Regulated market always sparring with unregulated, CEOs say
Successfully managing and scaling a regulated gambling enterprise presents distinct challenges, particularly in the face of unregulated competitors that operate without oversight. This critical issue was the focus of a distinguished panel of CEOs at the ICE Conference on January 21, aimed at exploring the complexities of the gambling landscape.
David Briggs, co-founder of GeoComply, led an illustrious panel featuring prominent figures from European online gambling, including Entain’s newly appointed CEO Gavin Isaacs, Evoke’s CEO Per Widerström, and Snaitech’s CEO Fabio Schiavolin. This gathering, aptly titled “The CEO Dilemma,” highlighted the increasingly intricate dynamics of product innovation and market expansion amidst the relentless pressure from black market operators.
During the discussion, the panelists shared not only their experiences but also a collective sense of exasperation regarding regulatory constraints. Schiavolin humorously lamented, “All three of us would dream to be in the unregulated market just for a day,” underscoring the allure of operating without regulatory limitations.
Isaacs, a seasoned executive whose career encompasses leadership roles at several major gambling organizations, noted the evolving landscape of the regulated versus unregulated markets. Since taking the helm at Entain in September, he has been confronted with the challenges of navigating emerging technologies and grey markets. “When I started, the lines were clearly defined; today, that distinction has become increasingly ambiguous,” he observed, adding that while legitimate operators face necessary sacrifices to comply with regulations, it can feel “unfair” to see others escape such responsibilities.
Innovation and Intellectual Property Protection
A central theme of the panel discussion revolved around the imperative of innovation while safeguarding intellectual property against the encroachment of offshore platforms. Isaacs articulated that while innovation itself may not pose the greatest challenge, the time-to-market aspect is critical. “It’s the urgency of bringing new products to market that’s the real issue,” he asserted.
Briggs proposed several technological solutions to augment innovation, highlighting the potential roles of artificial intelligence and cryptocurrencies in advancing operational capabilities. Widerström, who oversees prominent brands such as William Hill and 888, expressed optimism regarding AI but acknowledged its substantial financial implications. He emphasized that leveraging off-the-shelf solutions can streamline processes, noting, “You don’t have to reinvent the wheel.”
On the topic of cryptocurrencies, the panel reached a stark reality: none of the companies represented can legally accept these popular digital currencies. This limitation has led many younger consumers to gravitate toward black market platforms. Isaacs pointed out the inherent contradictions between the principles of regulated markets—such as rigorous Know Your Customer (KYC) checks—and the foundational elements of cryptocurrencies, which prioritize anonymity and decentralization.
Consumer Awareness and the Value of Regulation
As illicit gambling operations burgeon, legitimate operators must engage in proactive strategies to retain consumers within the regulated sphere. If the odds or offerings are not compelling, stakeholders must pivot to highlight other advantages—specifically, the robust framework of consumer protections and measures for harm minimization.
Yet, a pressing question emerges within the industry: do players truly value these regulatory safeguards? In a competitive market, where freedom of choice is a significant draw, it is challenging to sell the idea that increased oversight translates to fewer options.
Isaacs expressed skepticism about player priorities, stating, “Consumers often appear indifferent to harm minimization compared to other stakeholders.” This sentiment raises critical considerations for regulated operators striving to differentiate themselves in a rapidly evolving landscape.
In conclusion, the discussion among these industry leaders underscores the pressing need for regulated operators to innovate effectively while addressing the allure of the unregulated market. As the gambling industry continues to navigate these challenges, a focus on strategic differentiation, technology adoption, and consumer advocacy will be essential for sustainable growth and success.
