Key Moments:
- Gaming operators have shifted from a reactive to a proactive, technology-based approach to compliance.
- Vector Solutions acquired ArdentSky, expanding its capabilities in compliance technology solutions for the industry.
- Licensing management and role-specific training have emerged as critical components in fostering resilient and efficient compliance programs.
The Rise of Proactive Compliance in the Gaming Sector
Within an increasingly intricate regulatory environment, companies throughout the gaming industry are moving away from reactive compliance strategies and adopting more proactive, technology-oriented solutions. Rather than viewing compliance purely as an obstacle, industry leaders now see it as a vital driver of business strategy.
While regulation has been known to contribute to areas like safer gambling, fairness, data security, and tax revenue, compliance remains a key concern due to the resources it demands and the challenges it poses to growth. Even in mature markets like the UK, rising regulatory demands are seen as a significant factor impacting expansion.
Operators today face rigorous laundering controls, geolocation regulations, anti-fraud protocols, and Know Your Customer obligations, all while navigating a complex patchwork of regulators across multiple jurisdictions.
Integrating Compliance and Growth Strategies
A growing number of industry participants, supported by technology firms such as Vector Solutions, are actively anticipating compliance demands and preparing upfront. Vector Solutions, operating since the late 1990s with five offices throughout the United States, has played an integral role in the shift toward this proactive stance.
In April, Vector enhanced its portfolio by acquiring ArdentSky, a provider with a 17-year history in gaming compliance technology and a client roster that includes DraftKings, FanDuel, BetMGM, IGT, Aristocrat, Playtech, and Rush Street. With a track record of collaborating with over 350 casinos on AML compliance, Vector Solutions now possesses even more reach in the market.
The industry’s renewed focus on compliance stems from expanding into new, more stringently regulated markets, compounded by digitalization and increased regulatory scrutiny. Jurisdictions now demand close oversight not only of operators but also their vendors, further raising the bar for compliance expectations.
Cultural Shifts in Compliance Approaches
According to a Vector Solutions spokesperson, the predominant change is cultural.
“Compliance is no longer a defensive exercise; it’s becoming a business enabler,” the spokesperson says. “Companies are embedding compliance into their strategic planning, so licensing and risk processes actually support faster expansion.
“The entire industry is moving from reactive, manual compliance toward proactive, digital, and integrated approaches – and of course the past 18 months in AML enforcement have really underscored the stakes.”
MGM Resorts and Wynn Las Vegas have been among those facing substantial financial penalties in 2025. Regulators are now holding both organizations and their executives personally accountable for failures.
“The shift toward formalised, risk-based AML programs, expanded KYC, and attention to global networks like Chinese Money Laundering Organizations means compliance has to be smarter, more tailored and more technology-driven,” the spokesperson adds. “It’s no longer about ‘checking the box’. It’s about protecting both the business and its reputation.”
Automation, Integration, and Training Under Pressure
As enforcement actions reach record highs and budget constraints intensify, compliance professionals are expected to produce more results with fewer resources. Lengthy hiring processes increase the risk of gaps in auditing and filings, contributing to turnover and driving up recruitment costs.
“There’s no question compliance teams are under pressure,” the spokesperson says, adding that gambling compliance jobs increasingly cover a broad range of areas, ranging from AML to health and safety to cybersecurity.
“When you add in staffing shortages, the burden becomes almost impossible to sustain, and it shows up in turnover. Casinos end up spending heavily on recruitment and onboarding, only to risk losing talent because compliance budgets and salaries often aren’t commensurate with their value. This is despite the fact that a strong compliance team and programme can save companies millions in avoided fines.
“But there are opportunities, too. The pressure is forcing teams to innovate. We’re seeing more automation, tighter integration with other departments, and smarter use of data analytics. In some cases, being leaner pushes compliance to align more closely with business goals. Those organisations that adapt will end up with more resilient, efficient, and strategically integrated compliance programmes.”
Navigating Licensing Complexities in Gaming
Vector Solutions, now joined by ArdentSky, has observed that gaming licensing stands apart from other industries due to the extensive requirements and scrutiny involved. Even a single license application can require hundreds of pages, with background checks extending to shareholders, executives, and employees. Approval timelines remain highly unpredictable, sometimes lasting months or over a year.
“For vendors entering new markets or operators looking to expand partnerships, those delays can put major business plans on hold.” the spokesperson says. “Licensing issues with vendors can affect an operator’s licence, so the responsibility is shared on both sides.”
| Compliance Challenge | Impact |
|---|---|
| Unpredictable approval timelines | Delays in market entry, project launches |
| Extensive documentation and checks | Resource-intense application processes |
| Vendor licensing dependencies | Shared risk in regulatory compliance |
Strategic Importance of Licensing Management
Failures in compliance can result in severe consequences, draining resources and escalating legal costs.
“From a reputational standpoint, regulators lose trust quickly when they see sloppy licensing practices,” the spokesperson says. “That leads to slower approvals, stricter oversight and less flexibility in the future. In a highly regulated industry like gaming, even one publicised violation can undermine brand credibility with customers, partners and investors.”
Ongoing reporting, renewals, and immediate disclosure of regulatory actions are a continual part of operator and vendor obligations.
“If a licence is suspended, even temporarily, it can shut down operations in a key market. That means refunds due to lost deals, or even breach-of-contract claims,” the spokesperson adds.
“The bottom line is that licensing management isn’t just an administrative task – it’s a strategic function. Done well, it enables growth. Done poorly, it can cripple both operations and reputation.”
The Critical Role of Targeted Training
Investing in meaningful, ongoing training has become essential as regulatory authorities now require curriculum tailored to specific roles and risk profiles.
“We’ve seen enforcement actions where failures were tied directly to weak or inconsistent training,” the spokesperson adds. “Regulators expect training to be risk-based and role-specific. A VIP host faces very different scenarios than someone in accounting, and the training has to reflect those realities.”
“The threat landscape is evolving too quickly for static, annual training – and the personal accountability piece cannot be overstated. We’ve already seen executives criminally and civilly penalised for Bank Secrecy Act violations. That raises the stakes dramatically.”
Above all, training programmes must ensure the organisation is proactively working to prevent issues – and not just reacting to them.
“Compliance is no longer a defensive exercise; it’s becoming a business enabler”
“By dedicating time, resources, and commitment to training, casinos demonstrate that compliance is a priority at every level. That message resonates with both regulators and employees,” the spokesperson says.
“It builds trust and reinforces accountability – and culture really does start at the top. Regulators assess not just policies, but leadership’s commitment to compliance.”
Integrating Compliance With Operations and Onboarding
Ensuring compliance is woven into operational processes, including hiring, onboarding, and market expansion, is essential for mitigating risks and aligning compliance with business objectives.
For instance, connecting HR and learning management systems allows new hires to receive the necessary AML training automatically.
“Triggers and automation can ensure that new employees, vendors, or market expansions immediately prompt the right compliance steps,” says the spokesperson, who also underlines the importance of communication.
“Compliance leaders need to frame requirements not just in regulatory terms but in business terms – how compliance avoids fines, speeds up launches, and strengthens partnerships.”
From a training perspective, the onboarding phase offers a unique window to reinforce compliance culture and address future challenges proactively.
“Role-specific modules deepen that understanding, and refresher courses or check-ins after onboarding help with retention,” the spokesperson adds.
“Ultimately, aligning compliance with operations reduces risk and builds efficiency. It transforms compliance from being seen as a hurdle into being recognised as a core part of the employee experience and the business’s strategic growth.”
- Author
Daniel Williams
