Baltics
Vladimirs Remi: “EU gambling market shows steady growth but a share of illegal business is still pretty great”
The gambling business in the EU countries shows a steady growth, although a lot of operators prefer to work illegally. It was reported by Vladimirs Remi, a co-owner of MONT AZURE, providing services in financial consulting and developing fin-tech projects. In the interview for our media office, the expert listed difficulties faced by entrepreneurs when launching a business in Latvia and told us how the European gambling industry is developing.
Interviewer: Riga Gaming Congress (RGC)
Speaker: Vladimirs Remi (V.R.)
RGC: You are engaged in the development of fin-tech projects and regulation of the financial business within the EU and UK. Tell us about the gambling situation.
V.R.: Currently, a huge part of the gambling business is illegal. Customers interested in establishing a serious business with all required licenses are quite a rare phenomenon. Rather on the contrary, the majority part of market participants are constantly looking for a jurisdiction with tax remissions and simplified licensing. It is a short-term operation model. And the establishment of such a business requires the same amount of time and money as the establishment of a licensed casino.
We recommend our customers only the legal business model and try to show that it is not as difficult and expensive as it seems at first view. We help them to structure a legal base, choose an appropriate jurisdiction and operation model. Fortunately, more and more online gambling projects are launched today. It brings the industry to the high level and provides it with a new development line. We believe that regulators should have a more positive attitude to this market segment.
As to the financial business, leading countries are still the following: Great Britain, Cyprus, Malta, and Ireland. The rest EU states have a very bureaucratized and expensive business tax and regulation system. Lithuania is currently showing a strong position, but it is too early to make conclusions.
RGC: How can one license a gambling venue in Latvia? Does this process have any pitfalls?
V.R.: It is Lotteries and Gambling Supervision Inspection (https://www.iaui.gov.lv/lv/) that regulates the gambling business and lottery segment in Latvia. There are a lot of pitfalls. For instance, international business representatives should overcome a language barrier. Unlike its neighbors considering documents in English (it is the EU official language), Latvia accepts all papers only in a state language. Consequently, one should find a specialist among local citizens. Besides, there are few specialists and their services are quite expensive.
Another significant aspect is civil servants. The Latvian Republic does not deal with businesses and their growth. Public officials very aggressively treat both businesses and citizens. They believe that they have a higher status and forget who pay for their work. The business licensing process is extremely expensive and requires lots of time and patient. Moreover, difficulties do not end after obtaining a license. One should get ready for a capital generation procedure and state duty payments. Beginning entrepreneurs have to confirm each cent attracted to the company for obtaining a license as well as to prove their financial solidity.
The gambling business in the country is hardly developed. There are several licensed market participants, working for the local community. Some years ago, the market regulator destroyed this segment in the acquiring sector by prohibiting banks and financial institutions to process gambling transactions. Many Latvian banks and other players were submitting petitions, arguing that transaction technical processing and money transferring were not related to the Gambling Inspection. However, everything was in vane. As the result, the lion’s share of profit left the country due to the incompetence and absolute indifference of civil servants.
RGC: Is it easy for a foreign operator to enter the Latvian gambling market?
V.R.: If operators have the EU license, they won’t face obvious difficulties. They will be able to obtain a permit for their activity in Latvia much easier than new market players. However, economic efficiency is a different story. The country has around 2 million people, although in fact there are 1.5 million citizens. Only a half of the population is economically active. So, let’s figure out how many people can provide venues with income. And do not forget about costs for starting and growing a business in Latvia.
I would recommend our customers not to waste money but rather consult the regulator in order to realize the whole situation.
RGC: In March 2017, the Ministry of Finance of Latvia offered to increase a gambling business tax by 30% and to recommence a wining tax. In fact, the government prevents the gambling business development.
V.R.: The government follows such a policy regarding all kinds of business in the country. It tries to increase its budget by means of taxes and does not understand that Latvian entrepreneurs actively establish their businesses in other EU countries with more favorable attitude to this activity and special beneficial zones for its growth.
