The iGaming industry is highly regulated and operators need to be on top of their compliance QA testing in order to stay compliant with all applicable laws and regulations.
In this blog post, we will take a look at the global iGaming industry and determine which geographical areas are white and which ones are gray in 2024.
We will also discuss the importance of iGaming operators having systems in place to navigate regulatory compliance issues in emerging markets with crowdsourced testing.
White jurisdictions are those where iGaming is fully regulated and licensed. Operators in these jurisdictions must comply with all applicable laws and regulations, and they are subject to oversight by government authorities.
Some of the most well-known white jurisdictions include:
- United Kingdom
- Isle of Man
- New Jersey
- West Virginia
Operators in white jurisdictions can be confident that they are operating in a safe and compliant environment. However, it is important to note that the regulatory requirements in white jurisdictions can be complex and expensive to comply with.
Gray jurisdictions are those where iGaming is not fully regulated or licensed. In these jurisdictions, there may be some laws or regulations in place, but they are often unclear or unenforced.
Some of the most common gray jurisdictions include:
- South Africa
Operating in a gray jurisdiction can be more risky for iGaming operators, as they may not be fully aware of the applicable laws and regulations. However, it can also be more rewarding, as there is less competition and the potential for market growth is greater.
Part 2: Regulatory compliance in emerging markets
As the iGaming industry continues to grow, more and more operators are looking to expand into emerging markets. However, it is important to note that these markets often have complex and evolving regulatory landscapes.
iGaming operators must have systems in place to navigate regulatory compliance in emerging markets. These systems should include:
- A robust risk assessment process
- A compliance program that is tailored to the specific requirements of each market
- A team of experienced compliance testers
Failing to comply with regulations in emerging markets can have serious consequences for iGaming operators. These consequences can include:
- License suspensions or revocations
- Criminal charges
In addition, operators who fail to comply with regulations can damage their reputation and make it difficult to operate in other markets.
Case study: iGaming operator in India
One of the most promising emerging markets for iGaming is India. The Indian iGaming market is expected to grow to over $1 billion by 2024. However, the Indian regulatory landscape is still evolving, and there are a number of challenges that iGaming operators need to be aware of.
One of the biggest challenges is that there is no single national regulatory framework for iGaming in India. Instead, each state is responsible for regulating its own iGaming market. This can make it difficult for operators to comply with all of the applicable laws and regulations.
Another challenge is that the Indian government has a history of cracking down on illegal gambling. In 2019, the Indian government banned online gambling using credit or debit cards. This ban has made it more difficult for Indian players to deposit and withdraw funds from their iGaming accounts.
Despite these challenges, there are a number of iGaming operators that are successfully operating in the Indian market. These operators have been able to do so by:
- Partnering with local companies
- Obtaining licenses from individual states
- Implementing robust compliance programs
Tips for iGaming operators looking to expand into emerging markets
Here are a few tips for iGaming operators looking to expand into emerging markets:
- Conduct a thorough risk assessment: Before entering any new market, it is important to conduct a thorough risk assessment. This assessment should identify all of the potential legal and regulatory risks associated with operating in that market.
- Tailor your compliance program to the specific requirements of each market: No two markets are the same, so it is important to tailor your compliance program to the specific requirements of each market. This may involve obtaining licenses, implementing local payment methods, and complying with local laws and regulations.
- Build a team of experienced compliance professionals: Having a team of experienced compliance professionals is essential for operating in emerging markets. These professionals can help you to identify and mitigate risks, and ensure that you are compliant with all applicable laws and regulations.
By following these tips, iGaming operators can increase their chances of success in emerging markets.
The global iGaming industry is a complex and ever-evolving landscape. While the industry is largely regulated, there are still a number of gray areas where operators need to be careful.
iGaming operators who are looking to expand into emerging markets must have systems in place to navigate regulatory compliance. These systems should include a robust risk assessment process, a compliance program that is tailored to the specific requirements of each market, and a team of experienced compliance professionals.