Esports betting in the United States is a yet to be fully tapped, and with more regulatory progress the total market and opportunity in esports continues to grow.

It’s why at PandaScore, we recently acquired our first license in the lucrative American market, in the esports-friendly state of Colorado. The move is a strong signal of our ambition in the US, but it also sets out our methodology for solving the uncertainty problem that US esports betting currently suffers from.

Supplier licensing should lead the way

The unknowns about what markets and lines can be offered are a key piece of the puzzle in many jurisdictions. Uncertainty around the legislation means operators are tentative to jump in with both feet. At PandaScore, we’re helping operators navigate US esports betting regulation on a state-by-state basis, so they can make business led decisions in markets with right balance of stability and opportunity.

Except for a few states, esports betting regulation is relatively  new: there’s not a great deal of precedent to work from, and its quickly evolving nature means there’s likely more work to be done in the future. We plan to be at the forefront of making sure that esports betting works for the whole ecosystem: operators, suppliers, regulators and the betting public.

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The regulatory framework across the country may be shifting at different paces, but almost all states are going in one direction: expansion.

Esports suppliers have a duty to show operators the way and give them the tools, knowledge and expertise to make the right decision. We don’t believe in going all guns blazing, but entering markets with some certainty around esports in a considered fashion.

We can be more confident that those specific markets are built for esports, with Colorado being PandaScore’s first step for several reasons.

Why Colorado

When deciding which market to enter, we consulted heavily with our customers and whittled it down to states that had the right mix of commercial opportunity, solid regulatory environment and straightforwardness in licensing.

Since regulating esports, Colorado has had a friendly framework for esports. The catalogue for regular betting includes a wide range of esports titles based on approved games and tournaments by the publisher or regulator – which follows some similarities to how traditional sports betting is structured.

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The process itself was simple and clear, with clear terms and commercials that promote investment, entrepreneurship and innovation – all key ingredients for growing new markets and ambitious organisations to build new audiences.

Colorado is the natural next step in PandaScore’s service-minded, client-first approach. There’s already a generation of bettors who are seeking out esports betting products, esports suppliers need to be the source of knowledge and expertise that helps guide and amplify the esports ambitions of their clients.

Service-minded approach, client-led growth

We bring operators into the licensing conversation from the outset, exploring the licenses most valuable to them and then leveraging our lean, efficient operating model to get it done.

We’ve proven we’re serious about the US market, and that we can get a license efficiently, so if an operator desires a specific jurisdiction, we base our decisions on the revenue potential, give them a clear, no-spin picture of the market, and put in the hard work of licensing to provide our services in the US.

Player age verification as a mandatory service

A huge part of that no-spin picture is addressing the concern and risk around player age verification in esports. Compliance is paramount for suppliers and operators alike, so knowing the requirements from state to state is essential.

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PandaScore has been offering player age verification for years and is well established on this front thanks to years of servicing jurisdictions like Australia and Sweden. We already have an API that clients use for peace of mind, and are beefing it up as a standalone service intended to support regulators and governing bodies to ensure compliance, confidence and growth.

Suppliers need to lead from the front for US esports betting to succeed. It’s not just about having the best product – they need to be an expert on relevant regulation, genuinely serve the expansion interests of clients and be a truly safe pair of hands that actively supports and serves operators, bettors and regulators alike.

Author: Oliver Niner, Head of Sales at PandaScore.

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The Arizona Department of Gaming (“ADG”) is warning the public that gaming scam calls are on the rise in Arizona and nearby states. These scammers are pretending to be affiliated with ADG, the National Indian Gaming Commission, and the Indian Gaming Association, among many other organizations, in an effort to steal patrons’ personal information and hard-earned money. Other notable references include, but are not limited. to: the Indian Gaming Association, the Arizona Gaming Commission, the Arizona Indian Gaming Association, the New American Dream Foundation, the Publisher’s Clearing House, etc.