And taxes aren’t the point. In Scandinavia and Central Europe, for example, the tax control is even stricter and fees are higher. What plays a significant role in this issue is the opportunity to run a business. The UK offers special zones for testing businesses as well as has transparent and clear licensing regulations. When entrepreneurs are able to earn money, they pay any taxes. Latvia does not provide them with such an opportunity.
RGC: In other words, establishing the gambling business in Latvia is unprofitable, isn’t it?
V.R.: Absolutely unprofitable. Government supervision, taxes and regulation will take a huge amount of income. Besides, one will have to compete with other advanced EU countries, for instance, with Great Britain, as well as to invest in marketing and company image two times larger than their colleagues.
It will be too hard to develop the gambling or any other business in Latvia until the government changes its attitude to entrepreneurs.
RGC: How rapidly does the EU gambling market grow? Can you confirm your words by figures?
V.R.: The gambling business shows a steady growth. However, it refers to such segments as online casinos and lotteries. There is still a great share of the illegal business due to various factors. Over the past 5 years, we have seen a reducing activity in the acquiring organization sector. Almost no new players of this segment were noticed.
This year, we have been surprised by the increasing interest to eSports competitions. ESports betting is a new stage of the gambling business development and opportunity for good incomes.
Unfortunately, we can’t share figures, as one part of such information is confidential and another one will be presented at the conference.
RGC: What will you tell about at Riga Gaming Congress 2017? What target audience will find your presentation especially interesting?
V.R.: The presentation will be dedicated to the current condition of the Latvian market and its regulation. I hope we will obtain official comments from the government regulator regarding the future and development of the market. I will try to describe the relevant situation as fair and square as possible so that all participants could decide whether it is worth to start a business within the Latvian Republic or not.
I will also provide official comments from Latvian banks, which I am going to interview.
The target audience of my presentation includes business owners and top managers, in other words, decision makers and those developing this industry.
Vladimirs Remi will speak on October 12 within the second part of the business section at Riga Gaming Congress 2017. You can register for the event following the link.
Baltics
Genome launches SEPA instant payments, adding another valuable feature for iGaming companies
Genome (UAB Maneuver LT) has introduced SEPA Instant Transfers for all its clients. Companies can now make instant euro payments within seconds to optimize cash flow and improve operational efficiency across the Eurozone.
Additionally, SEPA Instant Transfers can be used for batch Transfers, making mass payments even more effective for companies, particularly the iGaming businesses.
“SEPA Instant Transfers enable quick payments in the Eurozone, improving cash flow and scheduling flexibility for business partners – a very crucial feature for modern-day companies that conduct operations online,” explained Genome’s CEO, Daumantas Barauskas.
SEPA Instant Transfers will be priced the same as regular SEPA Credit Transfers, ensuring users enjoy the convenience of instant transactions without any additional costs.
The feature has gone live shortly before the SiGMA Europe conference that Genome’s team will be attending. Businesses can learn more about SEPA Instant Transfers and other iGaming services Genome provides at booth #3102 or by booking a meeting.
“SEPA Instant Transfers is not the only service Genome offers iGaming companies. For one, they can streamline their financial operations with our API for mass payouts and B2C2B payments. We are currently developing the incoming payment notifications service via API (API for pay-ins). This feature will notify iGaming companies about client pay-ins in real-time. We also provide contactless physical and virtual Visa Business cards for media buying and other corporate expenses, with the added convenience of Google Pay, Apple Pay, and Garmin Pay compatibility. Additionally, a dedicated IBAN account simplifies B2B transactions, and the Genome iOS and Android apps ensure real-time financial management anytime, anywhere,” concluded Daumantas Barauskas.
