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Regulatory compliance for iGaming businesses

Monday, 17 April 2023

As online gambling continues to grow in popularity and profitability, regulatory compliance has become a critical issue for iGaming companies. In order to operate legally and avoid penalties, iGaming companies must comply with a wide range of regulations and guidelines, both domestically and internationally. Failure to comply can result in steep fines, legal repercussions, and reputational damage. Therefore, it is essential for iGaming companies to keep up with evolving regulatory requirements and ensure comprehensive compliance programs are in place.

Several regulatory bodies oversee iGaming operations, including national and regional governments, independent agencies, and industry-specific organizations. They provide frameworks for safe and reliable gambling practices, as well as protecting customers from fraud and exploitation. These regulations also strive to prevent money laundering and promote responsible gambling. The prominence of iGaming in the economy and the growing number of operators worldwide create complex compliance requirements.

For iGaming companies to stay compliant, they need to consider multiple aspects of their operations including gaming software, data security, payment transactions, and licensing requirements. The following is a list of some key considerations for regulatory compliance for iGaming companies:

Gaming Software Compliance:

There are several guidelines and regulations that iGaming companies need to adhere to when it comes to gaming software. For example, software requires being tested, and iGaming operators must be transparent with customers about the random number generators (RNGs) used in their games. The RNG results in random outcomes, ensuring fairness during gameplay. Third-party testing and certification organizations (such as eCOGRA, Gaming Laboratories International (GLI), and TST) are widely accepted within the iGaming industry, and many countries require certification from these or other testing bodies.

Data Security:

Online gambling operators’ capture sensitive customer information, including personal information and financial transactions, enhancing the need for data security. iGaming operators must have robust data security plans in place to protect customer data from data breaches and malicious activities.

Some of the often-mentioned data security certifications and standards that iGaming companies may comply with include Payment Card Industry Data Security Standard (PCI DSS), ISO27001, and Information Security Forum Standard of Good Practice (ISF SOGP). These certifications ensure that iGaming companies are utilizing best practices in securing financial data and personal information while also minimizing cybersecurity risks.

Payment Transactions:

iGaming companies must comply with different payment-related regulations in various countries, including Anti-money laundering (AML) policies and Know Your Customer (KYC) requirements. These provisions aim to ensure that online gambling is kept free of illegal activities such as money laundering, fraud, and terrorist financing. Payment transaction handlers like banks, PayPal, or credit card companies have independent statutes that iGaming companies must adhere to, including ID verification procedures and transaction limits.

Licensing Requirements:

Although licensing requirements vary by country and region, iGaming companies are required to adhere to these requirements to operate legally. All iGaming companies need to obtain a license from a jurisdiction that permits online gambling activities, and the permissible license also varies with the type of gambling services offered.

For example, UK Gambling Commission regulates and licenses all activities related to gaming, including sports betting, casino games, and lotteries. The Malta Gaming Authority is responsible for licensing and regulating online gaming ensuring they operate within legal and ethical boundaries.

Responsible Gambling:

Gambling may be addictive, and iGaming companies need to be responsible and sensitive to this issue. In the lines of responsible gambling, operators have a duty to protect their customers from problem gambling by offering help services, promoting healthy gambling habits, and implementing measures to detect and prevent gambling addiction. Some of the measures adopted to promote safe gambling and responsible gambling include voluntary self-exclusion schemes, age verifications, and reality checks.

Marketing and Advertising:

Regulations govern marketing and advertising practices in iGaming, including the use of appropriate language, claims, and youth exposure prevention. Online gambling companies must not target individuals below the legal age of gambling or exploit vulnerable individuals for marketing purposes.

Outsourcing Compliance:

Maintaining comprehensive compliance programs within an iGaming company can be an enormous task. Outsourcing compliance services can be an effective way of staying ahead of regulatory requirements while ensuring optimal operational efficiency. Compliance consulting companies provide assistance in the development of internal gambling policies, verification of legal compliance, staff training, and operational performance assessments.

In conclusion, regulatory compliance is a complex issue for iGaming companies. As the industry continues to grow, so do the compliance requirements, and operators need to keep up with these evolving regulations. Operators must have comprehensive compliance programs that include measures for gaming software, data security, payment transactions, licensing requirements, responsible gambling, and marketing practices. With the help of compliance consulting companies, operators can stay up to date with changing regulatory requirements whilst optimizing operational efficiencies.


Fast Offshore has more than 26 years of experience in corporate services and iGaming. This includes services relating to iGaming compliance. Our highly-skilled and professional team are on hand to assist you with all compliance matters from the set-up stage through to ongoing obligations. All you have to do is contact us to find out more!

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