Challenges and opportunities in iGaming regulation
In a brief conversation with Sigma News this week, Jake Cachia, a iGaming industry professional, offered his candid views on the future of compliance and anti-money laundering (AML) in the sector. His outlook, while seemingly somewhat bleak, paints a realistic picture of the hurdles that lie ahead.
Cachia (pictured above), has been observing an unsettling trend in global gambling regulations. He argues that established regulators are becoming excessively stringent, often demanding commercially sensitive data from operators without explicit goals. This overregulation, he cautions, is resulting in unnecessary red tape and protracted approval times.
Furthermore, Cachia has noticed a change in the stance of some regulators, who are becoming more aloof rather than cooperative. He contends that this shift is harmful to an industry that heavily depends on speed.
However, it’s not all negative. Cachia highlights that these challenges are paving the way for new jurisdictions to set up their own offshore regimes. Despite their lack of infrastructure to support such a complex industry, these jurisdictions could potentially emerge as alternatives to the current reputable ones.
On the subject of AML, Cachia anticipates that business-to-business (B2B) entities, which are presently outside the purview of AML laws, will gradually be mandated to provide some form of reporting. He points to EveryMatrix as an example, which already has reporting obligations with the Gambling Supervision Commission of the Isle of Man. He foresees this trend becoming increasingly prevalent among European regulators.
Complexities of iGaming compliance
When probed about his advice for other firms in the gaming industry, Cachia points out the significance of investing in robust compliance and responsible gaming functions. He recommends companies to incorporate these functions into major business decisions, as this can help avert expensive errors and uncover overlooked opportunities.
Cachia also urges companies to keep the lines of communication open with all regulators and not to hesitate from expressing their views on the directions a regulator is taking. He is of the opinion that most regulators value this honesty.
Ultimately, Cachia says that the need for continuous testing of business operations for non-compliances and reporting any identified non-compliances to the relevant regulators promptly and transparently. He assures that the consequences of self-reporting often outweigh those of a regulator uncovering non-compliances through other means.
The future of gaming compliance may indeed seem challenging. However, these insights are a useful guidance for manoeuvring through this evolving landscape. Strategic planning and proactive management are a necessity to effectively handle regulatory changes and promote responsible gaming in the industry. Cachia’s views and experience in the field are a valuable resource for those working their way through the complexities of gaming compliance.
SiGMA News spoke with Jake Cachia, Compliance and AML Manager at EveryMatrix. He is former Compliance Manager at the Malta Gaming Authority.
You may wish to read a more comprehensive interview with Jake Cachia, available here.
