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With the advent of the internet, iGaming businesses offer services in many jurisdictions around the world at once, making corporate governance and compliance a key part of their sustainable growth.
Bad governance or a failure to meet compliance standards can result in license revocation, financial penalties, and reputational harm. Conversely, sound governance structures and effective compliance programs not only protect against legal issues but also improve the reputation and boost investor confidence.
Embracing strong iGaming compliance, however, comes with certain legal complexities. To avert these, many successful iGaming businesses implement international governance standards and create dedicated compliance departments to oversee operations across jurisdictions.
This article explores the effect of global corporate governance laws on iGaming operators.
Understanding Corporate Governance in the Gaming Industry
Corporate governance in the gaming industry refers to the systems, policies, and practices that ensure a gaming company (whether it’s involved in video games, casinos, online gambling, or esports) adheres to legal regulations, industry standards, and internal ethics.
For the iGaming operator, this means having explicit policies concerning anti-money laundering, player protection, data privacy, and responsible gambling.
With the ever-evolving regulatory environment, however, companies must remain vigilant to avoid steep penalties, license revocations, and reputational damage.
Corporate compliance in the iGaming Industry includes operators ensuring adherence to laws, regulations, and ethical standards in all jurisdictions where they operate. This includes the following practices
- Monitor landscape to guarantee the company doesn’t violate the legislation by operating without the license required by the respective jurisdiction and adheres to gambling laws, including age restrictions, advertising rules, and tax regulations;
- Prevent criminals from using iGaming platforms to launder money or fund illegal activities;
- Detecting and blocking bonus abuse (e.g., multi-accounting, coordinated play), affiliate fraud (e.g., fake traffic or misleading marketing), insider threats from employees misusing access, and using fraud detection software and real-time monitoring tools.
- Promote player protection measures to prevent problem gambling;
- Ensure casino compliance with GDPR and other data privacy laws; protecting against hacking, data leaks, and ransomware attacks, encrypting sensitive data, implementing firewalls, and regular penetration testing and security audits;
- Secure the landscape where games are fair, random, and not rigged, and work with independent testing labs (like eCOGRA or GLI) to certify RNGs and game fairness.
In the end, it all comes to ensuring that all aspects of an online gambling operation are fully compliant with applicable laws, regulations, and licensing conditions, while also promoting fairness, transparency, and ethical behavior across the business.
Global Trends Shaping Corporate Governance in iGaming
As corporate governance laws expand throughout jurisdictions and capture a wider digital audience, they have become a cornerstone of sustainable growth and regulatory adherence. Driven by rising investor scrutiny, constant change in legal standards, and a greater demand for transparency, the sector is witnessing unprecedented alterations in how companies are expected to function and be held responsible.
Let’s take a closer look at the main recent global trends in corporate governance:
- ESG
Emerging global trends in corporate governance increasingly focus on environmental, social, and governance (ESG) factors. Regulators and investors are forcing gaming companies to demonstrate sufficient global corporate governance measures.
The pressure is taking the industry toward adopting new principles that intertwine moral considerations with long-term profitability. This includes governance (licensing & transparency, data privacy & security, ethical leadership, and whistleblower protections), social (including responsible gambling requirements, diversity, equity & inclusion (DEI) principles, and community impact), and environmental (namely sustainable operations and “green” supply chains).
- AML Directives
Six Anti-Money Laundering (AML) directives of the EU have had a significant impact on compliance procedures within the casino and sports betting industries.
Since their introduction, these sectors have been seen as “high-risk” for money laundering due to the volume of cash transactions and susceptibility to layering criminal money through gambling.
These directives include information on Risk Assessment, Reporting of Suspicious Transactions, Employee Training and Internal Controls, Know Your Customer (KYC) requirements, Enhanced Due Diligence (EDD), Customer Due Diligence (CDD), and other mechanisms to combat illicit activity for operators.
- Transparency of Data and Responsible Innovation
Regulators across the main gambling jurisdictions – including Malta, the UK, and others – are imposing data disclosure requirements for customer safeguarding, algorithm fairness, and platform integrity.
Operators must demonstrate how customers’ data is collected, stored, and used in line with international data protection law (as the GDPR). This has become not optional, but mandatory ever since.
Moreover, game design openness (specifically the use of algorithms to dynamically set odds and virtual games) is becoming an increasingly fundamental component of corporate governance legislation.
- Developing Governance Resilience via Technology
To meet ever-evolving standards set by regulators in terms of customer protection and more, the majority of iGaming companies are looking to optimize operational expenses related to ongoing compliance and thus align toward governance tech or GovTech.
