iGaming & Sports Betting Future

"

Our dear iGaming Friends, This magazine in front of you is the result of a significant collaboration. iGaming experts and influencers have come together to share their knowledge of global markets, regulations, tech challenges, and contributions to the industry development in this magazine.

That is what we at Internet Vikings believe in — transparency and sharing our experience are key to supporting businesses and building strong, everlasting partnerships, which I'm sure you believe in as well.

This magazine is the result of great teamwork, and I am unbelievably proud to be a part of this. We have analyzed our extensive experience of world expansion, extracted the most important parts, and documented it all here for you.

If you find something helpful, please reach out to us, it will be the greatest reward for our work.

Warmest Regards, Anna Dobrovolskaya | CMO at Internet Vikings

02

WORLD MARKETS 04 iGaming across the World. Current Situation 06 Global Thinking for iGaming Operators. Analysis of World Markets

10

U.S. EXPANSION 12 iGaming in the U.S. Current Situation 14 iGaming Statewide (the U.S.). An Up-To-Date Guide 18 Tapping into the opportunities of the U.S. iGaming market 20 The Essential Guide for Expansion in the U.S. 22 Development to Action Checklist

24

LATIN AMERICA 26 iGaming in Latin America. Current Situation 28 The Latest Developments and Future Forecasts of the Key Markets

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EUROPE 36 iGaming in Europe. Current Situation 38 Old World Europe or a New Dawn for iGaming?

40 iGaming Regulation Changes in Germany: Trick or Treat for Operators?

42 Time to go Dutch for iGaming?

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TECHNOLOGY 48 How Inf rastructure Helps Improve Your Business's Performance 50 Transatlantic: the Future of Data Security and Data Protection 52 How to Choose Your Hosting Provider

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INTERNET VIKINGS 56 Internet Vikings: a Leader in Global Online iGaming Hosting 58 Internet Vikings. Global Presence 60 Solutions 62 iGaming Events. 2022 64 Driving Collaboration & Networking. Events, Webinars, and more 66 Earth First. Green-Initiatives 68 Industry Recognition. Awards

Copyright © 2022 Internet Vikings International AB | VAT SE556545890701 Roslagsgatan 26A, 113 55 Stockholm, Sweden | All rights reserved All data reflected in this magazine was validated in May 2022

iGAMING ACROSS THE WORLD Current Situation

Greenland (Denmark)

UNITED STATES

CANADA

UNITED STATES Bermuda (U.K.)

MEXICO

BAHAMAS

HAWAII (U.S.)

DOMINICAN REPUBLIC Puerto Rico (U.S.)

CUBA

Virgin Islands (U.S. & U.K.) St. Martin (Fr. & Neth.)

HAITI BELIZE

JAMAICA

GUATEMALA EL SALVADOR

ANTIGUA AND BARBUDA

ST. KITTS AND NEVIS

HONDURAS

Guadeloupe (Fr.)

DOMINICA

Martinique (Fr.)

ST. VINCENT AND THE GRENADINES GRENADA

NICARAGUA

ST. LUCIA BARBADOS

PANAMA

TRINIDAD AND TOBAGO

COSTA RICA

VENEZUELA

GUYANA SURINAME French Guiana (Fr.)

COLOMBIA Kiritimati (Kiribati)

Galápagos Islands (Ecuador)

ECUADOR

Marquesas Islands (Fr.)

BRAZIL

PERU SAMOA

American Samoa (U.S.)

BOLIVIA Niue (N.Z.) Cook Islands

French Polynesia (Fr.)

TONGA CHILE Pitcairn Islands (U.K.)

PARAGUAY

Easter Island (Chile)

Juan Fernández Archipelago (Chile)

ARGENTINA

— Authorized and regulated nationwide or in certain regions

URUGUAY

Falkland Islands (U.K.)

— Legalization in progress

South Georgia and the South Sandwich Islands (U.K.)

— Moving toward legalization — Monopoly — Unregulated — Officially prohibited — Foreign iGaming sites are unrestricted

South Orkney Islands

SVALBARD (Norway)

Jan Mayen (Norway)

ICELAND

SWEDEN Faroe Islands (Denmark)

FINLAND

RU SSIA

NORWAY

Shetland Is. Orkney Is.

