TL; DR: The iGaming sector lacks a universal solution to the varying international regulations it faces. Developers must understand and continually monitor the specific regulatory requirements of each country they operate in. Once legal hurdles are overcome, cultural awareness becomes crucial for sustaining success. 

Regulatory compliance is one of the most prominent challenges iGaming studios face when expanding internationally. Let’s see what it looks like for different markets, and how the iGaming expansion in countries worldwide raises the bar for what studios and providers must understand.   

Globally, major nations are increasingly recognizing iGaming as a legitimate and lucrative source of income. Let’s take a closer look at how this momentum is distributed among the most populous international markets: 

• Europe. According to AWISEE, the European Online Gambling Market size is estimated at USD $46 billion in 2024. Despite this incredible number, expanding into the EU is tricky for a non-European provider: each country has unique laws. A word from our Chief Innovation Officer, Eoghan ODonnell:

• NORAM. Only seven USA states have legalized iGaming: New Jersey, Delaware, West Virginia, Pennsylvania, Michigan, Connecticut, and Rhode Island. Also, there has been a new proposal from the chairman of the Senate Committee on Racing, Gaming and Wagering, to add New York to the list, and the prognoses for the fate of the industry in the US are very optimistic. The iGaming revenue of $12 billion in 2023 is likely to get overshadowed by 2024’s more than 15 billion dollars.
  

• APAC. Asian countries are experiencing a huge iGaming boom, with the online gaming market expected to reach US$13 billion by 2025. China makes up 32% of the market, despite its strict anti-online gaming laws. Philippines have successfully legalized iGaming, and Thailand might be the next in line. Markets such as Japan and India are exploring regulation of online gambling, although progress varies. 

• LATAM. Mexico is currently the Latin American iGaming capital, with Brazil coming in second, even though its regulations are still developing. Free-to-play games and iGaming mobile apps are especially popular. The growth is not as rapid as it is in the States or the countries of Asia, but it’s steady: 3.6 billion U.S. dollars in 2023, up from 2.23 billion in 2018. The most prominent players are Brazil, Mexico, Peru, Argentina, Colombia, and Chile, with Brazil and Colombia also leading the charge when it comes to proactive legislation. 

• Africa. Certain countries in Africa are starting to regulate online gambling, with South Africa as a notable example. The total revenue from iGaming is projected to reach US$1.85 billion in 2024. 

The markets currently showing the most growth and potential are Brazil, India, and Bulgaria: For Brazil, iGaming expansion could provide a much-needed revenue stream that will help the country get back on track after its pandemic-induced economic crisis. Indian young adults show a lot of interest in mobile gaming in general, consistently holding the title of most app downloads per country in a single year. Despite its much smaller population, Bulgaria yearly grows its sports betting sector by 20%, and online casinos by 30.  

The entire continent of Africa holds a lot of promise, if iGaming providers are willing to do the work. Evenbet Gaming mentioned the failure of many European iGaming companies to get a foothold in African countries, largely due to the lack of cultural understanding and their attempts to measure the continent with research templates and scenarios tailored to the European standards. The outdated perception of Africa as a monolith also played a big role. Approaching it as a highly diverse constellation of countries, each of which has its local affiliates that differ between each other and can look very new to the western eye, requires a bigger investment in terms of research and money, but also looks like the most reasonable plan.  

International iGaming regulations are by no means static, so having your finger on the pulse of these changes will be crucial in ensuring your company’s global success. 

For example, Curacao’s iGaming value is three billion euro, attracting numerous investors and providing opportunities for growth. However, the island has recently passed a new bill to re-position its iGaming regulations. Today, Curacao licenses are absolutely unique, requiring iGaming providers to either scrupulously study the law or hire third parties to help them do business legally on this island.  

To better prepare for what lies ahead, Pawel Storz, the chief executive officer of Quantum Gaming System advises to brace for the following regulatory trends: 

• Global Harmonization of iGaming Regulations. A global push for common standards across different jurisdictions might be on the horizon. The question is: what will this universal standard look like, and which markets will throw their hats in? You may encounter less competition targeting countries on the fringe or streamline your expansion by focusing on those that will eventually align.  

• Advancements in Encryption and Data Protection. The providers with the most sophisticated cybersecurity measures will win the most trust from their users. Quantum encryption is currently at the forefront of development. 

• Integration of Biometric Verification. We will likely see more iGaming providers using fingerprint scanning, facial recognition, and voice authentication. The perk – 100% unique user information, but beware: lackluster security measures on the provider’s side will put users at the risk of a personal data leak that is far more unique than a regular password. 

While the iGaming world holds its breath in anticipation of a unified set of rules to span across multiple countries, providers focused on the present must commit to tricky legislation navigation, but even that does not guarantee success.  

To truly make yourself at home in a new country, do your research on the types of advertisements that succeed there, the devices that are popular among users, and the genres that resonate, or run the risk of becoming yet another iGaming company that failed to expand abroad due to lack of research.  

Innovecs Games has been outsourcing iGaming development services for over a decade. While we do not offer certification services to our clients, we can develop your game in accordance with the provided requirements. Reach out to us if you have anything to ask or to add.