How Casinos Can Prepare for Legal Changes

Amendments in the regulatory framework are a common phenomenon in gambling. In such a way, the authorities care about the reputation of the businesses and protect the rights of operators and honest players.

Experts of the Smart Money studio will explain why the government modifies the rules and how to prepare for innovations.

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What is a Regulated Market

These are jurisdictions where entertainment for money is permitted, and clear instructions were created for operators.

To legally accept bets, businessmen usually need to obtain a licence and comply with the requirements of the gambling commission (including mandatory content certification, timely payment of taxes, etc.).

Among the regulated zones, we can highlight:

• European countries (France, Great Britain, Sweden, and Estonia);
• Asian states (Philippines, Georgia, Vietnam, and India);
• LatAm regions (Paraguay, Colombia, and Peru);
• offshore jurisdictions (Curacao, Malta, and Gibraltar);
• individual territories (within some US states or Canadian provinces).

Grey markets are on the other side of the gaming niche. There, the industry-specific legislation is either completely absent or offers only general rules for managing land-based and online casinos.

That is why dishonest entrepreneurs can find loopholes in the functioning of entertainment sites, and the reputation of the sector in general naturally suffers.

It is much more reliable and profitable to work in legal markets for several reasons:

1. Stability. Cooperation with an unlicensed site is fraught with problems. Business owners can be held accountable for fraud or complicity even if the user, B2B partner, or arbitrator is located in another country. Interaction with registered iGaming startups eliminates all these threats and guarantees stable and legal work.
2. Positive image. Software vendors and players treat official projects well but are very distrustful of illegitimate sites. It will be difficult for underground casinos to get a profitable contract and become more popular.
3. Security. Regulated markets strictly control data privacy issues, adherence to responsible gaming principles, and the protection of customers and B2B partners. Operators can rest assured of the safety of their enterprises because their rights are protected by law.
4. Long-term partnership. Launching a startup in a trusted jurisdiction makes it possible to plan the project's work for several years ahead. Most permits are issued for 5–10 years. This time is enough to recover investments, reach a stable level of income, and conclude lucrative contracts.

Why Licensed Markets Change Laws

The main reason is a reaction to various challenges that the industry faces.

Spread of Ludomania

The fight against gambling addiction is one of the priority areas of activity of the authorities. They create measures for safe play, implement a reliable approach to the placement of bets, and change legislation in the sector.

According to statistics, more than 50% of innovations in the casino niche are aimed at preventing ludomania. Such a high percentage is explained by many factors, but the key one is the availability of entertainment for money.

With the help of special software (proxy servers and VPN services), customers and fraudsters bypass the current rules. This is a ban on betting for minors and low-income individuals, making deposits using credit funds, and much more.

The legislation is constantly developed and changed:

1. Raising the age limit. For example, Georgia has chosen this path. In 2022, the government decided that to enter land-based and online casinos visitors need to be no younger than 25 years. Players who turn 18 can participate in lotteries, and citizens over 21 can place bets in the bookmaker’s office.
2. Limiting the cost and duration of spins. Since 2021, German gamblers cannot visit multiple entertainment sites at the same time. They must also wait at least 5 seconds between the rotations of reels. Since 2022, the maximum monthly deposit for locals is €1,000.
3. Creation of self-exclusion registers. Since 2020, Denmark has had ROFUS and the StopSpillet 24/7 helpline, which provides advice and support to bettors. Both projects were created by the Danish Gambling Association (Spillemyndigheden).
4. Introduction of insurance premiums. In 2024, UK online operators started donating 1% of their revenue to the NHS. For offline establishments and sportsbook locations, the rate is set at 0.4%. The funds are allocated for research, prevention, and treatment of ludomania.

AML Policies

This is another common problem that entrepreneurs face much more often than their colleagues from different business areas. To make payments as transparent and secure as possible, authorities are changing regulatory legal acts.

All European jurisdictions have similar requirements to prevent financial crimes:

• conducting comprehensive checks of customers (KYC) to confirm their identity;
• monitoring transactions for suspicious activity;
• reporting any illegal operations to the control bodies;
• keeping detailed records of suspicious transfers;
• training staff in compliance with AML requirements.

The European Union has a general Anti-Money Laundering Directive. Project owners are required to organise additional verification of all payments over €2,500.

Safe Advertising

Those who open land-based or virtual casinos must adhere to strict rules of promotion and marketing practices. For example, ads must not target minors and socially vulnerable persons, promise quick enrichment, and spread untruthful information about entertainment for money.

In April 2024, the Swedish government submitted a new bill aimed at strengthening consumer protection in the gambling sector.

SGA also plans to:

• increase fines for companies that violate laws on safe advertising and combating money laundering;
• grant businessmen the right to access the financial and medical data of players;
• oblige entrepreneurs to get written consent from clients before they start making bets.

In 2023, Belgium decided to ban gambling promotion on television, radio and in cinemas, magazines, newspapers, and public places. The law came into force on July 1, 2023. Other countries in the region have also adopted this practice. For example, in France, influencers are prohibited from talking about the benefits of visiting casinos.

