Guest article by Tom Mace, Senior Vice President Regulatory Services, Sportradar

• Technology and innovation are key for the future success of regulation
• Modern technology benefits all stakeholders in the gaming industry
• Advantages for regulators to automate some tasks, helping them to operate efficiently and put resources where they are most needed

The gaming industry is undergoing a transformative phase, driven by rapid technological advancements and changing consumer behaviours. The landscape has become increasingly intricate, and this presents significant challenges for regulators to effectively regulate while ensuring fair play, transparency, and integrity.

There is a real risk of regulation developing at a slower pace than the wider gaming industry, potentially exposing consumers to harm and undermining the integrity of the market. Regulators require new solutions to stay at the forefront of the industry, and traditional approaches, such as self-exclusion programmes, fall short in addressing the root causes of gambling-related harm. Instead of providing effective preventative measures, these ‘solutions’ can inadvertently push vulnerable individuals towards unregulated markets, where protections are limited to non-existent.

Regulators face several challenges in today’s gambling industry

Existing regulatory frameworks often lack the necessary technical infrastructure or the authority to access and manage centralised data across gaming operators. This disjointed approach not only complicates compliance for operators but also results in both regulators and operators spending more time and resources on laborious manual tasks such as data collection and validation.

It is essential to leverage modern, innovative technological solutions that address inefficiencies and ineffectiveness in administrative tasks so that regulators can focus on achieving strategic objectives and supervising the gaming operators to grow their business in a sustainable way.

Sportradar’s innovative regulatory solution to drive change

Sportradar has developed a new solution, the Central Regulatory Platform (CRP) that offers significant advantages for all national and state regulators.  Authorities can achieve more efficient and accurate tax calculations, reduce discrepancies, ensure that revenue is maximised, and manage industry risks, including match-fixing. Additionally, regulators will have full visibility of the market with detailed insights and deeper understanding of market trends and dynamics, enabling informed policy decisions on topics such as the impact of tax rates on channelisation that subsequently drive sustainable market growth.

For players, the benefits of this modern regulatory technology are profound. Enhanced player protection measures, such as responsible gaming modelling are preventative methods that can help identify at-risk individuals before it is too late, and they have to be excluded. By focusing on preventative strategies rather than reactive measures, regulators can create a safer gaming environment that prioritises player welfare in the long term.

Investment offers financial benefits

Furthermore, the initial investment in CRP can yield significant returns for governments. Increased tax revenues from a more robust and compliant gaming industry can easily offset the costs associated with implementing new systems. With a more preventative-focused approach to player protection, reducing the need for extensive spending on addressing the effects of problem gambling, governments can also allocate resources more effectively. Investment in technology also ensures that regulations can develop as appropriate, providing a fair and competitive market for licensees and players. Long-term, this encourages more business to be channelled in such territories as opposed to unlicensed markets.

The rapid developments in the gaming industry call for a re-evaluation of existing regulatory approaches. By embracing modern technology, regulators can streamline compliance for operators, enhance player protection, and ultimately create a more sustainable gaming ecosystem and ensure that the gaming industry continues to thrive in a safe and responsible manner.

Join Tom Mace, Senior Vice President, Regulatory Services, Sportradar at the IAGR and IMGL Rome 2024 Conference from 21-24 October where he will share more on the pressing need for regulatory evolution in the gaming industry. His session is titled Effective Regulation Through Technology and Innovation. 

Tom has 20 years’ experience in the gambling industry, primarily working to improve its integrity and sustainability with national and international organisations, including law enforcement agencies, governmental bodies, and sporting federations.

About Sportradar 

Sportradar Group AG (NASDAQ: SRAD), founded in 2001, is a leading global sports technology company creating immersive experiences for sports fans and bettors. Positioned at the intersection of the sports, media and betting industries, the company provides sports federations, news media, consumer platforms and sports betting operators with a best-in-class range of solutions to help grow their business. As the trusted partner of organizations like the ATP, NBA, NHL, MLB, NASCAR, UEFA, FIFA and Bundesliga, Sportradar covers close to a million events annually across all major sports. With deep industry relationships and expertise, Sportradar is not just redefining the sports fan experience, it also safeguards sports through its Integrity Services division and advocacy for an integrity-driven environment for all involved.

For more information, please visit www.sportradar.com

Find out more about the IAGR and IMGL Rome conference here.