Ask Sumsubers: What are the main compliance trends in the iGaming space and how will they affect operators?

Sumsub continues to receive questions from our followers regarding the specifics of regulatory compliance, verification, and everything in between. We’ve therefore decided to launch a bi-weekly Q&A series where our legal, tech, and other experts address the most frequently asked questions. Tune in to The Sumsuber and our social media every other Thursday for new answers, and be sure to ask about the topics that interest you.

This week, Denis Urazbakhtin, Head of Partnerships in Gaming, will provide insights into the main compliance trends in the iGaming industry.

Follow this bi-weekly series and submit your own questions through our Instagram and LinkedIn.

What are the main compliance trends in the iGaming space and how will they affect operators?

• Control over the iGaming industry. More countries are legalizing and/or strengthening control over the iGaming industry. Despite the AML vulnerabilities of the gaming sector being presented by FATF back in 2008, not all member countries have implemented corresponding standards in local legislation yet. However, the legalization of gambling continues to evolve globally, with varying degrees of regulation and acceptance depending on the region. The development of regulations in certain countries has led to greater user protection, fair play, and problem gambling mitigation. More importantly, legalization creates better market conditions for operators to develop their businesses in respective countries. At the same time, legalization requires gambling service providers to pay closer attention to their AML and KYC procedures.
• Responsible Gambling. Responsible Gambling development refers to the implementation and promotion of measures aimed at encouraging safe gambling behavior. In 2023, several countries introduced stricter regulations to curtail gambling-related harms. Responsible Gambling, or social responsibility requirements, usually include measures such as advertising limitations, self-exclusion schemes, and education campaigns. Another important aspect of responsible gambling is stricter enforcement of age verification procedures and identification protocols to minimize underage gambling. Increasingly, Responsible Gambling procedures are becoming terms of gambling licenses. However, the regulations usually include principles rather than specific solutions. Thus, operators more often face the necessity to work on additional controls to stay compliant.
• Artificial intelligence and machine learning (AI/ML). AI and ML are actively used nowadays not only to personalize the gaming experience but also to enhance security, combat money laundering, and prevent fraudulent activities. In particular, AI-powered transaction monitoring systems can help gambling operators detect patterns, anomalies, and potential risks in transactions. Analyzing deposits, withdrawals, and betting activities, in real-time or retrospectively, plays a crucial role in strengthening security, reducing fraud risks, and promoting Responsible Gambling practices in the gambling industry.

Denis Urazbakhtin

Head of Partnerships in Gaming