Watch: Navigating the challenges of global gaming regulation in emerging markets

Jenny Ortiz January 8, 2025

SiGMA news

Emerging gaming markets like Brazil, Peru, and territories in Africa present exciting opportunities for gaming operators and providers. However, they are riddled with regulatory uncertainties that complicate entry and operation.

In a panel discussion during SiGMA Europe, Ohad Straschnov, Senior Compliance Director at Soft2Bet, Victor Borg Barthet, Director & CEO of Air Dice Malta, Danilo Arrichiello, Business Development Manager of PG Gaming, and Maurizio Soccodato, Founder & CEO of Global Lab, talk about the growing potential of new markets such as Peru, Brazil, and territories in Africa.

“There’s a lot going on in these markets,” Straschnov said. “But the uncertainty about the regulations poses challenges, both financially, with high fees and taxation, and internally, between states or provinces and federal regulators.”

Straschnov highlighted Brazil’s regulatory landscape, where licensing for certain casino products remains unclear. Despite regulations being in place, disputes and ambiguities persist, making it a high-risk environment for businesses.

According to Statista, Peru’s online gaming market is projected to reach a revenue of US$50.61 million by 2025. As for Brazil, revenue in the gaming market is projected to exhibit an annual growth rate of 7.45 percent until 2029. While Mordor Intelligence projects Africa’s gaming market to hit $2.39 billion this year.

Balancing costs and innovation

Entering regulated markets comes at a steep cost, affecting the variety and volume of gaming products available. Barthet pointed out that unregulated markets provide a testing ground for understanding what works. “Regulated markets put a cost to that. You can’t go in and try something out, it’s very expensive to put a product there,” he said.

This financial burden forces companies to weigh the risks before launching products in regulated environments. Barthet elaborated that companies strongly consider how much product they can put in and how much they risk when entering a new market.

Adapting to regulatory changes

Regulatory instability isn’t confined to new markets, it’s a challenge even in established jurisdictions. Frequent changes in financial and technical requirements disrupt long-term planning and investments. Straschnov described it as a “very painful point,” explaining that sudden changes in terms, after years of operation, pose major obstacles for operators.

He emphasised the importance of dialogue between regulators and stakeholders. Straschnov cited the UK Gambling Commission (UKGC) and Malta Gaming Authority (MGA) as examples of proactive regulators.

Striking a balance

The evolving global gaming landscape requires companies to remain agile and adaptable. Balancing regulatory compliance, market risks, and product innovation is an ongoing challenge. However, as Barthet noted, maintaining close collaboration with regulators, clients, and testing labs ensures a smoother path forward.me.

Stay tuned for more captivating content from the industry, including in-depth interviews and exciting events on SiGMA TV. Don’t miss out on the latest insights and discussions shaping the sector’s future!