Peter Smith
The global online gaming market has reached $95 billion, making it a prime target for regulators in all major markets. Alongside the increase in revenue, licensing requirements, anti-money laundering measures and player protection are becoming more stringent. The media and analytical service 15m.com notes that the number of regulatory changes in the iGaming sector has doubled over the past three years. New rules are appearing faster than companies can adapt to them.
The Patchwork Problem – Why One Licence Is No Longer Enough
Five years ago, Maltese MGA and Curacao licences gave companies virtually universal access to most markets. Today, the model has changed. Germany, the Netherlands, Sweden and Ontario require separate licences with their own conditions on deposit limits, exclusion of problem gamblers and data localisation. The Netherlands, for example, prohibits bonuses for new players in the first 30 days. This requirement has broken the standard acquisition funnels.
The UK has gone the furthest. In 2024, the Gambling Commission (UKGC) introduced mandatory financial affordability checks. Companies are required to request proof of income from players whose losses exceed £500 over 90 days. This is a technically complex measure because it requires integration with credit bureaus, and the process must be invisible to the user, otherwise they will go to an unlicensed competitor. The market reacted as expected, with several medium-sized companies leaving the UK market, unable to bear the costs of complying with the new conditions.
AML and KYC – The New Cost of Doing Business
Anti-money laundering requirements are an area where the iGaming industry has faced significant operational costs. The EU's AMLD5 directive was extended to online casinos in 2020. AMLD6, which EU countries introduced by 2022, tightened the responsibility of individuals within companies. In practical terms, this means:
- Identity verification (KYC) upon registration, rather than upon the first withdrawal of funds. This is a standard that requires integration with eID systems and real-time document verification services.
- Transaction monitoring. In the event of atypical deposit and withdrawal patterns, verification alerts are automatically triggered. Specialised financial control systems or proprietary analytical models analyse hundreds of parameters of a gaming session.
- Source of Funds (SoF). For large bets, the company is required to request confirmation of the origin of the funds. This is a serious barrier for users, causing casinos to lose high-yield players.
Fines deal a serious blow to companies' finances. In 2023, the UKGC fined 888 Holdings £19.2 million for AML and social responsibility violations. Bet365 paid £582,500 in the same year for failing to comply with Source of Funds procedures. The regulator has signalled that repeated violations could cost companies their licences.
Responsible Gambling Tech – From Checkbox to Core Product
Responsible gaming is no longer a formal item in the rules — it is now built into the very structure of the service. The Swedish regulator Spelinspektionen has required casinos and sports betting sites to implement the Spelpaus system — a single self-exclusion register to which all licensed companies are connected. Players register once and immediately lose access to all sites. Similar national registries have appeared in Germany (OASIS) and the Netherlands (CRUKS).
At the same time, predictive tools are emerging. Algorithms based on behavioural data relating to session duration, betting speed and reactions to losses identify signs of gambling addiction before the user themselves becomes aware of them. Several large casinos have already implemented similar models in their systems. Kindred Group publicly discloses the share of revenue from high-risk players as an indicator of responsible gaming. This is unusual transparency for the industry and is clearly an attempt to stay ahead of regulatory pressure.
Emerging Markets – Regulation as a Growth Lever
While Europe is tightening the screws, regulation in new markets is working as a tool for legalisation and attracting investment. Brazil launched a full-fledged online betting market in January 2025. About 60 companies received federal licences, the tax on winnings was 15%, and server localisation requirements forced large players to create local IT infrastructure. According to H2 Gambling Capital's forecast, the Brazilian market will exceed $4 billion by 2027.
Nigeria and South Africa are moving in the same direction. Licensing iGaming platforms is becoming a source of tax revenue rather than a point of prohibition. For companies, this presents both an opportunity and a challenge: entering an immature regulatory market is cheaper, but the rules may change unpredictably. Companies that entered Brazil before the introduction of regulation found themselves in a vulnerable position. Some of them obtained licences, some did not, and those operating in a grey area were blocked in the first weeks after the launch of the registry:
- Data localisation. Transaction processing servers must be physically located in the country. This increases infrastructure costs but reduces regulatory risk.
- Local partner. A number of jurisdictions (Nigeria, India in certain states) require the participation of a local legal entity with a share of at least 30%.
- Local payment integration. Global PSPs often do not cover regional payment methods. Companies are forced to connect local gateways, which only increases the regulatory burden.
Bottom Line
iGaming regulation is moving in one direction. It will become more widespread, and the requirements will become stricter. Markets that seem lenient today will move towards the European model in two to three years, with mandatory verification, self-exclusion registers, and real-time AML monitoring. Companies that perceive regulation as a barrier will reduce their geographical presence. Those who create services that take regulatory requirements into account will gain a competitive advantage in the most promising markets.
Peter Smith
