The evolution of technology and iGaming mechanics has placed a significant emphasis on the importance of robust regulation of the gambling industry.
That was a key message during this week’s SBC Summit Canada, as leaders from across the iGaming industry dived into how advancements in technology could accelerate the iGaming industry’s growth and development, while acknowledging that it also has the potential to cause regulatory headaches.
Speaking at the conference, Mike Randall, RG Expert at Gaming Lab, warned: “In the hands of good actors, technology can be a great thing, and we can use it for the powers of good. In the hands of bad actors, the same technology can be a very bad thing.”
Making reference to the rapid growth of artificial intelligence technology, particularly across the iGaming industry, he noted that personalisation does have its benefits – but it also has the potential to cause significant damage, should it fall into the wrong hands.
“If I’m a problem gambler and I’m not working with a regulated operator, they’re not going to use that to send me messages to slow down, take a break. They’re going to say “can we send you a jet so that you can come and gamble more?’”
He outlined that technology is going to force the industry to shift the way it looks at regulation and frameworks are going to be forced to evolve with technology.
Karl Rempel, Senior Manager for Technology Regulation and Compliance at the Alcohol and Gaming Commission of Ontario (AGCO), disagreed somewhat, revealing that “personalisation in and of itself is not actually harmful”, it is the intention and way in which it is used to deliver experiences to players.
However, for Lorelle Muller Lumsden, Vice-President PlaySmart Centres at Responsible Gambling Council, it is always the player that is impacted by personalisation first, regardless of the frameworks and mechanics that are in place.
She stated her belief that the player sight line should be enhanced first and foremost – calling for an increase in the ‘opportunity for awareness, education, transparency and visibility’, bolstering player awareness about the iGaming products that are available to them.
Rempel continued that it is largely the approach that has been taken across Ontario since the market regulated iGaming, with the aim of embracing a wide spectrum of mechanics and bringing them into the regulated market, whilst also ensuring players aren’t at all deceived about what they are playing.
Picking out the “perceived persistence” mechanic, Rempel stated that after conversations with operators, they agreed to ensure there was “a disclaimer on the screen, not buried in the health rules that 90% of players never look at and aren’t even aware are there”.
Complementing the growth of the industry is clearly a path that is seen as one to thwarting the black market and maximising channelisation rates in Canada.
Randall warned that people are not going to stop gambling, they’re just going to shift to a marketplace where technology is in the wrong hands, as he emphasised “the biggest issue for those suffering from problem gambling today is the unregulated market.”
He outlined that Canadian iGaming is at “a defining moment in Canada where we could go one way or the other, and we can support a regulated system growing and supporting Canadians through regulation, or we could say gambling is bad, we’re going to try to silence all of it as much as possible.”
When it comes to player safety, Randall acknowledged that the operators have enormous responsibility, but added that the buck doesn’t stop there and the regulator also plays a key part, as well as financial institutions.
There is a clear challenge in ensuring that players are retained on the regulated market and don’t drift onto unlicensed operators, but Canadian regulation is complementary of this fight, unlike many more mature markets in Europe and Latin America.
Dr Alyssa Wilson, Associate Professor, California State University, underpinned that operators have to figure out “How can they then incentivise their players to stay and not go to the unregulated markets?”, something that she believes they have the resources to do.
Furthermore, Randall warned that those most at risk of black market exploitation are a younger generation, as he also put an emphasis on parents to boost education around gambling risks, warning that it is “where young men, in particular, are going.”
But Randall issued calls for the regulation to be adaptive and move with the technology and oversight.
He stated: “If we have no regulation and there’s no safety net and there’s no one with eyeballs on it going, wait a minute, no, that’s not what we intended, then we’re in trouble.”
