Compliance with regulations is non-negotiable for iGaming businesses, but that doesn’t mean it’s easy to achieve. The vast majority of operators aspire to achieve full compliance, and strive to do so at great effort and expense.
Fines, license suspensions and revocations are there for those who fall below accepted standards, but regulator actions aside, there are a myriad of less obvious but equally tangible costs attached to non-compliance.
While regulators tend to issue fines and suspend/withdraw licenses as a last resort, there are many more factors to consider when understanding compliance risks. Four ‘hidden costs’ beyond the headline action taken by regulators include:
Company reputation – Every time an operator makes major headlines for the wrong reasons it is damaging not only their reputation but their bottom line. There is the potential to lose customers and investment as public opinion considers the operator as a higher risk due to not being fully compliant with regulations. According to a study by the World Economic Forum, on average, more than 25% of a company’s market value is directly attributable to its reputation – that is a large percentage to put at risk for any organisation.
Industry trust – Ensuring the positive perception of our industry in the public eye is in all our interests. A survey conducted last July by polling company Survation indicated that 40% of people in Britain – for example – now favor a complete ban on online gambling, compared with 39% who do not. This is a real knife edge balance for gambling with almost exact polar opposition in public opinion, with the final 21% split down the middle. Only an industry that proves it can truly ‘play by the rules’ is likely to keep public trust.
Government attention – Whilst the vast majority act in the best interests of customers, it will always be the outliers that fuel political agendas and bring about tougher regulation. The industry’s goal must therefore be to prove an absolute commitment to protecting citizens, and an ability to self-regulate to as great an extent as possible.
Employee perception – Naturally, employees prefer to work for organizations that do things the right way, both from an ethical standpoint and from a job security point of view. Our industry’s skills shortage is well known. Recruitment for companies with poor reputations is likely to become more difficult; but conversely, those with strong compliance credentials may be adding an all-important talent attraction factor to the mix.
Creating a compliance culture
Compliance can’t just be a box ticking exercise; it has to become part of a company’s culture. Employees need to know all relevant regulation, understand its purpose and – crucially – recognize their responsibilities when it comes to mitigating risk.
The vast majority of non-compliance risks can be minimised with effective training. The first step is educating staff on why these regulations matter, for customers, their employer, and their professional record.
The next step is to ensure that all staff fully understand the regulations, the UKGC’s guidance and their relevant responsibilities. An effective training system communicates knowledge clearly and effectively, ensuring certification in a timely manner, whilst providing detailed feedback of staff progress.
Clear benefits are there for business. iGaming operators can cultivate a better reputation, minimize financial and license penalty risks, and synergize compliance effort with regulators. This increases customer safety and minimizes government intervention, ultimately benefitting business.
Minimise Risk with our Compliance Training
iGaming Academy is the leading provider of regulatory training to the gaming industry and offers a suite of eLearning courses adaptable for operators and suppliers worldwide. Our compliance training is highly effective with a proven track record of over 300,000 course completion certificates issued to date. All of our courses are updated on an ongoing basis to ensure conformity with latest legislation and best practise.