Understanding the future of gaming compliance

In gambling parlance, there is a reason why the phrase ‘regulatory headwinds’ is a far more common phrase than ‘regulatory opportunities’. 

Indeed, while gambling regulations can bring significant benefits in areas such as safer gambling, fairness, data protection and tax revenues, compliance is widely viewed as a major headache that can monopolise resources, derail plans and curb growth. 

Even operators in long-established gambling markets are not immune from such challenges. In the UK, for instance, analysts expect increasing regulations to be one of the key factors that could stifle the sector’s expansion. 

From geolocation and fraud prevention to anti-money laundering (AML) and Know Your Customer (KYC) checks, operators face an increasingly stringent checklist to avoid falling foul of the watchdogs. 

Proactive compliance is the holy grail  

However, amid this complex space, in which operators from across the globe have faced eye-watering sanctions, there is increasingly a shift from a reactive to proactive approach.  

For an industry that is used to predicting outcomes and setting odds, operators are now betting that anticipating regulatory headwinds and preparing for the compliance requirements could be a huge commercial enabler.  

This transition is supported by enterprises like Vector Solutions – which has operated as multi-sector compliance specialists since the late 1990s and established five offices across the United States. 

In April, Vector, which already worked with more than 350 casinos on AML compliance, acquired Maryland-based ArdentSky – a provider of compliance technology solutions for the gaming industry for the past 17 years.  

ArdentSky has a huge portfolio spanning global gaming manufacturers, operators, and suppliers. Its established client list includes the likes of DraftKings, FanDuel, BetMGM, IGT, Aristocrat, Playtech and Rush Street. 

According to a Vector Solutions spokesperson, there are several reasons for the transformation that is taking place with how gaming organisations are handling gambling licence requirements, risk management and compliance training. 

The primary reason is the expansion into new and stricter markets, each of which comes with its own complex licensing rules, meaning operators must juggle more licences, deadlines and regulators than ever before.  

Simultaneously, digital transformation has fundamentally shifted the way organisations operate, with compliance systems moving away from manual, paper-based processes towards centralised, automated platforms – a shift that has made it easier to track requirements and delivery.  

Meanwhile, regulators are also intensifying their scrutiny, with even relatively minor lapses punished severely. Additionally, vendor oversight has become more important, with jurisdictions like Nevada requiring background checks on suppliers, forcing operators to be responsible not only for their own compliance but also for third parties. 

Driving cultural change 

However, according to a Vector Solutions spokesperson, the biggest change is cultural. 

“Compliance is no longer a defensive exercise; it’s becoming a business enabler,” the spokesperson says. “Companies are embedding compliance into their strategic planning, so licensing and risk processes actually support faster expansion.  

“The entire industry is moving from reactive, manual compliance toward proactive, digital, and integrated approaches – and of course the past 18 months in AML enforcement have really underscored the stakes.” 

MGM Resorts and Wynn Las Vegas are just two major operators that have faced multi-million-dollar financial penalties so far in 2025 – and regulators are increasingly holding both executives and companies liable. 

“The shift toward formalised, risk-based AML programs, expanded KYC, and attention to global networks like Chinese Money Laundering Organizations means compliance has to be smarter, more tailored and more technology-driven,” the spokesperson adds. “It’s no longer about ‘checking the box’. It’s about protecting both the business and its reputation.” 

Innovating under pressure 

In light of record enforcement actions, squeezed budgets and heightened scrutiny, many compliance teams are being asked to do more with fewer resources.  

Moreover, hiring the right individuals to join the compliance team can take time – leading to a greater risk of missing filings or leaving auditing gaps. 

“There’s no question compliance teams are under pressure,” the spokesperson says, adding that gambling compliance jobs increasingly cover a broad range of areas, ranging from AML to health and safety to cybersecurity. 

“When you add in staffing shortages, the burden becomes almost impossible to sustain, and it shows up in turnover. Casinos end up spending heavily on recruitment and onboarding, only to risk losing talent because compliance budgets and salaries often aren’t commensurate with their value. This is despite the fact that a strong compliance team and programme can save companies millions in avoided fines.  

