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Impact of COVID-19 on Virtual Gambling Sector: ConnectPay Calls to Fortify Payment Security as Industry Fraud on Rise

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Online gambling has increased during the pandemic. Evidently, so did the illegal activity related to the industry. Scammers are abusing the vulnerability of the circumstances, which is reflected by the rise in financial fraud and exploitation schemes. ConnectPay, an online banking service provider, encourages businesses, especially the ones considered to be higher-risk, to make the security of payment transactions their top priority in order to build trust with new and existing clients, and protect them from falling victim to fraudulent payments.

Illicit activity concerning monetary transactions has been a long-standing issue for the virtual gaming industry even prior to the pandemic, with financial crime estimated to be at $2.1 trillion per annum. That said, the COVID-19 crisis has brought new challenges as new fraud schemes started to plague various markets. This has influenced some countries, fearing an increase of illicit activity in online gambling, to issue tighter measures for the vendors to protect consumers during the lockdown.

“The increased online gambling sessions correlate with the noticeable jump in payment transactions”, explained Liutauras Varanavičius, Head of Business Development at ConnectPay. “When comparing data from January with the stats from April, we have noticed a 30% increase in gambling-related transactions. Even though it’s hard to predict how prolonged will the aftermath of the pandemic be, the necessity of instating more precautionary measures to support secure payments is too apparent to be left unaddressed.”

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The surge of online gambling activity has greatly increased the public’s exposure to digital risks. While others are capitalizing on the crisis, businesses have to face the conundrum on how to disassociate from the perpetrators, remain credible and retain their target audience.

“The spike in fraudulent financial activity could hit the sector even harder than others: it’s already under a magnifying glass due to the nature of acquired revenue, thus any association with financial fraud could be leveraged as a pretext to revoke acquired licenses and restrict business”, said L. Varanavičius.

As the global health crisis continues, the need for reliable security measures and prevention of illicit financial flows will only continue to grow. Implementing timely and adequately prepared safeguards to combat arising threats is paramount, as, until brick-and-mortar casinos are once again operational, gambling industry relies on digital-only vendors.

Preserving secure payment transactions could be the difference between remaining operational or having to close up shop. The pandemic has already hampered AML supervision and presented new threats that could aid criminals in avoiding customer due diligence. However, having acknowledged current obstacles enables businesses to evaluate measures that would help avoid being juxtaposed with illicit activity and choose partnerships accordingly.

To keep the scammers at bay, ConnectPay continuously invests in innovative fraud prevention solutions, latest AML safeguards and other smart tools, helping companies in underserved markets to maintain credibility and keep the associated risks to the bare minimum. Furthermore, the company places high emphasis on a thorough screening process: this prevents taking on clients involved in unethical business practices, limiting the grounds for financial fraud. In 2020, ConnectPay is planning to invest additional 750 thousand euros in Anti Money Laundering and Counter-Financing of Terrorism compliance solutions.

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Industry News

Americas Online Gambling Market To Soon Eclipse Europe’s, Finds Vixio Forecasts

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  • Vixio forecasts that regulated online GGR in North and Latin America will grow at a compound annual rate of 3 percent from US$22.3bn in 2023 to US$56.3bn by 2028, drawing level with regulated European market.

Vixio, a leading provider of regulatory intelligence solutions, ahead of SBC Americas forecasts that the regulated online gambling market in the Americas to be worth US$32.5bn by 2026, compared to US$15.6bn in 2022, more than doubling in size in a period of four years. This growth rate is more than double the equivalent in Europe, with the European regulated online gambling market projected to be worth €37.3bn in 2026, up from just under €30bn in 2022.

By 2028, regulated online gambling markets in the U.S., Canada and Latin American countries are expected to generate US$56.3bn, drawing level with Europe or potentially surpassing it depending on currency fluctuations.

“Prior to 2018, the regulated online gambling market was highly euro-centric but legalization of sports betting and iGaming in various U.S. states as well as the major markets of Ontario and Brazil has coincided with stricter regulations in European countries that has restricted growth in a number of cases,” said  James Kilsby, Chief Analyst, Vixio.

Vixio will be showcasing its data forecasting and regulatory intelligence solutions in more detail at the SBC Summit Americas 2026 at stand B175, with additional information in its Latin America Online Outlook report, available at vixio.com/research/latin-america-outlook-2025.

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Vixio forecasts that regulated online GGR in North and Latin America will grow at a compound annual rate of 20.3 percent from US$22.3bn in 2023 to US$56.3bn by 2028, drawing level with regulated European market.

Providing further insight into one of the most closely watched online gambling markets globally, Kilsby, Vixio’s award-winning analyst, will be speaking during a panel session titled “Brazil 2025: A Surge in Licensing and Lessons So Far.” James was recently recognized as a Silver Stevie® Award Winner for Thought Leader of the Year in the 2025 American Business Awards®. The panel will take place on Wednesday, May 14, at 11 a.m. in conference room four.

In addition, Vixio has been shortlisted for Compliance Solution of the Year at the 2025 SBC Awards, which will be announced on the second day of the conference.

Visit us at stand B175 at SBC Summit Americas to learn more about how Vixio can help your business navigate the regulatory challenges of the gaming industry.

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For more information, or to book a meeting with a Vixio representative at SBC Americas, visit vixio.com.

 

The post Americas Online Gambling Market To Soon Eclipse Europe’s, Finds Vixio Forecasts appeared first on European Gaming Industry News.

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CasinoWebScripts Enables Direct Provider Connections and Eliminates the Need for Aggregators

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CasinoWebScripts, a leading provider of iGaming software solutions, is drawing attention to a powerful infrastructure model already in use by several clients — one that enables direct integration between online casino operators and game content providers. As the industry evolves, the company is now actively promoting this approach as a smarter alternative to traditional aggregation.

In the conventional model, aggregators act as intermediaries between content providers and casino platforms. While convenient, this structure often limits operators’ control over technical and commercial aspects, introduces latency and adds additional costs. CasinoWebScripts’ model removes the need for an aggregator by enabling operators to connect directly to game providers using a simplified and consistent integration method.

“Our goal is to simplify the way operators work with game studios, regardless of the type of casino they operate — whether it’s real-money, crypto, or social sweepstakes. By providing the tools and infrastructure for direct connections, we empower both sides to negotiate directly, optimize performance, and reduce third-party dependencies,” said Oscar Stevens, Head of Business Development at CasinoWebScripts.

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Key Features of the Model Include:

• Direct Integration: Operators connect with game providers through a unified framework, without using an aggregator.

• Faster Load Times and Lower Latency: The streamlined architecture improves game performance and platform responsiveness.

• Independent Commercial Agreements: Operators and providers manage their own contracts, pricing and terms with full autonomy.

• Easy Expansion: The system supports the quick addition of new providers, with minimal integration overhead.

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• Technology-Only Role: CasinoWebScripts supplies the infrastructure but does not interfere in commercial relationships.

This infrastructure shift reflects growing demand from operators looking for more autonomy in their business models. It also addresses concerns about transparency and technical bottlenecks that often arise with aggregator-based systems.

“Our platform is designed to serve those who want to scale fast and retain control over their operations. With this model, operators no longer have to compromise on performance or commercial independence,” added Stevens.

The post CasinoWebScripts Enables Direct Provider Connections and Eliminates the Need for Aggregators appeared first on European Gaming Industry News.

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Compliance Updates

Exclusive Commentary from Vixio On Their AML Outlook Findings

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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

 

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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.

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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.

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The post Exclusive Commentary from Vixio On Their AML Outlook Findings appeared first on European Gaming Industry News.

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