Sporting Solutions launches risk management product
5 Dec 2017
The deal will see Sporting Solutions supply a modular service covering pricing, trading, risk management and back-office operations. The agreement also includes the supply of trading software that empowers Danske Spil to focus resource on the provision of differentiated local content to enhance its market-leading brand proposition.
RMS is designed to be agnostic to the existing technology stack, complementing partners' in situ platform and bet engine and removing the complex, expensive and technically challenging "switching risk" of having to move to a new platform in order to improve business processes.
The risk management model used in RMS has been developed in-house and is a product of both 25 years' experience in trading highly volatile spread and fixed odds markets and the recent acquisition of market-making firm Touchbet. The unique risk-adjusted pricing algorithms adjust automatically based on bet volume, customer profile, market behavior and expected market movement, so enhancing margin and driving revenue growth and security.
Danske Spil is already a business partner to Sporting Solutions, so this is an addition to an already existing business partnership.
Simon Trim, CEO of Sporting Group, said, "Danske Spil have long been recognized as both a market leader and one of the most progressive lottery operators in the world, and we are very proud to announce them as a first partner.
"RMS is set to further improve their quality offering with a bespoke risk management service and a business process outsourcing proposition unique to the marketplace.
"We've transformed risk management from an art to a science by developing methodology based on statistical analysis, expert trader insights and predictive market movements.
"RMS will allow Danske Spil to concentrate their resources on offering differentiated, bespoke content for their customer base, which is crucial for any lottery operator trying to compete against strong competition in their local market."
Niels Erik Folmann, CEO at Danske Licens Spil, said, "In today's competitive sports betting environment, we are constantly looking for solutions to strengthen our product and operations. Our enhanced cooperation with Sporting Solutions and their Risk Management Services will strengthen our operations while allowing us to focus on areas where we can differentiate ourselves positively in our local market.
"The combination of risk management, flexible trading tools and back-end operations is unique to the industry and we're really excited about the potential of RMS to further strengthen our business and unique position in the Danish market."
The Sporting Group is licensed by both the U.K. Gambling Commission and the Financial Conduct Authority, putting it in the unique position of having the strongest financial probity alongside market-leading commercial success.