Q&A: SportingWin on how it secured a Bulgarian licence and its future European expansion

When SportingWin was established in 2019, the founders identified Bulgaria as a market of huge potential and the one to make their debut. After eventually meeting the stringent requirements of the Bulgarian regulator, which included the development of its in-house proprietary regulatory platform, SportingWin entered the market in January 2022 and has since gained considerable traction with Bulgaria’s players. With the hard work done and the foundations laid for building out its presence across the region, the operator is now looking to Romania for its next launch.

EGR Intel: Can you talk us through the licensing process in Bulgaria?

Mark Chakravarti (MC): Bulgaria is one of the most stringent European markets when it comes to the regulatory requirements it expects operators to meet. The National Revenue Agency (NRA) really is forensic in its approach and this is to be commended. The requirements, combined with the regulator’s thoroughness, ensure that only high-calibre operators can enter the market with the functionality, features and tools in place to make sure that players are properly protected at all times.

Passing through such a comprehensive licensing process and being subject to such scrutiny is not a quick process and ultimately took longer to complete than we expected. From start to finish, it was a year-long process, and we finally made our debut in the market in January 2022 . We learned a lot from working closely with the Bulgarian regulator and this will ultimately ensure a smoother, faster process for the additional licences we will apply for.

EGR Intel: What were some of the main challenges you encountered and how were they overcome?

MC: There were two significant challenges to overcome. The first was the sheer volume of documentation and paperwork that we were required to complete and submit. Lawyers don’t come cheap, so it was one of the more expensive aspects of the process. Of course, completing reams of paperwork is to be expected when applying for any licence, so I’d say the greatest challenge was in deciding which path to take when it came to the regulatory platform the NRA requires all operators to have in place.

We could have used a third-party solution, but, in the end, decided to develop the platform in-house. This meant diverting significant resources to building the platform from the ground up, with our technicians also spending a lot of time working hand in hand with the NRA to fine-tune the platform to ensure it met their requirements.

EGR Intel: What are the main lessons learned from applying for and securing a licence in Bulgaria?

MC: The biggest lesson was the importance of having a modern, powerful regulatory platform. Ultimately, this was just as critical to securing our Bulgaria licence as our player platform and the safe gaming features and tools we built into it. Forging a close relationship with the NRA was also key, as this enabled us to make sure we understood its rules and requirements and that we were able to meet and, in some cases, exceed the incredibly high standards set.

Being realistic with the timeline for launch helps to ensure that everyone remains motivated and focused as opposed to the frustration and disappointment that can creep in if things drag on a little. Thankfully, the team behind SportingWin is incredibly experienced so this wasn’t too much of an issue but keeping momentum behind the business is important and sometimes can be easier said than done.

EGR Intel: How will these lessons be used to help secure licences in other markets?

MC: Now that we have our regulatory platform in place, entering additional markets will be much easier and faster. Due to the incredibly high standards set by Bulgaria’s NRA, we can use our platform as the foundation to launch in other regulated European markets. Most regulators are happy to accept the technical and software certifications secured in Bulgaria and, while they still want to carry out their own checks, they are far less intensive and time consuming.

The same applies to much of the paperwork we were required to complete and submit in order to secure our Bulgaria licence. This, combined with a clear understanding of what the process looks like and a more realistic timescale for passing through it, will ensure we deploy our market expansion plan swiftly and efficiently.

EGR Intel: Do you anticipate the licensing process to be similar in Romania?

MC: Yes, for the reasons touched on above. Not only is our regulatory platform up and running and certified, but much of the legal paperwork required for a licence in Bulgaria can be carried over to Romania – as can the technical and software certifications. We will be submitting our licence application shortly and are confident that we will have secured the necessary approvals to launch SportingWin into the Romanian market in the first half of the year.

We are now currently looking for investment to help push ahead in the market and are keen to hear from experienced backers looking to join our success story.

EGR Intel: Would you like to see more regulatory harmony between European markets? If so, how do you think it can be achieved?

MC: This is something that all operators would like to see but most are realistic in that it is incredibly difficult to achieve. Countries have their own agendas for legalising online sports betting and casino and have different ways of going about it, from the technical requirements they want operators to meet to the rates of tax they impose. There are certain areas where harmony can be achieved when it comes to things like infrastructure, platform specifications, game certifications, responsible gambling and reporting, and some regulators in some markets are happy to consider licences held in other countries as a testament to the standards that an operator is working to.

Of course, it would be great to see more regulators take this approach as it would allow operators to enter more markets and ultimately reduce player exposure to unlicensed, offshore brands that are not meeting the same standards as those that are licensed.