Where do you want to grow?
For operators looking to enter pre regulated markets, or those within pre regulated markets looking to partner outside of their home jurisdiction, the Alderney Gambling Control Commission’s (AGCC) collaborative approach ensures that opportunities for growth need not be limited by geography.
As the industry continues to experience exponential growth globally, governments in pre-regulated markets are looking at ways to protect customers from harm yet also recognising the opportunities the online gambling sector provides to diversify economies and raise revenues to support local economies. Those looking to really embrace the industry, support growth and protect customers are turning to experienced regulators to assist them to put universally recognised frameworks in place. The AGCC, the only truly global regulator, with its 23 years' experience, is playing a pivotal role in helping these markets to shape their approach to regulating the industry. Other online gaming jurisdictions are no longer able to regulate pre- regulated markets within the constrains of their regulatory framework.
Alderney’s solid relationships with governments, lawmakers, operators and service providers in each market is key. By working closely with decision makers, it has been possible to learn more about the state of play, the hurdles that still need to be overcome, what developments are in the pipeline and, critically, how the approach needs to be adapted to suit each market.
Cross border traffic is important for success in the sector and harmonisation of different standards relating to this and other elements is a high priority for regulators. Collaboration and cooperation is essential. As such, the role of the International Association of Gaming Regulators (IAGR) is of even more importance. Alderney is actively involved in IAGR, shaping the future of online gambling. The AGCC is one of four IAGR members tasked with developing the Multi-Jurisdictional Testing Framework aiming to harmonise global standards one step at a time.
From the understanding gained from this approach, not only have we been able to ensure that an AGCC licence continues to allow operators and service providers to enter new and emerging markets – often where there is no regulatory framework in place – but our on-going work with governments encourages the licensing of local partners that meets international regulatory gold standards. The benefits to partnering with local partners are immeasurable. Not only can they provide essential local knowledge, but in particular mobile, banking and payments infrastructure in pre-regulated markets can be far more advanced – they have a lot to offer the rest of the world and the industry as a whole.
Introducing regulatory frameworks in pre-regulated markets is bound to take time, and while governments in pre-regulated markets are preparing the building blocks of future proof regulatory regimes, operators are pressing on with plans to maximise the opportunities available.
It goes without saying, therefore, that the advantages to being licensed, even in the pre-regulated space, are numerous. Forward thinking operators with ambitious plans for growth are reaping the benefits of a licence from a respected, world recognised regulator such as the AGCC.
Why be regulated if you don’t have to be?
Businesses in pre regulated markets with ambitions of global expansion can benefit from adopting the gold standard prescribed by a regulator like AGCC. The benefits include:
Partnerships with other licensees
An AGCC licence opens the door to working with other regulated B2B and B2C partners. It adds an additional layer of security and robustness for businesses, with both parties adhering to the same internationally recognised standards and requirements.
Mergers and acquisitions
Investors, lenders, and regulators want to know they are dealing with a transparent and reputable enterprise and being compliant with the standards required for licensing goes a long way to achieving this. The same can be said for companies seeking an IPO.
Working with an established regulator allows businesses to grow in a secure environment. New products, features and tools can be introduced under an existing licensing framework allowing operators to respond and adapt to trends rapidly. Players feel safer registering with a top tier licenced operator which in turn leads to increased customer acquisition and retention.
It helps operators and suppliers develop an exit strategy; some new markets have proven just how difficult it is for investors to withdraw money and profits. The licensing process helps operators and suppliers understand the financial pitfalls of the markets in which they operate, and to establish a solid extraction plan.
Payments and banking
Payment processing and banking are vital components of any iGaming business, but many financial institutions and processors will not work with unlicensed companies. The risk simply outweighs the reward. An Alderney licence is more than enough to mitigate their perceived risk.
Licensing allows businesses to come out of the shadows and into the light, enabling them to take advantage of other perks. Alderney’s licensees, for example, enjoy a low-to-zero tax economy and the AGCC framework is recognised globally as a Tier 1 regulator.
The AGCC has the knowledge, expertise and, most importantly, experience to steer any iGaming business on to success. Those that embrace the benefits of licensing and regulation will be able to successfully access new markets and reach their full potential.
For further reading on pre regulated markets you may be interested in the following articles: