Market entry and compliance: What gaming businesses need to know

As new states continue to come online and others begin to mature, the need for a regulatory-approved technology infrastructure that is compliant across multiple states has become more important. That said, how does technology have an impact on compliance, partnership, and business strategy for gaming providers and operators looking to expand? In what ways has technology evolved and what should professionals be aware of? Plus, how can businesses best navigate the challenges and opportunities that will lie ahead? 

Ahead of Veriff’s appearance at SBC Summit North America 2022, Peter Murray, Head Of Gaming at Veriff, outlines key considerations for businesses entering new markets, insights into the state of global regulation, and building trust in the gaming industry. 

The importance of effective engagement

Gaming providers entering a new market without a pre-existing level of engagement is becoming increasingly difficult; businesses that have already established a presence hold a significant advantage. The major brands are increasingly dominant, not only in markets such as the US but all over the world. Smaller businesses and big brands alike need to be able to deliver in areas where traditional solutions are limited or not available. 

To gain an advantage, the focus has to be on personalisation — truly engaging with your consumer — and scalability. Can businesses deliver a bespoke UX that speaks to the customer in their language and can handle the scale of the growth that was witnessed in sports betting, and what may come from when you add in extra revenue streams such as casino facilities and esports? Delivering  an effective user experience in a compliant manner is key. 

Building a credible brand in new markets

Another important factor for gaming providers and operators is to ensure that they avoid being seen as bad actors. They will have to ensure the jurisdictions they are operating in globally are regulated and palatable to the US regulators. To that end, they must be able to demonstrate that their operations in those markets have been conducted in an exemplary manner. That is why many of the EU-based operators have divested from certain markets they have been operating in previously.

Additionally, there is a key issue around the area of trust. In the eyes of many governments and the public, gambling has a trust issue and delivering a safe solution that protects the consumer and the data they provide is key to gaining trust and sustainability. Data protection is critical so we need to ensure that we don’t end up with some of the issues we have seen across the social media sector. 

Navigating the varying standards of global regulation

It’s widely accepted that there’s a growing need for global regulatory collaboration, but at present it doesn’t look likely to happen to the degree it’s needed. In the US, there certainly seems to be no appetite from the central government to step into the fray — along with states that may never look to regulate, due to political, religious, or bipartisan reasons. That said, smaller states looking to work together have the possibility to produce scale; and if this happens, gaming providers and operators will look to expand their compliance and fraud departments even further

In recent times, compliance technology has evolved a great deal and this will continue to bring change to the gaming industry. From Veriff’s perspective, AI-driven authentication technology has improved exponentially over the last two years.or instance, the platform can now process over 10,000 document types from 190 countries, and has become incredibly efficient, with an average verification session taking 6 seconds. 

How recent innovations are benefiting businesses

The platform continues to evolve and advance, and will continue to be a brand differentiator in how businesses engage with the customer in order to meet compliance needs. It has evolved from being a simple document verification tool —establishing whether a document is fraudulent or authentic — to being able to tie an ID to an individual, match the face to the document, and use biometrics to reverify or allow access to an account. 

Platforms are built to streamline processes, ease complexity and be agile enough to add best of breed and regulatory compliance tools and processes as they emerge. That is what Veriff does. It becomes an issue when regulators introduce rules that are abstract or subjective with no clear solutions. Take affordability, the key issue in the UK, or the lack of clarity on KYC in some upcoming jurisdictions, like Brazil. Veriff can work with clients and regulators to produce solutions that support the market and ultimately it is collaboration amongst the stakeholders that defines success.

Identity verification of the past was static and time stamped. Identity in an age of increasing data and innovative technology is dynamic and constantly evolving. Gaming professionals are used to having to do PEPs and sanctions every day, and that is where identity is heading. From Veriff’s perspective, AI biometrics is the key area of focus as it gives the customer speed, security, and trust. Great UX with little friction is what we know customers have come to demand, and more importantly, what they’ve come to expect. 

Discover more about Veriff's role in gaming and gambling by clicking this link.