In an ever changing political and regulatory climate, it's easy to see why operators in non-regulated markets would question the need for licensing. In this article for Asia Gaming Brief, we look at the benefits that licensing with a world renowned, experienced regulator can bring.
You can view the article on Asia Gaming Brief's website here.
For those active in Asian markets, obtaining a licence through a regulator like the Alderney Gambling Control Commission (AGCC) provides various levels of protection from the ever-changing state of play.
Asia is a continent primed and ready for regulated online gambling, but at present there are a patchwork of laws and regulations which are difficult for operators and suppliers to successfully navigate.
The scale and scope of the market is a major draw, with many unlicensed operators continuing to offer online gambling products to players across the region. It is easy to understand why, in the current climate, these operators may question the need to be licensed.
Becoming licensed isn’t just about putting a tick in a box to satisfy the regulator’s demands; it is a frame of mind, a strategic approach, a way of doing business that means operators are working at the highest possible standards.
Other ways licensing can benefit operators include:
Partnerships with other licensees: being licensed in a jurisdiction such as Alderney 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 recognized standards and requirements. It fosters stable and successful relationships that lead to long-term success.
Mergers and acquisitions: licensing helps operators and suppliers when it comes to M&A. Investors, lenders, and regulators want to know they are dealing with a transparent and reputable enterprise, and being compliant with the standards required for licensure go a long way to achieving this. The same can be said for companies seeking an IPO. Take Eyecon, for example. The game developer is licensed by Alderney and headquartered in Guernsey, and recently inked a £50 million acquisition deal with Playtech.
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. Holding a licence from an internationally recognized regulator such as the AGCC is more than enough to mitigate the perceived risk.
Business growth: players feel safer registering with an operator licensed by a top tier regulator. This in turn leads to increased customer acquisition and retention for the operator and, therefore, business growth.
Endless opportunities: obtaining a licence allows operators and suppliers to bring their businesses out of the shadows and into the light, and in turn enables them to take advantage of other perks. Alderney’s licensees, for example, enjoy a low-to-zero tax economy and our framework is endorsed by Moneyval and FATF - achieving full compliance with international AML and CFT standards.
Asia has the potential to become one of the largest online gambling markets in the world as momentum behind regulation continues to gather pace. For those looking to build a sustainable, long-term business, licensing now is the only way forward.
The AGCC has been licensing iGaming operators and suppliers for more than 16 years, becoming sufficiently experienced and knowledgeable to take a risk-based approach to regulation.
Our door is always open to new partners, and we have recently re-launched our Alderney eGambling website to make it easier for licensees to learn about who we are, what we do, and how we do it.
As a bonus, those licensed in the jurisdiction for the first time will receive a 50 percent reduction on their fees for the first year.
So there really is no excuse not to ensure your business is meeting the high standards that have seen hundreds of other operators and suppliers go on to achieve great success in markets all over the world.