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Regtech solutions are not only for the financial industry

Friday 29 June 2018


Regtech


Though much emphasis has been placed on RegTech’s role in helping the finance industry, RegTech can be a boon to the compliance systems of any industry.

One area where a lot of opportunities exist for RegTech solutions, according to Ladbrokes’ Patrick Brown, is in the online gaming space.

Last year, Tabcorp was fined $45 million for failing to meet its compliance obligations—an indication that the need for compliance solutions is a perennial one and not just confined to financial institutions.

“We hear a lot about fintech and RegTech, and it tends to focus on the financial services industry, but there are a lot of similarities between the financial industry and the online gaming industry,” said Brown.

The gaming industry, like the finance industry, is beholden to anti-money laundering obligations, privacy obligations, electronic payments’ systems, accounts-based operations and so forth; thus, there is plenty of opportunity for RegTechs to approach online gaming businesses, as well as retail gaming businesses.

In addition, there are opportunities for collaboration, with RegTech able to provide solutions to issues such as limitations on the amount of information that could be shared amongst competitors.

“I think an independent organisation, such as a RegTech, can provide a solution that all operators can use, independent of each other, and that solution can be in the area of responsible gambling,” Brown explained. “The gaming industry is also obliged to ensure their customers are spending within their means.”

However, Brown believes there is an additional opportunity for the technology to help businesses protect their customers more effectively.

Finally, RegTech can help businesses meet conflicting regulations at the Federal and state levels.