Jeremie Kanter, Director of Regulatory Affairs at Continent 8 Technologies, talks about the infrastructure challenges operators and suppliers face in tightly regulated markets, such as the US, and how the award-winning provider is helping to overcome them.
International operators and suppliers are constantly looking to drive growth by entering new regulated markets, and right now, there are plenty of jurisdictions in which they can make a move. From Europe to the US, Asia to Latin America, regulation continues to roll out at pace. This presents plenty of opportunities to explore, but where there are opportunities there are always challenges.
Regulations differ from market to market, and operators and suppliers must ensure they are compliant across all business areas, from payments and marketing down to the individuals in leadership roles. But one of the most crucial areas to get right is infrastructure – all required systems, networks and security solutions must be in place, and they must be compliant.
To do this, businesses need to work with providers (in some jurisdictions they must be licensed) who are highly experienced in navigating the different rules and requirements in jurisdictions worldwide. And this is why Continent 8 has emerged as the infrastructure provider to the industry. We have more than 25 years of experience in regulated markets, and our award-winning solutions are innovative and reliable.
Our managed hosting, connectivity, cloud and security solutions allow operators and suppliers to lay the most robust foundation on which they can build long-term, sustainable success. This is only possible because of our close relationships with regulators with whom we share our unrivalled knowledge and experience to help them craft their frameworks and requirements.
This, in turn, allows us to support our customers and ensure their infrastructure is deployed compliantly in each market they enter. But what impact do differing regulations have on the infrastructure operators and suppliers use?
“While the differences from state to state are often slight, they make for a significant job for compliance departments”
The patchwork nature of the industry means that operators and suppliers can struggle to have an infrastructure blueprint they roll out globally. For example, in some jurisdictions, there are no – or very limited – requirements when it comes to infrastructure, while in the highly regulated US market, it’s fairly standard for the majority of components to be located in the state the operator is targeting.
Let us look at an example of one of the states where requirements are very specific: Arizona.
The state regulator requires all service providers to secure a license from the regulator, and this limits the number of providers that operators can work with. Continent 8 holds a license in Arizona, but others do not. This is an excellent example of why standardization is almost impossible while also highlighting the need for operators and suppliers to work with igaming infrastructure specialists.
This is why we take a first-to-market approach to support our customers in each jurisdiction they wish to target from day one of the market opening. This means applying for and securing all required licenses so that our customers can quickly and easily enter these markets with as much infrastructure consistency as we can provide.
While the differences from state to state are often slight, they make for a significant job for compliance departments, but our highly experienced team is on hand to provide support where required and ensure the infrastructure our customers deploy meets all requirements.
The key to this is ensuring that we are live in a market months ahead of its official launch. This gives operators and suppliers the time they need to make sure their infrastructure is in place, is tested and certified, and where permitted to take pre-registrations.
“Ultimately, infrastructure is the foundation for any igaming business and it is vital to have the right set-up in place”
We also work hand in hand with our customers to guide them through the requirements of each market, including understanding the rules and the infrastructure they must have in place. This means working with us and the regulator – this is undoubtedly the case when it comes to newly regulated markets where regulators are often keen to collaborate with operators to understand what they are looking to do with their infrastructure and technology, and to facilitate this as much as possible.
Working with an experienced infrastructure partner really does streamline the red tape aspect of entering a new market. Take the US state of Michigan as an example. There is an extensive cybersecurity questionnaire that operators must complete as part of their license application. But as a licensed provider, Continent 8 customers have much less paperwork to contend with.
Our regulatory experience, first-to-market approach and award-winning suite of infrastructure solutions make Continent 8 the go-to provider for the industry. In fact, we support 85% of operators on the EGR US Power Rankings for 2023. And globally, we work with some of the biggest names in the business, including Microgaming and Playtech.
Ultimately, infrastructure is the foundation for any igaming business and it is vital to have the right set-up in place. As regulation continues to roll out worldwide, this will only become more important.
Of course, the challenges regulated infrastructure presents will remain and only by working with an established, trusted and respected provider such as Continent 8 can businesses hit the mark and ensure compliance at all times.
