Rises in regulatory change

Driven by the need to keep up with the rapid pace of technological advancements, the global regulatory environment for the gambling industry remains in constant flux. Operators must navigate a complex web of compliance obligations as they scale up operations, contending with ever-rising expectations from supervisory authorities. Substantial investment in compliance resources has long become an essential tool for navigating fragmented rules across jurisdictions, and a clear entry requirement for any operator serious about long-term participation in the sector.  

‍

More recently however, the regulatory landscape is being pushed towards adopting a wider lens. Regulators can no longer afford to sustain the legislative lag that comes with a reactive style of regulation. To remain effective, they must opt for a more flexible and risk-based approach, one that anticipates emerging risks and adapts quickly to technological innovation. Consequently, regulatory frameworks are expected to move well beyond the traditional cornerstones of anti-money laundering and player protection to address a multi-faceted spectrum of risks.

‍

AI, for instance, is no longer a future concern but an operational reality. Powering everything from personalised player engagement to advanced detection of problem gambling, this pervasive use of AI has prompted a wave of regulatory scrutiny, particularly at EU level with the introduction of the AI Act. Where gambling-related AI applications such as behavioural tracking and affordability assessments have the potential of being classified as “high-risk”, the Act will trigger obligations around transparency, human oversight and algorithmic accountability. Similar regulatory conversations are underway in other key jurisdictions, pointing to a global momentum toward ethical and responsible AI governance.

‍

Importantly, AI regulation cannot be viewed in isolation. Its intersection with data protection — notably the GDPR — brings additional layers of complexity. AI-driven profiling heavily impinges on the principles of lawful processing, data minimisation, and user rights. Where automated decisions materially affect players, such as access restrictions or betting limits, regulators increasingly expect meaningful human review and clear, transparent communication with affected individuals.

‍

In parallel, cybersecurity has emerged as another central pillar of the current regulatory agenda. In an environment where cyber threats are ever-present, and now fueled even further by the emergence of AI, regulators are steadily raising the bar for licensees. Enhanced requirements for multi-factor authentication, strong encryption and real-time threat detection are fast becoming industry norms, with failure to implement robust measures increasingly viewed as a breach of licensing conditions. Beyond technical safeguards, regulators are also expected to seek evidence of governance structures that prioritise resilience and rapid incident response.

‍

These developments come alongside other technology-driven initiatives. The rising trend of regulators requiring centralised data access systems to enable real-time activity monitoring, and the inclusion of cryptocurrency and blockchain in regulatory considerations are but a few examples. Collectively, these regulatory maturations mark a fundamental shift: compliance now extends well beyond traditional risk management and seeks to encompass the ethical and secure deployment of technology across the entire digital ecosystem. Operators who proactively embed strategies for consciously responsible use of emerging technologies into their core offering will not only mitigate regulatory risk but also set themselves apart as trusted, forward-thinking partners in a market where transparency and digital maturity are the new standards for success.

Global Compliance Trends in 2026: A Year of Expanding Regulation and Strategic LicensingAs we look ahead to 2026, the global compliance landscape in the gambling and gaming industry is poised for significant transformation. The momentum behind regulated markets continues to build, with regions such as Ireland, Africa, and Latin America (LATAM) moving decisively toward formal licensing frameworks. These developments signal a broader shift toward structured oversight, offering both challenges and opportunities for operators and suppliers alike.One of the more unexpected developments is the rapid uptake of licenses in the United Arab Emirates (UAE), a region traditionally seen as conservative in its approach to gambling regulation. This trend reflects a growing recognition of the economic potential of regulated gaming markets and a willingness to embrace change under controlled conditions.The expansion of licensing regimes globally is a key driver of growth. However, not all regulatory bodies are created equal. A noticeable rise in lower-tier regulators offering non-jurisdiction-specific licenses presents a mixed bag. While these licenses may offer easier entry points for businesses, they often lack the robustness needed to ensure long-term operational stability. Companies must tread carefully, evaluating the credibility and sustainability of such regulatory frameworks before committing resources.Another significant trend is the increasing inclusion of suppliers within licensing regimes. This shift is welcomed by industry leaders such as Play’n GO, who see it as a strategic move that deepens engagement with local jurisdictions. By being part of the regulatory ecosystem, suppliers gain a more direct connection to market dynamics and share both the opportunities and challenges faced by their B2C partners.However, entering new regulated markets is not without its complexities. Each jurisdiction brings its own set of technical requirements, regulatory expectations, tax structures, and financial implications. Navigating these intricacies demands a proactive and well-informed compliance strategy.Asia, while not yet fully explored in this context, remains a region of immense potential. Markets such as the Philippines are emerging as key players, offering fertile ground for expansion and innovation. These opportunities should not be overlooked, especially as regulatory clarity continues to improve across the region.In summary, 2026 is shaping up to be a pivotal year for compliance in the gaming industry. With more markets embracing regulation, the role of compliance professionals will be more critical than ever in steering companies through this evolving landscape.

