Online gambling is one of the most regulated industries in the world, with an increasing number of jurisdictions now drafting their own legislation and regulation to ensure they aren’t left behind and to prevent unlicensed operators from acting within their territory.
The benefits of having a licensing regime far outweigh those of not having one, even if the primary driver for most jurisdictions is to charge a tax/duty on the profits generated by eGaming businesses. Greater regulation allows for greater player protection and welfare. The industry itself receives a lot of scrutiny in respect of player protection, responsible gambling and ensuring player welfare. It has been very noticeable that over the years the focus of the larger operators has most certainly changed for the better. Television adverts and online banners now promote responsible gambling tools, such as setting deposit and session limits as well as advising players that they can ‘take a break’ from their account as opposed to offering them enhanced odds or free bets/spins. Operators are doing more and more in the industry to tackle the stigma attached to online gambling and to ensure they provide their customers with a friendly and safe player environment.
Operators and those operating from within the sector do typically find opening bank accounts very difficult and this comes down to the nature of their business. ‘Gaming’ is perceived as negative, and banks are very reluctant to work with these types of businesses and have been for many years. Understanding the sector and the high standard of regulation across multiple jurisdictions allows Capital International Bank to make informed decisions and to implement a risk-based approach when assessing new business from this industry. We are comfortable working in this particular space, whether it is with new start-ups trying to get a foothold in the market, or well-established enterprises seeking alternative and contingency solutions. We offer solutions for operational gaming accounts, player protection / segregated player funds accounts across a variety of jurisdictions however we cannot accept direct player deposits or offer accounts in USD at this time.
At Capital International Bank, we work with a variety of different businesses operating in the eGaming sector, and we understand the regulation that businesses are required to adhere to. Similar to our own banking requirements, regulatory reporting in the gaming industry is requested frequently and demands a high level of detail. Regulators rely heavily on the reporting that they receive from their operators to ensure the industry is kept crime free, operators are acting within the regulation and key events are reported as and when they occur.
According to the Global Online Gambling Market Report, the online gambling market is forecasted to increase by $40 billion between 2020 and 2025. eGaming businesses are continually innovating and developing their platforms to improve customer experience and enhance the range of products available in order to battle for small margins of the market share. Customers remain loyal to their favourite brands and platforms. Operators are therefore always looking to add further content to their sites to ensure satisfaction and longevity in their relationships with consumers. Like the rest of us, if we aren’t happy with something, we would seek out change and improvement. The same can be said for banking. While developing and creating our digital bank, client research was at the forefront of the project. We built Capital International Bank for the purposes of client satisfaction and to serve industries that are new and emerging as well as existing sectors seeking better banking solutions.
Having developed a customer-obsessed culture, client feedback is crucial to our business. Enhancing our own platform is continuous and always focused on client satisfaction. Having built the bank’s user interface in-house, we are able to make key changes quickly and efficiently, giving us the edge on our competitors.
Through our entirely digital offering and pragmatic, local decision-making, we have established a banking solution capable of serving the e-gaming industry. Please do not hesitate to get in contact with me if you would like to know more about Capital International Group, our digital banking platform or to share your feedback/customer experience.
Disclaimer: The views, thoughts and opinions expressed within this article are those of the author, and not those of any company within the Capital International Group (CIG) and as such are neither given nor endorsed by CIG. Information in this article does not constitute investment advice or an offer or an invitation by or on behalf of any company within the Capital International Group of companies to buy or sell any product or security or to make a bank deposit.