CONFERENCE REPORT
collaborate to solve this and close the gap by implementing KYC. We need to know our customers, our operators our licensees, and we need to ensure a mechanism for information sharing in order to work hand in hand.” Gbajabiamila challenged his neighboring regulators to adopt comprehensive and coordinated approaches which go beyond regulatory measures and equip agencies with the resources and expertise they need. “We will fight this by cross-border collaboration, pulling information together then implementing stronger enforcement measures. The solution is to enhance financial intelligence units and support them legally and financially. That means creating policy awareness as well as educating the public. We need to utilise technology, strengthen our legal framework and our crime fighting agencies. We are all fighting for the same cause so we should work together to achieve it.” The challenge posed by the relentless march of technology is not confined to African regulators and there were many on hand from around the world to give advice on the implementation of AI, the implications of blockchain and the threats of cyber security. Rapid technological progress can be both a threat and an opportunity, as demonstrated by presentations on smart responsible gambling in electronic gaming machines. This should allow the gambling industry to growing in a sustainable way, emphasising trust, value, enjoyment and protection. In the emerging world of digital assets, in-game currencies and blockchain technology, the interplay between gaming platforms, digital asset trading platforms and the growth of in-game assets and currencies are the future. The emergence of play-to-earn gaming, which utilises blockchain technology like cryptocurrency and non-fungible tokens, represents a highly monetised gaming experience. The use of volatile and often inflationary in-game currencies, as well as exposure to risky investment vehicles such as yield-farming, staking and in-game trading of currencies and in-game assets are attractive to speculative investors who are more likely to have existing problems with gambling. One of the most practical pieces of advice was to limit the number of licensed verticals. More verticals means more complexity and that puts pressure on regulators who will struggle to approve each new product. International
cooperation is helpful: it’s the only way for regulators to keep pace with the volume of new products being introduced into the market. Devon Dalbock of GLI tailored his comments at the reality of operating in Africa where data is expensive and apps are optimised for lower tech devices. Africa has led the way with mobile payments which are the only payment solution for its unbanked population. Interestingly, as online gaming has developed, there has been a corresponding rise in female participation. Overall, testing should be balanced with need to appeal to younger generation through the latest technology. That does bring challenges for regulators as many are on the back foot when it comes to drafting and redrafting technical standards. The process is a lengthy and complex one but moves to approve products based on approvals elsewhere are a positive development as they enable products to be deployed in a controlled way. Perhaps the biggest challenge of networked technology comes from cyber crime. The Gambling industry is a prime target for cyber criminals because the data we collect is very valuable. It’s not a matter of if, but when you will get hacked and attacks are also hard to detect. The only solution is constant monitoring particularly in such a dynamic market. Children are the future This truism is especially true in Africa where the average age of the population is under 30, making the protection of minors a big issue. Parents are increasingly aware – as they are digital natives themselves – that the digital world has risks, so the relationship with them is also important, particularly as most regulations prevent minors from consenting to digital services. Engagement with young people is also more complicated than it first appears as they are not merely immature adults but have very different mentalities, preferences and values. It is perhaps more helpful to see them as Gen Z consumers as this will soon be the biggest generational group amounting to 70 percent of gambling operator’s customers. They may be natural gamblers in that they embrace the world of digital thrills and spills, but that is not all. They tend to be more socially responsible, campaigning and wanting to change the world. Their focus
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IMGL MAGAZINE | JANUARY 2024
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