Gaming Licences: The key to thriving in our industry

Diverse product offerings, customer support, responsible gaming practices, financial security, and a robust technical infrastructure are only some facets of what makes an online gaming operator successful. However, the most critical factor in building a reputable and sustainable presence that captures, maintains, and grows player trust is ensuring that the operator is fully licensed accordingly in the relevant jurisdiction. Being licensed not only signifies full compliance with the stringent regulations of various gaming market jurisdictions but also provides a guarantee that players are better protected.??

Gaming licences are legal permits giving a company the right to operate a gaming business in a particular territory or jurisdiction. These licences are given to organisations intent on setting up a gaming business, be it land-based or online, and also covers the provision of the products and services such companies would provide. Licences often come with substantial fees and taxes, as well as certain obligations making some more exclusive than others.??

We spoke with Betsson Operations’ General Counsel, Dr Corinne Valletta, to get more details on the entire process:?

What makes some licences more difficult to get and maintain than others? Why? What makes them worth the resources and time??

So many factors. All regulations are drafted differently, based on different regulatory approaches which are set by governments. You could have an open licensing framework whereby you simply have to comply with a set of requirements and if you do, you're in; you could have a tendering process, which is a competitive evaluation where a limited number of operators will obtain a licence. There are other tendering processes such as Italy's which are open in the sense that anyone that successfully fulfils the conditions set out, can obtain the licence, but there is a limited period when you can apply for that tender, and once the time runs out, you will not be able to enter the market until a new tendering process is launched.?You have to keep in mind also that behind every regulation is a regulator that has its agenda set by the government and cannot but apply the law set out, but that regulator is also made up of humans, who posit their own interpretations and expectations.??

Local taxes and licence fees are the first obvious cost but it's also the cost of having the teams in place to make sure the product and operation are compliant with the requirements, the certifications needed are in place, appropriate monitoring and reporting mechanisms are available. In a nutshell, regulation has become ever so complex and costly but to be in the business nowadays, in a sustainable way, especially when you are part of a publicly listed group like Betsson is, it is not really a choice, but a must. This is why it is important to consider all the 'costs' of regulation before entering a market in order to be sure that it is reasonable to expect that a market can still be profitable after all the costs and efforts involved have been considered.??

What would you consider operational excellence or best practices (in relation to our core values) in terms of how we apply for these licences??

The sight of people from different parts of the organisation, with different expertise to contribute, be it tech or finance or business planning or legal requirements and their interpretation, coming together to 'solve an application' and then design and sell a product, gets me every time. And it comes together best when there is a solid plan, a project planning team that is well organised and coordinated with the rest of the organisation, identifying the potential issues at an early stage to try to address them as quickly as possible, liaising among the different teams especially when there are disagreements, which can happen considering different teams’ specific concerns. But good project management reminds the teams of the bigger picture, raising issues only when they become serious obstacles, and putting out the small fires in the normal course of the day. This makes the system efficient and generally very exciting and successful.??

Applying for and obtaining a licence is one thing, but what happens afterwards? How do we work to make sure we retain our ownership of them??

Retaining a licence is all about what compliance is - having full control and management of the product that is being offered; how the customers are being dealt with; our reporting obligations; the processes we are applying to onboard customers; and ensuring we have their correct information and storing their data correctly. Regulators in the gaming industry have matured immensely in recent years which means that standards of regulation have increased, even reaching levels of the regulation of banks and financial service providers. This means that policies, procedures, and risk assessments must be impeccable - compliant, up to date, practically applied and monitored constantly. Furthermore, while the management of the processes falls within the compliance department’s remit, the task of remaining compliant should involve the entire organisation.??

What do you think was one of Betsson’s best licensing decisions within the last 5 years??

Our entry into South America in recent years has been quite exciting. But it’s hard to single out just one market, as every new licence has allowed us to enter locally regulated markets, presenting both opportunities and challenges. Each licence has offered valuable experience, helping us navigate regulatory complexities and improve our ability to deliver high-quality products and services. By strategically selecting the right licences, we’ve expanded our presence, made key partnerships, and continued to exceed customer expectations, driving our growth in an increasingly competitive industry.?

Are there any licensing processes currently planned – anything we’re working on at the moment??

Two big processes are currently in the mix. With one, Peru, we are in the final phase, where all licences we desired have been received and we are in the stage now of migrating the business to the new licence and tweaking the operations, making sure we are delivering a product which is competitive but compliant.??

There is also Brazil, where new online gaming regulation will come into force in 2025 and Betsson has submitted its licence application. Meanwhile our Product Dev teams are working on preparing the product for certification and eventually launch.???

Over the next few months, we also expect the Italy tender for the next licensing period to be published.??

Find more details about our gaming licences at www.betssonab.com.