Exclusive: GLI exec calls for central regulatory body over self-regulation in iGaming in India
The regulation of iGaming remains a pressing issue, particularly in emerging markets like India, where the lack of a central regulatory framework has led to fragmented oversight. , Vice President of Government and Regulatory Affairs at , emphasises that self-regulatory bodies may be flawed. GLI, a globally recognised gaming compliance testing and certification company, works with regulators to ensure player protection, security, and responsible gaming.
In this exclusive interview with SiGMA News, Dalbock discusses why a federal-level regulatory body would provide a more structured and transparent approach, ensuring player protection, responsible gaming, and fair market competition. He also shares insights on cybersecurity, market expansion, and the integration of land-based and online gaming.
What are the biggest regulatory challenges in bridging the gap between land-based and online gaming?
Devon Dalbock: I think the biggest challenge in terms of online gaming is that there are pros and cons to it. In a regulated online environment, the government can offer things like player protection. It can also better control access through KYC, age verification processes, anti-money laundering measures, etc. In a regulated environment, it is easier to manage all these aspects of gaming. Similarly, in a land-based environment, control is easier because it operates within a finite space.
However, in an unregulated market, online gaming becomes a little like the Wild West. Theres no player protection, no guarantees of anti-money laundering, no responsible gaming initiatives, and no taxation, as well, meaning the government loses revenue. So, it makes much more sense for a jurisdiction to implement regulations to address these extremely important factors.
With the rise of AI and blockchain, how is GLI adapting its testing standards for hybrid gaming ecosystems?
Devon Dalbock: We are embracing all new technologies as they become available. However, we must also be cognisant of the fact that AI is largely open-source. At GLI, we treat all our customers confidential information with strict confidentiality, including their products, source codes, etc.
We are leveraging AI within our internal testing and processes in a limited way for now. However, in the gaming industry, AI plays an essential role, particularly in responsible gaming. AI can predict player behaviour and help regulators get a handle on things like responsible gaming and detect players who may have multiple accounts with multiple operators. How do you tie all of that together from a regulatory perspective to get an overall picture of the player? The player might be losing money with several different operators, but you want to get an overarching view of that to be able to better predict and offer interventions before it becomes a problem.
How important is localisation in the gaming industry?
Devon Dalbock: I think it is very important. What works in one jurisdiction may not work well in another. Cultures are different. So certainly, an operator would need to customise their content and their offering to meet their specific marketplace.
For instance, in the African market, where I come from, online gaming is not as dominant as online sports betting. Sports are deeply ingrained in the culture, much like cricket is in India. Football is a major part of African culture, making sports betting extremely popular. We are also seeing a growing number of female participants in online gaming across various jurisdictions. So, for any operator who’s looking to enter into a new market, customising their product offering in terms of the jurisdiction and the culture is crucial.
Are there any particular markets where online and land-based gaming integration has been most successful?
Devon Dalbock: It is always difficult for land-based operators when iGaming is introduced in their jurisdiction. The reason for that is there are many strict requirements on land-based 바카라s, including social development obligations and taxation. Many jurisdictions are looking at integrated resorts as a mechanism to increase tourism to the region. I know Sri Lanka is looking at integrated resorts now as well, which means there’s a very high set-up cost for those infrastructures. So for land-based, there’s a very big investment required to set up a 바카라.
In contrast, online gaming requires less of an investment. We often see in jurisdictions with a traditional and successful land-based gaming market that there is initial resistance from land-based operators when online gaming is introduced. We see a pushback from land-based operators because of the cost of the investments they have had to absorb.
But similarly, many jurisdictions where the traditional land-based operators are now starting to embrace online and are starting to offer hybrid. So they’ve got their traditional land-based properties, but they’re offering the player the opportunity to play online as well. And we’re slowly seeing a rise in these hybrid models, certainly in several markets in Africa. In some jurisdictions, online gaming revenues surpass land-based revenues. So yes, it’s an interesting concept.
With cybersecurity becoming a growing concern in online gaming, what measures should Indian and Asian operators prioritise when integrating their platforms?
Devon Dalbock: Cybersecurity is on everybody’s mind at the moment. At GLI, we have recently released a cybersecurity framework specifically for the gaming industry, and many jurisdictions are starting to adopt this into their rules.
Security measures like annual audits, penetration testing, and vulnerability assessments are all very important upfront. Many jurisdictions now mandate annual cybersecurity audits, along with strict change management processes. In an online environment, it is easy to modify a game or adjust its RTP (Return to 바카라er), whereas such changes are more restricted in land-based gaming. So, it’s very important that we have these controls in place.