Baltics
iDenfy Partners with Confindo to Enhance Security and Prevent Loan Fraud
iDenfy, an AI-powered identity verification, compliance and fraud prevention solutions provider, has partnered with Confindo, a leading provider of IT solutions specialising in customer relationship management (CRM) tools for group companies and external partners. This collaboration will help Confindo manage third-party risks and ensure proper fraud and breach prevention while building a seamless and secure verification experience.
The rise in digital transactions has made robust security measures more critical than ever. With security challenges like forged documents and synthetic identities, particularly in the financial and lending sectors, companies increasingly seek advanced solutions to protect their customers. Spending on information security and risk management products and services is expected to grow by 14.3% this year, reaching more than $215 billion. However, many companies operating in the financial sector see fraud as a top priority on the list, where even a single breach can have significant legal and reputational consequences.
Confindo, a dominant player in the consumer lending market since 2018, recognised the importance of securing its platforms against potential threats. Brands under the “Confindo” name, like Lenders, Bancovo, Comparar Prestamos mainly serve as intermediaries for consumer lending services. Consequently, the business is best known for representing over 20 banks and creditors in Lithuania and processing more than 10,000 inquiries monthly. As the business experienced a high volume of requests and new registrations, it required a new trusted Know Your Customer (KYC) vendor to help safeguard its operations, especially in this expansion stage across Europe.
According to Confindo, its recent operations in Latvia and upcoming launches in two new markets also showed a need for extra automation measures in its customer onboarding process. Before partnering with iDenfy, the IT and financial service provider aimed to build a conversion-optimised verification workflow that could remove the hassle around the application onboarding process. Among several identity verification providers, Confindo selected iDenfy for its reliable and efficient identification verification solution. The new software, already trusted by other platforms under Confindo’s management, stood out for its smooth integration with existing systems and provided a comprehensive global document base for more efficient scaling into new markets.
iDenfy’s ID verification solution is designed to automatically recognise, verify and extract information from over 3000 identity documents across 200 countries and territories. This comprehensive approach helps Confindo ensure that all possible safety measures are in place to prevent fraudulent loans, a key concern in the rapidly growing consumer lending sector.
It is worth mentioning that iDenfy is ranked as the top 1 identity verification solution in customer satisfaction on G2, boasting an average of 4.9 stars and over 70 reviews in 2024. This recognition underscores iDenfy’s commitment to providing high-quality, reliable services and prioritizes online user identification security.
“We chose iDenfy because their solution is not only trusted and tested but also perfectly aligns with our commitment to ensuring the highest level of security for our customers,” said Eitautas Bartuškevičius, CEO of Confindo.
Domantas Ciulde, CEO of iDenfy, said: “We’re thrilled to collaborate with Confindo in their mission to enhance security within the consumer lending space. By integrating our ID verification solution, we’re helping them create a safer, more reliable platform for their users across multiple countries.”
Baltics
Growth of Online Casinos in Latvia
The online gambling industry has seen significant growth across Europe, and Latvia is no exception. In recent years, online casinos have become increasingly popular in the country, driven by various factors, including technological advancements, evolving consumer behavior, and a regulatory environment that promotes safe gambling.
This article explores the current state of online casinos in Latvia and uses plainenglish.io as a source. The text discusses about the trends shaping the industry, the regulatory landscape, and the future outlook for this rapidly expanding market.
The Rise of Online Casinos in Latvia
Latvia, a digitally connected nation in the Baltic region, has witnessed a remarkable rise in online gambling. The widespread availability of high-speed internet, which reaches over 90% of the population, has been a crucial enabler of this growth. As internet access has become nearly universal, more Latvians are turning to online platforms for their entertainment needs, including gambling.
Technological advancements have further fueled this trend. The proliferation of smartphones and mobile technology has transformed how people engage with online casinos. Today, many Latvians prefer to play casino games on their mobile devices, enjoying the convenience of gambling anytime, anywhere. This shift towards mobile gaming has been particularly pronounced among younger generations, who are more inclined towards digital forms of entertainment.