Legitimate organizations such as the ADG, its partner Tribal gaming regulators, and national gaming regulatory agencies will never call a patron to alert them of a “win” or “sweepstakes.” In addition, these legitimate organizations will never call a patron to alert them of delinquent taxes or fees owed to the State of Arizona or the Internal Revenue Service (“I.R.S.”). If someone claims to work for one of these organizations and makes any demands or threats relevant to the information above, they are a scammer. Keep your money safe and secure, pass the information along to others, and report the scammer immediately.

Arizona Attorney General’s Office – Tips to Avoid Falling Victim to Scams:

Verify Information: Before taking any action, hang up the phone and independently verify the legitimacy of the caller by directly contacting the organization they claim to represent by calling those organizations’ official listed phone number(s). Never use the contact details the caller provides call whoever they claim to represent directly. Scammers can mask numbers making it appear that a legitimate company or organization is calling you.

Be Skeptical: Always be skeptical of unsolicited calls, especially those asking for immediate action involving financial transactions. A government agency will never ask you to remove money from your accounts to send via bitcoin, wire transfer, or gift cards.

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Only Scammers Demand Payment in Cryptocurrency: No legitimate business is going to demand you send cryptocurrency in advance-not to buy something, and not to protect your money. That’s always a scam.

Secure Your Personal Information: Never share personal information like your social security number, bank account details, or passwords over the phone with unknown callers or give anyone real-time access to your computer. Never click on a link from an unexpected text, email, or social media message, even if it seems to come from a company you know.

Consult Trusted Individuals: Always consult with a trusted family member or friend before making any substantial financial decisions, especially those involving digital currencies like bitcoin.

Report Suspicious Activity: If something feels off, it probably is. Report the call to local law enforcement and file a complaint with the Arizona Attorney General’s Office.

Business, Government, or Job Impersonator Scams:

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In a business, government, or job impersonation scam, the scammer pretends to be someone you trust to trick you into sending them money. They might claim that there’s been fraud detected on your accounts and that your money is at risk. To resolve the issue, they may instruct you to send money or cryptocurrency. They might also tell you that there’s a legal problem, that you owe money, or that your accounts or benefits have been frozen as part of an investigation. They then advise you to buy cryptocurrency to fix the problem or protect your money. These are clear warning signs of a scam.

“You’ve Won” scams are a bit different. You may get a call, letter, email, or text saying that you have won. Perhaps it’s a vacation, cruise, lottery, or sweepstakes. They cannot wait for you to get your winnings, however, they advise that there are fees, taxes, or customs duties to pay. Then, they ask for your credit card number or bank account information. In some cases, they might even ask you to pay with cash, gift cards, wire transfers, or cryptocurrency. If you pay a scammer or share your information, your financial and personally identifiable information have now been breached. There is no prize. Instead, you might even receive more requests for money, and more false promises that you’ve won big.

If you believe you or someone you know has been the victim of fraud, file a consumer complaint by visiting www.azeg.gov/consumer. If you need a complaint form sent to you, contact the Attorney General’s Office in Phoenix at (602) 542-5763, in Tucson at (520) 628-6648, or outside the Phoenix and Tucson metro areas at (800) 352-8431.

It is important to note that the Federal Trade Commission (“FTC”) frequently educates the public about avoiding and reporting scams, such as “You’ve Won” scams. If you spot a scam, please report it to the FTC. Go online at ReportFraud.ftc.gov or call at 1-877-FTC-HELP (1-877-382-4357) or TTY 1-866-653-4261. Your report can help protect other people. By reporting fraud, you assist the FTC’s investigators to identify scammers and stop them before they can steal someone’s hard-earned money.

Additionally, if you believe you have been the victim of identity theft, get help from the FTC by visiting www.identitytheft.gov or by calling (877) 438-4338.

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ADG takes complaints about illegal gambling seriously. To report suspected illegal gambling activity, visit our website, call (602) 255-3886, or email [email protected]. You can remain anonymous.

