Shifting sands: Asia's iGaming map with Keith McDonnell??
As Asia continues to gain momentum in the global iGaming arena, the regions regulatory landscape is evolving at different paces. While some jurisdictions have embraced legal frameworks to govern online gambling activities, others remain cautious or outright restrictive. This patchwork of policies presents both challenges and opportunities for operators seeking to navigate the dynamic environment of digital betting and gaming in Asia.
Driving the sector’s momentum are advances in mobile access, digital payments, and gaming platforms coupled with a growing appetite for online betting and 바카라 content. Among Asian markets, the Philippines has emerged as a leader in regulatory development, while countries like Thailand, Japan, and India explore their pathways to legalisation and oversight.
In this exclusive interview with SiGMA World, Keith McDonnell, Director of the KMI Group, reflects on more than 15 years of hands-on experience in Asia’s iGaming sector. He shares his views on the regulatory shifts across Asia, the role of partnerships, and what Western operators often get wrong when entering the region.
SiGMA World: Looking back over the past decade, how would you describe the regulatory trajectory of iGaming markets in Asia? Are we seeing more openness or more crackdowns???
Keith McDonnell: The only country we’ve seen genuine movement, particularly in the online sector, is the Philippines. During this time, we’ve seen moves from The Cagayan Economic Zone Authority (CEZA) to Philippine Offshore Gaming Operator (POGO) licences granted by the regulatory body PAGCOR [Philippine Amusement and Gaming Corporation]. Over the last 6-9 months, PAGCOR, under the direction of the Marcos government, has banned POGOs in an attempt to clean up some of the related businesses POGO licence holders were engaging in. To avoid mass redundancies and ensure decades of local talent, knowledge and expertise are not wasted. PAGCOR now focuses on Philippines Inland Gaming Operator (PIGO) licences, allowing holders to target the local Filipino market. ??
Currently, there are 61 active licences, yet further due diligence on these businesses will likely reduce that number. Options to enter still exist, which is attractive to companies previously put off by the unregulated nature of the market. Now, the Philippines offers a legitimate opportunity for expansion, cost-cutting, and a tangible foothold in the surrounding Southeast Asia as regulations evolve across the region. ??
There have been many rumours for a long time about other countries opening up to regulation, but barriers, whether religious, policy or public resistance, have halted real progress. Now that the Philippines has taken the regulated route, it provides a more effective blueprint for how others can follow and open up legitimate revenue streams and jobs.
The grey market still exists, of course, and China, in particular, has cracked down heavily on payment solutions and other operational requirements, thereby driving operators to look further afield in Asia and beyond.
SiGMA World: Thailand and Japan have both made headlines recently for their moves around 바카라 or betting regulation. What developments in these countries should the industry be watching most closely???
McDonnell:?There is certainly momentum behind developments in Thailand, with moves towards a brick’ n’ mortar and online landscape likely. The exact shape this takes is unknown, and further resistance is anticipated; however, it’s expected that a limited number of land-based and online licences will be issued to local families. It is then for the families to partner with operators who know what they’re doing to capitalise on the opportunity properly. ??
Japan has recently cracked down on payment solutions, particularly making it difficult for offshore operators to maintain existing business levels. While some forms of betting are already regulated, for example, horse racing, it is expected that it could be a number of years before a fully regulated online market is an option.
We know of many discussions going on in other countries in the region, including Vietnam. As is the way with many things in this part of the world, it’s critical that relationships are formed now to strike when given the green light.
SiGMA World: How does China’s stance on online gambling impact the evolution of regulation in neighbouring or culturally influenced markets like Vietnam, Cambodia, or the Philippines???
McDonnell:?China has come down hard on payments, making it very difficult to maintain existing business levels and certainly to grow. Operators have looked further afield into other regions, including Southeast Asia, India, Africa, and South America. ??
SiGMA World: As you mentioned earlier, the Philippines has long been considered the most mature regulated market in Asia for online gaming. Is it maintaining that position, or are others catching up???
McDonnell: At the time of writing, it’s my opinion the Philippines has further established itself as “the”?market for regulated iGaming in Asia. In the last 10 years, the countries engaged in regulatory development are the Philippines, the Philippines, and the Philippines. The nature of regulation and activities covered has changed, but it has always provided a framework. ??
As one of the key business processing outsourcing [BPO] locations in the world, the Philippines can protect its current PIGO [Philippines Inland Gaming Operator]?market while offering a hub for businesses to service their international markets with the proper accreditation. ??
SiGMA World: India’s online gaming space is rapidly evolving, with varying state-level regulations and central policy debates. How do you view its regulatory future, and what role could South Asia play in the global iGaming scene???
McDonnell:?Many Asian operators are already active in India in some capacity. For regulatory purposes, Asia can now also point to an established framework that India can look to for guidance in ensuring it strikes the right balance between regulation, taxation, compliance requirements, and fees, thereby avoiding the delivery of something that actively drives the offshore market. ??
SiGMA World: The UAE and parts of the Middle East are showing signs of regulatory openness, particularly in the realm of land-based gaming. Do you see realistic opportunities for regulated iGaming in this region???
McDonnell: 100%. We are already aware of numerous conversations between Western and Asian brands and local power brokers in the Middle East. Once more, partnerships will be absolutely critical, with virtually no chance of success without them. Identifying the right partners and leveraging effective distribution channels while tapping into the HNW (high-net-worth) client base will help those putting in efforts at the start succeed. ??
SiGMA World: What are the biggest misconceptions Western operators have when entering Asian markets from a regulatory and operational standpoint???
McDonnell:?That localisation is about localising products, support and marketing. It encompasses all these things, but far more importantly, it’s about how business is conducted and how relationships are formed. Understanding that we have different mindsets and ways of doing business, those interested in entering the market will have a far better chance of success than putting “88” at the end of a brand and plugging in a live dealer baccarat product. This can take time, but committing to this at the start is the best investment that can be made. ??
SiGMA World: With your experience across global markets, are there lessons Asia can learn from Europe or Latin America when it comes to building sustainable and investor-friendly iGaming regulations???
McDonnell:?Many countries have made a mess of regulation. Try not to do that. Increasing taxes to unsustainable levels, charging huge compliance fees and issuing crippling fines will only drive the offshore market. For Asia, the countries interested should take time to identify which jurisdictions have handled these areas well and which ones have resulted in company closures and a relative increase in offshore activity. Legal gambling companies want to do things the right way. They are truly uncompetitive if authorities get greedy with their revenue potential.?
