Microgaming 2024: Growing Through Regulation, Compliance and Sustainability
The ability to navigate the ever-evolving iGaming regulatory landscape is an increasingly important factor in achieving market success for operators–putative and potential– across the globe, writes iGamingFuture Head of Content Curtis Roach.
As newly-regulated markets continue to emerge, offering exciting opportunities for growth, operators are keen to gain a better understanding of these frameworks and find the most effective ways to grow within them.
There’s no denying the absolute need for comprehensive regulation to keep our markets safe and competitive; but is it possible to find the perfect balance?
We caught up with Jamie Delaney, Head of Compliance at iGaming pioneers and market leaders Microgaming, to hear his thoughts on the future of iGaming regulation, the best ways to navigate it and, most importantly, how we as an industry can continue to grow, sustainably.
In your view, what makes a ‘successful’ regulatory framework? And how do you measure that success?
“When looking to create a regulatory framework that is both successful and sustainable, you first need to make sure that the online gaming products that are available offer the highest level of protection for players.
“From a collaborative perspective, regulators should also be open to engaging with all market stakeholders to outline a regulatory framework that everyone can adhere to.
“The success of any regulation can be measured by how positive the player experience is, the availability of an attractive product suite and the presence of appropriate safeguards.
“This, in turn, leads to an effective rate of channelisation into the regulated market and away from the Grey Market.”
We’re seeing new markets begin to regulate gambling around the world. Are there any lessons from more mature markets that emerging markets can use to shape their own regulatory frameworks?
“Absolutely!
“The first lesson goes back to my previous point, there needs to be industry-wide engagement with all industry stakeholders. By fostering a constructive dialogue between stakeholders to discuss topics such as products, 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.
“Player protection measures should be front and centre of any regulatory framework.
“It is vital that all licence holders provide their players with a toolbox of Safer Gambling features that enable them to control the extent and impact of their gambling activities. This could include self-exclusion, time outs, financial and time-based limits, and session reminders, all of which can be personalised to each player depending on their individual situation.
“By leveraging these tools in a proactive and strategic manner, players can take a more active role in managing their own gambling behaviours, which can help to mitigate the risk of harm and promote more sustainable and responsible gambling practices.
“It also aids operators in monitoring changes in player behaviours, while flagging any activities that may become harmful, allowing them to step in and support that bettor at a much earlier point.
“Players should be made aware of the range of tools that are available to them to help keep gambling as a form of entertainment in the long run.
“The way in which we, as an industry, market our products also ties into this. Whilst recognising the negative impact that uncontrolled mass advertising and promotional activity can have on a regulated gambling market, it is vital that licensees are granted the ability to promote their licensed operations in a controlled and responsible manner.
“Excessive advertising restrictions risk harming the performance of a newly regulated online gaming market by limiting the ability of licensed operators to reach potential customers and risk increasing the influence of the illicit market.
“Channelisation can also be impacted by the range of products that are available to players within the market.
“It is vital that regulators make the licensed offering safe and attractive in order to successfully channel players to the regulated market and away from the illegal market.”
How can stakeholders within iGaming collaborate more effectively to develop regulatory frameworks that are beneficial for all? Is it possible to create a framework that is effective for the industry and places player protection at the forefront?
“Trade bodies are an important stakeholder in a number of gaming markets around the world, and they can be an effective way to bring about best practice among the major players in each market.
“In the UK, for example, you have the Betting and Gaming Council (BGC) which is taking the lead on key initiatives around affordability and player protection.
“Trade bodies can act as a bridge between industry and the regulator, providing a shared industry message on key issues.
“The collaboration that trade bodies foster can help all stakeholders navigate regulatory challenges, and ultimately ensure that the product-offering in a market remains safe and attractive.
“Government bodies also play a significant role in developing regulatory frameworks that are beneficial for all.
“Sticking with the UK as an example, the Gambling White Paper was released last year. Because of the statutory requirements to introduce certain measures, consultations have been split between the UK Gambling Commission and the Department for Digital, Culture, Media and Sport.
“Collaboration between the two bodies has been vital in ensuring that the overall regulatory picture is considered and that the aims of the White Paper are successfully achieved.”
Are there any particular markets, emerging or mature, that you believe are going to dominate industry discussions over the next 12 months?
“It seems like this has been a big talking point for a while now, but Brazil is going to be a big focal point for the industry.
“They are currently undergoing a re-regulation process, so I think that’s going to garner a lot of attention from people looking to enter the South American market in 2024.
“Peru is also going through a legislative process as we speak, so it will also be interesting to see how that develops.”
Editor’s note:
After speaking with Jamie, it’s apparent that the key to successful regulation lies in player safety, via product development and open communication between the industry stakeholders.
This is the only way to ensure a healthy and sustainable market for all key parties in the gambling sector.
Creating positive player experiences–with the appropriate safeguards–are critical factors that all iGaming stakeholders need to take notice of.
It’s also important to note that we have access to a wealth of knowledge gained from experiences in more mature regulated markets.
Although every market is different, with their own singular nuances, there are still many transferable lessons and tools that can be leveraged in newly-regulated markets to empower players with the confidence to take a more active role in managing their own gambling behaviours, helping to mitigate the risk of harm – while promoting more sustainable and Responsible Gambling practices.
