynamically based on customer betting activity.
Automation and machine learning have made it possible to better align liabilities, pricing, and customer management in order to increase profits. By understanding how much money is bet on each market and taking into account current and previous liabilities and live probabilities, automated solutions drive dynamic margin adjustments on each bet selection at scale.
By removing the gap between prices set by third-party odds providers, automation delivers a more profitable sportsbook. Automated risk management tools have shown to consistently increase gross profit margins for small-to-medium sized operators. It also helps drive retention, turnover, and differentiation for your brand experience.
Automated tools and capabilities allow for more effective utilization of customer data and reduce manual workload. This saves costs, avoids human error, and frees up resources for higher skilled functions. Automation in risk management brings greater consistency, stability, and predictability to the sports betting business.