Across the UK and the 27 EU member states, the proposed implementation of Digital ID in 2026 marks a pivotal moment in the evolution of data governance and individual privacy, signalling a shift toward state-verified identity infrastructures. Despite widespread public and political resistance (a UK petition opposing mandatory Digital ID has, to date, garnered 2.9m signatures 1 ), such systems already operate effectively in jurisdictions such as the UAE and Singapore, where the trade-off between convenience and privacy has been largely accepted as a societal norm.At its most benign, Digital ID offers significant benefits for payments and gambling operators within regulated markets (e.g., the potential for frictionless CDD verification and enhanced security). The prospect of near-instant KYC verification would turbocharge low-risk onboarding, with interconnected datapoints swiftly determining identity; age, residential address, and potentially even source of funds/bank account verification, achieving near-instant risk categorisation and regulatory alignment.Moving into 2026 and beyond, the convergence of Digital ID, AI, and quantum computing is set to result in an explosion of innovation. Critics argue that this trinity of technologies could enable governments and private data aggregators to generate holistic digital profiles of individuals; not merely containing static personal identifiers (address, DOB, bank details, etc.) but enabling dynamic, human terrain mapping built upon behavioural datasets; individual banking transactions, voting history, consumer habits, travel records, carbon footprint, etc. With this single, authoritative ‘source of truth’, every data point becomes interconnected, every decision part of a discernible behavioural mosaic.Powered by third-party algorithmic governance systems, universal visibility of gambling-relatedtransactions could theoretically eventually consolidate an individual’s gambling activity across every operator, in every jurisdiction, on every platform, regulated or not. A customer’s identity profile could include details of cumulative gambling deposits, win/loss ratios, affordability determinations, and even inferred markers of addiction or financial distress collated across all gambling verticals.Whilst seemingly a win/win for compliance, this philosophical and ethical trajectory becomes deeply concerning when one considers the potential for evolution towards a model where even moderate gambling behaviour may be algorithmically judged indicative of risk and/or a marker of financial instability.Even more insidiously, automated decisioning systems could embed moral judgements about gambling into digital architecture retrospectively, punishing lawful personal freedoms through opaque algorithmic reasoning. Gamblers may risk becoming subject to tangible societal penalties and discrimination as a result of historic and/or frequent (yet responsible) gambling activity; impacted credit scores, limitations on access to financial products, and/or rental housing.Digital ID resistance movements are reverting to the sentiment ‘cash is king!’. Could the practical realisation of this scenario provoke a resurgence in the patronage of cash-based retail sector gambling establishments, or even push gambling ‘underground’, where customers gain respite from the perceived omniscience of unwanted digital transaction surveillance?Whilst Digital ID promises the industry efficiency and integrity in KYC processes, its deployment without rigorous ethical oversight risks eroding the boundary between regulatory obligation and privacy invasion, with operators caught between the pursuit of instantaneous IDV compliance, and the preservation of customer trust. Future technological advancements will undoubtedly transform risk profiling, however, are gamblers going to ‘play the game’, given the total transparency it ultimately entails?

The online gambling sector is entering a period of unprecedented regulatory intensity, making the growing demands of regulatory change the most critical compliance theme for 2026. We anticipate a global fragmentation of mandates, particularly around player protection, that threatens the scalability of every B2B supplier and B2C operator. From a Mindway AI perspective, navigating this chaotic landscape demands a strategic shift from reactive box-ticking to proactive, technology-enabled resilience. Regulators around the world are now attempting to modernise their approach towardaddressing player protection and are now moving towards highly granular, prescriptive requirements, transforming responsible gambling (RG) from a broad principle into a complex technical burden. We predict a widespread growth in regulatory mandates concerning…Mandated requirements concerning Behavioural Monitoring: Over the last few years, we have witnessed the growing trend of regulators introducing thresholds to a marketplace, in more mature markets like UK,Netherlands, Germany & Spain. Over time I believe that thresholds have proven to be ineffective and are now being replaced by demands for sophisticated, more granular-based monitoring and intervention—a core strength of AI solutions. We expect to see regulators demand clear evidence that systems are capable of earlydetection of at-risk behaviour. Open Banking and Enhanced Financial Oversight: Over the last 6 months I have seen more visibility surrounding the use of Open Banking. I believe that we will see a major rise in the mandated use of Open Banking protocols toward the latter part of 2026. This technology allows for secure, consented sharing of financial data, providing a more holistic and accurate view of a player’s spending and financial stability. Unlike blunt affordability estimates, Open Banking will facilitate granular, data-led interventions, allowing operators to comply with financial risk assessment requirements by utilizing verified bank transaction data.I believe that this push for heightened protective measures will directly clash with technical fragmentation. From a Mindway AI perspective we are beginning to see this growing trend of regulatory requirements alluding to the use of systems like ours, are beginning to become more diverse and complex across different jurisdictions. We are obviously a global leader in this space and have a handle on the forever changing regulatory landscape, but I believe that this will present challenges for other suppliers in this space.We are also witnessing a new trend of regulatory scrutiny toward B2B suppliers, particularly around Game Suppliers who must also meet regulatory demands for market entry. Regulators are increasingly imposing direct B2B licensing, holding suppliers accountable for their products’ integrity and their own revenue sources, forcing a critical choice between regulated and grey markets to which I believe some regulators are attempting to follow. It will be interesting to see if this approach extends to third party organisations. I believe that this rise in technical fragmentation and B2B supplier scrutiny will lead a major shift on how RG is perceived. Compliance will soon become a survival skill and not a cost centre.At Mindway AI we believe the key to success lies in leveraging technology to harmonise and automate compliance efforts. Advanced AI solutions are not just about protecting players; they are now becoming the engine for regulatory certainty and scalable market access. By integrating behavioural profiling with verifiable financial data via Open Banking, operators and suppliers can build the necessary regulatory trust to accelerate market entry and focus on sustainable growth rather than managing escalating compliance debt.The winners of 2026 will all boil down to those who embrace AI to transform the compliance challenge into a foundational competitive advantage.