Promoted feature: Taking the pain out of regulation

Operators and suppliers are pulling out all of the stops to unlock the potential the US market has to offer. But, one of the greatest challenges they face in doing this is infrastructure and ensuring the systems, networks, and solutions they have in place are compliant. The state-by-state nature of the US market means that requirements differ from state to state. To overcome this, businesses must work with licensed providers that are highly experienced in navigating different rules and requirements across North America.

Continent 8 has emerged as the go-to infrastructure partner of choice for operators and suppliers globally. And this is certainly the case in North America, with 80% of the operators on EGR’s Power US Rankings 2022 working with the provider. We sat down with David Brace, innovation director at Continent 8 Technologies, to learn more about how regulation and compliance impact infrastructure in the US, and how companies can overcome any challenges they face.

EGR Intel (EGR): Regulation and compliance are key concerns for operators. What impact does this have on infrastructure and what are the key considerations?

David Brace (DB): The greatest impact regulation and compliance have on infrastructure is the need to meet different requirements in different markets. This makes it difficult for operators to have an infrastructure blueprint that they can roll out globally. In some jurisdictions, there are no or limited requirements when it comes to infrastructure, while in the highly regulated US market it’s pretty standard for every component to have to be located in the state the operator is targeting. This makes planning difficult and standardisation almost impossible.

This is clearly a difficult environment for operators to navigate, so it’s important to seek advice about each market they wish to enter and the infrastructure requirements they will need to meet. This means working with a trusted infrastructure partner that is highly experienced in regulated markets, such as Continent 8, but also the regulators themselves. This is certainly the case in newly regulated/regulating markets, where regulators are keen to collaborate with operators to understand what they are looking to do with their infrastructure and technology and to facilitate this as much as possible.

EGR: How can regulations relating to infrastructure differ from market to market?

DB: The US is a good example. Take Ohio, for instance, there regulations are fairly relaxed when it comes to infrastructure, with operators free to partner with any cloud provider they like so long as that cloud provider has a presence in the state. This means they can work with commodity cloud providers such as AWS, Microsoft and Google without the provider having to secure a licence from the state gaming regulator. Arizona, on the other hand, requires all service providers, including those offering cloud solutions, to apply for and obtain a licence from the regulator. This limits the number of providers operators can work within the state. Continent 8 holds an Arizona licence.

This is where choosing a specialist igaming provider with the ability to work across all states, in line with requirements, is a huge advantage.

EGR: What challenges can this throw up for operators, and how does Continent 8 help its customers overcome them?

DB: Continent 8 is engaged with regulators in jurisdictions across the world, and in the US where we have taken a first-to-market approach – we are live in 25 states and counting. We apply for and secure all required licences in each state so that our customers can easily enter new markets with as much infrastructure consistency as we can provide. The slight differences from state to state really do make for a big job for compliance departments, but our experienced team is on hand to provide support where required and ensure the infrastructure they deploy meets all requirements.

EGR: Operators and suppliers are always keen to launch early in new markets. How does Continent 8 help them do this from an infrastructure perspective?

DB: We aim to be live in each market at least two months ahead of its official launch. This gives operators the time they need to ensure their infrastructure is in place and that it is fully compliant. They then have plenty of time to test their platforms ahead of going live. In terms of specific infrastructure solutions, our igaming cloud is worth highlighting. It can be deployed in all markets and states where we hold a licence and allows operators to rent bandwidth instead of having to build their own data centres and obtain licences for them. This rapidly speeds up the time it takes for operators to go live.

Take Michigan, for example. There is an extensive infrastructure and cybersecurity questionnaire that operators must complete as part of their licence application. But as a licensed provider, operators that partner with Continent 8 have much of the paperwork already completed.

Our first-to-market approach really is a gamechanger and applies to Latam as well as North America. In each regulating jurisdiction, we actively engage with regulators, legislators, lobbyists and other stakeholders ahead of time and use our 25 years of experience to help them craft rules and requirements for infrastructure.

EGR: Which newly regulated markets will Continent 8 be supporting its customers in this year?

DB: In the US we are actively involved in the progress being made in Georgia, Minnesota and New York, with legislation standing a good chance of getting across the line this year. We could see changes to regulations in New Hampshire and Washington DC to further open up those markets.

Latam is another market. We already have solutions in Colombia, Peru and Puerto Rico, with Argentina and Brazil in the pipeline.

At the beginning of 2023, we have 90 locations on our connected private network. By the end of the year, we expect to surpass 100.

Regulation can be intimidating for operators but it’s something we have been working with for decades now. Over this time, we have emerged as the infrastructure partner of choice in markets across the world, from Europe to the Americas, Asia and beyond, and we look forward to cementing that position throughout 2023.