Compliance Updates
The Art of Staying Compliant w/ Greg Ponesse, Chief Revenue Officer at Compliable
How can operators and suppliers best ensure that they stay on track of ever-changing rules and regulation once they are live in a market?
Fundamentally, it’s about keeping a finger on the pulse of the market and curating a broad network of industry sources to ensure that you are up to date on any new developments. Industry press releases, newsletters and magazines are all excellent places to begin, and getting into the habit of checking regulator websites on a monthly basis is a good next step. In general, regulators maintain open communication with the public concerning new regulations; as it’s rare to have a dedicated contact person from any given agency checking in to ensure that you’ve kept up with any updates, however, it will still fall to you to make sure that you’re keeping current with any changes. Ultimately, it is always the responsibility of the licensee to ensure that it is compliant and, if mistakes are made, there are rarely, if ever, any get-out-of-jail-free cards.
Additionally, building a network of compliance professionals that you can reach out to on short notice can be a huge help, as urgent situations can arise without warning and require you to react quickly. It’s not always possible for every company to field an in-house compliance team that can deal with every request and change, even if that would be very preferable, so having experts just a call away is always a smart choice.
Compared with entering a market, how time consuming is maintaining compliance for teams?
While entering a new market is complex, maintaining compliance is equally important, and introduces its own challenges of minutiae and attention to detail. Renewal windows need to be carefully monitored, new regulations need to be constantly observed, and required updates need to be passed on to regulators in a timely manner.
These challenges are true no matter the size of the company in question. A small company could be licensed in 16 regions, with one person managing the process for all those markets. In such a case, that one person would probably need to spend a decent portion of their work days just to ensure that compliance was being maintained across all those markets, even if the individual number of licenses was low. A large company operating in fewer locations, on the other hand, might have thousands of employees and licenses to maintain for that location, and not one of those employees or licenses could be allowed to fall through the cracks. Each license would need to be tracked, and each renewal dealt with in a timely fashion. In either case, maintenance of compliance should be expected to take up a sizable amount of time.
Are there common mistakes that occur and what impact can this have on operations?
At the risk of sounding reductive, the most common mistakes are not filling out the application correctly or failing to include the correct documentation. Attention to detail matters so much in the process and taking the time to parse what can often be very complex sets of instructions is critical.
No matter the type of licensure, there is always going to be a large amount of information and documentation required, and making sure that you have all of that information and documentation at the ready before you begin is also critical to your success in the process.
Most simply, you could equate the process to that of buying a house. Everything needs to be in order before you place your bid, or it will fall through and someone else will likely swoop in and take the house right out from under you. It’s more or less the same when a company is going through the licensing process. If everything isn’t in order, you might have to wait a long time after submitting your initial application just to be told that something is wrong or missing. Once those issues are corrected, you would have to resubmit the application, starting from the back of the queue again. This would obviously delay the issuing of a license in an industry where first-mover advantage is crucial.
How can tech solutions help teams stay compliant once they are live in a market?
There are many ways in which such solutions can assist with compliance. Our platform, for example, allows you to input all of your information and upload all your documents exactly once, and to then output that information to multiple forms at the same time. It also tracks the application status, which can be very challenging to handle on your own if you are active in numerous regions or have a lot of employees. Furthermore, it reminds you of expiration dates, so you can be well prepared and organized when the time comes for renewals. Finally, because we store your information, you are also not required to re-enter all of your information year after year, making the renewal process much more efficient; you will only have to update information if the regulator has changed their forms, otherwise, everything will slot right in where it belongs.
We put an immense amount of effort into ensuring that our forms and other documents are kept up to date with all regulatory requirements and guidelines. Thus, when you use our service to generate forms for any application or renewal, you can be assured that you are filing the correct forms, and that all the questions on that form have been filled out correctly. In short, using our platform ensures that compliance teams can focus on other important tasks while resting safe in the knowledge that their licensure forms have been completed correctly, and that their licenses and renewals are being effectively tracked.
