Case Study
The Situation
Sparket, an innovative tech startup, set out to revolutionize live event wagering software. They saw the importance of social engagement in sports betting and a huge opportunity to modernize event wagering with their “bet-on-anything” platform The Social Betwork™. This platform would utilize a pari-mutuel betting system that provides dynamic odds, a completely new approach for the gaming industry. So the question became, how can Sparket bring this exciting new platform to market in a way that builds trust with regulators?
The Challenge
As with any new technology, the path forward isn’t always easy or linear. One of the challenges that startups face when entering the gaming industry is establishing a presence in a highly competitive environment. To be successful, it often takes a leading-edge product which can make navigating regulatory compliance more difficult. Sparket’s platform integrated many unique components – peer-to-peer transactions, engagement, patent-pending prediction software, and pari-mutuel sports betting. Each component would come with its own hurdles and regulations. This venture wouldn’t fit into the traditional box; it would be a combination of a new approach and new technology, which challenged product norms. What could Sparket do to put their product on solid regulatory ground as early as possible in the development process?
The Action
Sparket turned to GLI’s pre-compliance teams for regulatory advisory and testing services. They recognized that GLI’s knowledge and experience would help them build toward certification and identify any issues early in the process. GLI advised on compliance, best practices, and standards. With Sparket’s unique product, it was important to understand all the different pieces of the platform and the different regulations that would impact them. Sparket’s and GLI’s respective engineering teams worked in partnership over an extended period, meeting weekly to ensure a smooth and timely completion. Sparket knew GLI’s pre-compliance services would put them on the right compliance track, saving time and money in their development process.
The Standard
GLI-33: Event Wagering Systems is a technical standard GLI produced for the industry. Its purpose is to provide a resource for independent technical analysis and/or certifications to wagering industry stakeholders wishing to represent compliance for their event wagering operations and systems. The technical standard, which has been widely adopted by provincial, state, and tribal regulators, represents the most highly developed set of technical requirements and practices available for sports and event wagering systems. The standard is available free of charge at https://www.gaminglabs.com/gli-standards.
Results
GLI’s Regulatory & Advisory Services streamlined Sparket’s path to obtaining their GLI-33 certification on time and on budget. Earning their certification from the globally trusted and respected GLI laboratory helped them build confidence with potential partners and garner further support from their current and prospective investors. Since obtaining their certification, Sparket has announced a partnership with Station Casinos LLC, one of the leading operators in the world.