Among the most important things for iGaming investors to consider is how political changes impact start-ups.
Our industry is fast-moving and sensitive to regulatory shifts. Understanding the nuances of how administrations approach regulation can be the difference between capitalising on a boom, or getting caught off guard.
US Deregulation – A Winning Hand?
The new US administration has already seen more than seventy executive orders signed so far, bringing with them a new political and regulatory landscape. One such order titled ‘Unleashing Prosperity Through Deregulation’ is specifically aimed at reducing rules that impede innovation and economic progress.
Its goal is to deregulate the US economy, making it easier and cheaper for businesses and individuals to operate. Could this be a sign of things to come for iGaming?
A government that permits fewer market constraints inevitably reaps the rewards through new enterprise and better consumer protections. This represents a significant opportunity to back businesses with the ability to scale quickly and tap into new consumer bases.
President Trump’s previous tenure oversaw the repeal of the federal ban on sports betting, back in 2018. Since then, the US market has flourished, with sports betting now legal in thirty states, and online casino also making a debut in Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, and West Virginia.
Further bills are set to be tabled this year, offering the promise of new markets and wider customer bases.
The Middle East – A New Deal for Casinos?
Amidst Trump’s controversial claims for ambitions of development and casinos in the Middle East, could the wider region be set to follow in the footsteps of the United Arab Emirates?
The tourist hotspot has granted a commercial licence to Wynn Casino, with MGM tipped to follow suit in neighbouring Abu Dhabi, attracting multi-billion dollar investment from big-name brands.
Meanwhile, SiGMA News recently reported that casino interest has risen by a third in the UAE, with further licences granted.
Brazil and Beyond: LATM’s iGaming Gold Rush
Latin America is a populous region that has welcomed the economic advantages of online betting businesses. Countries such as Colombia, Brazil, Mexico, Peru and Argentina have moved to regulate online gambling.
The continent is comprised of over 34 countries and union territories, with a combined GDP of $5.5tn (€5.28tn)
Seizing first-mover status in new markets can build valuable brand awareness and secure new players. Latin America remains a complex but dynamic area of valuable growth opportunities for those iGaming businesses which stake their commercial bets effectively.
Risk vs. Reward – Navigating Uncertainty
On the flip side, opportunity also comes with risk. While more permissive policies create fertile ground for growth, they can lead to uncertainty.
In the US, as states began to regulate sports betting and online gaming at their own pace, the federal legal landscape has become more fragmented. Cultural and economic factors must also be considered, while maintaining a focus on innovation and market competition.
For entrepreneurs and investors, navigating these risks requires careful consideration and expertise. Failing to comply with state-specific laws could mean significant legal and financial consequences.
As we’ve seen in other regions, including Europe, and the United Kingdom, restrictions can also tighten. New regulations may import additional costs, higher taxation and potentially operational disruption.
Successful iGaming companies must look to adopt more flexible business models for smooth operations across multiple markets with diverse regulatory environments.
Working with an expert partner who can help to navigate these hurdles and supply the right funding will offer the strongest chances of sustainable growth that withstands regulatory headwinds.
