Compliance Updates
Understanding the World of Sports Betting Licences
In the exhilarating world of sports betting, where fortunes can change with the swing of a ball, trust and legitimacy are paramount. This is where the concept of a betting licence comes into play. A betting licence serves as the proverbial badge of honour for sports betting companies, assuring both customers and regulatory authorities of their authenticity and commitment to fair play.
Issued by a gambling committee, a betting licence is a tangible proof of a sportsbook’s legitimacy and adherence to stringent regulations. It is more than just a piece of paper; it’s a commitment to ethics, integrity and customer protection. In this article, KT Group (https:// kioskterminals .com) delves into the intricacies of betting licences, exploring their significance, history and how they vary on opposite sides of the Atlantic.
Getting to grips with United States sports betting licences
Most states that have opened their doors to sports betting have adopted a hierarchical licensing structure. This framework imposes licensing requirements on sportsbook operators as well as on the companies that offer goods and services to these operators. This dual-tiered approach often includes an ‘operator licence’ for sportsbook operators along with either a ‘supplier licence’ or a ‘vendor registration’ for the companies in the sports betting ecosystem.
The reach of these vendor and supplier licensing requirements is extensive, casting a wide net that in some states encompasses virtually any business entity that engages with a licensed sportsbook operator. The extent of this reach is exemplified by the fact that in certain states even law firms and advertising/media agencies providing services to sportsbook operators must obtain licences.
Adding another layer of complexity, some states have divided the vendor and supplier licences into distinct categories: a higher-level ‘supplier’ (or ‘vendor major’) licence for providers whose services directly impact sportsbook operations and a lower-level ‘vendor registration’ licence for those whose services have a less direct impact. Providers navigating these regulations often find themselves grappling with the task of categorising their services and determining the appropriate licence, which can be particularly challenging in the absence of clear-cut guidelines.
To further complicate matters, licensing rules in many states incorporate ‘catch-all’ provisions, granting regulators the discretion to determine on a case-by-case basis how a specific provider should be licensed. This discretion adds an element of unpredictability, making it essential for businesses to engage with regulatory authorities and legal counsel to navigate the complex terrain of sports betting licences in the United States.
The state of play
An increasing number of states recognise the potential revenue and entertainment value it offers. Some of the early adopters include Delaware and New Jersey, both of which legalised sports betting in 2018. These states paved the way for others to follow suit, showcasing the feasibility and benefits of a regulated sports betting industry.
Building on the foundation laid by the early adopters, several states further expanded their sports betting offerings in 2020 and 2021. Colorado and Montana joined the ranks of legalised sports betting in 2020 followed by Arizona, Connecticut, Louisiana, Nebraska, North Dakota and Virginia in 2021. These states embraced both retail and mobile betting, demonstrating a growing acceptance of sports wagering as a legitimate form of entertainment and a potential source of revenue.
The momentum has continued in 2022 and 2023 as Kansas welcomed online sports betting. Vermont, while having legalised sports betting, is expected to launch online platforms in late-2023 or early-2024. States such as Massachusetts and Ohio also entered the fray, showcasing the industry’s dynamic growth.
While some states have firmly established their presence in the sports betting and lottery arena, others are still in the midst of legislative deliberations or have proposed bills in the works. States like Florida, Georgia, Minnesota, Missouri, North Dakota, South Carolina and Texas are actively considering the legalisation of sports betting. These states are evaluating the potential benefits and regulatory frameworks that would best suit their unique circumstances.
On the opposite side, there are states where sports betting remains off the table. States like Alabama, Alaska, California, Hawaii, Idaho and Utah have either opted against legalisation or are yet to fully embrace the industry. While some may cite moral or regulatory concerns, others may be waiting to observe the experiences of their neighbours before making a decision.
With each passing year, the map of sports betting legalisation in the United States continues to evolve, offering a fascinating glimpse into the intersection of entertainment, revenue generation and regulatory complexity.
