In the dynamic world of iGaming, success hinges increasingly on the ability to navigate evolving regulatory frameworks. Curtis Roach, Head of Content at iGamingFuture, underscores the significance of regulatory acumen for operators worldwide. As new markets open up, brimming with growth potential, operators are striving to comprehend and leverage these regulatory landscapes to foster growth.
While robust regulation is essential for market integrity and competitiveness, achieving the optimal balance remains a challenge. Jamie Delaney, Head of Compliance at industry stalwart Microgaming, shares insights with iGamingFuture on the future trajectory of iGaming regulation. Delaney delves into the nuances of effective regulation and emphasizes the industry's commitment to sustainable growth within these frameworks.
In your opinion, what makes a regulatory framework "successful"? And how do you measure that success?
If you want to create a successful and sustainable regulatory framework, you first need to ensure that the online gaming products available provide the highest level of player protection. From a collaborative perspective, regulators must also be open to engaging with all market stakeholders to define a regulatory framework that everyone can adhere to. The success of regulations can be measured by how positive the player experience is, the availability of an attractive product mix, and the availability of appropriate safeguards. These factors, in turn, lead to an efficient rate of transition to the regulated market from the gray market.
We are seeing new markets begin to regulate gambling in various countries around the world. Are there any lessons from more mature markets that emerging markets can use to shape their own regulatory frameworks?
Certainly! The first lesson goes back to my previous point: industry-wide engagement with all stakeholders is required. By facilitating constructive dialogue between stakeholders on topics such as product, player protection requirements, technology, and taxation, the regulator is more likely to develop a successful licensing regime that can easily adapt to future market changes.
Measures to protect players must be at the center of any regulatory framework. All license holders must provide their players with a range of safe gambling features that enable them to control the scope and impact of their gaming activities. These can include self-exclusion, timeouts, financial and time restrictions, and session reminders, all of which can be personalized for each player based on their individual situation.
By using these tools in a proactive and strategic manner, gamers can take a more active role in managing their gaming behavior, which can help reduce the risk of harm and promote more sustainable and responsible gaming practices. A sound legal framework also helps operators monitor changes in player behavior, flagging any behavior that could cause harm, allowing them to intervene and support the player at a much earlier stage.
Gamblers need to be aware of the range of tools available to them that will help maintain gambling as a form of entertainment in the long term.
The way we as an industry market our products also exposes us to the dangers of gambling addiction. Recognizing the negative impact that uncontrolled mass advertising and promotional activities can have on the regulated gambling market, licensees must be given the opportunity to promote their licensed operations in a controlled and responsible manner.
Excessive restrictions on advertising can harm the operation of a market that has just become regulated, limiting the ability of licensed operators to reach potential customers. The risk of graymarket influence also increases.
It is essential that regulators make the licensing process and business itself safe and attractive in order to successfully guide players into the regulated market and away from the illegal market.
How can iGaming stakeholders collaborate more effectively to develop a regulatory framework that benefits everyone? Is it possible to create a system that is effective for the industry and at the same time puts player protection at the forefront?
Traders are important stakeholders in a number of gaming markets around the world, and they can help effectively implement regulatory best practices among the key players in each market. For example, in the UK there is the Betting and Gaming Council (BGC), which leads key initiatives regarding accessibility and player protection. Trade organizations can act as a bridge between industry and the regulator, ensuring mutual understanding of key issues. The collaboration that trade organizations develop can help all stakeholders address regulatory issues and ultimately ensure that the gaming market's product offering remains safe and attractive.
Government agencies also play an important role in developing a regulatory framework that benefits everyone. The UK is an example: last year the White Paper on Gambling was released. Due to legal requirements to introduce certain measures, consultation was split between the UK Gambling Commission and the Department for Digital, Culture, Media and Sport. Cooperation between the two bodies was essential to consider the overall regulatory picture and successfully achieve the objectives of the White Paper.
Are there any specific markets, emerging or mature, that you think will dominate industry discussions over the next 12 months?
It seems like this has been a serious topic of conversation for some time now. It is clear that Brazil will become an important focus for the industry. The country is currently going through a regulatory process and this will attract enough attention from people wanting to enter the South American market in 2024. At the moment, Peru is also undergoing a legislative process to regulate the gambling market and it will be interesting to see how it will develop.
