The long-standing legalization of iGaming in many parts of Europe contrasts with the comparatively recent introduction of regulated online casinos in Canada, and yet, despite this disparity in maturity, there’s potential for lessons to be learned in each place, especially regarding risk disclosure.
To illustrate the mutual benefits available in this context, here are a few important points about a cornerstone of gambling company compliance that arise in unique ways in Canada and Europe.
Getting to Grips with the Need for Grey Market Transparency
iGaming in Europe has long been part of a global grey market, with locally licensed and operated casino sites able to serve customers in parts of the world where their services are not yet covered by regional regulations. Investors have rightly called for ample transparency regarding the geographic source of revenues for the obvious reason that it provides insight into the extent of a given operator’s grey market exposure; in other words, exactly how reliant they are on international players, and the uncertainty this brings.
Canada’s up-and-coming iGaming brands must follow suit and disclose their exact compliance exposure. It’s the same kind of transparency that must apply to their consumer-facing operations, ensuring they explain concepts like low and high RTP slots alongside other facets of the games they offer.
Being Proactive about Compliance
An impressive aspect of Canada’s recently introduced legal iGaming market in Ontario is its emphasis on a multifaceted onboarding process to ensure compliance with the province’s Registrar’s Standards. Gap analysis, alongside entity disclosure and personal disclosure for those in key management positions, is part and parcel of being approved to begin serving domestic online casino customers.
What this means is that, rather than fining operators for compliance breaches after the fact, regulators can be confident that a platform and the company behind it are above board and properly aligned with industry standards. In turn, investors and the market at large know the state of play from day one and can be relatively confident that there are no nasty surprises buried within the corporate structure supporting a given iGaming service.
Europe’s reactive rather than proactive stance on compliance failures should take note of the effectiveness of Canada’s alternative approach. Forcing parent companies and key stakeholders into the regulatory spotlight immediately would stamp out many of the shadier parts of the industry and go a long way toward rehabilitating its reputation in the eyes of its many detractors.
In short, blending Europe’s corporate disclosure agility with Canada’s ironclad structural compliance can help the global iGaming industry establish a gold standard for transparency, safety, and sustainable commercial growth. No doubt there will be additional speed bumps ahead, and the relative recency of Canadian iGaming’s emergence makes it more likely to suffer setbacks than mature European markets. However, the overall picture is positive, and it highlights how important it is for regulators, operators, and investors alike to recognize that this industry is player-led, not constrained by geographic borders or top-level decision-making, and therefore must be dealt with as an agile and changeable beast.
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