Leading executives from the gambling industry discussed the challenges of scaling regulated businesses amidst competition from black market operators during a panel discussion at ICE on 21 January.
The session, titled “The CEO Dilemma”, brought together prominent figures such as GeoComply co-founder David Briggs, Entain CEO Gavin Isaacs, Evoke CEO Per Widerström, and Snaitech CEO Fabio Schiavolin. The panel explored the difficulties of innovating and growing within a strictly regulated market while competing with unregulated operators that often move faster and avoid regulatory obligations.
“All three of us would dream to be in the unregulated market just for a day,” Schiavolin quipped, highlighting the competitive edge enjoyed by black market platforms.
Innovation and Regulation
Isaacs, who took over as CEO of Entain in September, noted that the distinction between regulated and unregulated markets has become increasingly blurred. “When I started, there were very clear black and white lines, but there’s much more grey now,” he said. Legal operators, he added, face significant sacrifices to comply with regulations, a commitment that sometimes feels “unfair” when unregulated competitors bypass such requirements.
The discussion also touched on the role of innovation and protecting intellectual property in an environment where offshore platforms often imitate regulated products. Isaacs emphasised that while creating innovative solutions isn’t the main challenge, the time it takes to bring them to market often is.
Briggs suggested potential tools such as artificial intelligence (AI) and cryptocurrencies to address these challenges. Widerström acknowledged the benefits of AI but highlighted the significant costs associated with adopting the technology. He added that off-the-shelf AI services can help reduce these expenses.
Cryptocurrencies, on the other hand, remain inaccessible for many regulated operators due to their decentralised and anonymous nature, which conflicts with regulatory frameworks like Know Your Customer (KYC) requirements. Isaacs pointed out that this limitation drives younger consumers towards black market platforms that embrace crypto payments.
Consumer Behaviour and Market Protection
A key topic of the panel was whether consumers value the protections offered by regulated markets. Despite the emphasis on harm minimisation and consumer safeguards, the panelists agreed that many players may not prioritise these benefits.
“The consumers don’t care (about harm minimisation) as much as the rest of the stakeholders do,” Isaacs observed. He questioned whether players place significant importance on the tighter monitoring and fewer options available in regulated markets, compared to the often broader offerings of black market operators.
As black market platforms continue to attract consumers with fewer restrictions and greater payment flexibility, the panelists called for further innovation and collaboration within the regulated industry to stay competitive. Adopting emerging technologies while maintaining a strong regulatory framework will remain a central challenge for these companies in the coming years.
