The Invisible Engines: Why the “Tech Stack” Is the Real Winner of the US Betting Boom

In the modern US iGaming landscape, attention is overwhelmingly focused on consumer-facing brands such as DraftKings, FanDuel, and BetMGM. Their presence dominates advertising, partnerships, and media visibility.

Yet behind every wager lies a far more complex and less visible layer: the technology stack that powers the entire experience. This infrastructure determines not only how bets are processed, but how efficiently, securely, and profitably operators can run their businesses.

As the market matures, the conversation is shifting away from user acquisition and toward a more fundamental question – who truly controls the technology behind the bet?

The Build vs Buy Dilemma

Speed to market vs long-term control

The rapid expansion of US sports betting following the repeal of PASPA in 2018 created an environment where speed to market was essential. Building a sportsbook platform from the ground up required significant time, capital, and regulatory expertise, making it impractical for most entrants.

As a result, many operators turned to established B2B providers such as Kambi, OpenBet, and GAN. These partnerships enabled rapid deployment and allowed brands to focus on marketing and customer acquisition rather than infrastructure.

However, this model comes at a cost. Revenue-sharing agreements – often ranging between five and fifteen percent of Gross Gaming Revenue – can significantly impact profitability, particularly in highly taxed states.

This economic pressure is now driving a strategic shift, with operators increasingly seeking greater control over their underlying systems.

The Core Architecture of a Sportsbook

Player Account Management (PAM)

At the heart of every sportsbook lies a tightly integrated set of systems that work together in real time. The Player Account Management system, commonly referred to as PAM, serves as the operational backbone. It is responsible for identity verification, regulatory compliance, payment processing, and the management of player wallets.

In a fragmented regulatory environment like the United States, this system must be highly adaptable and resilient.

Odds engine and real-time pricing

Alongside PAM sits the sportsbook engine, which generates and updates betting odds. This system relies on complex quantitative models and real-time data feeds to continuously adjust pricing as events unfold.

During major sporting events, the platform must process extremely high transaction volumes with minimal latency to maintain fairness and competitiveness.

Risk management and trading layer

Completing the stack is the risk management and trading layer. Here, a combination of human expertise and automated systems monitors betting patterns and adjusts markets to manage exposure.

This function is critical in ensuring that operators maintain balanced books and minimize risk in volatile conditions.

The Shift Toward Ownership

Vertical integration strategy

As competition intensifies, several major operators have begun transitioning away from third-party platforms in favor of greater vertical integration.

DraftKings’ acquisition of SBTech marked a significant step in this direction, enabling the company to internalize key components of its sportsbook infrastructure. Similarly, Penn Entertainment acquired theScore to strengthen its proprietary capabilities and reduce dependence on external providers.

New entrants are also prioritizing control. Fanatics entered the market through its acquisition of PointsBet’s US operations, gaining not only market access but also valuable technology and infrastructure.

At the same time, FanDuel benefits from its parent company Flutter’s internal platform, representing a largely in-house approach supported by selective third-party integrations.

Why B2B Providers Still Play a Critical Role

Modular and white-label solutions

Despite the trend toward proprietary systems, third-party providers remain an essential part of the ecosystem. Not all operators have the resources to build and maintain a full-stack platform, and for many, partnering with specialized providers remains the most efficient path.

Companies like Kambi have adapted by offering more modular solutions, allowing operators to integrate specific components rather than committing to an entire platform. Meanwhile, OpenBet continues to provide infrastructure capable of supporting large-scale operations across multiple markets.

In parallel, white-label solutions have further lowered the barrier to entry by bundling technology, compliance, and operational support into a single offering. This has enabled a broader range of brands to participate in regulated markets without heavy upfront investment.

The Next Frontier: Data and Personalization

AI-driven betting experience

Looking ahead, the competitive landscape is expected to shift toward data-driven personalization. Advances in artificial intelligence are enabling sportsbooks to tailor user experiences based on individual behavior, preferences, and betting history.

This evolution has significant implications for technology strategy. Operators with deeper access to their data – and greater control over their platforms – are better positioned to deliver personalized experiences and improve customer retention.

As a result, the value of owning or tightly integrating the technology stack is likely to increase further in the coming years.

Final Thoughts: Technology as a Competitive Advantage

Long-term strategic impact

The US iGaming industry is entering a new phase – one defined less by rapid expansion and more by operational efficiency and long-term sustainability.

While branding and marketing remain important, they are no longer sufficient on their own. The underlying technology stack has emerged as a critical differentiator, influencing everything from cost structure to user experience.

For operators and investors alike, the implication is clear. The real competitive advantage lies not just in acquiring customers, but in building – or controlling – the infrastructure that serves them.

Because in a market driven by speed, scale, and precision, technology is not just a support function. It is the foundation of the business itself.

Source: Penn Entertainment, White Hat Gaming