Adapting your sportsbook to meet state-specific regulations in the US

With every US state setting its own rules, operators need adaptable, compliant sportsbook technology. Drawing on years of experience across regulated markets, Kambi outlines how operators can scale confidently. 

Regulated sports betting in the United States continues to expand at pace, but with growth comes complexity. Every state sets its own rules for how sports betting companies must operate, from taxes and bet types to responsible gambling frameworks and marketing restrictions. As a result, operators cannot rely on a single, static sportsbook setup. Instead, they need adaptable platforms capable of configuring products and compliance workflows for each jurisdiction. 

For operators, the ability to flex quickly to state-specific regulations can often be a competitive advantage. When supported by the right technology, state-by-state rollout becomes an opportunity to scale efficiently rather than a barrier for growth. 

Must-know state regulatory information 

Before entering a new state or expanding existing operations, operators need a clear understanding of the requirements that shape how a sportsbook must function.  

State-specific taxes 

One of the most significant variations across states is taxation. Some states such as New York place a heavy tax on operators based on gross gaming revenue (GGR), while others like Illinois apply tax on turnover, or even per bet. Each model has financial and operational implications, especially when entering multiple states at once. 

Understanding tax structures early helps operators forecast profitability and model risk more accurately. It also influences decisions like promotional strategy, margins and how to allocate trading resources per state. 

Betting limits & market restrictions 

States also differ in which sports, markets, and bet types can be offered. Some prohibit player performance betting, or prop bets, on in-state teams like Connecticut and New Hampshire, while others like Pennsylvania, New Jersey, and many more don’t allow wagers on college athletes or in-state schools. Others impose maximum wager limits or restrict in-play markets. Operators must ensure their platform presents only those markets approved for that jurisdiction, and that bet limits reflect the state’s requirements. Doing so not only mitigates risk but helps deliver a seamless user experience. 

To support these nuanced restrictions, Kambi draws on an extensive in-house compliance database containing hundreds of thousands of datapoints relevant to regulatory decision-making. This includes information such as sport participant dates of birth, NCAA team state associations, bet offer categories, and integrity risk ratings assigned by Kambi’s Sports Integrity experts. 

Responsible gambling rules 

States may require operators to offer a mandate on deposit limits, session time limits, specific messaging around responsible gambling, or integrations with local help lines. Others maintain their own self-exclusion systems that must be recognised. It is essential for sportsbooks to adapt these measures accordingly so that players receive consistent, compliant protection. Meeting and exceeding these expectations also strengthen trust with both regulators and bettors. 

Promotions and market restrictions 

Promotional rules often change rapidly and differ considerably from state to state. Some states restrict the types of bonuses that can be offered or limit promotional credit on certain markets, while others impose detailed requirements on how promotions are advertised or communicated. For example, in Massachusetts, operators are prohibited from labeling promotions as “free” or “risk-free.”  

Ensuring promotional tools align with these rules is critical for maintaining compliant marketing activity. This often requires close collaboration between compliance, product, and marketing teams to ensure offers are tailored correctly for each jurisdiction. 

Reporting and licensing requirements 

Regulators may require detailed wagering, integrity, or tax reports at different intervals and in different formats. Licensing frameworks can differ as well, with some states requiring partnerships through brick-and-mortar casinos, and others imposing licensing requirements on suppliers, employees, or individual sportsbook components. Operators with organised reporting processes and a clear licensing strategy are far better positioned to enter new states smoothly and maintain good standing with regulators. 

Actions to take: How sportsbooks can adapt 

Once operators understand the regulatory landscape, the next step is to ensure their technology and processes are designed to respond efficiently to these variations. 

Flexible platforms 

Sportsbooks must be able to configure markets, limits, responsible gaming tools, promotional settings, and reporting logic independently for each state. When these elements can be adjusted easily and consistently, operators can accelerate launches in new jurisdictions while reducing the operational complexity that often accompanies regulatory change.  

Automate compliance 

Automated offering compliance ensures that only permitted markets and features are visible in each state and that changes to local regulations can be reflected swiftly. Kambi supports operators in this area through advanced, automated offering compliance that helps maintain accuracy and reduces the operational burden of managing multiple jurisdictions.  

This automation is strengthened by Kambi’s in-house compliance database, which contains extensive regulatory and sporting datapoints used to validate every market. By incorporating elements such as participant eligibility, team geography, bet categorisation, and integrity risk scoring, the system can automatically block or adjust offers that fall outside state rules. This reduces manual review, increases accuracy, and protects the integrity of the product across all markets. 

Use data to guide rollouts 

By analysing data such as customer behaviour, market demand, and regulatory trends, operators can determine which states to prioritise, which sports or bet types resonate locally, and how to optimize margins and pricing structures within each market’s parameters. Data-driven decisions allow operators to move more confidently and efficiently, ensuring resources are deployed where they generate the greatest impact.  

Prioritise employee training 

Even with strong technology, employees involved in trading, marketing, and compliance must understand the regulatory expectations for each state. When teams are knowledgeable about local requirements, they are better equipped to avoid inadvertent violations and to adapt quickly when rules evolve. This emphasis on internal knowledge builds a strong culture of compliance across organisations and builds trust with regulatory bodies.  

Many operators benefit from building collaborative relationships with regulators, implementing clear audit trails and creating centralized compliance functions that oversee state-by-state activity. These efforts help streamline operations and create a more proactive posture toward regulatory change.  

Emerging federal regulations in sports betting: SAFE Bet Act 

While sports betting is currently governed at the state level, federal oversight continues to be a part of the national conversation. The SAFE Bet (Supporting Affordability and Fairness with Every Bet) Act, not yet passed, proposes: 

• Uniform responsible gambling standards 

• Restrictions on certain bet types 

• Mandatory affordability checks 

• Broader federal involvement in sportsbook oversight 

Although no immediate action is required from operators, the SAFE Bet Act signals potential future changes. Operators who already prioritise adaptable systems, strong responsible gambling practices, and transparent reporting will be better positions should federal legislation progress. 

Scale your sportsbook with Kambi 

Successfully navigating state-by-state regulatory differences requires technology built for flexibility and scale. Kambi supports operators through: 

• Advanced, automated offering compliance tailored to each state 

• A regulatory compliant Turnkey Sportsbook built for speed, scale and success, combining end-to-end sportsbook capabilities, AI-powered trading, advanced risk management, and a market-leading Bet Builder 

• Odds Feed+, allowing operators to enhance existing sportsbooks with premium pricing through a single API 

• A fully open, flexible platform designed to support rapid expansion across regulated markets 

• Kambi’s in-house compliance database, containing hundreds of thousands of regulatory and integrity datapoints, enabling precise, automated decision-making and adding further protection to ensure products remain compliant 

With Kambi’s technology, operators can reduce risk, save operational time, and enter new markets more confidently. Whether building a full sportsbook or strengthening an existing product, Kambi provides the tools needed to scale efficiently and compliantly. 

Expanding into new US states can be complex, but regulatory differences do not have to slow growth. With a clear understanding of state-specific requirements and a sportsbook platform designed for flexibility, automation, and confident compliance, operators can turn regulation into a strategic advantage.