ESTONIA

DENMARK

LATVIA LITHUANIA RU SSI A

NETHERLANDS

IRELAND UNITED KINGDOM

BELARUS

POLAND

GERMANY BELGIUM

LUXEMBOURG

LIECHT.

FRANCE MONACO

MOLDOVA

HUNGARY

SAN MARINO

Corsica

B.H.

ITALY

SERBIA

TURKMENISTAN

Rhodes

CYPRUS

M O R O CCO

I RA N

I RAQ

JAPAN

CHI NA

AFGHANISTAN

JORDAN

A LG E R I A

PAKISTAN

KUWAIT

LI BYA

EG YPT

Western Sahara (Mor.)

MALI

NIGER

SU DA N

CHAD

SENEGAL

ERITREA

GAMBIA

BHUTAN

QATAR

GHANA

BENIN

NI GE R I A

SIERRA LEONE CÔTE D'IVOIRE

I NDI A

OMAN

SOUTH SUDAN

CENTRAL AFRICAN REP.

TOGO

ETH IO PIA

HONG KONG MACAU

MYANMAR

TAIWAN Northern Marianna Islands (U.S.)

THAILAND

YEMEN

SOMALIA

CAMBODIA

Andaman Islands (India)

Lakshadweep Islands (India)

SRI LANKA

VIETNAM

PH I L I PPI N E S

GABON

CONGO

MARSHALL ISLANDS

PALAU

BRUNEI

C a r o l i n e

I s l a n d s

MA L AYSIA

MALDIVES UGANDA

Guam (U.S.)

FEDERATES STATES OF MICRONESIA

Nicobar Islands (India)

CAMEROON

EQUATORIAL GUINEA SÃO TOMÉ AND PRÍNCIPE

BANGLADESH

LAOS

DJIBOUTI

BURKINA FASO

GUINEA

NEPAL

BAHRAIN

SAUDI ARABIA

UNITED ARAB EMIRATES

MAURITANIA

LIBERIA

SOUTH KOREA

SYRIA

LEBANON ISRAEL STATE OF PALESTINE

Canary Islands (Sp.)

GUINEA-BISSAU

NORTH KOREA

TAJIKISTAN

AZERBAIJAN

Sicily

Crete

CAPE VERDE

KYRGYZSTAN

ARMENIA

TU R K EY

GREECE

TUNISIA

MALTA Madeira Islands (Port.)

UZBEKISTAN

GEORGIA

NORTH MACEDONIA ALBANIA

Sardinia

Majorca

BULGARIA

KOSOVO

MONTENEGRO

Ibiza

M ONGOLIA

ROMANIA

CROATIA

VATICAN CITY

Minorca

SPAIN

PORTUGAL

Azores (Port.)

KAZ AKH STAN

SLOVAKIA

SLOVENIA

ANDORRA

UKRAINE

CZECH. REP. AUSTRIA

SWITZERLAND

SINGAPORE

KENYA

NAURU

RWANDA

DEMOCRATIC REP. OF CONGO ANGOLA

BURUNDI Chagos Archipelago (U.K.)

TANZANIA

(Cabinda)

I N DON E S I A

SEYCHELLES

Ascension I. (U.K.)

MALAWI

SOLOMON ISLANDS

EAST TIMOR

COMOROS

ANGOLA

PAPUA NEW GUINEA

Cocos Islands (Aus.)

MOZAMBIQUE

ZA M B IA VANUATU

Saint Helena I. (U.K.)

ZIMBABWE

NAMIBIA

MADAGASCAR MAURITIUS

New Caledonia (Fr.)

Réunion (Fr.)

BOTSWANA

AUST RA L I A ESWATINI LESOTHO

SOUTH AFRICA

NEW ZEALAND

Tristan da Cunha Group (U.K.)

Gough I. (U.K.)

Tasmania I.

