.svg)
With 2025 on the horizon, suppliers can expect increased regulatory scrutiny to become the new normal, as regulators take a holistic view of supervision and tackling illegal gambling.
The year ahead is also predicted to see another wave of mergers and acquisitions (M&A) in the supplier ecosystem, spurred on by maturing regulations surrounding B2B supplier businesses making them more attractive to acquire.
Operators are facing increased regulatory burdens and consolidation in many mature markets, increasing competition and the need for unique in-house developed games to help distinguish their offerings.
Improved regulatory scrutiny on suppliers also means improved transparency around the businesses. All of this will only spur further M&A opportunities in the sector.
The regulatory shift in the supplier landscape is primarily driven by more jurisdictions requiring suppliers to be licensed, a trend which is showing no signs of slowing.
Nowhere is this more apparent than in Europe.
On January 1, 2025, Denmark will join the increasing number of European jurisdictions that require suppliers to be licensed. Neighbouring Sweden began licensing suppliers in July 2023, recently announcing it has awarded 187 licences in an attempt to tackle the black market. The Danish market will likely see a similar influx of B2B licencees, in a similar effort to limit offshore influence.
Two European countries currently going through major overhauls of gambling legislation, Ireland and Finland, will require suppliers to be licensed.
The well-established online gambling hub of Malta has begun evolving into a B2B hub, according to some local industry veterans, as the nation searches for a new identity in the modern world of local licensing. An increased regulatory focus on suppliers has been instrumental in this development and is predicted to continue.
Italy and the UK stand out as the two largest European gambling markets bucking this trend. Despite some initial confusion, Italy has confirmed it has no plans to require supplier licensing despite planned major changes to its gambling laws. The UK has required basic supplier licensing, linked to technical compliance, for some years, but has made no moves to enhance its supplier requirements in the style being explore elsewhere in Europe.
Looking outside Europe, it will be key to understand what impact this trend has on other newly regulated markets such as the United Arab Emirates (UAE) and markets where online offerings could be expanded or updated soon, such as Brazil, Curaçao and South Africa.
The Curaçao Gaming Control Board has already accepted licence applications for B2B2C and B2B firms. The National Ordinance on Gambling (LOK) is expected to be passed before the end of the year. This will mark a step change in regulatory oversight and requirements suppliers face in the popular online gambling hub.
The UAE has also awarded several “gaming-related vendor” licences, a cornerstone in the General Commercial Gaming Regulatory Authority’s plan to establish a well-regulated commercial gaming sector in the country, which in the long term intends to upend public and corporate impressions of gaming in the Middle East.
Brazil’s Secretariat of Prizes and Bets regulations do not require suppliers to be licensed or registered in Brazil, but a final decision has not been made on whether or not they could be introduced in the future. As a key market in Latin America, this could impact other countries in the region looking to expand or reform their gambling markets.
In Africa’s largest market, South Africa’s Democratic Alliance Party recently revived its draft bill to regulate online gambling, which includes plans to introduce licences for suppliers. As the most mature market on the continent, this is again a very influential jurisdiction that could help set the pace for future supplier licensing endeavors by African jurisdictions.
