Regulation in iGaming has shifted from the background to the forefront, shaping the industry's future. In 2024, experts recognised its role beyond compliance, emphasising its importance in driving responsible, sustainable growth. The challenge for operators is strategically navigating this evolving landscape, turning regulation into a tool for long-term success. How they adapt now will define their future.
Fragmentation
The regulatory landscape in iGaming is becoming increasingly fragmented, with each country or region enforcing unique rules on taxes, advertising, and player protection. This complexity has become the norm and is only expected to grow.
Adapting to this diversity demands adaptability and strategic planning. Operators must carefully choose markets, structure operations effectively, and invest in compliance. While challenging, this environment drives the industry toward more resilient and responsible practices.
Penalties
In 2024, operators faced fines of €85m ($89.7m), significantly less than in 2023. This decrease doesn’t necessarily indicate regulatory leniency but rather a shift in the industry. Operators are increasingly integrating compliance into their core strategies, treating it as a proactive priority rather than a reactive obligation.
UK Black Market Growth: 2024 Insights
The case
The UK black market experienced significant and unexpected growth in 2024, with €3.24bn wagered annually on unregulated platforms. According to the Betting and Gaming Council, 1 in 12 players has shifted to these platforms due to stricter affordability checks, lengthy verification processes and stake limits. Unlicensed platforms capitalise on these restrictions, attracting players with anonymity and more appealing bonuses – advantages that regulated sites are unable to offer under current regulations.
The reality
Once considered a model of effective regulation, the UK aimed to reduce problem gambling and enhance player safety through stricter controls. However, these measures have inadvertently pushed players toward the black market. With 15% of gamblers aware of these alternatives, many experts underestimated the ease and speed with which players could abandon the regulated system for unlicensed options.
Global lessons
The UK’s situation underscores an essential lesson for regulators worldwide: over-regulation can unintentionally drive players to riskier, unregulated markets. To protect players effectively, regulatory frameworks must strike a balance between safety and player choice. Adopting smarter, data-driven approaches is critical to keeping players within the regulated ecosystem while avoiding unintended consequences that jeopardise their safety.
Legal environment evaluation
According to Softswiss survey results, respondents rated the current legal landscape in iGaming an average of 6.1 out of 10. While this score reflects a generally functional system, it also highlights significant opportunities for improvement.
Softswiss Survey Insights: How regulation shapes iGaming growth
Rising standards
Tighter regulations on responsible gambling, data protection and transparency are increasing costs but also boosting trust. Compliance is evolving from a baseline requirement to a key factor in building long-term credibility with players, regulators and investors.
Fragmentation challenges
Diverse regional laws complicate operations, driving companies to innovate with tools that manage compliance across multiple jurisdictions. These solutions help operators scale while adhering to local regulations.
Call for harmonisation
The industry is pushing for harmonised regulations to reduce costs and create a more predictable environment. The goal isn’t less regulation but smarter, coordinated policies that protect players while fostering sustainable growth.
