The line between regulated and unregulated markets is more than just a legal distinction; it is the axis on which the future of the entire iGaming industry revolves.
Regulated markets focus on legalizing, licensing, regulating and taxing online casinos. This offers a safe and transparent business model for both operators and players.
But is this regulatory approach a catalyst for market volume growth?
Regulation Landscape of the iGaming Sector
The current panorama of regulation in the iGaming sector is characterized by a potent duality. On one hand, regulated markets offer a business model promising security, transparency, and sustained economic growth.
On the other hand, unregulated markets present significant risks for both operators and consumers.
This dichotomy not only reflects varied attitudes towards online gambling worldwide but also underscores the importance of an informed and progressive regulatory approach.
In regulated markets, we see a pattern of rising success. Paradoxically, state intervention can unlock economic potential while simultaneously protecting citizens. Moreover, it can foster innovation.
Countries that have opted to regulate iGaming have managed to create an environment in which operators can thrive within a clear legal framework. All the while, they pay taxes and contribute significantly to the local economy.
Benefits of iGaming Regulation
Beyond tax revenues, regulation in iGaming has fostered:
- Innovations in security.
- Enhanced consumer protection.
- Elevation of the user experience.
- Strengthening of trust in the sector.
On the other hand, unregulated markets offer a revealing contrast. In the absence of clear regulations, these markets become fertile grounds for unauthorized gambling operations. This can lead to an increase in fraudulent activities and exploitation of vulnerable consumers.
The lack of governmental oversight in these environments not only harms player safety but also deprives governments of potential tax revenues and hinders the legitimate growth of the industry.
Spain as a success case
Spain has demonstrated that a well-regulated iGaming market is not only viable but also vibrant. The country’s transition from a restrictive stance to one of active regulation has been a catalyst for growth. Remarkably, it is attracting international and domestic operators alike.
The implementation of transparent regulatory frameworks has allowed Spain to reap the economic benefits of iGaming. At the same time, it is protecting consumers and promoting responsible gambling practices.
Through licensing requirements, regulation has ensured that only operators meeting strict criteria of security, transparency, and social responsibility can offer their services in the country.
This approach has not only enhanced player safety and experience but also generated significant tax revenues, thereby contributing to the overall economic well-being.
iGaming regulation in LATAM is growing
LATAM presents itself as a region of immense opportunities in the context of iGaming. With a market projected to reach $7.38 billion by 2027, it’s impossible to ignore the potential of these emerging markets.
Colombia is the first country in the region to fully regulate iGaming. With its robust regulatory framework, it illustrates the power of regulation to provide a solid foundation upon which to build a thriving and safe market.
Argentina, with its booming online betting industry, stands out as a significant revenue generator supporting the national economy. Brazil, on the other hand, holds a unique position given its vast economy and population. Brazil’s regulatory decisions have the potential to set a precedent for the region.
Despite variations, the regional trend points towards increased regulation and legalization. LATAM is positioned as a key emerging market for the iGaming industry.
ElenPAY: the Bitcoin payment platform aligned with regulation
Cryptocurrency payments have emerged as a forefront of innovation and security in iGaming, partly thanks to regulation. However, not all crypto payment platforms support regulation.
At Clovr Labs, we have developed ElenPAY—a tool that facilitates the integration of Bitcoin payment solutions—aligning ourselves with the current regulatory framework.
With an annual growth of 66.4% in the volume of bets placed with cryptocurrencies, the adoption of crypto payments in regulated iGaming brings numerous advantages:
- Improves transaction security and privacy.
- Promotes financial inclusion.
- Provides access to global markets.
- Overcomes barriers imposed by the traditional financial system.
- Eliminates chargebacks.
ElenPAY’s collaboration with regulators and operators for the implementation of Bitcoin payments marks a significant step towards the future of iGaming. A future where regulation and new technologies can coexist harmoniously.
Contact us to discover more about the features and advantages that ElenPAY offers to companies in the iGaming sector
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