Online Gambling

This case study applies to many of our clients in the payments space. The online gambling industry is currently being subjected to major change and it is understanding the changes that are driven, in our opinion, by taxation that will differentiate PSP’s and operators. The online gambling industry itself is growing so quickly it is difficult to keep a pace at the best of times but to give some context it is important to understand the monumental changes that are being imposed on the industry today.

Technology and stricter licensing requirements have been the key drivers to eradicate money laundering and a small criminal element to an industry that provides entertainment to countless punters demographically across the globe. The question that must concern all payments companies and operators alike is where can I operate with the correct license in order that I am compliant with local regulation including its fiduciary requirements and legitimately.

The challenge will be for operators and PSP’s to understand the myriad of rules regulating gambling as almost every country has its own version. The attitude toward local and foreign operators differs fundamentally from country to country which is even more bizarre across the EU as foreign gambling sites should be subject to the requirements of EU law and standard in a single market? Much the same as fiscal policy…….a complete farce. Contrary to the requirements of EU law countries within the EU apply their own version of regulation forcing operators to obtain a local gaming license and pay taxes to the local treasury, examples include France, Germany, Italy etc.

Quadropay understand from the schemes (visa Mastercard)  that basically if an operator has obtained only a ‘pass-portable’ license from Malta, Curacao, Isle of Man, Alderney, Gibraltar, Belize as many online gambling merchants have and the primary payment method offered to your customers is a Visa or Mastercard  card-load, according to our acquiring partners these transactions will be blocked. This is a major issue! In order to simplify the regulation globally Quadropay have divided all countries into 4 groups:

        i.           Countries where foreign online casinos are not blocked

      ii.           Countries where gambling websites must be licensed by the local regulator

     iii.           Countries where local gambling websites require a license and foreign online casinos do not

    iv.           Countries that have no restrictions for gambling sites

Quadropay has analysed the marketplace and has the ability not only to guide operators through the labyrinth of regulation, it offer solutions in Alternative Payment Methods to aid operators to continue to trade. Contact us!