Also, online gaming operators handle highly valuable player data, including identification numbers, banking details, and credit card information. The player data that these online operators have is so valuable to the unscrupulous. This data is a prime target for cybercriminals. So, it is important for operators to ensure the security of their players data. It’s very, very valuable.
In the Asian market, what are the main aspects that we need to do to control underage gambling?
Devon Dalbock: That is probably one of the most important things. You want to protect against underage players, and you don’t want people who are vulnerable to play; in other words, people who may not have the mental capacity to exercise judgment. So you need to have strict verification processes in place to do that. The easiest way to achieve this is through KYC and age verification processes. When a player registers with an operator, they need to pass several checks and balances in the registration process to ensure that the person who is online and entering their information is in fact the holder of the credit card, or it is their identification being used.
So, you need to really verify that, and there need to be several steps in place to do that. Before the operator takes a deposit and the player is allowed to play, those verification steps should come into place.
Various third-party companies offer identification verification services, so they will verify your identification number, social security details, and credit cards. There should be collaboration between the financial services providers, the banks, the payment providers, and the operators to ensure that they’re not allowing underage gambling.
Since India lacks a central regulatory framework, what best practices from other Asian markets could help India develop a structured approach?
Devon Dalbock: I think one of the biggest challenges that India has at the moment is this question around games of chance and games of skill. And many operators argue that their game of chance is actually a game of skill. So, I think that’s the first thing that needs to be defined clearly.
I think the idea of self-regulatory bodies is potentially flawed. I believe that certain participants may have their own interests at heart, which would benefit them and maybe not be fair to all participants in the market. So, I think having a central regulatory body at a federal level would be a better approach.
We are not calling for overprescription in terms of rules and regulations. All we want to ensure is player protection and responsible gamingis the player legally allowed to play, are they of the right age, and is there any nefarious activity in terms of anti-money laundering? Is the player protected? If you lose your funds or if you deposit your funds and that website closes down tomorrow, are you protected? If you’re playing a game and you lose internet connectivity, do you lose your money? Or, when you reconnect, does the game carry on?
So, all of these are technical elements and legal elements to it as well. We need to make sure that all of this is in place because ultimately, what we want to do is ensure that players are protected. And secondly, the government receives taxes on it.
Because let’s face it, gambling is happening anyway. People are gambling in India anyway. It’s just that they’re gambling on illegal sites. There’s no player protection. There are no anti-money laundering requirements. The government is not making any tax on it. So, why not just regulate and do it properly? Earn the tax and protect the players.
What emerging global iGaming trends are likely to shape the Indian market?
Devon Dalbock: One thing that I have learned about the Indian market is that there’s obviously a high level of internet and mobile penetration combined with a massive population. What we’re seeing in some other jurisdictions is a lot of really forward-thinking, high-tech products coming to marketonline products, mobile products, etc. We’ve also seen a lot of suppliers and manufacturers leading with mobile-first technology. So, everything comes out on the mobile phone first, and that’s where it kind of happens.
Crash games, for instance, have been around for a while but continue to grow in popularity. Younger players prefer quick, engaging games that offer instant gratification rather than traditional slot machines with longer gameplay cycles. And I think we’re seeing a lot of new products coming to market that have a quick game cycle, instant gratification, and don’t require a lot of interaction. It’s just a quick, easy game. I think we’re seeing more and more of that.
What are your future plans for the Asian and European markets?
Devon Dalbock: We continue to be wherever our customers go, where there are new jurisdictions. We only operate in regulated markets. So it’s in our interests to see India and Sri Lanka develop a well-structured regulatory framework. Because it’s better for the industry, it uplifts the industry. Certainly, our customers, who are the operators, suppliers, and manufacturers, want to operate in regulated markets because they want to attract investment. Investors don’t want to invest in illegal markets. They want to invest in regulated markets where they know their investments are safe. So, I think that’s important for us.
We currently have two offices in India, with around 200 employees. However, due to Indias limited testing requirements, most of our Indian operations serve global markets. We are looking forward to expanding further in South Asia, particularly in Sri Lanka. But as I say, the biggest potential for us remains India.
That’s one that’s very close to my heart. I’ve been travelling to India for about four years, gradually developing GLIs presence, meeting with regulators and government departments, and working to spread awareness of the importance of a regulated gaming market.