SOFTSWISS, a global leader in the iGaming technology with over 15 years of experience, is on track to secure certification for its Casino Platform and Sportsbook in Brazil. The certification process, conducted by an authorised testing laboratory, is currently underway. As the process unfolds, SOFTSWISS shares insights into the critical requirements for success in the burgeoning Brazilian market.

Last year, SOFTSWISS obtained GLI-19 and GLI-33 certifications, providing a solid foundation for meeting Brazil’s regulatory standards. However, the Brazilian market has its distinct regulatory demands. Through close consultations with certifying laboratories, SOFTSWISS has identified key priorities set by the Brazilian Government, including player registration, Know Your Customer (KYC) protocols, and responsible gambling practices.

Andrey Starovoitov, Co-CEO at SOFTSWISS, comments: “We view Brazil as a highly promising region and are encouraged by the progress in local regulation as well as by the proactive efforts of local authorities to refine and enhance the existing legal framework. The stringent requirements for gambling software emphasise responsible gambling and public protection, which regulators aim to balance effectively with business interests. It’s clear that the Brazilian Government is working diligently to maintain the appeal of white labelling within this market, ensuring a healthy environment for both operators and players.”

Enhanced Registration Processes

One of the standout features of Brazil’s regulatory approach is its emphasis on a robust registration process designed to mitigate potential risks for both players and operators. Notably, the regulation requires new players to provide a CPF number (Brazilian Individual Taxpayer Registry Number) during registration. The system verifies the number to prevent users from creating multiple accounts as well as guarantees that registrations are made with accurate personal details, reducing fraud risks.

This measure will be crucial in preventing underage gambling, protecting self-excluded individuals, shielding operators from bonus abuse through account multiplicity, and enabling the government to monitor tax compliance on winnings.

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Stringent KYC Protocols

Brazil’s regulatory framework is also expected to introduce enhanced KYC procedures. Specific user actions, such as password resets or profile updates, may require additional verification steps. A possible implementation is a liveness check, necessitating technical upgrades to most existing platforms. This approach ensures higher security and compliance, safeguarding both operators and end-users.

Commitment to Responsible Gambling

Responsible gambling is a top priority for the Brazilian regulator. Currently, the regulator is formulating a comprehensive set of requirements that will empower players to control their gaming activities. These features must be seamlessly integrated into gaming platforms, reflecting the government’s commitment to protecting players and promoting a safe gambling environment.

Given its extensive expertise in this area, SOFTSWISS is well-positioned to meet these requirements. With a strong track record in maintaining high security standards, the company has demonstrated its capability by helping operators secure around 6 million euro through its Anti-Fraud team in H1 2024. These efforts have not gone unnoticed; SOFTSWISS has been recognised with multiple industry accolades, such as SiGMA Africa Awards, for its commitment to responsible gambling, solidifying its reputation as a leader in this field.

Earlier this year, as part of its strategic expansion in Brazil, SOFTSWISS appointed legendary F1 driver Rubens Barrichello as its Non-Executive Director in Latin America. Barrichello, renowned for his success in the highly competitive world of motorsport, brings invaluable expertise in navigating cutting-edge technology and innovation. His involvement also ensures that SOFTSWISS benefits from his deep understanding of the Brazilian market and integrates a local perspective into its product development.

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About SOFTSWISS 

SOFTSWISS is an international tech company supplying software solutions for managing iGaming projects. The expert team, which counts over 2,000 employees, is based in Malta, Poland and Georgia. SOFTSWISS holds a number of gaming licences and provides one-stop-shop iGaming software solutions. The company has a vast product portfolio, including the Casino Platform, the Game Aggregator with thousands of casino games, the Affilka affiliate platform, the Sportsbook Platform, and the Jackpot Aggregator. In 2013, SOFTSWISS was the first in the world to introduce a Bitcoin-optimised online casino solution.