Kerguelen Islands

5

WORLD MARKETS | Global Thinking for iGaming Operators. Analysis of World Markets

GLOBAL THINKING FOR iGAMING OPERATORS Analysis of the Global Online Gambling Market The global online gambling market is currently valued at around $59 billion and this amount increases rapidly. It is expected to almost double during the near future, so by 2023, the market could already be worth $90 billion.

Rapid urbanization and the increasing penetration of the internet across the globe are the two key factors driving the growth of the market. Legalization and cultural approval of online activities are also critical factors. Countries that have managed to fully legalize the market, and properly harness its opportunities are forging ahead. So, what's happening on the world stage? Which markets are leading the way, and where do the opportunities for operators lie?

Currently, there are around 80 countries worldwide where online gambling is allowed and regulated. In these countries, iGaming websites must be licensed and there is a regulatory body overseeing the industry. These countries include the main European markets (France, the U.K., Italy, Germany, Spain, Denmark, the Netherlands, Malta, etc), Colombia, and almost half of the U.S.. These territories use the most competent approach, where every operator (whether it is local or foreign) must acquire a license that

meets the rules and legal standards. Only in this case, an iGaming company has the right to legally function in the local market and take advantage of its opportunities. In around 30 of those states, any online resource that tries to circumvent the rules is blocked and/or can face penalties.

In around 50 regulated countries, such as Canada, Sweden, Switzerland, Australia, New Zealand, Mexico, Singapore, and Macau, unlicensed platforms do operate although it is not legal. Blocks are not strictly enforced in these countries. A foreign operator could be licensed in another jurisdiction, or some cases, not at all.

Five countries including Norway and Turkey operate a monopoly for selected providers. Another 54 countries do not prohibit online casinos and do not license them either. Those markets include many African countries, Gibraltar and India to a large extent since iGaming is only regulated in some Indian states. Countries like China, Russia, some states in the U.S., and Israel prohibit online gambling. Other major markets, like Japan, prohibit locals from gambling and block websites of local operators but do allow foreign platforms to work freely. Countries like Brazil are in a transitional period as their markets are about to be regulated, should all legislation be approved.

Currently, there are around 80 states where online gambling is allowed and regulated

The global online gambling market is currently worth around $59 billion, and is forecast to almost double in the near future, so by 2023 the market could be worth more than $90 billion.

Five countries including Norway and Turkey operate a monopoly while 54 countries don't prohibit online casinos but don't license them either

The U.S. and Canada The growth of the legal sports betting industry and concurrent boom in iGaming revenue in the U.S. has seen it emerge as the key driver of growth in the global iGaming market. Presenting operators and suppliers with perhaps their largest-ever opportunity to operate on both sides of the Atlantic, full-scale regulated online gross gaming revenue leaped by 312% in 2021 to $2.61 billion. And, like most online activities, COVID-19 lockdowns led to a huge boost as well. Going forwards, Goldman Sachs has predicted that the market could generate as much as $39 billion annually by 2033. Legislation, however, is maybe the most complex in the world. Although gambling is fully legal under U.S. federal law, there are significant restrictions on a state level, whereby each is free to regulate or prohibit the practice within its borders.

Canada opened its legal market in 2021.

Although it is not yet certain how legalization will play out, analysts predict Ontario's online gaming and sports betting could generate gross revenues of C$989 million, in its first year of opening. This could grow to C$1.86 billion by 2026. Most commentators agree that Canada is in a position to avoid the mistakes made by the U.S., where they are still facing significant regulatory and legislative challenges while lacking the maturity of its contemporaries.

Latin America (LatAm) There are no official statistics that reveal the exact size of the LatAm market. Reports indicate that the region, which consists of 26 different territories and more people than Europe, will be worth anything between $2 and 7 billion. Brazil alone, region's largest market could be worth $10 billion by 2025.

7

WORLD MARKETS | Global Thinking for iGaming Operators. Analysis of World Markets

Analysts feel that within the next ten years, the LatAm market as a whole will be competing with Europe. Brazil, Mexico, and Colombia are the most promising markets, but Brazil still has to finalize its legislation to reach its full potential.

Mexico has a population of almost 130 million people and represents an opportunity for huge growth in both online and land-based gaming. Gambling is permitted, but the industry badly needs further reform in order to grow.

