Emboldened regulators with political and public support are increasing the scope of what’s required from licence holders. To both survive and thrive requires a completely new approach to compliance, says BetComply CEO, Daniel Brookes.
We’ve entered a new era of compliance, where obligations – and the punishments that might follow for those who fail to meet them – don’t necessarily end just because you’ve ticked all the boxes.
In a growing number of markets, regulators are issuing guidance that can sometimes be more philosophical than it is process-driven.
What we are seeing is an abstraction of what’s required from licence holders. And I say licence holders, because this increasingly impacts suppliers as well as operators these days.
Sweden is one good example, where the country’s regulator, Spelinspektionen, has issued lengthy guidance around the concept of a ‘duty of care’ that licence holders have towards customers. The starting point is that licensees need to take social responsibility into consideration and be proactive when it comes to preventing the harm excessive gambling can cause.
It’s a similar story in the Netherlands, where regulator Kansspelautoriteit (KSA) now expects licensees to cooperate and work alongside the healthcare and scientific communities to offer better protections to customers. Again, the duty of care is a major theme.
The results of this abstraction are clear to all. Search the word ‘fine’ on intergameonline.com and you’ll be greeted by a long list of news stories detailing companies who have fallen foul in Sweden, the Netherlands, the UK and beyond. And that’s just from the last few months.
Svenska Spel’s £7.5m fine for failing to help 10 of its customers reduce excessive gambling is perhaps the most noteworthy example. But it certainly won’t be the last.
Changing the game
This all raises a simple question: how do you adapt to the new reality? It’s a question we’re asked almost every day at BetComply.
I’d say the first thing to change is the mindset. For a long time, I’ve seen operators and suppliers viewing regulators as the ‘enemy’. An irritating adversary placing obstacles that must be avoided, slowing down progress along the way.
This is a futile way of thinking. Firstly, building a sustainable gambling industry where players can enjoy the products safely is in all of our interests. And secondly, even if you disagree with certain requirements, the direction of travel is clear. In an ever-expanding selection of markets, if you want to thrive, you’ll need to find a way to do so under these conditions.
The second major change is an internal one. When I started working in this industry, compliance teams tended to be siloed away from the rest of the company, only rearing their heads to tell product or marketing to stop doing something.
The scale of punishments regulators are now comfortable handing down - whether that be multi-million euro fines or even licence revocations - means this isn’t just an outdated approach, it’s a highly risky one too.
Compliance, and all the considerations it entails, is not only the job of a small, dedicated team. It’s a way of thinking that needs to permeate every part of your business and be understood across different contexts by the relevant decision makers. It’s the only way to avoid things slipping through the net, leading to costly errors.
If this sounds like a drag, let me frame it differently. This is actually a major opportunity to gain a competitive edge in several extremely lucrative markets.
We talk about businesses leading their field in product, tech or marketing. But staying a step ahead of the competition in compliance is now just as important in the race for market share. As we move forward, excellence in compliance and commercial success will become even more intrinsically linked.
So, welcome to the new era of compliance, where being proactive isn’t just a requirement, but a strategic advantage that sets the stage for long-term success.
