Compliance Updates
Navigating New Frontiers: AI’s Role in Reinventing iGaming Compliance
By Paul Addicott-Evans, Managing Director for Products at ComplianceOne Group
In high-stakes world of iGaming, regulatory compliance is not just a box to be checked – it is the bedrock upon which the industry’s integrity and customer trust are built. As we navigate this complex landscape, the emergence of Artificial Intelligence (AI), especially through Large Language Models (LLMs) like ChatGPT, promises a revolution in how we approach regulatory processes. Yet, with great power comes great responsibility, and the integration of AI in compliance raises crucial questions about the verifiability and accuracy of its data inputs.
The Data Verification Dilemma
At the core of this AI-driven transformation in iGaming compliance is ChatGPT, a marvel of modern technology powered by a sophisticated Large Language Model. ChatGPT opened the world’s eyes to the possibilities of AI, whilst simultaneously creating a major question with wide-spread adoption: Can we trust it?
Despite its impressive capabilities, a fundamental challenge persists: verifying the accuracy and currency of the information it provides. In many walks of life, not least the ever-changing regulatory environment of iGaming, relying on AI tools without verifiable data sources could lead to non-compliance, legal challenges, and potentially financial penalties.
This dilemma is intensified by the dynamic nature of iGaming regulations, which can vary significantly across jurisdictions and are subject to frequent updates. Non-compliance can be extremely costly, so ensuring that AI tools are not only informed by but also aligned with the latest legal standards is paramount. This calls for a robust framework where AI tools are continuously fed with up-to-date and verified regulatory data, and their outputs are regularly audited for accuracy and compliance.
The science bit…
How do we approach this problem? The availability of large language models is now almost a commodity. The technology is available for everyone to use. However, when faced with such an important problem as reliability and verifiability, there is a need to weave supporting technologies into the AI-framework. This is where vector embeddings come into play, acting as a bridge between raw data and the AI’s ability to understand and verify it.
Imagine vector embeddings as a vast library, not of books, but of words, phrases, and concepts, each with its own unique location. This library is created by a neural network, a type of AI, which reads and understands vast amounts of text, then organizes this information into a map.
Each word or phrase is placed precisely, so that words with similar meanings are neighbours.
For iGaming compliance, this library becomes invaluable. When AI uses vector embeddings, it’s like consulting this map to understand not just words, but the context and meaning behind them. This is crucial for verifying vast, complex regulatory information.
In essence, vector embeddings allow AI to comprehend and verify information much like an expert human would, but with the speed and accuracy that only a machine can offer. This boosts the reliability of AI in iGaming compliance, ensuring that the operators get accurate and up-to-date information, crucial for staying within regulatory boundaries.
AI’s Edge in iGaming Compliance
The use of AI in iGaming compliance, when done correctly, can offers a suite of advantages:
- Enhanced Precision and Efficiency: AI’s ability to swiftly and accurately synthesize regulatory information ensures that operators are always in step with the latest compliance requirements. For instance, an AI tool could analyse recent amendments to anti-money laundering laws across different jurisdictions within minutes, a task that would take humans significantly longer.
- Customized Regulatory Insights: AI can offer bespoke guidance, adapting to the unique operational and geographical nuances of each iGaming operator. An example of this is how AI tools can provide tailored advice to operators based on specific games offered or markets targeted, considering the unique regulatory landscape of each area.
- Automated Compliance Oversight: Continuous AI surveillance of iGaming operations guarantees adherence to regulatory standards, proactively identifying and rectifying instances of non-compliance. This could include real-time monitoring of player interactions to ensure responsible gaming practices are maintained.
Looking Ahead
The journey of integrating AI into iGaming compliance is fraught with challenges, yet the potential rewards are substantial. By anchoring AI in the principles of data verifiability and source transparency, we can redefine how the iGaming industry navigates its regulatory maze – a shift not just in technology but in establishing a new era of trust and reliability.
