Pre-Regulated vs Regulated Market Opportunities

Some of the biggest audiences and most prolific gamblers reside in pre-regulated markets (“grey” markets). These markets can be defined as jurisdictions where online gambling is not explicitly regulated or prohibited. They are very different and should not be confused with black markets, which involve illegal activities.

Although there are many restrictions on marketing and advertising in pre-regulated markets, the opportunities far outweigh the challenges

Regulated markets can often carry more risk. Sudden regulatory changes can transform a profitable business into an unprofitable one overnight. For instance, restrictions on payment methods in countries like Australia and the UK, tax increases in Kenya and Ghana, and high taxation models like the 51% tax in New York which other states are looking to replicate, as well as limitations on shirt sponsorship in the English Premier League and bans on in-play online betting, exemplify how over-regulation stifles business operations.

Over-regulation curtails player freedom, which is one of the reasons behind the surge in offshore sites that offer amongst other things, the flexibility to use cryptocurrencies.

Moreover, the ethical and professional standards in regulated markets do not necessarily translate to better practices, as evidenced by the numerous fines imposed on major operators for various infractions (see some example below). These fines are often minimal and fail to serve as effective deterrents.

So, given the choice of where and how to operate, where to be most successful, and where to capitalise on future growth, revenue, and opportunity, the pre-regulated markets win hands down.

https://www.gamblingcommission.gov.uk/news/article/gbp9-4m-fine-for-online-operator-888

https://www.gamblingcommission.gov.uk/news/article/bet365-to-pay-gbp582-120-for-regulatory-failures

https://www.gamblingcommission.gov.uk/news/article/betway-faces-gbp400-000-fine-for-marketing-on-childrens-webpages

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