Why global regulation is becoming the new standard for international brands

In this article, global gaming brand 1xBet explores how regulatory compliance has evolved from a legal requirement into a strategic advantage shaping the future of international expansion in the iGaming industry.

What is typically associated with a brand’s international expansion? Major marketing campaigns, product scaling, and rapid entry into new markets? Several years ago, this was precisely the growth model typical of iGaming companies, but today it is rapidly becoming a thing of the past.

In fact, the very concept of a “global market” is losing its relevance. In its place, a complex mosaic of numerous local jurisdictions is taking shape, each with its own unique operational requirements. For international operators, the main challenge lies not so much in entering new markets as in maintaining the high quality of their products and constantly adapting them to the local legislation requirements and user expectations. 

In the new business environment, trust is increasingly built not around a well-known brand or a company’s size, but around its ability to meet the requirements of a specific country: from financial monitoring to responsible gaming mechanisms. Regulation is gradually shifting from merely a legal obligation to the foundation for sustainable and systematic business development.

When compliance becomes a technological advantage

A modern local license is much more than a permit to operate in a specific market. First and foremost, it provides access to the financial system: major banks, payment providers, and fintech partners now view licensed status as a mandatory condition for collaboration. Without full compliance with regulatory requirements, effective KYC and AML procedures, and continuous transaction monitoring, it is virtually impossible for an operator to ensure instant payouts, high security, and a seamless user experience. After all, these factors largely determine conversion rates, user retention, and trust level in the platform.

The European market is a perfect demonstration of this trend. In Spain, the General Directorate for Gambling Regulation (DGOJ) enforces one of the strictest regulatory frameworks in the industry, imposing fines in the millions for noncompliance with legislation. In Ireland, the industry is undergoing a major transformation following the passage of the Gambling Regulation Act, which granted the new regulatory authority (GRAI) broad powers to control the market.

While Europe is refining its existing regulatory models, LatAm is now becoming a hub for its rapid digital development. According to the International Player Safety Index report, 84% of operators in the region already use enhanced KYC procedures, and 69% have implemented real-time monitoring systems for gambling activity. These figures indicate that compliance is gradually becoming an integral part of a business’s technological architecture, rather than solely a legal function.

Brazil remains the most telling example. Following the launch of the regulated market, the Secretariat of Prizes and Bets (SPA) reported that 79 licensed operators generated more than 37 billion BRL (about $7 billion) in gross gaming revenue during their first year of operation. The state budget received approximately 10 billion BRL in tax revenue, and the Brazilian Central Bank’s policy played a crucial role in this transformation.

The government has completely phased out the use of credit cards and cash for placing bets, requiring operators to conduct all transactions exclusively through the national instant payment system, Pix. This approach has made it possible to eliminate blind spots and lay the groundwork for effective cash flow monitoring.

How licensing is changing consumer culture

Another fundamental change concerns the concept of responsible gambling principles. According to the International Player Safety Index, 79% of industry representatives consider creating a safe gambling environment the top priority in their operations, and 69% believe that responsible players ensure more sustainable profitability in the long term. These findings indicate a gradual shift from viewing responsible gambling as a regulatory requirement to understanding it as an integral part of a sustainable business model.

This trend is particularly evident in LatAm: the region’s use of self-assessment questionnaires during user registration is nearly three times higher than in other regions. In fact, licensed operators are no longer limited to providing gaming services; they are shaping a new culture of consumption by helping people view betting as entertainment rather than a means of generating income.

At the same time, the entire industry is gradually coming to realise that such initiatives cannot be effective without uniform global standards. As Simon Westbury, Strategic Advisor at 1xBet, notes:

“As the latest International Player Safety Index report showed, 79% of operators agree or strongly agree that creating a genuinely positive gaming environment is the most important thing an operator can do. These are not just empty words: 69% of respondents agree that responsible players are more profitable for operators in the long term. However, without a unified definition and clear terminology, positive play remains more of a loud slogan than an actual practice. It is becoming clear that positive play, as a virtuous circle, is only possible when the gambling industry finally agrees on exactly what it is trying to build.”

From product to a unified infrastructure

With regulatory requirements becoming increasingly complex, it is no longer enough for international operators to simply obtain licenses in new markets. A top priority has emerged: to build a unified infrastructure capable of simultaneously meeting the requirements of dozens of jurisdictions, while maintaining product integrity, a high level of service, and user trust.

Practice shows that this model has already become part of the expansion strategy for major international operators. One example is 1xBet: the company holds more than 34 licenses across various jurisdictions, demonstrating its ability to adapt to the requirements of different countries. Over the years, the brand has transformed its product from a traditional gambling platform into a comprehensive ecosystem: it combines sports betting, esports, and online casinos, complemented by multilingual support and flexible payment solutions.

Such an approach is significant not only for end users but also for the brand’s affiliate network. By working with 1xPartners, affiliates gain access to an established infrastructure tailored to local customer habits, payment methods, and compliance requirements. The approach minimises the loss of potential customers during registration, verification, and financial transactions, which is one of the key factors for successful business growth.

Regulation as the foundation for the future

The modern iGaming industry is gradually coming to a new understanding of the role of compliance. In today’s environment, it has become just as important a part of a company’s technological infrastructure as reliable servers, cloud services, or AI algorithms.

Operators who invest in localising their products, ensuring transparency in financial processes, and developing Positive Play mechanisms gain a more sustainable foothold and support in regulated markets. It is these operators who create a stable and secure ecosystem in which both players and B2B businesses feel equally comfortable operating.

The experience of companies such as 1xBet shows that, for an international brand, regulation is increasingly becoming a solid foundation for growth. And as more and more countries adopt mature licensing models, the ability to manage global compliance is evolving from a recent-years trend into the gold standard for the entire industry.