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Introducing IntelligentOne AI
At Complitech, we stand at the forefront of this exciting frontier with OneAI. Developed as part of the comprehensive Complitech database of global regulations, this groundbreaking AI product is poised to redefine iGaming compliance. OneAI distinguishes itself by providing current, accurate data, free from the common ‘hallucinations’ of LLMs, thereby offering responses to regulatory inquiries that are not just swift, but also dependable and verifiable.
Take the example of a Games studio assessing the impact of Germany’s regulations on slot games, particularly concerning the maximum bet limit and the mandatory delay between spins.
Using OneAI, the studio inputs a query about slot regulations in Germany. The AI tool quickly processes this request, providing a detailed analysis of the current German regulations on slot games. It highlights that the maximum bet per spin is capped at €1 and that there is a required minimum interval of 5 seconds between spins. This information is directly linked to the relevant sections of the German Interstate Treaty on Gambling, ensuring accuracy and verifiability.
This targeted insight allows the studio to make informed decisions about game design and offerings in the German market, ensuring compliance while optimizing their product for the new regulatory environment.
With OneAI, iGaming companies can access instant, reliable insights for complex technical compliance questions, streamlining decision-making processes. This innovative tool represents a significant leap in the application of AI in iGaming compliance, marrying the linguistic dexterity of LLMs with the robust, updated Complitech database. It heralds a new chapter in iGaming regulation, where technology not only expedites but also elevates the trustworthiness and accuracy of compliance processes. As AI continues to evolve, tools like OneAI are set to play a pivotal role in fostering a safer, more compliant, and trustworthy iGaming ecosystem.
Aviatrix has received certification to offer its award-winning crash game to operators in Estonia.
It marks the latest regulated market that Aviatrix has entered into, with the game already live in the country with leading brand FenixBet.
Anastasia Rimskaya, Chief Account Officer at Aviatrix, said: “Securing certification in Estonia is another exciting step forward for Aviatrix as we continue to expand into regulated markets. We’re thrilled to already be live with FenixBet and look forward to delivering our innovative crash game experience to even more players in the country.”
Aviatrix has added a host of regulated markets over recent months, including Spain, Colombia, Brazil and Peru.
It underlines the team’s commitment to bringing the game to players around the world.
Aviatrix is a constantly evolving game, with regular feature updates for partners, including the recent launch of free bets, now available through in-game promo codes.
The post Aviatrix granted certification in Estonia appeared first on European Gaming Industry News.
The Dutch Gambling Authority (KSA) has for the first time imposed a fine of €734,000 on one of its licensees because the company failed to adequately protect young adults against excessive gambling and gambling addiction.
Gambling companies have a duty of care and must protect players as much as possible against excessive gambling and gambling addiction. According to the KSA, the provider in question has not sufficiently complied with this duty of care and will be fined for this.
The KSA started an investigation after signals about large losses suffered by young adults. In this investigation, a selection of 10 of the player files with the largest losses were examined at the provider, whereby violations were found in all files. These were young adult players (18 to 23 years old) who gambled away tens of thousands of euros in often a relatively short period of time.
Michel Groothuizen, chairman of the board of the KSA, said: “We have a licensed gambling market based on the idea that anyone who wants to gamble can do so safely. That is why providers have a duty of care towards their players and must respond adequately to excessive gaming. Major losses are an important signal of that. We have intensified our supervision of the online duty of care and we take tough action against violations such as those we find here, because we really do not want to see providers continue to fail in their duty of care, especially for vulnerable young players.”
The post KSA: Fine of €734,000 Imposed for Breach of Duty of Care appeared first on European Gaming Industry News.
Mobile online sports betting would be legal in Nebraska under a bill advancing in the Legislature, but trouble could still lie ahead for the proposal.
Sen. Eliot Bostar introduced the proposed state constitutional amendment that would let people make sports bets on their phone from anywhere in the state. Bostar says Nebraskans are already betting, either by going to a casino, a neighboring state or using illegal, unregulated platforms.
