In the era of online gaming, iGaming (an umbrella term for real money online casino and betting activities) has become one of the most lucrative and globally popular sectors to emerge in the marketplace. There are hundreds of online casino, poker and sports betting platforms catering to their global audience, creating a multi-billion dollar industry in its own right that is estimated to be worth as much as $59.79 billion by the end of 2020. 

As with any industry involving online activities, financial transactions, and the use of customer data, the iGaming industry needs to be highly regulated to ensure security, player safety, and fairness of games and betting opportunities. Each market sets their own regulations and requirements for iGaming operators to adhere to, and the European market – which is the largest – has some of the most stringent. 

Let’s take a look at what’s required from online casinos and betting platforms operating in Europe to ensure that they stay above board and legal at all times.

Licensing regulations across Europe

The online real money gaming industry in Europe underwent a massive shift in 2017, when the European Commission delegated the responsibility of overseeing gaming conditions to the national courts of each European country. Consequently, some markets developed more than others and set their own regulations, but there are two key requirements that all casinos operating in the European market have to adhere to: 

1.Compliance with the 2018 Anti-Money Laundering Directive, to ensure the prevention of fraud or money laundering via the marketplace

2.Compliance with Know Your Customer (KYC) requirements, to properly verify the identity of registered players before allowing them to make real money transactions. 

Fundamentally, it’s also obligatory for every iGaming operator with a platform in Europe to be licensed from the appropriate responsible authority. The main European authorities are: 

UK Gambling Commission

Malta Gaming Authority

Alderney Gambling Control Commission

Belgian Gambling Commission

Danish Gambling Authority

Amministrazione Autonoma dei Monopoli di Stato (Italy) Italy

Comisión Nacional del Juego (Spain)

Autorite de regulation des jeux en ligne (France)

Operators are obliged to clearly display up to date licencing information on their gaming platforms and websites. 

Ensuring fairness in gaming platforms

In addition to strict licensing requirements, all iGaming operators in Europe – but particularly casino and online poker operators – are subject to regular independent testing. A seal of approval from a reputable independent gaming authority ensures that: the games operate exactly as they are designed and advertised, the gaming platform complies with legal and operational protocols, the platform pays out the advertised RTP (return to player) rates, and games are proven to be fair and equal. 

eCOGRA is the most recognised operational body testing casinos and iGaming platforms across Europe, followed by iTechLabs, and Gaming Laboratories International. As with licensing information, operators are required to display any verifications they receive from these specialised auditors clearly on their platforms and sites. 

A key feature that unites every regulated iGaming platform in Europe is the RNG (Random Number Generator). This is a complex piece of software that is embedded into every game offered on a platform – with the exception of live dealer games, which are led in real time by human dealers – and ensures that each outcome is completely random and lacks any logic or predictability. 

Whether the operator provides poker, slots, or a selection of casino games, they will be required to prove the fairness and randomness of their RNG by submitting it for regular testing and publishing the results clearly on their website. 

Maintaining safe and compliant websites

Although some long standing iGaming platforms can still be downloaded to a PC as client software, the vast majority of online real money gaming activities are carried out through an operator’s website. Therefore, operators in Europe have a responsibility to ensure that their sites are secure and safe to use, and that customer details are protected. They will typically ensure this – as well as meeting the data protection regulations in the countries they operate – by implementing the following:

Secure Sockets Layer Data Encryption Protocols (SSL). Used by financial institutions and payment platforms the world over, SSL technology maintains an encrypted connection between a web server (the platform) and an internet browser (the customer). Using either 128-bit or 256-bit encryption, SSL technology guarantees the privacy of all sensitive information passed between the two parties, and prevents third-party interruptions or cyber attacks.

Terms and Conditions and Privacy Policies. Operators are required to list the terms of use of their platform and websites in a clear-cut, comprehensive way that is understandable to all potential customers and players. In addition to this, a Privacy Policy should be established that details how customers can expect their personal and financial data to be stored, used, and shared (in the event of sharing with third parties like licensing authorities, independent authors, or contractors).