Key Moments:
- Compliance has become the primary challenge for iGaming operators, overtaking competition and responsible gaming, according to a survey of over 700 industry professionals.
- Brazil increased its gross gaming revenue tax from 12% to 18%, while the United Kingdom enhanced advertising standards and India introduced new regulations.
- Approximately 40% of surveyed respondents identified compliance pressure as their biggest daily challenge.
Operator Strategies Shift Toward Regulatory Focus
The iGaming industry has entered a new era where regulatory compliance drives business strategy. Operators are turning away from aggressive expansion and are instead building organizations capable of enduring today’s rigorous regulatory environment.
Survey results from more than 700 industry professionals reveal that compliance now surpasses both competition and responsible gaming as the top operational concern. No longer limited to a single department, compliance has become the cornerstone of iGaming firms.
Global Markets Tighten Regulations
Governments are rapidly revising gambling laws worldwide, altering the market landscape. Brazil’s gross gaming revenue tax hike from 12% to 18% has cut into operator margins. India introduced the Promotion and Regulation of Online Gaming Act, an effort to standardize laws while prohibiting money-based gaming in some forms. In the United Kingdom, stricter advertising rules and crackdowns on unlicensed operations have raised the stakes for legal compliance.
Markets once considered open now feature some of the industry’s tightest regulatory frameworks, making thorough compliance more crucial than ever.
Compliance Reshapes Internal Operations
The importance of regulatory adherence is prompting major changes in internal structures. Legal and compliance teams have grown significantly, transitioning from peripheral roles to core operational pillars. Approximately 40% of surveyed professionals noted that managing compliance is now their foremost day-to-day difficulty.
Regulators demand immediate and verifiable controls, such as real-time monitoring, comprehensive audit trails, and robust identity verification. As a result, compliance technology is central to industry operations, and the competitive arena now includes technology providers offering certified compliance solutions. Companies unable to keep pace risk exclusion from regulated opportunities.
Clear Rules Attract Investment and Build Trust
Markets with predictable, transparent rules continue to attract substantial investment. Austria’s move to end its online casino monopoly and updated frameworks in Brazil have welcomed new institutional investors wary of the sector in the past.
Operators achieving high compliance standards not only reduce their exposure to financial and reputational risks but also enhance their appeal to both investors and regulatory authorities.
| Country | Regulatory Development |
|---|---|
| Brazil | Increased gross gaming revenue tax from 12% to 18% |
| India | Introduced Promotion and Regulation of Online Gaming Act; banned certain money-based games |
| United Kingdom | Tightened advertising standards and enforcement against unlicensed operators |
| Austria | Plans to end online casino monopoly |
The Future: Compliance as a Core Investment
Foundational elements like identity checks, fraud detection, and advanced data analytics have become integral, not optional, for regulated iGaming operations. Companies investing early in compliance technology can secure a substantial advantage as global regulations intensify.
Nonetheless, the constantly shifting legal landscape complicates long-term planning. Regulatory unpredictability, as seen in India’s recent measures, can shift user activity toward less regulated spaces if not managed carefully. Operators must find the balance between prudent risk management and growth in this environment.
Success in iGaming increasingly hinges on viewing compliance as a mechanism for sustainable growth rather than an impediment. Organizations that weave robust regulatory practices into their fabric are better prepared to adapt to continuing regulatory evolution.
- Author
Daniel Williams