Europe and beyond
Europe stands as a prominent sports betting player with a tapestry of regulations and licensing authorities. At the forefront of European sports betting regulation is the United Kingdom, a jurisdiction renowned for its robust regulatory framework.
The United Kingdom’s gambling laws, including the Gambling Act 2005 and the Gambling Bill 2014, meticulously govern the industry. These laws, which have seen amendments over the years to keep pace with the evolving betting landscape, serve as the backbone of the United Kingdom’s gambling regulation.
Enforcing these laws with a vigilant eye is the United Kingdom’s Gambling Commission. This regulatory authority is celebrated for its unwavering commitment to strict oversight, making it a trusted name in the world of betting licences. The Gambling Commission ensures that operators adhere to stringent guidelines, promoting a fair and safe betting environment for all participants.
Moreover, the Gambling Commission provides a platform for customer recourse. Individuals with complaints about betting operators can register their grievances with the Gambling Commission that, in turn, can facilitate dispute resolution through alternative dispute resolution providers.
Beyond the shores of the United Kingdom, there is an array of betting jurisdictions, each with its own set of regulations and licensing bodies. Some of the prominent licensing authorities include the Malta Gaming Authority (MGA), the Kahnawake Gaming Commission and Curacao.
It’s important to note, however, that these regulatory bodies do not mediate disputes between players and operators, protect deposited funds or provide legal advice. Their primary focus is on establishing a framework that encourages responsible gambling and ensures that operators comply with the rules.
These regulatory bodies play a pivotal role in issuing licences, regulating sports betting companies and overseeing their operations. They share a common goal: ensuring the fairness of games, safeguarding vulnerable individuals and maintaining the industry’s integrity.
The Chief Executive Officer for KT Group, Kenneth Larsen, commented on the importance of understanding sports betting licences: “Understanding sports betting is crucial in today’s dynamic landscape, where it signifies an appreciation for the intricate web of regulations, economic impact and evolving fan engagement.
“As more regions embrace and regulate sports betting, it becomes essential for individuals, businesses and policymakers to grasp its intricacies. Sports betting transcends mere entertainment, influencing various industries and shaping how we engage with sports. Therefore, comprehending sports betting is not just an option; it’s a necessity for navigating this evolving landscape effectively.”
The Michigan Gaming Control Board (MGCB) has issued a cease-and-desist order to BetUS, an offshore gambling operator, for illegally offering internet gaming and sports betting to Michigan residents without proper licensure.
Investigations by the MGCB revealed that BetUS was accepting wagers from Michigan residents on various gambling activities, including sports and casino-style games, without the necessary state authorization. This operation violates Michigan’s Lawful Internet Gaming Act, the Gaming Control and Revenue Act, and the Michigan Penal Code.
“Unlicensed operators like BetUS undermine the integrity of Michigan’s regulated gaming market and expose consumers to potential risks. The MGCB is committed to protecting Michigan residents by ensuring that all gambling activities are conducted legally and responsibly,” said Henry Williams, Executive Director of MGCB.
The cease-and-desist order mandates that BetUS immediately halt all operations involving Michigan residents. The company has 14 days to comply or face further legal action in coordination with the Michigan Department of Attorney General.
The post MGCB Issues Cease-and-Desist Order to BetUS appeared first on Gaming and Gambling Industry in the Americas.
Your recent AML Outlook report highlights over €36 million in fines issued across Europe in just one year. What recurring weaknesses or compliance gaps are regulators most commonly identifying in payments and e-money firms?
John Gidla (JG): Regulators continue to flag underinvestment in anti-financial crime controls as a key concern for payments and e-money firms. Common themes include weak governance, limited oversight, and fragmented controls, all of which increase vulnerability to financial crime. There’s a growing expectation that firms scale their compliance frameworks in line with their risk exposure and growth trajectory
The report mentions that AML compliance can be costly—yet the reputational and financial risks of non-compliance are even greater. What are the most cost-effective measures firms can implement today to strengthen their AML frameworks without overwhelming their budgets?
