Dr. Jack Garnham: Reducing the Burden of Responsibility for iGaming Operators with Outsourced Compliance Solutions

“Gaming operators compete in an ever-evolving and increasingly complex regulated world,” writes Dr. Jack Garnham of Rokker Research Labs. reasons why companies should outsource compliance issues to third-party experts such as Pretty Technical.

While regulators seek to protect players, a balance penalty is required to scare off customers looking for unregulated gray and black market operators who may appear more attractive to players due to their lack of restrictions and restrictions. This leaves us with a regulatory environment that, in some cases, requires time gaps to mitigate risk and fraud, and an ever-changing landscape that operators must keep track of.

Operators can mitigate their risk in several ways. ... While they can develop their own internal solutions and invest more resources and people in solving the problem, this is often not a viable solution as these resources are deployed elsewhere in the business and even critical regulatory updates become effective in their day-to-day operations. ... - today's operations if the operators change the focus of the internal team. This is compounded by the fact that they are often set by the regulatory body on time.

With this in mind, it is now increasingly interesting for operators to outsource compliance issues to experienced third-party vendors who can improve efficiency and who are fully focused on the changing compliance landscape. These vendors can effectively offer operators a variety of solutions, especially those operating in multiple regulated markets.

These solutions / vendors reduce the burden of responsibility and human error from internal compliance teams. This reduces the potential threat of regulatory fines while allowing the operator to demonstrate their commitment to compliance, an increasingly important factor in attracting and retaining both players and staff.

Many operators are now choosing to integrate new, previously underutilized outsourcing solutions and products to effectively manage their compliance risks. In the UK, this was prompted by the revised UKGC guidelines and reflected in a number of new markets such as the Netherlands, Germany and Greece, which are currently undergoing regulation. As a result of the increased interest in such outsourced compliance solutions, more and more companies continue to enter this space, offering platforms that can be adapted to environments with many regulatory requirements.

As part of our work to assist operators in numerous regulated markets, primarily in Europe and North America, we at Rokker Research Labs have assessed numerous third-party vendors. This usually involves offering our rapid research service to provide operators with an objective and unbiased view of specific third-party services, solutions and products, enabling them to make more informed strategic decisions that best suit their needs.

While in most cases we have tended to evaluate third-party game studios, aggregators and platform providers (PAMs) on behalf of our operator customers, recently we have seen a growing interest from operators in how they can outsource their solutions to meet the requirements of third-party vendors. especially as more and more markets are regulated.

As a complete overview of the look and feel of compliance solutions, it would be Outside of this overview (although we're happy to provide one for those who would like to see it!), We highlighted three companies that we independently assessed and identified as offering interesting and viable services. and compliance solutions ranging from data vault to identity platforms and Responsible Gaming, all of which represent this new wave of third-party compliance offerings.

Data Vault Technology - Domino (Pretty Technical)

With regard to the data warehouse technology market, Pretty Technical recently announced their release with their Domino platform. This platform was developed based on the previous experience of their teams launching platforms in the Spanish iGaming market, which was one of the first regulatory markets to push for data warehouse requirements. However, the new product takes a step forward both commercially and technically. This is evidenced by the number of serious European operators who have already registered to use the platform.

This product was developed after Pretty Technical identified a strong market need for a more flexible approach to data warehouse provisioning. Markets such as the Netherlands, Spain, Greece, Portugal, Colombia, etc., require robust storage solutions covering functional requirements such as data integrity, criteria compliance, continuous validation and monitoring, but which also take a modern approach to integration and scalability, which is where Pretty Technical is focusing.

The Rather Tech department acknowledged that operators want this to be simple in terms of interoperability, but have also identified a level of support ahead of a simple design and build partner, where they not only supply the platform, but can also help operators optimize their own datasets. Indeed, robust outsourced and compliance solutions offer a level of support that exceeds standard SLA coverage, but is also ready to work with platforms to integrate effectively for their customers, as well as support operators who are not ready for data warehouses.

Launching a Domino data warehouse in 2020, Pretty Technical has built a Netherlands-ready CDB for operators looking to be pioneers in a new regulated market. They are currently expanding this service to support additional emerging markets in Europe and Latin America where a data warehouse (also known as SECURE) is a requirement.

Global Identity, Risk and Fraud Decision Making Platform - TruNarrative

The TruNarrative platform is designed to be flexible and enable operators to quickly make strategic changes within the company. These include adapting and creating new rules, adding new datasets, managing volume changes, and improving resilience. Their solution provides what was previously not available to operators: a single platform for continuous integration and player monitoring.

The TruNarrative platform offers operators unique customizable orchestration, decision making and behavior monitoring capabilities. This service offering is achieved by aggregating and combining multiple pre-integrated data providers and compliance services through a single API. These include, but are not limited to, document verification, smart devices, and open banking. Collectively, this service enables risk professionals to manage all aspects of their clients' due diligence without having to sift through multiple levels of compliance across different markets and find that they are still lacking.

Responsible Gaming - Mindway AI

The Mindway AI platform empowers operators to be proactive in identifying problem players. Their artificial intelligence technology, based on neuroscience and artificial intelligence, was designed with the areas of the brain associated with addiction in mind.

Their GameScanner technology uses algorithms based on multiple parameters and the relationship between these parameters to obtain a 360 degree vision and understanding of the players and thus the identification of at-risk and problem players. This technology has been independently validated and validated by GLI for its ability to identify problem and risk players with a level of accuracy comparable to that of clinical psychologists.

By engaging with risky and problematic players at the right time, the Mindway AI platform enables operators to develop more sustainable relationships with their players. without attracting potential negative information related to such players.

Operators' commitment to such responsible gaming initiatives has been demonstrated in recent announcements such as the Kindred Group's plans to generate 0% revenue from malicious gambling through 2023, as well as the Advanced Protection and Care (ARC) Customer Protection Strategy.

Mindway AI has also developed its own gamified self-review solution known as Gamalyze, which has caught the attention of the Dutch market, where customers like Holland Casino are realizing that the 2021 self-review regulatory requirements and gambling addiction prevention policy is being followed from April 1st.

The Gamalyze solution analyzes the gambling behavior of players to determine the key characteristics associated with gambling addiction. This test then provides the player with specific and tailored feedback and advice.

As such, the above outsourced compliance solutions are good examples of companies that can empower operators to respond effectively and comply with changing and emerging regulations, many of which are likely to accelerate in response to Covid - 48 as tax revenue requirements rise.

This outsourcing is an interesting option when the market is dynamic and changing, or when the operator has resources focused on existing roadmap tasks. Good outsourcing compliance partners need to be able to quickly adapt to different markets and regulatory requirements by first understanding how testing and regulation work. There are many valuable and viable new business models offered by external compliance partners that make this service worth exploring.

If you would like to learn more about these third party compliance decisions or the broader context, please contact Jack Garnham by phone [emailprotected] .