SiGMA Group brought every ounce of industry-leading knowledge to the Philippine capital for its very first expanse East, the SiGMA Asia Summit.

The SMX Convention Center was home to a regionally significant event of industry-enlightening panels and unparalleled networking opportunities which came in numerous well-cultivated forms, including a series of incisive panel discussions.

A truly high-quality example of these was one focused on the grey market and the beginnings of the Asian Pacific region’s attempts to regulate its gaming industry.

SiGMA Asia 2023: An overview of regulatory happenings across Asia Pacific

The panel’s moderator Jamie Nettleton, a partner at Australian legal solutions firm Addison’s, brought 25 years of seasoned industry experience to the SiGMA/AGS stage.

He was joined by Stanislav Chech, operations director for Sports Radar, Michael Charlton APAC Director for Entain and the Managing Partner at NCYE, Harman Brenninkmeijer. 

Data to protect sports betting integrity

The panel began with a thought from Chech who wished to emphasise a key contribution to the sports betting industry’s integrity.

This is managed trading services, which allows a closer view of the relevant customer data and gives operators and regulators alike, the ability to monitor irregularities and understand patterns of betting behaviour. 

Chech believes that integrity must come before regulation and that with the use of this form of comprehensive data, the betting industry may make use of good industry practices giving fair opportunity not only to bettors but safeguarding competitors and the sports they play.

Regulatory developments and framework implementation

The discussion then shifted to a topic tackled by Charlton, who began by setting out his company, Entain’s, main goal in the Asia Pacific region.

This is to only operate in regulated markets by the end of the year. An unenviable challenge to say the least as Charlton explained that there aren’t very many regulated gaming industries across the heart of Southern Asia. 

Charlton noted some key exceptions to this rule in Hong Kong’s Jockey Club and Singapore’s Pools operator.

This challenging landscape although not very enticing in this manner, nonetheless possesses a great deal of opportunity. Opportunity that fuels Entain’s methodology towards their goal, to assist governments and regulators to regulate their sizeable Asian gaming grey markets.

Markets across Asia Pacific

Charlton expressed how he believed that in a general sense, Asian nations are willing to regulate their gaming industries, recognising the potential to bring masses of tax revenue into the post-pandemic economies of these struggling yet emerging territories.

Malaysia was the first country to be drawn under the microscope with Charlton laying out the administrative incongruence that has hampered its path to gaming regulation.

The current Prime Minister of the Southeast Asian country has both accepted the lucrative significance of the gaming grey market and has shown a great willingness to work towards regulation, however, issues at the lower levels of the government have blocked and hindered any progress.

Nettleton also weighed in on this situation, explaining how Malaysia’s regulations regarding gambling are archaic and misrepresentative of the industry that now exists.

Emphasising how any attempt at re-regulation would have to begin from scratch as opposed to amendment. Cultural interactions would also need to be conducted in order to respect and join a regulated industry to societal heritage specific to Malaysia.

This would, as Charlton pointed out, need to be accompanied by all levels of government working in unison and not in conflict. 

A process of trial and error

Brenninkmeijer entered the discussion by making light of the inevitable fact that regulation of such a multifaceted industry is impossible to get right the first time.

He pointed to the fact that the Asian gaming industry is on all sides a veritable mess, for instance, regulation in Vietnam that was initially so stringent that there was hardly any interest shown by Vietnamese-facing operators to leave the grey market. 

On the other hand, however, Europe has made very few strides towards a well-regulated industry, despite a longstanding effort towards this goal. 

Brenninkmeijer gave the example of the Netherlands, which has only recently passed any legislation related to online gaming, and in beginning to issue licences encountered a plethora of social issues resulting in a blanket ban on advertising. 

This had a catastrophic effect, similar to Vietnam, causing a loss of interest in regulated operations due to an inability to gain market share without the use of advertising. 

Appropriate regulation

Brenninkmeijer then brought the panel discussion to a fitting conclusion expressing how any issues experienced in regulation must be considered holistically, in such a complex industry with so many moving parts an appropriately varied and open approach must be adopted.

He also stressed how the industry itself must first and foremost be responsible, operating fairly and assisting regulators in creating something at least at the lowest levels so that everyone across the industry’s landscape may benefit as well as being assured of adequate securities. 

SiGMA Balkans/CIS

As a globally recognised nexus for networking, SiGMA Group sets its sights next to the Balkans this September, when the SIGMA Balkans/CIS Summit heads to Limassol Cyprus.

A host of networking opportunities and industry-leading knowledge will be emanating from the much-anticipated event which will pack panel discussions, keynote speeches, start-up pitches and much more into 3 days in the diverse Cypriot city.