As options for customers proliferate, so do the demands on the igaming payments sector. INTERGAMINGi looks closely at the challenges that lie ahead

Samuel Barrett

Security and efficiency are watchwords within the igaming payments sector. Players naturally expect a hassle-free, quick process – it’s a peculiar type of masochist that enjoys filling out a bundle of boxes online – but also one where their personal details are stored away safely as they reasonably can be. It’s a challenging world out there for payment companies, though. Faced with having to cope with increasingly multi-channel platforms and rafts of new directives, it’s all about staying ahead of the game in terms of both trends and operating within shifting regulatory boundaries. More specifically, while already coming to terms with number four, the coming year is likely to see the Fifth Anti-Money Laundering directive initially drawn up into legal text within the EU. INTERGAMINGi canvassed the opinion of Dimico’s senior sales manager, Oluwaseyi Akin-Olugbemi, as to whether the igaming sector is ready to cope with new continent-wide directives on payment services and AML. “The igaming sector is in general well regulated and as such adapting to new directives and AML specifically has been relatively straightforward,” Akin-Olugbemi says. “Operators in regulated markets already have one of the toughest ‘know your customer’ checks and compliance procedures, which, if not followed properly, could jeopardise their licences and/or result in fines. As such, most operators have measures in place to deal with the new directives and, of course, the GDPR coming into effect soon.” When it comes to the EU’s GDPR – General Data Protection Regulation, which applies in all member states from May 25, 2018 – it applies to all companies doing business with EU residents, even if firms are based outside the union. fficer, certainly feels that there are significant challenges for the igaming sector to overcome. “GDPR will require new and/or significantly enhanced procedures to be put in place to address the new transparency and individuals’ rights provisions contained therein,” he says. “In addition, payment companies will also have to become more disciplined in the comprehensive documenting of all processes and procedures, as GDPR will place a great emphasis on this being comprehensively done. “Although the above will be challenging, it is important to realise that many of the GDPR’s main concepts and principles are much the same as those in the current Data Protection Act. Therefore, any organisation, and in particular payment and emoney institutions which are conforming properly with the current law and are running best practice models, will already have a culture of compliance. “The impact of GDPR may be less traumatic for these types of organisations as the underlying approach to compliance will remain valid under the GDPR. The processes and procedures already deployed will, therefore, serve as an excellent starting point for the implementation of the GDPR provisions.” Trustly’s director of gaming Samuel Barrett feels that the more immediate concern is the current, Fourth Anti-Money Laundering Directive. Along with PSD2 (Payment Services Directive 2), it entails authenticating every online payment, with enhanced due diligence a factor. Still, he feels that igaming as a whole will cope with the increasing stresses brought to bear. “Payment providers have been aware of the regulatory changes for some time now,” he says. “As such, they’ve been taking necessary steps to prepare and adapt to the new standards and requirements set by, for example, GDPR and AMLD4. “While GDPR is yet to enter into force, AMLD4 is in full effect and currently being implemented across Europe. The drivers behind GDPR are to strengthen and unify data protection practices across the 28 EU member states and in the case of AMLD4, to further strengthen and improve the AML/CFT laws. The new regulations will inevitably bring about some changes to how we operate, but I believe the igaming sector is certainly ready.” Barrett revealed that his staff have already undergone training in preparation for GDPR. “Across the sector, providers should be making sure that they are compliant ahead of implementation,” he says. “At Trustly, for instance, we have initiated a company-wide GDPR project to identify the areas where measures need to be taken in order to be GDPR compliant, as well as to identify areas where we are already compliant.

Read the full article in the Issue 1 of iNTERGAMINGi