The iGaming sector is witnessing significant opportunities for growth worldwide, prompting ambitious operators to explore expansion possibilities and revenue increase. However, the expansion into multiple jurisdictions brings forth regulatory challenges in fragmented regions, leading to additional costs and operational risks.
Elisabeth Isaksson, Head of Regulation and Innovation Technology at iGaming Soft2Bet, shared her expert insights on the challenges faced by multi-regional operators and how companies can leverage the latest technology to navigate these hurdles successfully. In an exclusive interview for iGamingFuture, Isaksson discussed the company's journey across various jurisdictions, highlighting both challenges and successes.
Q: Soft2Bet has recently entered several new markets. How was your journey across multiple jurisdictions, and could you share the main challenges and successes along this path?
A: The journey has been successful as we've progressed with our plan, securing licenses in key European markets. This was a pivotal step for us, aligning with our company strategy to significantly expand our presence in new regions. Looking back at 2023, it's gratifying to say we achieved our goals. Obtaining licenses in Greece, Romania, Italy, Sweden, and Denmark marked significant milestones. Additionally, we are at the initial stages of the legalization process in emerging regulated markets such as Portugal, New Jersey in the US, and Ontario in Canada.
Navigating compliance in new jurisdictions poses challenges, demanding considerable effort from our teams. Success in organizing our work in line with regulator rules is a major triumph for Soft2Bet. This involves addressing all aspects of the business, ensuring platform compatibility and flexibility to meet complex regulatory requirements. Training our staff and establishing processes to comply with regulatory obligations are integral parts of this challenging journey. Witnessing all departments and individuals in the group come together to achieve a common goal is truly rewarding. Investing in new talented employees has been a key contributor to the growth of Soft2Bet.
Q: What is the most effective strategy when choosing a new market to enter?
A: Our strategy involves meticulous analysis of factors such as costs, competition, product suitability, timing, and licensing requirements when selecting new markets. We adopt a balanced approach, ensuring clarity on initial and ongoing costs at acceptable levels based on return on investment within a reasonable timeframe. Analyzing regions where regulation overlaps across markets provides insights into whether existing technical or operational controls can be leveraged, or if new ones need implementation. For instance, our entry into the Danish market was facilitated by our successful operation under the Swedish license, benefiting from similar regulatory rules in Scandinavia.
Each jurisdiction's uniqueness guides our decisions, employing objective assessments and a pragmatic approach tailored to specific market characteristics. The presence of individuals with a profound understanding of the market is crucial not only for compliance but also for seamless integration into new markets.
Q: Regulatory compliance can become increasingly complex and costly, especially for operators in multiple jurisdictions. How can they best optimize this process and ensure sustainable growth?
A: At Soft2Bet, we prioritize process optimization and effective product implementation to ensure future compliance and scalability. Our methodology involves identifying commonalities and areas of overlap in regulations across jurisdictions. This enables us to create a robust framework for high security and responsible gaming, while allowing flexibility to accommodate differences between licenses and foster creativity. This approach proves effective, providing us with a unique ability to seamlessly penetrate diverse markets globally. Quality assurance is integral, with continuous monitoring of compliance in the jurisdictions we operate in. This ensures effective interactions with regulators, partners, and players. Compliance is not only crucial for B2C operators but also plays a key role in attracting partners to Soft2Bet. We aim to create a flexible product for both B2C and B2B growth, offering a safe, adaptable, and innovative platform for our partners to launch multi-jurisdictional projects swiftly and comprehensively.
Q: In the coming year, what exciting new developments can we expect from Soft2Bet, and how will they help propel the iGaming industry as a whole?
A: Looking ahead, Soft2Bet is anticipating new projects, working in new jurisdictions, and successfully integrating into new markets. We are dedicated to improving existing products and portfolios, with new features in development for our gamification platform, the Motivational Engineering Gaming Application (MEGA). These innovations will provide gamers with more exciting options beyond our established product portfolio. Our commitment to innovation aims to benefit the advancement of our brands, partners, and, most importantly, the players who love our products. Our focus extends to innovative developments in mobile applications, UX/UI improvements, all while prioritizing responsible gaming considerations. The last months and the entirety of 2023 have been incredibly productive for Soft2Bet, and we eagerly anticipate the challenges and achievements that 2024 will bring.
