WORLD REGULATORY BRIEFING
those who fail to address the security of customer data. Penalties aside, the knock to consumer confidence from a highly public attack can have just as significant an impact on a business. Regulatory drag Given the way payments technology would appear to align perfectly with the objectives of regulators, it may be surprising that regulation is often cited as a factor preventing investment in new technology. However, when the regulator needs to be satisfied every time there is a tweak to source it is difficult to be at the technological cutting edge, not only in payments but also in risk and security management. Regulators are generally cooperative and open to a conversation. They also understand the nature of the threats, but it is the decision makers above them who have to be educated too. Legislators may have good intentions, but they can pass bad laws which tie the hands of those charged with implementing them. There are some tried and tested solutions which would represent a big step forward in customer service and responsible gaming, but persuading law makers and regulators remains the biggest challenge. It is important to understand legislators’ and regulators’ concerns, but there is a need to work collectively as an industry to educate them and show how technology can work in their favour. Interestingly some recent developments in tribal gambling indicate that the different regulatory constraints they operate under may make them earlier adopters of new technology. For banks moving into the space, it may also prove an easier sell to regulators. Monitoring transactions is their core business and one which is regulated and trusted. They can also demonstrate that their customers already trust them with data and that
data can help to make more intelligent decisions.
A prize worth fighting for Investing in the latest technology as well as building systems to guard against cyber attacks can be expensive, but there is a potentially bigger prize at stake. Those industry players who can make it work, both online and in the physical world, will reap the rewards. More efficient online onboarding will improve profits which will deliver more tax revenue whilst at the same time reducing fraud and preventing players crossing into the grey market. Young people are already engaging with micropayments and the metaverse and gaming has to keep pace to continue to be relevant. That may be a defensive play, but it is just as important for the customers of the future. The demise of cash may hold qualms for some brick-and-mortar properties but it is the way the tide is running and also a chance to explore what opportunities may come as a result. Early reports from those who have created a payments ecosystem suggest that the increased loyalty translates into longer dwell time and an uplift in spend on F&B and entertainment as well at the gaming tables, so it is a powerful tool for marketing. Combine that with a reduction in the cost of money handling and the benefits are tangible. The biggest opportunity is almost certainly in omnichannel, however, where money and loyalty follow a customer wherever they go. Tying together online and on-property play is a big focus for operators and the crossover of digital player data in the casino can make the experience more entertaining and rewarding. Payment systems are the key to that so likely to be the next competitive battleground, one from which customers are going to emerge as the winners.
JOSEPH WATKINS President, Worldpay Gaming Solutions LINDSAY SLADER Senior Vice President of Compliance, GeoComply SANJAY SARAF Managing Director, Global Head of eCommerce and Marketplaces, JPMorgan Chase ADAM ROSENBERG Senior Advisor, Blackstone were speaking on a panel moderated by: MARC DUNBAR Dean Mead & Dunbar Law Firm
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IMGL MAGAZINE | APRIL 2023
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