Regulators Upskilling, Collaborating To Address Global Challenges

October 22, 2024
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Gambling regulators around the world say they are facing a host of new challenges due to the fast-paced changing nature of the gambling industry and require innovative solutions to keep up.
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Gambling regulators around the world say they are facing a host of new challenges due to the fast-paced changing nature of the gambling industry and require innovative solutions to keep up.

Speaking during a panel at the International Association of Gaming Regulators (IAGR) joint conference with the International Masters of Gaming Law (IMGL) in Rome on Monday (October 21), an array of gambling regulators highlighted the threat of the illegal market, keeping pace with innovation and a difficulty in attracting talent with the right skill sets as some of the key challenges they face.

Teo Chun Ching, the chief executive of Singapore’s Gambling Regulatory Authority, said his organisation dedicates resources to doing its research and developing its talent as regulators cannot afford to be “stingy with training and investment of our own staff”.

“The challenges we face, whether it is cybersecurity, artificial intelligence or online illegal gambling are very closely related to technology. That is where the government sector is behind the curve. I invest a lot in training, including sending officers to masters programs in analytics.”

Dave Phillips, the chief operating officer of the Alcohol and Gaming Commission of Ontario (AGCO), said regulators cannot really keep pace with the industry because there is an “inescapable truth” that there is “structural asymmetry between gambling companies and regulators”.

“There is an incredible amount of money and competition in the gambling industry and an incredible amount of speed and innovation. On the other side, you won't be surprised to know that there is not a similar amount of money invested within gambling regulatory agencies. Major public works tend to take priority over gambling regulatory agencies,” he said.

Phillips said the AGCO does still heavily invest in new technologies and bringing in new talent but “the notion we will keep up at that speed is not tenable”.

However, an efficient organisational design can allow regulators to be both reactive and proactive with major risks. 

“We are much more heavily focused on program design, which is ensuring we have the ability to deal with the incredible onslaught of complaints and incidence and regulatory notifications, those activities that you must do on a reactive basis. 

“We are set up well with the resources and technology we have to monitor the market closely and most importantly we are very clear on the regulatory priorities we set for ourselves,” Phillips said.

Are Bashir, the CEO of the Lagos State Lotteries and Gaming Authority, believes the global nature of the gambling market means collaboration is key to addressing many unique market challenges in a jurisdiction to ensure international best practices are applied. 

“In West Africa, the biggest product is sports betting and online casino is growing too. We have no choice but to collaborate with European regulators who are more cognisant of the product, such as the Premier League and La Liga. We have met with regulators including Malta for more than ten years to make sure we are up to date,” Are said.

Are believes Europe is “far ahead” when it comes to collaboration, but added that African regulators are working hard to improve their collaboration efforts with each other. 

In a separate speech later in the day, Andrew Rhodes, the chief executive of the UK Gambling Commission, explained “collaboration and being constructive with the industries we regulate” best addresses the different interests of consumers.

“That is complex as this is also their business and changes do not happen in isolation. For example, recent media speculation in the UK at possible changes to gambling taxes wiped £3.5bn off the share value of our largest operators. A newspaper story,” Rhodes said.

He believes collaboration “might be less complicated” with other regulators, but maintaining relationships with them across the globe is “not without its challenges too”.

“So even with willing partners, like everyone in this room today, collaboration can be far from simple when you consider challenges like data and information sharing, national laws and expectations and a range of other things. But it is worth it and if we work at it, we can find ways to succeed,” Rhodes said.

When it comes to the distance the regulators should keep from third parties, including politicians, Anders Dorph, the director of the Danish Gambling Authority, said the current political environment calls for fast solutions.

“If a survey says there has been an increase in gambling, then politicians need a fast answer, and they tend to go for restrictions. We have seen this all over Europe in reaction to something bad. That makes legislation less good as it's too fast and probably does not address the real problems,” Dorph said.

Instead of introducing advertising bans, Dorph believes more emphasis should be put on education, adding that the Danish regulator is already educating school children on "why gambling is not a good way to make money".

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