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Suppliers are increasingly facing the level of oversight and enforcement action previously reserved for gambling operators, as their risk profile changes around the globe.
In Europe, Denmark and Romania have become the latest countries to introduce new requirements for gambling suppliers.
On May 2, Denmark adopted legal changes that introduced a new framework for the gambling industry, including licences for suppliers. Once licensed, suppliers face the prospect of being fined or having their licence revoked for compliance failures.
Danish gambling supplier licences will come into force on January 1, 2025.
In Romania, lawmakers adopted an emergency ordinance on April 9 that introduces fines for B2B suppliers providing services to operators that target Romanians without a local licence.
Enforcement action against suppliers has already begun in Sweden for the same reason, after Yggdrasil received a SEK300,000 (€26,194) penalty fee and a warning from the Swedish Gambling Authority (SGA) for providing games to a list of banned websites.
A spokesperson for the SGA reiterated after the fine that the purpose of the supplier licence is to increase the channelisation rate to counteract illegal gambling.
The introduction of supplier licences and the requirements that come with them, including the prospect of enforcement action, is not contained to European jurisdictions.
In Asia, the Philippines remains the only online gambling jurisdiction with a comprehensive regulatory mechanism covering suppliers of hardware, software and services for online gambling, whether foreign or local-facing.
Regulator PAGCOR frequently adds or updates rules and manuals for suppliers, with around 20 new rules, guidelines, or manuals being published or updated in the last year alone.
In the US, the Michigan Gaming Control Board has issued a licence to Hacksaw Gaming. The company builds online slots, scratchcards, and instant-win games for iGaming companies.
Earlier this year, Hacksaw also reached a deal with Rush Street Interactive to provide online content in New Jersey. Hacksaw is also licensed in West Virginia.
Strive Gaming has received interim authorisation for a manufacturer’s iGaming and sports-betting licence from the Pennsylvania Gaming Control Board. Strive was also recently licensed in Michigan.
In South America, Peru has already begun awarding licences to service providers supplying systems, games, payments or other technologies to support the forthcoming regulated market.
Elsewhere, Tobique First Nation’s Gaming Commission announced that it issued its first B2B licence to SOFTSWISS on March 21.
Soon, more jurisdictions are likely to follow suit, with several notable proposals for B2B licences on the horizon.
Curaçao’s Gaming Control Board (GCB) has stated that B2B licences will be mandatory for B2B entities that establish themselves in Curaçao, with optional B2B licences available for other businesses.
In April, the Remote Gambling Bill (B11-2024) introduced to South Africa’s parliament by the main opposition party, the Democratic Alliance, proposes three licence types, including one for a remote gambling manufacturer, supplier or maintenance provider.
A separate National Gambling Amendment Bill (B27B), introduced in its current form by the ruling ANC party’s trade minister in 2019, was referred to a mediation committee on April 12, according to a parliamentary legislation update.
This bill provides for a raft of amendments to the National Gambling Act 2004, including providing new powers to prevent payments to unlicensed operators, and for the forfeiture of unlawful winnings to the national gambling regulator.
As the world of online gambling licensing matures, regulators are more frequently seeing suppliers as part of the gambling ecosystem where improved supervision can result in better channeling rates, compliance and revenue collection.
Additional reporting by Martin Williams, Chris Sieroty.
