Compliance Updates
Strengthening Compliance: A Crucial Imperative for Gambling Businesses
In today’s dynamic and highly regulated gambling environment, the importance of compliance cannot be overstated. Companies operating in the gambling industry are faced with limitless and sometimes contradicting regulations, laws, and standards that govern their operations. Strengthening compliance is not merely a regulatory requirement; it is a strategic imperative that can safeguard a company’s reputation, mitigate risks, save you money and foster long-term sustainability. This article explores the 5 most important reasons why all gaming companies need to prioritize and enhance their compliance efforts to thrive in an increasingly complex and interconnected regulatory landscape.
Legal and Regulatory Landscape
One of the primary reasons for companies to strengthen their compliance is the ever-evolving legal and regulatory landscape. Regulators around the world continue to introduce and update regulations to address emerging challenges such as responsible gambling, money laundering, data privacy concerns, and socially responsible advertising. Failing to comply with these regulations can result in severe penalties, fines, and legal consequences that can significantly impact a company’s finance, reputation, and future market entry prospects.
Protection of Reputation
In the gambling industry a company’s reputation is its most valuable asset. In an era of instant information and social media, news of non-compliance or unethical business practices is published and spread rapidly within the media, causing irreparable damage to a brand. Strengthening compliance measures not only helps to ensure adherence to legal requirements but also demonstrates a commitment to ethical business practices. This commitment can enhance a company’s reputation, build trust with stakeholders, and attract customers who are now prioritizing socially responsible organizations.
Risk Mitigation
Compliance failures can expose companies to various risks, including financial, operational, and reputational risks. Strengthening compliance mechanisms enables organizations to identify, assess, and mitigate potential risks before they escalate. This proactive approach not only protects the company from regulatory penalties but also minimizes the likelihood of operational disruptions and significant financial losses.
Global Expansion and Market Access
As companies expand their operations and enter new markets, they encounter diverse regulatory environments. Adhering to different sets of laws and regulations in various jurisdictions is a complex challenge that all operators face. Strengthening compliance measures and seeking external advice allows companies to navigate these complexities more effectively, ensuring continued market access and facilitating seamless expansion into new regions.
Cost-Effective Compliance Practices
Compliance efforts are expensive but if done wrong or lacking, the consequences can be critical and costly for the business. Engaging a consultancy firm can often be a more cost-effective solution than attempting to build an in-house process, without having the right knowledge or expertise. An external partner can bring a ready-made arsenal of local expertise and resources, eliminating the risk of breaching regulations or having inefficient compliance processes that can increase your risk of regulatory action. The cost savings realized through strengthening your compliance program can be redirected towards other critical aspects of business growth and development.
In conclusion, the need for companies to strengthen their compliance efforts is more critical than ever and can save a lot of time and resources when done in an efficient and accurate way. By proactively addressing complex regulatory requirements, protecting their reputation, mitigating risks, and embracing compliant processes organizations can position themselves for long-term success in today’s complex regulatory landscape. Strengthening compliance is not merely a regulatory obligation; it is a strategic imperative that contributes to the overall health and sustainability of a company, fostering trust and confidence among clients and facilitating new market entries.
Written by Ralitsa Eide, Head of Regulatory Services @ Compliance One Group
Compliance Updates
Department of Trust set to meet challenges of new affordability checks
Department of Trust (dotrust.co.uk), the award-winning provider of financial risk assessments for safer gambling is poised to meet the challenges of the newly announced regulations on frictionless financial checks by the UK Gambling Commission and Betting and Gaming Council.
Under the new rules published by the Gambling Commission, operators have until August 30th to implement frictionless checks on all customers making £500 net deposits in any rolling 30-day period. These frictionless checks form part of a new regime designed to protect players at risk of financial harm and replace the current ad hoc approach to affordability checks.
Department of Trust also welcomes the interim voluntary code published today by the Betting and Gaming Council (BGC), the standards body representing over 90% of UK-regulated market operators. This code focuses on how responsible operators should support customers spending above the lower threshold set out by the Gambling Commission.
The supplier’s DoTrust Complete solution offers an integrated suite of frictionless and enhanced financial risk checks with a high level of automation capability -the only such tool built solely for safer gambling – and is perfectly positioned to help businesses navigate the newly regulated waters.
