iGaming Laws and Regulations

The basic regulative framework for iGaming is three-tiered: local, national, and international laws, regulations, and directives. The purpose of all these regulations is to provide fair play, protection for minors, and protection against criminal activities like money laundering and fraud. This is a general overview of how iGaming is regulated and what the compliance requirements are for operators:

How does regulation occur in iGaming?

• Licensing Authorities: In cases of legalisation, the iGaming operators have to seek licenсes from authorities that regulate such jurisdictions. Each jurisdiction will have an independent licensing authority that will set certain requirements that the operators must meet in order to offer their services legally.
• Legal Compliance Requirements: The usual prerequisites that are necessary for keeping iGaming compliant with laws and regulations are:
  • Strong Verification Processes: Operators should have in place an effective Know Your Customer policy to give assurance that players’ identities are unquestionable to avoid fraudulent activities and underage gambling.
  • Responsible Gaming Measures: Ensuring access to self-exclusion, limits in deposits, and support for addiction to gambling among players.
  • Fair Gaming Practices: Regulations ensure that the games and odds provided to players are given fairly.
• Monitoring and Auditing: Regulators regularly monitor iGaming operators and perform routine audits to ensure that operators follow established standards and protocols. This can range from things to the observation of all operational guidelines to testing the efficiency of the anti-money laundering control system.

Compliance in the iGaming industry

Compliance in the iGaming industry implies the necessity to conform with various laws, regulations, and standards that typically would include:

• Getting the relevant licences: For every jurisdiction where operators conduct businesses, they are supposed to get the relevant licences for legal compliance.
• Anti-Money Laundering Measures: The respective iGaming company should have coherent AML policies and procedures that provide the detection and prevention of money laundering activities.
• Data Protection: Operators must ensure proper data protection regulations, such as the General Data Protection Regulation, or GDPR, to ensure safety for user information.
• Responsible Gaming Practices: Providing tools and support for players to gamble responsibly and seek help when needed.
• Regular Audits: Performing routine internal audits of systems and processes so that regulators can maintain constant compliance with requirements.

Consequences of Non-Compliance

• Failure to comply with these regulations may avail serious consequences to operators, such as those mentioned below:
• Legal Action: Authorities can take legal action against operators in case of non-compliance.
• Financial Penalties: These might be heavy for major infractions.
• Loss of Reputation: Non-compliance may affect the operator’s reputation and could result in customer trust and, therefore, business being lost.