These kinds of virtual tools aid in automating risk assessment, allowing real-time reporting, recommending the best blockchain/immutable ledgers, and finally adhering to the most up-to-date global center for corporate casino governance.
iGaming Compliance: Common Mistakes and Oversights
As the digital gambling ecosystem grows, so does the complexity of online gambling compliance. From KYC/AML protocols to internal governance and licensing, the risks of cutting corners in iGaming compliance are simply too great. A strategic and robust gaming compliance framework is not just a safeguard – it’s a competitive advantage for startups or expanding operators.
That said, below is the list of frequent pitfalls to avoid for the iGaming operators to ensure they don’t deal operational damage in the long run:
- Inappropriate Corporate Structure and Licensing Gaps
Many iGaming startups want to enter the gambling market as quickly as possible without creating the proper corporate structure and obtaining the necessary licenses. Such mistakes often arise due to a lack of understanding of the legal and regulatory differences in different jurisdictions.
Common errors include operating under shell companies without real substance, choosing offshore jurisdictions without understanding their regulatory demands, launching without obtaining proper iGaming licenses in the targeted jurisdiction, and failing to structure operations in line with tax and reporting obligations.
- Weak KYC/AML Company Policy
A robust Know Your Customer (KYC) and Anti-Money Laundering (AML) framework is one of the most important steps for sports betting compliance and stability.
Unfortunately, many startups underestimate the level of complexity when it comes to implementing robust AML/KYC systems. From poor identity verification procedures, relying on manual processes that fail to scale, to the lack of transaction monitoring tools and non-compliance with local and international AML directives (for example, the EU’s 6 AMLD) – all frequently catch operators off guard.
- Lack of Internal Audits and Compliance Policy
Compliance in the iGaming industry requires constant diligence and ongoing audits. Many iGaming operators fail to conduct regular internal audits or develop a proactive compliance culture, which subsequently negatively impacts their business.
Typical mistakes include no dedicated compliance officer or team (AML officer, MLRO), infrequent or non-existent risk assessments, outdated compliance manuals or procedures, and ignorance of the new regulatory updates and amendments.
- Ineffective Board Oversight
Corporate governance plays an important role in maintaining online gambling compliance, but many iGaming startups have board members who lack regulatory experience or do not prioritize compliance. This includes the following: board members unaware of their online gaming compliance responsibilities, no formal online gambling compliance reporting structure to the board, and inappropriate training on regulatory obligations and legal risks.
How Inteliumlaw Supports Gaming Businesses with Compliance
Inteliumlaw is a leading legal consultancy firm providing tailored solutions for gaming businesses seeking compliance. Whether launching a new iGaming platform or expanding into new jurisdictions, Inteliumlaw offers comprehensive support to help businesses comply with the strict jurisdictional industry standards.
Our team provides comprehensive support, helping clients identify suitable jurisdictions for licensing, understand region-specific regulatory obligations, and comply with Anti-Money Laundering (AML), Know Your Customer (KYC), and Responsible Gaming requirements using its vast experience and extensive knowledge of international gambling regulations.
Inteliumlaw works closely with clients to create comprehensive risk frameworks that are tailored to their operating model and jurisdictional presence. These frameworks support proactive identification and mitigation of iGaming compliance risks, real-time monitoring and reporting systems, license renewal strategies, audit readiness, and business continuity planning in the face of regulatory disruptions.
iGaming Compliance FAQs
- Why is gaming compliance important?
Without proper gambling compliance, operators risk heavy fines, license revocation, and damage to their brand reputation. Also, compliance fosters trust with players, regulators, and payment providers. Staying compliant is key to long-term business operations.
- What licenses are required for an iGaming business?
The jurisdiction for licensing your gambling business depends on where the business is located and where its customers are.
The most popular licensing jurisdictions include Malta (Malta Gaming Authority), the UK (UK Gambling Commission), Curacao (Gaming Control Board), Gibraltar, and the Isle of Man.
- What are some core components of online gaming compliance?
Key elements of online gambling compliance include: Know Your Customer (KYC): verifying customer identity to prevent fraud; AML compliance: detecting and reporting suspicious financial activity; Responsible Gaming tools: deposit limits, self-exclusion, and timeout features; Data protection: complying with laws such as GDPR to handle user data securely.
- Do I need different compliance measures for casino and sports betting operations?
Yes, casino compliance and sports betting compliance often have overlapping but distinct requirements. For example, sports betting platforms may require odds transparency, event integrity protocols, and permissions to use sports league data. Importantly, both require rigorous licensing and anti-fraud systems, and must tailor their compliance models to the specific risks of their gaming offerings.
- Can I handle compliance on my own, or do I need legal support?
While some smaller operators try to manage compliance internally, it is highly recommended to consult with professional lawyers who specialize in compliance in the gaming industry. Our team of professionals will help you choose the right licensing jurisdiction, draft internal compliance policies, create KYC/AML structures, and prepare for audits and regulatory inspections
We ensure that you meet global compliance requirements in the online gaming industry from day one.
