The gaming and gambling industry is one characterised by its rapid and sizeable growth. According to the Global Gambling Market Report published in 2021, the market is expected to grow by $50 billion this year alone, bringing it to a total of $516.03 billion.
However, this progress, along with increased diversification in the products it offers, presents a much greater risk for firms that are in the industry. The prevalence of online casinos has skyrocketed during the pandemic, with many countries finally taking the leap into making it a legal venture. As a result, staying compliant has become a very difficult task and one that, if not properly attended to, can lead to extremely costly consequences.
Even up until as recently as a decade ago, many countries took a stance that diametrically opposed them to online gambling. iGaming was deemed dangerous, and many governments made the decision not to regulate the industry at all, rather than ensure that players could play responsibly. But, with the industry being so lucrative – consistently generating billions in revenue – especially during the pandemic when people had to stay home, it became impossible for them to continue in this vein. This has resulted in a change in recent years, with wave after wave of regulation being introduced by many administrations as they struggle to catch up with this behemoth of an industry.
One of the consequences is that the wider industry has become more transparent, with all online casinos required to provide players with relevant information regarding their licences, terms and conditions, payment processing times, fees and more.
The know your customer (KYC) sector of compliance has also become of paramount importance, whether to make sure they are not using illicit funds to gamble or to protect them. Failing to do so can lead to serious and very expensive outcomes for those who fall foul.
The good news is that RegTech, while relatively new has come a long way in the last few years and can aid the industry in staying compliant. Today, Regtech solutions incorporate all that the industry needs to comply quickly, accurately, and efficiently.
These solutions are also designed to minimise onboarding times for customers, offering a seamless experience that enhances the company’s brand while making sure they can gather everything they need. Also, through the use of global data AI, and Machine Learning, RegTech platforms provide many services including risk scoring and monitoring, essential in avoiding falling victim to fraud.
Here we’re going to unpick some of the benefits introducing RegTech into iGaming will bring.
As regulations become even more strict and wide-ranging, it is important to have a solution that can satisfy a variety of needs in one fell swoop.
Alongside the importance of KYC, there’s also the need to enhance risk assessment and scoring of players. Anti-Money Laundering solutions can use transaction monitoring, screening and risk assessment practices to fulfil the compliance requirements that these areas bring. RegTech can negate the threat of illegal activities and eliminate the risk of consequent fines that they can bring.
To fully comply with local and global regulations, there is a vital need to make sure data is accurate and legitimate, as well as secure and confidential. This can be especially problematic for online gaming enterprises as they are more exposed to the possibility of ineligible individuals trying to use their services.
This becomes more of a problem when you consider larger organisations when you consider the sheer volume of identities that need to be vetted and verified. RegTech platforms can easily be calibrated to provide this service with a high level of accuracy, and scalability means as an organisation and its new customer levels grow, RegTech can adapt while still providing that efficiency and precision.
Security is absolutely critical to businesses in the iGaming industry, any breach could put customers and their confidential information at risk. Security is a strong focus of many regulatory authorities and is also important to brand value, as customers will not do business with a company that is perceived to be anything less than 100% secure.
With KYC and AML compliance capabilities, RegTech has the ability to verify and secure all elements of regulatory reporting and transaction monitoring in a fair and transparent manner. This will keep all collected data safe, ensuring compliance.
You don’t need to look far to see the effects of falling afoul of iGaming regulation can have on an organisation’s profits. In 2021, the UK, Sweden and the Netherlands issued a total of $54 million in fines to companies operating in the iGaming sector. The majority of these fines were issued as a result of not following AML protocols.
As regulations develop at a rapid pace, so too does the evolution of RegTech. Using a trusted RegTech platform can keep your company on the right side of compliance laws, saving you a lot of money in the long run.
The online gambling industry continues to change at a speedy pace and rather than looking to restrict it, regulators are trying to find ways to create a healthier, more responsible industry for everyone.
Keep up with all of the changes, protect your customers and keep your company compliant with an all-encompassing compliance-as-a-service solution, where with a single integration you may handle all regulatory and monitoring tools to identify, verify and secure companies and individuals alike.
Visit www.sekuritance.com today and find out how our platform can help keep you safe in your industry.
The Sekuritance RegTech platform provides a single platform for every eGRC need, including end-to-end AML/CTF, CECL, FCPA, vendor management, beneficiary onboarding, investor check, card processing MFA checks, blockchain wallet checks, cyber-risk assessments, and other RegTech or Business Process Management requirements.
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