Why operators should rethink product compliance

Entering a new market is never easy. As more of Europe adopts a dot country mode of gaming regulation, and with the US following its lead with state-by-state frameworks, running an international gaming operation across multiple jurisdictions is becoming even more of a challenge. Operators and suppliers across the board are now facing a compliance burden that is heavier than ever. Important markets which were once easy wins such as Sweden and the Netherlands – have either already made the switch or will do so imminently. At the same time, competition in Europe’s most mature gaming jurisdictions, including the United Kingdom and Italy, continues to heat up. Many are left facing a conundrum: at a time when it is increasingly important to expand into new territories, it is also far tougher to do so. To succeed, a renewed focus on the way we handle compliance issues is a must.

Streamlining product compliance

Perhaps the area most impacted by this new reality is product compliance. For an operator or supplier which has rolled out an innovative new product in one market, it is logical to be looking at similar territories for expansion. However, to make multiple market entries viable, it is vital that the compliance process is streamlined. So, how does one go about achieving this? A good first step is to optimise costs. This encompasses every step of the product roll-out, starting with development. For many, compliance plays little to no active role within the development process. If your product is meant for a single market, this is unlikely to be a major issue. Nor would it have been problematic under the dot com model of regulation.

However, today it is simply too costly to ignore. Development teams must have compliance in mind during the creation of a new product. In doing so, it will save them considerable costs down the line. Aiming at best practice or the highest compliance burden of those markets being targeted is usually the simplest approach. Optimisation of certification costs is another crucial area. It is important to ensure a product being tested by a test house has been developed for as many jurisdictions as possible, to enable a simple transfer of approval to be requested. This reduces go-live times as well as the cost of certification.

Speed to market

Aside from costs, speed is another crucial factor here. Take the example of the recently re-regulated Swedish market, which has introduced a framework which is particularly punishing on bonusing. If an operator or supplier wishes to roll out a product that has been successful in similar markets – such as Denmark – but may run afoul of Swedish regulations, it could take months of development, marketing and compliance resource to adapt the product before you are ready to go live. In a market where competition is intense, these months could be the difference between grabbing a significant market share or missing out completely.

Agility is the name of the game and only those with a strong focus on compliance will be able to compete. Again, embedding a compliance function across your organisation is important. Development, marketing and product teams must all be on the same page, with compliance front of mind from the outset. To do this, many companies are bringing in third-party support; compliance expertise with experience working in specific markets can help upskill the entire team. The fact of the matter is that when it comes to product compliance for those wishing to enter multiple jurisdictions, compliance simply cannot be an afterthought.

It is vital to gather and map out jurisdictional requirements against your product portfolio early in the process, because otherwise you will incur unwelcome costs and delays. The ability to map out the different jurisdictional requirements and manage these across the product offering is a key task – both now and in the future. With the burden only likely to increase, now is the time to rethink your approach.

Author: Antonio Zanghi, founder, Maxima Compliance

Antonio Zanghi is an online gambling compliance expert with years of experience in the field. He has previously worked at IGT where he was involved with both regulatory and technical compliance successfully managing compliance in the Canadian and European regions. Antonio now runs Maxima Compliance, a full-service compliance consulting firm supporting online gambling businesses.