The Arizona Department of Gaming (“ADG”) is issuing this Consumer Protection Alert to inform Arizonans of a concerning nationwide trend that has now reached Arizona. Fraudulent operators are falsely claiming that legitimate Arizona casinos have launched online gaming platforms. These illegal online casino platforms are presenting themselves as legitimate platforms by offering illegitimate or illegal gaming services. Online casinos (often referred to as “igaming”) are not legal in Arizona. Any claims otherwise should be treated as highly suspicious. These scams not only put players at financial risk but also undermine the integrity of Arizona’s regulated gaming industry.
ADG has received multiple reports of fraudulent online casinos targeting Arizonans, as well as complaints from patrons who have been misled. These scams are being widely disseminated through social media advertisements directing consumers to download apps and visit websites, and are enticing unsuspecting consumers to spend money on illegitimate games.
The Arizona Department of Gaming urges residents to verify the legitimacy of any online gaming platform before engaging in play. Many of these operations are not legal or regulated, leaving users vulnerable to fraud, identity theft, and other serious risks. Due to their unregulated nature, ADG is unable to resolve complaints and disputes arising from unregulated and illegal gaming sites, leaving victims with little to no chance of recovering lost funds. It is important to remember that just because you can download the app, visit the website, and play the games, it does not mean it is a legitimate and legal gaming platform.
In light of these developments, the Department encourages both Arizona residents and visitors to visit our website to find a list of all regulated casinos and licensed event wagering and fantasy sports operators legally taking bets in Arizona. The list can be found on the Department’s website at gaming.az.gov. Legal, regulated operations provide important consumer protections not found in the illegal market, helping ensure a safer experience for participants.
The Dangers of Illegal Online Casinos:
Fraudulent online casinos often mimic reputable platforms, using familiar branding, flashy advertisements, and enticing promotions to lure victims. These unregulated operations leave participants vulnerable to:
- Financial loss through fake gaming platforms or fraudulent prize fees.
- Identity theft resulting from shared personal or financial information.
Common Red Flags of Illegal Platforms:
These deceptive platforms often use tactics such as:
- Mimicking branding of legitimate Arizona casinos, including similar or actual logos and names.
- Enticing promotions that appear too good to be true, such as excessive bonuses or guaranteed wins, luring players into providing sensitive information.
- Incorrect Website URL/Mobile App – Fraudulent sites often use web addresses that closely mimic legitimate casino names but have slight misspellings or different domain extensions (e.g., .net instead of .com).
How to Protect Yourself:
- Check before you bet: verify the licensed and regulated casinos and operators in Arizona.
- Be skeptical of advertisements or promotions on social media promising guaranteed wins or no-risk gaming.
- Avoid sharing personal or financial information with unverified sources.
- Look for sites that include resources for dispute resolution, as well as self-exclusion, responsible gaming messaging, or a toll-free helpline number.
Reporting Suspicious Activity, Fraud, or Identity Theft:
If you encounter fraud, identity theft, or suspicious online gaming operations, apps, or websites impersonating a casino or claiming to be a licensed operator in Arizona, please take the following steps:
- Document the website URL, app, business name, and any promotional materials associated with the fraudulent operator.
- Report it to ADG at [email protected] and the Arizona Attorney General’s Office Consumer Information and Complaints Unit at (602) 542-5763 or by visiting azag.gov/consumer.
- Cease activity on the platform and monitor financial accounts for unauthorized transactions.
If you suspect identity theft, report it to the Federal Trade Commission (“FTC”): for help in English, go to IdentityTheft.gov and for help in Spanish, go to RobodeIdentidad.gov.
Canada
AGCO issues $110,000 in penalties to BetMGM Canada for offering cash to induce new gambling customers
The Alcohol and Gaming Commission of Ontario (AGCO) has served BetMGM Canada Inc. with an Order of Monetary Penalty (OMP) of $110,000 for violations of the Registrar’s Standards for Internet Gaming.
In two separate incidents in 2024, BetMGM engaged marketing companies who offered cash to members of the public in return for opening new BetMGM accounts. The marketing activities occurred in public forums, such as a major national trade conference. Under AGCO’s Standards, operators are responsible for the conduct of their third-party suppliers who are contracted to support the operator’s Ontario gaming business, and must require their third-parties to meet Ontario laws, regulations and standards (Standard 1.19).
