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Compliance Updates

Special Interview: A Conversation with Tom Farrell, CMO of ClearStake

Published

2 years ago

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Reading Time: 3 minutes

 

Affordability is currently the word on everyone’s lips. Operators continue to face a ‘sustainability conundrum’ – they must fulfil their regulatory obligations and commitments to player protection, while ensuring their business remains profitable. For many, affordability can spell disaster, with up to 90% of customers lost when asked to prove they have the money they are wanting to spend. However, using Open Banking to carry out these financial checks as quickly as possible may be the answer to boosting retention and retaining otherwise lost revenues.

The DCMS recently published a public consultation on the UK gambling White Paper, while the Gambling Commission launched its own on financial risk checks, bringing their importance of affordability to the top of the agenda – but operators must now strike the balance between minimising harm and maximising revenue. Affordability checks that take too long risk sending customers to competitors, or worse, the black market.

One of the key remedies to the high level of churn experienced in the past is making sure financial risk checks can be carried out quickly and with as little friction as possible, so that customers can complete them with as much ease as approving a payment while online shopping. Operators have to reach a decision quickly because the longer players wait, the more likely it is they will go elsewhere while they’re waiting.

Of course, there are some people who under no circumstances will share financial data with someone like a gambling operator. There’s also a group of people who won’t share data because they know they are gambling beyond their means. This is of course the system working as it should and that’s a good thing. But there’s a third group of people for whom it’s too much effort. They’re asked to provide bank statements, at which point they go to a competitor, as the hoops they have to jump through are not worth it.

For a customer using Open Bank technology, such as ClearStake, what used to involve downloading and printing bank statements and a wait while the operator reviews the data, now takes just 30 seconds and a few clicks. A decision is recommended to the operator immediately and theoretically, the whole process can take less than a minute. Players click a link, and they are taken to a super slick and simple process where they press a couple of buttons and the relevant financial data is shared securely. They are always in control of their data and they can revoke permission at any time.

Our software categorises every transaction and we can calculate whatever the operator wants to see. It could be disposable income, net gambling spend, total income, or current balance on the account. Our software can also evaluate the rate of change so operators can see accelerating gambling spend or consistently declining savings and work out if the player’s gambling activity is still within the safe bounds of their current financial position.

Without responsible gaming and Enhanced Due Diligence (EDD) checks, gambling risks being over-regulated out of existence as the product will become unprofitable. To answer the sustainability conundrum many operators face, we need to find a middle ground. Sustainability means not letting people spend beyond their means. It means letting people have a bet if they can afford to, while not taking more money than they can spend.

Over the last two or three years, the Gambling Commission got strict on affordability checks. They asked operators how they know someone could afford to lose ‘x’ amount. The White Paper effectively agreed with the Gambling Commission and has clarified that if someone is losing £2,000 in the space of three months or £1,000 in one month, operators should be confident about the player’s financial situation. The headline was that affordability and EDD checks should be taking place.

This discussion around affordability is not only limited to the UK, and we are seeing lawmakers and regulators in several other countries considering measures in this area.

The industry therefore needs to be proactive as the problem will never go away if it keeps allowing people to bet money they don’t have. In the public mind, gambling will have the same fate as cigarettes which are currently being regulated out of existence.

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BETBY

BETBY ACHIEVES GLI CERTIFICATION FOR PERU, EXPANDING ITS FOOTPRINT IN LATIN AMERICA’S REGULATED MARKETS

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22 hours ago

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June 17, 2025

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BETBY, a top-tier sports betting supplier, has received certification from Gaming Laboratories International (GLI) to provide its sportsbook solution in Peru’s regulated market. This certification marks another significant milestone in BETBY’s continued expansion across Latin America.

With the Peruvian government formalizing its regulated sports betting framework, GLI certification has emerged as a crucial requirement for providers aiming to serve licensed operators in the country. BETBY is now authorized to deliver its innovative and tailored sportsbook solutions in Peru’s rapidly expanding regulated betting market.

GLI’s certification, recognized as a benchmark for excellence, validates BETBY’s ability to meet Peru’s strict technical requirements, including those related to sportsbook functionality, information security management systems, and information security standards. Peru’s regulatory framework is primarily based on GLI-33 certification, which BETBY successfully achieved in early 2025. As a result, the company was well-positioned to swiftly meet the country’s compliance standards.

