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Compliance challenges for the gambling sector in 2022
23 November 2021, 00:00:00
Compliance is always a complex matter. It is cumbersome, complicated, and unavoidable. Failing to be compliant can cost you your license and destroy your reputation. But getting, and remaining compliant can be a lengthy and even costly process. If you are a gambling operator or are thinking of becoming one, it is a good idea to understand the possible issues. In such a fast-paced sector, these challenges evolve constantly, and that is why we are bringing you some of the compliance challenges for 2022 and tips on navigating them.
The gambling sector is booming and shows no sign of slowing down. While this is great for operators, it does bring with it additional challenges. Increased popularity means more risk as criminals see plentiful opportunities. But the influx of new players also brings other challenges. These include needing more staff to deal with compliance, such as onboarding and transaction monitoring. One solution is hiring more staff, but this can be costly and take time.
Another solution is integrating technologies such as AI into your operations to help you reduce the workload. They can also help with customer service by fielding FAQs and channelling players to the proper departments. More players mean more challenges, but it also means more revenue. By looking to technology, you can help manage your customer base and your operations.
As mentioned, an increase in customers also means more opportunities for nefarious actors. The success of the gambling sector has made it a target for money launderers, hackers, and those looking to steal identities. While this might sound ominous, it is a real risk and should be taken seriously. As a response, regulators have moved to tighten existing rules and introduce others to protect players, operators, and the sector as a whole.
There are also rules around responsible and fair gaming that have to be considered. As we move into 2022, these laws aren’t decreasing, and in some jurisdictions, they may increase. But it is no cause for alarm as compliance can be managed through your corporate service provider.
The online gambling sector is ripe with innovation. The last few years have seen a dramatic increase in the varieties of emerging technology in the market. This has been driven by a combination of smartphone usage and access to high-speed internet, along with more interest in digital entertainment.
With some of these new technologies come additional challenges. They can include cost, accessibility, investment, and of course, compliance. Regulators have struggled to know how or whether they should get involved with some developments, which has led to several grey areas. For example, skins betting- using in-game items to bet on eSports tournaments- is popular but not dealt with by many regulators. In these instances, it is wise to be cautious and consult your corporate service provider. They will be able to explain the requirements and advise you if you need to take additional steps.
Online gambling players do not just want to pay with cards these days; they want to pay through apps, digital wallets, and even with digital currencies. Over the last few years, cryptocurrencies such as bitcoin, ether, and a whole host of others, have become very popular. Players like to gamble with cryptocurrency because it does not show up on bank statements, and it is transparent, quick, and cost-efficient to use. But the prevalence of new currencies and alternative payment methods among players can be challenging for operators.
Whereas once, it was enough to provide bank transfers and credit and debit cards, now this is not the case. The solution is to try to diversify your payment solutions as much as possible. Keep your finger on the pulse and try to offer at least one of the most popular payment methods; cards, apps/processors, wallets, and crypto payment providers. Ideally, going into 2022, you should at the very least be offering payment in bitcoin and ether. Be sure to check with your corporate service provider before introducing new payment types on your websites.
Navigating compliance can be challenging, especially if this is a new sector or in a new jurisdiction. But it doesn’t have to be. Fast Offshore has over 24 years of experience in iGaming and has helped countless operators with compliance. We can look at your needs and obligations and assist with policies, processes, audits, and ongoing matters, no matter how the situation evolves. Contact us today to find out more.