Ontario is one of the first jurisdictions in the world to establish and enforce rules that strictly limit high-risk inducement advertising and marketing in the online gambling industry. Registered iGaming operators are prohibited from offering gambling inducements, bonuses and credits as part of their broad public advertising and marketing activities (Standard 2.05). These Standards exist to protect Ontarians from predatory advertising and promotional marketing practices in order to limit the risk of gambling-related harm.
A registered operator served with an OMP by the AGCO has the right to appeal the Registrar’s decision to the Licence Appeal Tribunal (LAT), which is an adjudicative tribunal independent of the AGCO and part of Tribunals Ontario.
QUOTE
“Responsible gambling safeguards and the protection of Ontarians on registered gaming sites is among our key priorities. The AGCO monitors the activities of all registered operators and their third-party suppliers to ensure they are meeting our high standards and we continue to take strong action to ensure they operate within the public interest.”
Dr. Karin Schnarr, Chief Executive Officer and Registrar – AGCO
ADDITIONAL INFORMATION
BetMGM Canada Inc. failed to comply with the Registrar’s Standards for Internet Gaming. Specifically, the licensee failed to comply with the following provisions of the Standards:
- 1.19 Operators are responsible for the actions of third parties with whom they contract for the provision of any aspect of the Operator’s business related to gaming in Ontario and must require the third party to conduct themselves in so far as they carry out activities on behalf of the operator as if they were bound by the same laws, regulations, and standards.
- 2.05 Advertising and marketing materials that communicate gambling inducements, bonuses and credits are prohibited, except on an operator’s gaming site and through direct advertising and marketing, after receiving active player consent.
Contrary to the Standards, BetMGM Canada Inc. and/or their affiliates allegedly engaged in the following activities:
| a) | On or about January 13 and 14, 2024, BetMGM representatives were alleged to have attended the National Franchise Show and were offering $100 in cash to new players for opening a new account and depositing $15. |
| b) | On or about March 11, 2024, BetMGM acknowledged that its marketing affiliate “Above the Street” had engaged in prohibited inducement marketing. The conduct resulted in 377 player sign-ups and $127,180.00 in commissions to “Above the Street”. |
| c) | On or about April 13, 2024, another BetMGM marketing affiliate “Maple Leaf Marketing” engaged in prohibited inducements and marketing to induce on-site activations and acquire new players. The conduct resulted in 94 player sign-ups and about $34,000.00 in commissions paid to “Maple Leaf Marketing”. |
4ThePlayer has officially received game certification for the Brazilian iGaming market, reinforcing its commitment to regulated markets worldwide. This milestone enables the company to bring its acclaimed player-first gaming experiences to a brand-new audience.
Approved by Gaming Associates and eCogra, these certifications allow licensed operators in Brazil, to offer 4ThePlayer’s high-quality, player-centric games through their existing platform integrations with Relax Gaming and Yggdrasil.
Certified game titles include 4 Fantastic Fish, 4K Ultra Gold, and 5 Wild Buffalo as well as their innovative and unique table games 100 Bit Dice and 1000x Busta, all top-performing, player-favorite releases. Moving forward, all 4ThePlayer games will be certified for Brazil from day one.
Beyond its existing portfolio, 4ThePlayer is committed to delivering region-tailored content, leveraging its local team in Brazil to develop engaging, culturally relevant gaming experiences set to launch later this year. The first one of these titles is 4 Fantastic Fish Amazon Adventure, the latest in their player favourite 4 Fantastic series, coming via Yggdrasil in April.
Henry McLean, Co-Founder, Commercial & Marketing Director at 4ThePlayer, expressed his enthusiasm: “We are thrilled to bring our unique, player-centric games to Brazil, a market full of energy and potential. These game certifications are a major milestone, reinforcing our dedication to regulated markets and delivering best-in-class entertainment. We look forward to collaborating with operators and creating unforgettable gaming experiences for Brazilian players.”
With this certification, 4ThePlayer continues its mission of providing exceptional, player-focused gaming worldwide, ensuring its engaging and innovative titles reach new markets and audiences.
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