“Peru represents a key step in our broader Latin American growth strategy, as the region continues to adopt clearer regulatory frameworks for online sports betting,” said Ilze Ramolina, Head of Legal & Compliance at BETBY. “Securing GLI certification for this market, which has a growing digital infrastructure and tech-savvy audience, allows us to support licensed operators in launching compliant and competitive offerings from day one. This is yet another step forward in our mission to deliver tailored, localized solutions that meet both local requirements and regional expectations across the region.”

This achievement follows BETBY’s previous certification for the Brazilian market, solidifying its presence in two of Latin America’s most promising jurisdictions. The supplier’s flexible and highly localised sportsbook platform, combined with its commitment to compliance, positions it as a trusted partner for operators looking to thrive in newly regulated environments.

By entering the Peruvian market, BETBY continues to demonstrate its strategic focus on Latin America, providing hyper-localized, engaging, and secure sports betting experiences for both operators and players.

To find out more about BETBY, visit: https://betby.com/

The post BETBY ACHIEVES GLI CERTIFICATION FOR PERU, EXPANDING ITS FOOTPRINT IN LATIN AMERICA’S REGULATED MARKETS appeared first on Gaming and Gambling Industry in the Americas.

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BoVegas Casino

MGCB Issues Cease-and-Desist Orders to Five Illegal Online Gambling Operators

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24 hours ago

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June 17, 2025

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The Michigan Gaming Control Board (MGCB) has issued cease-and-desist orders to five illegal online gambling operators—BoVegas Casino, BUSR, Cherry Gold Casino, Lucky Legends, and Wager Attack Casino—after discovering they were targeting Michigan residents without proper licenses. These operators are violating Michigan’s Lawful Internet Gaming Act, the Michigan Gaming Control and Revenue Act, and the Michigan Penal Code.

“These illegal sites undermine the integrity of Michigan’s regulated gaming industry and put players at serious risk. We will not tolerate unlicensed gambling operations that exploit Michigan residents. Our top priority is to protect the public by enforcing the law and shutting down these illegal platforms,” said Henry Williams, Executive Director of the MGCB.

Details of the Crackdown

BoVegas Casino: Offers slots and table games while ignoring Michigan’s strict licensing requirements, leaving players vulnerable to fraud and unfair gaming.

BUSR: Markets itself as a sportsbook and casino but operates without the consumer protections required by Michigan law.

Cherry Gold Casino: Promotes a wide range of slots and table games but lacks Michigan licensure, putting players at risk.

Lucky Legends: Claims to offer a “VIP experience” with bonuses but bypasses state regulations designed to ensure fairness.

Wager Attack Casino: Combines sports betting and casino gaming without a Michigan license, exposing consumers to unregulated practices.

The MGCB’s investigations found that these sites have been accepting wagers and deposits from Michigan residents on sports events, slots, blackjack, and other casino games—all without the oversight and safeguards required by law. Players using these platforms face unreliable payouts, unfair gaming practices, and have no legal recourse in case of disputes.

“These illegal operations, whether offshore or operating without a Michigan license, exploit players and put them at risk. We will continue to take strong action to protect the integrity of Michigan’s gaming industry and to ensure that residents have access to safe, legal, and regulated gambling options,” Williams said.

The cease-and-desist orders demand that each operator immediately halt all gaming activities in Michigan. They have 14 days to comply or face further legal action from the MGCB in collaboration with the Michigan Department of Attorney General.

The post MGCB Issues Cease-and-Desist Orders to Five Illegal Online Gambling Operators appeared first on Gaming and Gambling Industry in the Americas.

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Compliance Updates

Swedish Government Proposes a New Ban on Gambling on Credit

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24 hours ago

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June 17, 2025

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The Swedish government has proposed a new expanded ban on gambling on credit.

By preventing gambling from being financed with credit, the government wants to reduce the risk of over-indebtedness and protect consumers from ending up in financial difficulties.

The government’s proposal means that licensees and gaming agents will not be allowed to allow or participate in the financing of gambling with credit. This means that the current credit ban will be expanded to include, among other things, that licensees and gaming agents will not be allowed to:

• Enable players to enter into credit agreements with other parties when purchasing games, for example by linking to credit providers in connection with online gaming.

• Accept gambling bets if they know that the player is financing the bet, or their gambling in general, with a credit.

• Accept credit card payments if it is immediately apparent at the time of purchase that the payment is a credit card payment. This should apply both online and in-store.

The new rules are proposed to come into force on April 1, 2026.

The post Swedish Government Proposes a New Ban on Gambling on Credit appeared first on European Gaming Industry News.

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