“I introduced this not because I think gambling is a great thing, not because I want everyone to do it, not because I think you should like it, or anyone should, but fundamentally because it’s already happening. Our prohibition on mobile sports betting here in save Nebraska is not stopping anyone from engaging in that activity,” Bostar said.
Sen. Jason Prokop has made the proposal his priority this session. Prokup talked about Nebraskans who cross the Mormon Bridge into Iowa and congregate at the first off I-680 to place bets during the football season.
“There’s no reason why a corn field in Iowa, just off the interstate, should be touted as the busiest corn field in America. Senators, those are your and my constituents using this product, spending their money and paying taxes in another state, simply because our Constitution does not provide for it,” he said.
Bostar said Nebraska is losing tax revenue.
“Nebraska is currently missing out on a $1.6 billion state online industry and $32 million in annual tax revenue, which instead goes to neighboring states like Iowa, Colorado, Kansas and Wyoming. Legalizing online mobile sports betting through LR20CA could significantly boost state revenues dedicated to the property tax credit fund, helping to address the burden of high property taxes,” he said.
Sen. Jared Storm seemed unmoved.
“I’ve been in the body for three months. I’m a freshman senator, and it seems like the common thread I keep seeing here is, if you want to pass your bill or get something through here, you say it’s going to lower property taxes. That’s kind of the buzz word,” he said.
Strong offered a different interpretation of any tax revenue.
“I would view this as taxation by exploitation. We’re going to exploit people to get tax revenue out of them, mainly young men. So you’re going to have students at UNL, students at UNK, other universities, who are going to gamble away their tuition on online sports betting. They’re going to gamble away their rent online sports gambling. I think as state senators, we have to stand up for those people,” he said.
Sen. Rob Clements read a letter from a mother whose son got in financial trouble from sports betting and died by suicide last year.
“The $10,000 bet my son frenetically placed on a losing NHL Stanley Cup game during the last 48 hours of his life, was followed by a series of still more frenetic bets placed in isolation on his phone as he tried to win back his massive loss. It is clear that he died alone,” Clements read.
But Sen. Ben Hansen argued incidents like that should not be enough to prohibit sports betting.
“How far do we restrict people’s liberties and their rights? This is always a tough one, because we do see some of the ills, the pitfalls some of our citizens can fall into. But do we take that right away from them for that reason? If we take away that right because of addictive factors, we better get rid of alcohol. We better get rid of smoking. We better get rid of refined sugar, one of the most addictive things that we legalize here in Nebraska. We better get rid of a lot of addictive behaviors in the state of Nebraska,” he said.
Sen. Rick Holdcroft read a letter from former Congressman Tom Osborne, former Gov. Kay Orr, Sen. Pete Ricketts and State Auditor Mike Foley opposing the proposal.
“Legalizing online sports betting in Nebraska would turn every cell phone, laptop and tablet into a gambling device available 24 by seven, online sports betting can lead to new people developing gambling disorders, puts young men in the addiction bulls eye and will take money away from the main street Nebraska businesses,” he said.
Gov. Jim Pillen has supported legalizing online sports betting in the past. And Sen. Tom Brandt said the proposal should be approved.
“In Nebraska, alcohol, tobacco, gambling, guns, whether you wear a helmet, we let grown ups decide that. We let our people decide that. Does everybody make a good decision? They do not. There are consequences to some bad decisions, but we let them decide for themselves. Mobile betting should be the same way,” he said.
But Sen. Brad von Gillern said mobile betting was an especially threatening form of gambling.
“My opposition to LR20CA is not from a moral position against gambling as a whole. I provided tons of data to you that illustrates that this is a predatory process that primarily pursues young men,” he said.
After about three hours of debate, senators voted 27-16 to give the bill first-round approval. But von Gillern vowed to filibuster it at the second round of debate, when opponents need only talk for four hours, instead of eight, before supporters can try to cut off debate and vote on the bill itself. That takes 33 votes, and von Gillern predicted it would be close.
The post Nebraska: Proposal to Legalize Mobile Sports Betting Advances appeared first on Gaming and Gambling Industry in the Americas.
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