Unlocking Business Expansion in the Gambling Industry
When it comes to online gambling, the laws and regulations of different countries and regions may become ambiguous for the businesses that want to enter the market. The attitude even towards local and foreign operators varies significantly from state to state, resulting in a complex regulatory landscape, making the process of expansion longer and much more challenging. Today we will talk about the specificities of the gambling industry in different regions, highlight the most fruitful regions to work with and explain how a reliable payment gateway can boost your entry to the new markets
Let’s take a look at the general overview of the global online gambling market
Sources: IMARC Group, Grand View Research, Inc, Statista
Understanding the nuances
Before entering the new market, you should deeply research the specificities of the region you want to work with. Mainly we can specify 4 groups of countries, based on the regulatory nuances of them
Countries without blocking foreign online casinos
In these countries, local regulators have no legislative requirements, allowing foreign gambling sites to operate without licence. However, gambling may not be legal in these countries, and blocking foreign sites may be imminent if online gambling remains unregulated
Examples of such countries: Brazil, Cayman Islands, Czech Republic, Japan, New Zealand, Nigeria
Countries requiring local regulator licences for gambling websites
These countries have a competent approach to online gambling regulation. All operators, whether local or foreign, must obtain a licence and meet legal requirements to operate legally. Non-compliance results in website blocking
Examples of such countries: French Guiana, Panama, UK, Georgia, Wallis and Futuna Islands, Ethiopia
Countries requiring local regulator licences for local gaming sites only
Similar to the first group, these countries have no legal requirements for foreign sites. Foreign operators can work without licences, while local casino owners must obtain licences from the local regulator and pay taxes
Examples of such countries: Canada, Sweden, Armenia, Fiji, Guinea
Countries with no restrictions on gambling sites
This is the largest group of countries, where gambling activities are unregulated and unrestricted
Examples of such countries: Argentina, Nicaragua, Albania, India, Nauru
Here is a glimpse
Let’s take a look at the specific case. Within the European Union, foreign gambling sites are subject to the requirements of EU legislation. This means that EU member countries must comply with these regulations. However, not all states within the EU support the notion that foreign operators should be exempt from local taxation
Contrary to EU requirements, some countries choose to subject foreign operators to their own regulatory rules, compelling them to obtain a local gambling licence and contribute taxes to the local budget. France, Germany, and Italy are examples of countries that adopt this approach. This disparity in treatment between local and foreign operators stems partly from the belief that foreign operators should not be exempt from contributing to the local treasury
Another reason for the contrasting attitudes towards local and foreign operators is the limited resources and influence that many countries, particularly those with weaker technological development, possess to prevent foreign companies from operating within their territories. These countries may lack the necessary tools or mechanisms to enforce strict regulations on foreign operators effectively
The complex and varied regulatory landscape for online gambling reflects the different priorities and perspectives of each country. As the global gambling industry continues to evolve, finding a balance between local regulations, international standards, and taxation policies remains a challenge. It is essential for gambling operators and stakeholders to stay informed about the specific regulations in each jurisdiction they operate in to ensure compliance and navigate the intricacies of the global gambling business
According to Slotegrator
Best regions to consider
The legality of online gambling varies significantly across different regions worldwide. While some countries have embraced online gambling and implemented robust regulatory frameworks, others have strict regulations or outright bans. It is important to stay updated with the latest gambling legislation of the region you work with to ensure compliance and provide a safe and enjoyable online gambling experience. Here are some regions known for their vibrant gambling markets and their unique characteristics:
North America: Diverse Legal Landscape
In North America, the legal status of online gambling varies greatly. Each state in the United States has the authority to regulate or prohibit online gambling within its borders. Statista says that in 2022, approximately half of all states, including New Jersey, Nevada, Pennsylvania, and Delaware, have legalised online gambling. In Canada, online gambling is allowed, but regulations vary by province
Oceania: Mixed Regulations Down Under