JG: While not all firms can afford advanced compliance tools, strong governance remains one of the most cost-effective ways to reduce risk. Practical steps such as training staff on emerging threats, embedding a culture of accountability, and regularly updating frameworks as the business grows can go a long way in strengthening AML resilience without major spend.
With the creation of the EU’s new AMLA authority, do you expect a more consistent and centralized enforcement approach across Europe? How might this change how firms prepare for inspections and adapt their compliance strategies?
JG: AMLA has the potential to bring greater consistency to AML enforcement across the EU, addressing long-standing issues caused by fragmented supervision and uneven implementation by national authorities. Its impact will depend on how much direct oversight it gains, how assertively it acts on cross-border risks, and whether it can close the regulatory gaps that have permitted high-profile scandals. Firms should expect more rigorous and standardised inspections and will need to ensure their compliance programmes are not only locally robust, but scalable across jurisdictions.
Vixio emphasizes the importance of a proactive rather than reactive compliance culture. In your view, what does a ‘proactive’ AML strategy look like in 2025, and what technologies or best practices are leading firms adopting to stay ahead?
JG: A truly proactive AML strategy in 2025 extends beyond technology to encompass a strong compliance culture at every level of the organisation. Leading firms understand that combating financial crime isn’t just the responsibility of the compliance team — it’s integrated into day-to-day operations, with senior leadership driving risk awareness across departments. In terms of technology, firms are increasingly adopting AI, machine learning, and automated monitoring systems to detect suspicious activity early and reduce human error. However, culture plays a critical role; firms that foster a compliance-first mindset and invest in ongoing staff training are better positioned to adapt to emerging threats and ensure that their compliance frameworks evolve in step with business growth and digital transformation. A proactive approach also means constantly reassessing risk and using data to predict and prevent issues, rather than just reacting to them. With regulations in constant flux, and regulators ramping up enforcement, proactive compliance looks like implementing strategies to anticipate regulations, not just react to them. In Vixio’s PC Outlook Report, we found that a clear majority of firms surveyed are using some form of outsourcing for their compliance functionality, turning to firms like Vixio to get ahead of regulatory change.
Thanks to John Gidla, Head of Payments Compliance at Vixio, for his insightful responses.
The post Exclusive Commentary from Vixio On Their AML Outlook Findings appeared first on European Gaming Industry News.
Peru’s Ministry of Foreign Trade and Tourism (Mincetur) reported that, a little more than a year after having implemented the law that regulates the online sector, it has been able to reduce by 40% the offer of illegal games in digital platforms and applications.
In a public statement, the Executive portfolio in charge of regulating gambling also highlighted that, thanks to the inspection work, 15% of the illegal websites “have left the Peruvian market” and that “payment methods providers and financial entities have been contacted to block services to unauthorized operators”.
Based on this, Mincetur highlighted that “Peru has managed to position itself as a regional referent in the integral regulation of gambling” and that, through the normative framework, it was possible to “protect the consumer, guarantee transparency in the operations and promote the formal and sustainable economic development”.
The Ministry highlighted that with the implementation of Law No 31557, which regulates sports betting and online games, “the country became the third country in Latin America to establish clear regulations for this activity”.
“Since its entry into force in February 2024, 60 technological platforms have been authorized and 280 linked service providers have been registered, as well as the accreditation of nine international certification laboratories,” Mincetur said.
In this regard, the Ministry stated that “this regulation has made it possible to formalize the digital sector, promoting an environment of trust for both operators and users.” At the same time, it has allowed “new investment opportunities, boosting the digitalization of entertainment and strengthening the country’s tax collection”.
The post Peru Reports 40% Drop in Illegal Online Gambling appeared first on Gaming and Gambling Industry in the Americas.
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