Why Maintaining Regulatory Compliance is More Complex Than a Simple iGaming License Acquisition?

Securing an iGaming license is a non-negotiable condition to start offering services to players in almost any country. This can only be achieved after completion of thorough regulatory vetting, where a business is required to provide a clear source of funds and business plan, pay license fees, and meet other requirements.

Just as no traveler can cross a border without a valid international passport, no gambling business can run in the UK, France, Spain, or other regulated markets without first securing a license, the iGaming industry passport. Unlike with the international passport, however, the license may be revoked at any time if businesses fail to comply with the ever-evolving regulations.

After going through all the rigorous checks and becoming a license holder, most operators mistakenly assume they are legally protected for life; yet, many of them soon find this was an illusion. Regulations rarely stay still, with new rules introduced constantly, often forcing operators to completely restructure the way they operate.

Getting a gaming license is just the beginning of a long story. For a business, maintaining compliance over the long term requires a far greater effort than simply starting.

The main reason is the need to always keep a finger on the pulse. What was a gray zone today may require operators to obtain a local license and comply with international standards tomorrow to avoid being subject to criminal prosecution. This is too often the case in the industry, with iGaming companies putting everyday compliance as their first priority to avoid risks involved with not doing so.

Ongoing monitoring and decoding regulatory change come hand in hand with rising expenses, which only tend to increase over time. Companies spend more on compliance, including investments in advanced KYC systems, transaction oversight, reporting, responsible gaming protocols, and others. Compliance is not a one-time investment but “an ongoing business concern,” according to Inteliumlaw, a team of legal professionals specialized in advising iGaming businesses in both license acquisition and ongoing compliance.

Furthermore, regulators in multiple jurisdictions require iGaming operators to regularly advance their compliance systems by performing annual internal and external audits designed to identify and address any potential weaknesses or gaps. If any significant compliance defects are identified, operators are required to both eliminate them promptly and report the corrective measures to the regulator in a very specific way.

Entering new jurisdictions during scaling also introduces additional layers of regulatory complexity. The fragmented nature of gambling regulations across the world translates into significant investment of both time and money for companies to decode and comply. In the process, firms often need to open a local branch, align their terms and conditions with applicable laws, and fulfill other country-specific requirements.

From new marketing restrictions and self-exclusion rules to additional obligations for a whole gaming vertical, the emergence of a local licensing framework, and a complete ban on specific gambling activity in a targeted jurisdiction(s) – everything can disrupt companies’ operations.

Failing to adapt or simply deciding to ignore new rules, however, can trigger regulators and ultimately lead to news headlines like “[…] fined $1.5M for failing to […],” “[…] license revoked by gambling regulator,” or “[…] regulator orders […] to shut down.”

Therefore, ignoring is not the way, but seeking professional assistance is. Maintaining compliance post-licensing is best done with the help of expert gambling law advisors, who make this process seamless and risk-free, allowing iGaming operators to focus on growth rather than regulatory hurdles. While many of them are limited to assistance with license acquisition, law firms like Inteliumlaw provide comprehensive ongoing legal support and genuinely invest in businesses’ long-term success.

In a landscape where ignoring compliance is impossible and in-house legal staff proves inefficient, relying on expert iGaming lawyers at Inteliumlaw or other industry advisory firms is the most effective way to maintain compliance while sleeping well at night.