In Australia, online gambling is well-established and legal for residents to engage in online sports betting and lottery games. The industry contributed approximately 420 million AUD to the economy in 2022, Statista says. However, the Interactive Gambling Act of 2001 prohibits the provision and advertising of interactive online gambling services within the country. In New Zealand, online gambling is permitted, but operators must be based outside the country. Both Australia and New Zealand have regulatory frameworks in place to protect consumers and prevent gambling fraud
South America: A Promising Land
South America has seen a mix of online gambling regulations. Mexico and Argentina have legalised and regulated online gambling at the national or provincial level, respectively. Brazil has taken steps to legalise sports betting but is yet to fully regulate online gambling. Colombia has established a licensing system to regulate and ensure the integrity of the online gambling industry. Overall, Latin America’s online gambling gross revenue is expected to grow significantly until 2026, according to Statista
Asia: A Complex Legal Landscape
Asia presents a diverse landscape in terms of online gambling legality. While some countries fully legalise and regulate online gambling, others have stringent restrictions or a complete ban. For example, the Philippines serves as a popular hub for online gambling operators and grants licences to eligible companies. On the other hand, China strictly prohibits most forms of gambling, except for welfare and sports lotteries. Hong Kong and Macau, as special administrative regions, have their own legislation governing online gambling. Countries like Japan, South Korea, and Singapore have specific regions where online gambling is legal
Europe: A Leading Force in Online Gambling Regulation
Europe stands at the forefront of online gambling regulation, with various countries implementing comprehensive frameworks to govern this industry. According to Statista, the total European gambling market is projected to reach US$54.58 billion by 2027. These countries have established licensing authorities that ensure consumer protection and fair play. The European Gaming and Betting Association (EGBA) plays a vital role in fostering a transparent, competitive, and well-regulated market for online gambling operators in Europe
There are notable variations among the online shares of various national gambling markets in Europe. As of 2021, Sweden led the way with the highest proportion with 80% of its gambling conducted online, followed by Latvia with 75%, Lithuania with 67%, Romania with 65%, and the UK with 65%. Interestingly, several countries with larger gambling markets in terms of revenue, including Spain, Italy, Germany, and France, maintained comparatively lower online shares of their respective gambling markets
Biggest Online Gambling Markets in 2021
* Regulated markets or markets in the process of being regulated
Source: Statista
The Significance of Reliable Payment Solution
Expanding into new markets requires careful consideration of legal compliance and local market dynamics. A reliable payment solution serves as the backbone of your financial transactions, making it a vital aspect of your business operations. Partnering with a gateway solution that has a solid grasp of local regulations, offers diverse payment options, and possesses problem-solving expertise can significantly boost your chances of success. Here’s what you should prioritise in a payment solution:
When expanding your business into new markets, it is crucial to work with a payment provider that understands and adheres to local regulations and guidelines. By doing so, you can safeguard the security and privacy of your transactions, protect your business from costly financial and legal risks and build trust with your customers
A gateway solution that possesses local market expertise can offer valuable insights and guidance on the unique challenges associated with the region. This knowledge helps you avoid expensive mistakes, minimise disruptions to your operations, foster stronger customer relationships, and ultimately achieve long-term success
To thrive in a new market, it is essential to receive funds in the local currency and have the flexibility to settle payments in your preferred currency. This flexibility not only allows you to save money on conversion fees but also enables better management of your international cash flow and reduces your exposure to currency fluctuations
Utilising the expertise of a gateway solution that understands the local market can be instrumental in overcoming challenges unique to the region. By having a deep understanding of local regulations, cultural nuances, and customer expectations, your payment provider can offer valuable advice to help you avoid costly mistakes and minimise disruptions
Conclusion
It may be challenging for gambling to enter the new market and effectively conquer it. However, with a deep knowledge of the country or region you want to expand, as well as partnering with an effective payment solution, you can effectively reach your goal. Transferty solution is a reliable payment gateway, developed to cover the needs of high-risk industry players, including gambling. Find out more about how we can support your business expansion and boost your payments in gambling by reaching out to our sales team below