Navigating Latvia’s Regulatory Landscape
The success of online casinos in Latvia is closely linked to the country’s robust regulatory framework. The Latvian government, through the Lotteries and Gambling Supervisory Inspection (IAUI), oversees and regulates the gambling industry, ensuring a safe and secure environment for players.
Online casinos operating in Latvia are required to obtain a license from the IAUI. This licensing process is rigorous, and designed to ensure that only operators who meet high standards of fairness, security, and responsible gambling can legally operate. This regulated environment has not only protected players but also contributed to the legitimacy and growth of the industry.
Taxation plays a significant role in the regulation of online casinos. Both operators and players are subject to taxes, with licensed operators paying taxes on their gross gaming revenue (GGR) and players being taxed on their winnings. The income generated from these taxes supports various public services and social programs, highlighting the broader societal impact of the online gambling industry.
Moreover, the Latvian government places a strong emphasis on responsible gambling. Licensed operators must implement measures to prevent problem gambling, such as self-exclusion programs and deposit limits. These measures aim to protect players from the potential harms associated with gambling, reflecting the government’s commitment to fostering a healthy gambling environment.
To maintain market integrity, the IAUI actively monitors and blacklists unlicensed online casino operators. These blacklisted sites are blocked from operating in Latvia, ensuring that players are not exposed to unregulated and potentially fraudulent platforms. This vigilant approach helps maintain a level playing field for licensed operators while safeguarding consumers.
Current Trends in the Latvian Online Casino Market
The online casino market in Latvia is dynamic, reflecting both local preferences and global developments. One of the most notable trends is the increasing popularity of live dealer games. These games, which feature real dealers conducting games in real time, have captured the interest of Latvian players who appreciate the social interaction and authenticity they offer. Live dealer games bridge the gap between online and physical casinos, providing a more immersive experience that resonates with many players.
Cryptocurrency gambling is another emerging trend in Latvia. As digital currencies become more widely accepted, some online casinos have started to accept cryptocurrencies as a payment method. This development is particularly appealing to tech-savvy players who value the privacy and security that cryptocurrencies offer.
Localization is also becoming a key strategy for online casinos in Latvia. Many platforms are offering content tailored specifically to the Latvian market, including games in the Latvian language and customer support services that cater to local players. This focus on localization enhances the user experience and helps operators build a loyal customer base in the region.
Furthermore, the rise of eSports has opened up new avenues for online casinos in Latvia. Many platforms now offer eSports betting, allowing players to wager on popular video game tournaments. This trend is particularly popular among younger players, who are avid eSports fans.
The Future of Online Casinos in Latvia
Looking ahead, the future of online casinos in Latvia appears promising. Innovation in game development is expected to continue, with new technologies such as virtual reality (VR) and augmented reality (AR) poised to transform the online casino experience. These technologies have the potential to create more immersive and engaging games, attracting a broader audience to online gambling.
As mobile gambling continues to rise, online casinos are likely to further optimize their platforms for mobile devices. This will include the development of dedicated mobile apps and improvements in user interfaces, ensuring a seamless and enjoyable gaming experience for mobile users.
On the regulatory front, the Latvian government may introduce stricter regulations as the online gambling market matures. These regulations could include more rigorous licensing requirements and enhanced responsible gambling measures, aimed at further protecting players and ensuring fair play.
The success of the Latvian online casino market has also attracted the attention of international operators. As more global brands enter the market, competition will increase, leading to better promotions, more diverse game offerings, and improved services for Latvian players.
Conclusion
Online casinos have established themselves as a popular and growing form of entertainment in Latvia. The combination of a tech-savvy population, a strong regulatory framework, and emerging industry trends has created a thriving online gambling market. As the industry continues to evolve, players in Latvia can look forward to an exciting and secure online gaming experience. However, it will be crucial for operators, regulators, and players alike to navigate the challenges and opportunities that lie ahead to ensure the sustained growth and success of the online casino industry in Latvia.
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