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Key pillars of igaming compliance
Thursday, 1 December 2022
iGaming compliance is a phrase that can strike fear into the heart of gambling operators. It is complex, costly, lots of work, and can cause big problems if it is not adhered to. But what are its key pillars and what do you need to concern yourself with the most?
When we talk about fair gaming in the online gambling sector, we mean fairness for players when they use our platforms. Of course, in the gambling world, the house always wins- that is the very nature of the sector and is how operators make a profit, but this must not be exaggerated. Players must win sometimes, and odds as well as the outcomes of games must not be skewed above a certain level. When you have an online gambling license, the issuing authority will specify that you need to prove your games are fair. This can be through a random number generator and a certificate of evaluation, or a provably fair algorithm.
Both of these ensure that the game is fair within the specified parameters. These matters must be reviewed independently and periodically, and regulators can also ask to check them as and when they choose. Fair gaming is also important to build trust and long-lasting relationships with players which will result in more clients, more revenue, and more profit for you.
The concept of responsible gambling is a set of social responsibility initiatives put forward by regulators, operators, vendors, and even activists to make the sector safer and more ethical. Some aspects of responsible gambling are mandatory, while others are simply guidelines and best practices. One of the central tenets of responsible gambling is limiting or preventing gambling addiction. This means raising awareness of the dangers, offering support such as helplines and resources, and also providing ways players can limit themselves from gambling. Other measures include not allowing betting with credit cards, time and deposit limits, reality checks, account closure and self-exclusion.
Another core part of responsible gambling is preventing underage players from using the site. This includes making them aware of the dangers, implementing strict checks and balances, and making operators adhere to a code of conduct, including training for staff members.
Other considerations include making quick and accurate customer payments, keeping information and data private, marketing responsibly, and providing outstanding and responsive customer service.
Anti-money laundering and terrorism financing
Unfortunately, the iGaming sector is often targeted by criminals looking to launder the proceeds of crime or to fund terrorism. As a result, operators are bound by law- both national and international- to prevent their platforms from being used by criminals and to report suspicious activity when they come across it. As a general rule, companies must have a number of policies and processes in place that deal with identifying customers, checking the source of funds and monitoring transactions.
They should also cover processes to be followed when suspicious behaviour is discovered or if a player appears to be problematic. Failure to comply with AML matters can result in significant financial penalties and even a criminal record, as well as revocation of license. All compliance matters can be taken care of with help from your corporate service provider, including ongoing reporting and updating obligations.
Fraud is a big issue in the online gambling sector, and it comes in many forms. Phishing, hacking, account takeover, and chargeback fraud are just a few examples. Whatever form it comes in, it costs companies billions every year and consumers much more. There are a number of steps operators can take to prevent criminals from targeting them and their players. For example, providing players with tools like 2FA for log-in, location recognition, digital supervision of activity, IP tracking and more.
They can also help by offering smart account recovery tools, quick response times to reports of fraud, and reminders and requirements to reset passwords and log out of sessions on a regular basis. It is also necessary for operators to take behind-the-scenes measures to secure databases and websites and to notify players of any breaches in a transparent manner.
Fast Offshore is ready and waiting to help you with all your compliance needs. Whether you’re a startup or an established business, single-office or multinational, in a regulated industry or a non-regulated industry, we can work with you. Contact us or schedule a call to tell us more.