Protection of Confidential Info

The security of customer data is one of the regulators' priority tasks.

In Europe, the activities of all operators must comply with the requirements of the GDPR. The set of rules is intended for firms that collect and process personal details of EU users on the Internet.

Gambling commissions may impose additional requirements. For example, in most European states (Croatia, Romania, the United Kingdom, etc.), project owners are required to place servers for storing info in the jurisdiction in which they obtained a licence.

Tax Increase

Entertainment for money is a promising and profitable business. The authorities understand this well and create conditions for legal and transparent work.

The casino field, like any other legal sector of the economy, pays levies. Even when their amount grows slightly, it has an excellent cumulative effect.

The funds received are redirected to the needs of low-income and socially vulnerable persons. Such projects as educational centres and sports complexes, as well as medical institutions, are financed from the public treasury.

How Operators Can Prepare for the Changes

Innovations in the legislative framework are inevitable. However, any modifications can be quickly accepted by following simple and clear instructions.

Studying the News Agenda

Leading regulators always announce any changes in the niche, giving businesses time to get ready and adapt.

Innovations are never random. Commissions consult with operators, software vendors, and other market participants for months. The goal of communication is to create favourable terms for entrepreneurs, customers, and the state.

Studying the news agenda will allow you to better understand the market, its prospects, and upcoming changes.

A striking example of high-quality information support is the reorganisation of the Curacao entertainment sphere. The innovations come into force in the fall of 2024, but the key lines of work were known 2 years ago.

The local government plans to:

• create a new regulatory body (Curacao Gaming Control Board);
• modify the procedure for licensing, taxation, and accreditation of related parties (lawyers, financiers, and software certification centres).

The country’s authorities conducted a powerful information campaign in relation to the reorganisation of the gambling market. Javier Silvania, the Minister of Finance, even spoke at several major conferences, including iGaming NEXT Valletta 23 and SiGMA Europe 23.

In spring 2023, the GCB organisation issued a set of guidelines for the certification of digital casino platforms.

Adaptation of Business Processes

Any changes are always preceded by a transition period.

During this time, operators must prepare for future reforms:

• undergo certification of equipment and games;
• install security and online monitoring systems;
• Implement a KYC program to verify users;
• change the basic denomination and RTP settings.

Top jurisdictions warn entrepreneurs about the expected changes in the market in advance. For example, the Belgian authorities plan to ban gambling advertising in stadiums from January 1, 2025, as well as the sponsorship of clubs and teams from 2028.

Project owners have several years to complete their current marketing contracts and conclude new ones, taking into account all innovations.

Adaptation of business processes is also an opportunity to find new sources of income and optimise current expenses.

In 2019, the Swedish government limited bonuses for players to 100 Swedish kronor per month ($98.3). In this regard, leading operators changed their loyalty systems.

Instead of a weekly bonus, VIP users began to receive 10% cashback. Modifications became a good motivation for customers to place bets more often.

Working with Experienced Lawyers

Managing a gaming portal is a multifaceted and complex process that requires attention to many aspects. Therefore, it is important to contact competent specialists and receive high-quality support timely.

What legal consulting provides:

1. Assistance in licensing and regulation. This is the preparation of the necessary documents, registration with the tax service, passing various certifications, audits and compliance checks. Each country has its laws and rules regarding casino entertainment, which makes the process of getting a permit complex and costly. Experienced lawyers can solve any problems and help optimise startup costs.
2. Preparation for changes in the market. Skilled professionals will explain how to act in the given circumstances with the greatest benefit for the business. This can be either a revision of current advertising contracts or a selection of a new iGaming division with the acquisition of a fresh licence.
3. Reporting. This stage includes financial, tax and statistical documents, the sending of which often causes difficulties for entrepreneurs. Lawyers can help with obtaining various certificates or statements and protect the operator’s rights in any controversial situation.

Consulting of this type is the key to stable and uninterrupted work of businessmen without legal difficulties and risks of non-compliance.

You can order a comprehensive support service from the Smart Money company, having previously contacted our manager.

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The Main Things about Legislative Changes in Gambling

New laws are frequently being implemented in casino markets.

Key aspects that operators need to take into account:

• Innovations in the regulatory framework are a response to challenges in the industry. That is how the authorities combat money laundering and ludomania, popularise safe advertising and make sure that confidential data is reliably protected.
• Preparation for changes consists of many stages. It is important to study the agenda timely and follow publications in the media and newsletter from legislative bodies.
• Cooperation with experienced lawyers will save entrepreneurs from difficulties associated with innovations in the sector and adaptation of business processes. Specialists will tell you how to avoid losses and increase profits.

The Smart Money studio can implement tasks of any complexity level and offer the following comprehensive services:

• creation of HTML5 slots according to individual sketches;
• installation of payment software;
• security systems connection;
• supply of furniture and equipment for land-based gambling halls;
• promotion of already realised projects, and much more.

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