Charles Cohen, CEO of Department of Trust, said: “These important announcements flag the end of gambling’s ‘sus law’ where players faced seemingly arbitrary requests for personal information, operators were placed under a significant burden, and no one won
“We now know that in 120 days, every operator will need to perform frictionless checks on all players with net deposits in a 30-day rolling period of £500. A few months later this will fall to a much lower level.
“If operators want to protect their business, keep their customers and reduce costs, smart automation is the only answer.
“Department of Trust has spent over two years building the leading plug-and-play solution specifically for the gambling industry. Complete already automates over 90% of the processes required in both the new LCCP and BGC code. Now we know what the requirement will be, we are today committing to the goal of 100%. We want every operator and player to have instant assessments and sensible decisions cost-effectively. No one needs to lose sleep over this.”.
Asia
Uzbekistan Legalises Online Betting and Lotteries
President of Uzbekistan Shavkat Mirziyoyev has signed a decree on April 19 titled “On Measures to Improve the Regulation of the Organization and Conduct of Lotteries and Risk-Based Games in the Republic of Uzbekistan”. The document abolishes the ban starting from January 1, 2025, and introduces a legal framework for the organisation of risk-based games online and betting activities.
The issue of legalising betting activities has been a long-standing topic in Uzbekistan. In December 2019, the president signed a decree to legalise bookmakers, but this decision was revised in April 2022. In April 2023, the head of state instructed the development of a regulatory framework for betting activities.
The National Agency for Advanced Projects (NAAP), the authorised state body for regulating and licensing activities in this sector, provided insights on the necessity of introducing state regulation in the gambling sector in Uzbekistan. The agency emphasised the need to prevent illegal gambling businesses, protect players’ rights and generate additional income for the state budget.
The president’s decree aims to introduce advanced foreign experience and modern technologies in regulating the organisation of risk-based games and lotteries to increase investment attractiveness, tourist potential and attract additional funds to the country.
The measures outlined in the decree include the creation of legal foundations for the legalisation of activities related to risk-based games online, betting activities, and lotteries, implementation of mechanisms to protect citizens’ rights and interests, prevention of gambling addiction and the generation of additional state budget revenue.
Starting from January 1, 2025, a taxation system will be introduced for license holders, where organisers of online games, betting activities and lotteries will pay a turnover tax. This system aims to prevent the concealment of taxable revenue and is expected to generate additional tax revenues for the state budget.
Overall, the implementation of the decree is intended to establish a reliable foundation for the legal regulation of activities related to organising risk-based games online, betting activities and lotteries in Uzbekistan, protect citizens’ interests, combat gambling addiction and provide additional sources of income for the state budget.
Compliance Updates
IAGR & IMGL Open Ticket Sales for 2024 Conference in Rome
The International Association of Gaming Regulators (IAGR) has opened registrations for its annual conference, taking place in Rome, Italy, from October 21 to 24.
With the theme Navigating the Future of Gaming Regulation in a Transforming World, this year’s event is a partnership with the International Masters of Gaming Law (IMGL).
“IAGR and IMGL’s Rome conference is a four-day event that brings together regulators, industry thought leaders and experts to share ideas and shape the future of gaming regulation across the world,” the President for the IAGR, Ben Haden, said.
The conference follows last year’s event in Gaborone, Botswana, which brought together the largest number of attendees in IAGR’s history.
“This year, participants can look forward to diving into themes that are at the forefront of the gaming regulation landscape including advancements in technology, the evolving regulatory challenges and strategies for future-proofing the global gaming industry,” Haden said. “In an era where technology is rewriting the rules of our industry, the question isn’t whether to adapt, but how swiftly we can. IAGR 2024 is about coming together as a global community to not only keep pace with change but to drive it.”
Confirmed speakers will be announced from May.
Conference highlights:
- Expert-led sessions and panel discussions on the latest in gaming regulation
- Joint conference sessions and events with IMGL, providing further networking and knowledge-sharing opportunities
- Networking events set in the heart of Rome including an opening reception and gala dinner featuring the International Regulatory Awards ceremony
Early-bird pricing is available until July 31 with super-early bird prices available until May 31. Head to the IAGR website for more details and ticket sales.
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