“But there are opportunities, too. The pressure is forcing teams to innovate. We’re seeing more automation, tighter integration with other departments, and smarter use of data analytics. In some cases, being leaner pushes compliance to align more closely with business goals. Those organisations that adapt will end up with more resilient, efficient, and strategically integrated compliance programmes.” 

Facing a unique challenge 

With more than a quarter of a century of experience in regulatory compliance, Vector Solutions, with ArdentSky under its wing, is well placed to offer its perspective on the unique challenges of the gaming industry. 

According to the spokesperson, the patchwork nature of gaming regulation means licensing is unlike almost any other industry. 

Additionally, the practicalities of obtaining a single gambling licence can be daunting, with applications that can have hundreds of pages and forensic background checks that extend beyond the company and to its shareholders, executives and employees.  

Given the complexities of these processes, approval times can be wildly unpredictable – dragging on for months or even more than a year. 

“For vendors entering new markets or operators looking to expand partnerships, those delays can put major business plans on hold.” the spokesperson says. “Licensing issues with vendors can affect an operator’s licence, so the responsibility is shared on both sides.”  

Licensing management as a strategic imperative  

When compliance failings occur, the fallout can be disastrous for a business, draining resources and driving up legal costs.  

“From a reputational standpoint, regulators lose trust quickly when they see sloppy licensing practices,” the spokesperson says. “That leads to slower approvals, stricter oversight and less flexibility in the future. In a highly regulated industry like gaming, even one publicised violation can undermine brand credibility with customers, partners and investors.” 

Furthermore, there are ongoing reporting requirements for vendors and operators, including deadlines, renewals and mandatory disclosures of any regulatory action.  

“If a licence is suspended, even temporarily, it can shut down operations in a key market. That means refunds due to lost deals, or even breach-of-contract claims,” the spokesperson adds. 

“The bottom line is that licensing management isn’t just an administrative task – it’s a strategic function. Done well, it enables growth. Done poorly, it can cripple both operations and reputation.” 

Implementing role-specific training 

Organizations can take a big step in the right direction by investing in training that is “comprehensive, ongoing and impactful” to satisfy watchdogs, rather than the box-ticking exercise of years gone by. 

“We’ve seen enforcement actions where failures were tied directly to weak or inconsistent training,” the spokesperson adds. “Regulators expect training to be risk-based and role-specific. A VIP host faces very different scenarios than someone in accounting, and the training has to reflect those realities.”  

“The threat landscape is evolving too quickly for static, annual training – and the personal accountability piece cannot be overstated. We’ve already seen executives criminally and civilly penalised for Bank Secrecy Act violations. That raises the stakes dramatically.” 

Above all, training programmes must ensure the organisation is proactively working to prevent issues – and not just reacting to them. 

“Compliance is no longer a defensive exercise; it’s becoming a business enabler”

“By dedicating time, resources, and commitment to training, casinos demonstrate that compliance is a priority at every level. That message resonates with both regulators and employees,” the spokesperson says. 

“It builds trust and reinforces accountability – and culture really does start at the top. Regulators assess not just policies, but leadership’s commitment to compliance.” 

Built into the process 

Whether it is an operational function such as hiring or onboarding, or market expansion, the key is for compliance to be integrated into existing systems from the outset so that licensing checks, risk reviews and training requirements can be built directly into the process. 

For example, integrating human resources platforms with learning management systems can enable new hires to be automatically assigned the right AML training from day one.  

“Triggers and automation can ensure that new employees, vendors, or market expansions immediately prompt the right compliance steps,” says the spokesperson, who also underlines the importance of communication.  

“Compliance leaders need to frame requirements not just in regulatory terms but in business terms – how compliance avoids fines, speeds up launches, and strengthens partnerships.”  

From a training perspective, onboarding represents a prime opportunity to get ahead of the curve and mitigates the potential for future problems. 

“Role-specific modules deepen that understanding, and refresher courses or check-ins after onboarding help with retention,” the spokesperson adds.  

“Ultimately, aligning compliance with operations reduces risk and builds efficiency. It transforms compliance from being seen as a hurdle into being recognised as a core part of the employee experience and the business’s strategic growth.”