How the global iGaming Regulatory Landscape is changing and why it is so important for a jurisdiction to have a robust framework

The regulatory landscape in the igaming industry is fairly sporadic, some jurisdictions implemented robust regulation decades ago, whilst others are developing a new regulatory framework to enter the market today. iGaming regulation often differs between provinces in a jurisdiction and globally, with various tiers of regulation that determine the strength of regulatory framework in place. This will influence a jurisdictions reputation in the industry and the credibility the licence provides the operator.

Typically igaming operators would seek a jurisdiction with low barriers to entry and a liberal regulatory framework. A key motive for this being lower licence costs and flexible requirements. However, in recent years there has been much regulatory development in the gaming industry, which has come from increased scrutiny on the strength of regulation in place and the protection it offers players.

In response to this, the adoption of regulation in new markets is quickly increasing which is putting emerging markets under the spotlight, an example are countries across Latin America such as Brazil, Chile and Peru. It has even prompted some jurisdictions to overhaul their current regulatory framework in place, an example Curacao, which has passed a new bill to bring in new stringent requirements to re-position its regulatory approach in the igaming industry. This includes increasing the standards operators are required to meet, including AML procedures and licensing requirements.

The shift in regulatory measures across the industry has also prompted operators to re-think their strategy. The choice of jurisdiction is now more dependent on whether there is a tier-1 regulatory regime in place and the reputation of the jurisdiction. Jurisdictions that have a stable landscape, economically and politically, provides operators with a predictable landscape which is vital for the long-term success of a business. A clear regulatory framework from the outset with defined requirements and expected costs that can budgeted into the year provides operators with comfort in knowing there will be no hidden fees or surprises later in the year.

License’s that were considered more expensive are now appearing more attractive due to the tried-and-tested frameworks and clarity on costs and requirements from the outset, proving to be the reliable option. The emphasis on stronger regulation in the industry has also highlighted the issues operators are facing with banking in jurisdictions with unpredictable regulatory landscapes.

Jurisdictions that have a stable regulatory environment and economic landscape provide operators with superior banking solutions, with many banks categorizing jurisdictions that have loose or unpredictable regulation as outside their risk appetite. A jurisdiction which is a prime example of having an established banking sector with an appetite for gaming is the Isle of Man. Recognized for its robust regulatory environment, Operators choose the Isle of Man for its stable banking sector, presenting a variety of options from physical banks and EMIs.

The jurisdictions stable regulatory landscape has formed its prestigious reputation which provides operators with credibility when entering other markets. As an outward facing licence, Operators can enter into various markets including Asia, Latam, Canada, Africa and India. Although the jurisdiction has been in a leading position in the market for many years and home to some of the world’s largest names, the demand for the licence has only intensified within the last year. A key reason for this is the stability the jurisdiction presents, with its clear, robust regulatory framework, for example a licence covers all verticals which speeds up the process in the long run and allows the operator to offer various types of games at no extra cost.

In addition to the regulatory framework, the Isle of Man offers a favourable economic environment for a business, including many compelling financial benefits such as zero corporation tax, zero capital gains tax, zero dividends tax and zero inheritance tax. Operators also benefit from low betting duty of between 0.1% and 1.5% based on gross profit not turnover. Complimented with 100% player protection in place this is always an attract players.

Affinity’s Services

In the egaming industry in the Isle of Man and Malta since 2014, we have earnt a prestigious reputation for providing operators with an excellent service in gaming licensing and bespoke corporate structuring.

Our integral understanding of the regulatory regime in each jurisdiction and 100% licence application success rate provides operators with comfort in knowing that we are well-placed to assist.

You can find further information on our igaming services here, or download our igaming brochure.

Please contact us and one of our expert team members will be delighted to discuss with you your business goals and how we can help with our bespoke igaming services.