Online gambling is one of the most latency-sensitive applications on the internet. A poker player expects to see their opponent's bet within milliseconds of it being placed. A sports bettor needs their in-play wager accepted before the odds change. A live dealer player wants to see the card flip at the same time as everyone else at the table. Any perceivable delay breaks the illusion of real-time gaming and erodes player confidence.
High latency also creates exploitable timing advantages. In poker, a player with lower latency has a measurable edge in time-bank situations. In sports betting, latency differences between players can enable arbitrage against your own odds. Minimizing and equalizing latency protects both your players' experience and your platform's financial integrity.