Colombia is one of the regulated market in LatAm, and it has shown albeit on a much smaller scale, what is possible in the region, reporting strong and solid growth.

Europe Europe is, without doubt, the Old Lady and traditional home of iGaming.

The continent provides a long-established gambling tradition, strong legal markets, a wealth of consumers, and is at the forefront of game development. No other part of the world can exceed Europe when it comes to size and revenue. By the end of 2022 online gaming revenue generated by European countries is expected to reach €40 billion. To put that in a global perspective, this sector accounts for nearly half of the world’s iGaming revenue.

countries, the rules and regulations for operators are so formidable that businesses have started turning away.

Asia and Africa Asia is always a topic of interest for international iGaming operators — a region with many developed economies and home to 60% of the world population. Add to this a lightning-fast rate of digital technologies' adoption, and you will find a continent full of opportunities. According to market estimates, the Asia Pacific online gambling market will account for $50 billion by 2026.

By the end of 2022 online gaming revenue generated

by European countries is expected to reach €40bn.

To put that into a global perspective, this sector accounts for nearly half of the world’s iGaming revenue.

Currently, the bulk of that revenue is generated by the

That also includes Macau, China's sole legal gaming jurisdiction. As a result of its enormous popularity among tourists, it has developed into one of the world’s greatest iGaming markets.

However, strict regulations and conservative governments make it a challenging landscape for operators to navigate.

Although Africa only accounts for 1.1% of online gambling worldwide, iGaming is a major industry in the region. Africa is getting increasing attention from foreign investors and casino owners as markets develop.

Presently, the continent is almost completely untraditional giants regulated: there are no restrictions on gambling of the west, UK and Currently, the bulk of sites at all, plus habits, EU countries. that revenue is generatrules, and regulations ed by long-established vary across 54 countries traditional giants of the making it complex to west, UK, and EU countries. But, there is navigate. Some territories even prohibno doubt that significant growth opporit the practice altogether. South Africa tunities can still be found in the newer is the largest market on the continent, markets of Eastern and Southern Euwith gross gaming revenue projected rope like Poland, the Czech Republic, to surpass $2.3 billion by 2023. One of and Bulgaria. Other countries, such as the factors contributing to this is that the Netherlands that only just legalized South Africa has the third-highest GDP online gambling, also provide a variety of in Africa, and online betting is legal for opportunities. However, in a few European licensed bookmakers.

8

long-established

It doesn’t matter whichever market we are looking at across the globe, iGaming seems to be doing exceptionally well, and perhaps now is the best time ever for operators to enter the business.

WORLD MARKETS / Global Thinking for iGaming Operators. Analysis of World Markets

Conclusion While the iGaming industry has been growing significantly for years, revenue and opportunities in the industry are now increasing faster than ever. Developments, regulations, and advanced technology on a global scale have shaped a varied and opportune foundation to develop and invest in the industry. Asia-Pacific, North America, as well as Europe remain the top three areas for gambling revenue by region, with the latter two the most regulated.

The rapidly growing LatAm market may be the dark horse of the future.

To be successful in any regulated market is no mean feat, and referring to qualified industry legal and technical specialists should always be your first step. This is especially true for the likes of the U.S. and Europe, where regulations are and continue to be a matter for experts.

As more markets open their doors to sustainable development, opportunities to invest and capitalize are appearing in familiar and unfamiliar territories. For iGaming — the World, as they say, is your oyster.

9

U.S. EXPANSION | iGaming in the U.S. | Current Situation

iGAMING IN THE U.S. Current Situation AK WA

VT MT

ME

ND

OR ID

MN

SD

WI

WY NV CA

PA

IA IL

CO

AZ

NY MI

NE UT

NH

KS

MO

OK

NM

IN

OH

TX

LA

VA

KY

NC

TN

SC MS

AL

GA

HI

FL

— Online casinos, online poker, and online sports betting are legal — Online sports betting and online poker are legal. Online casinos are prohibited — Only online sports betting is authorized — Only physical sportsbooks are authorized — Online sports betting is pending or under consideration by the legislature — No movement to legalize online gaming

Pending* — States are in the process of launching their programs Under consideration* — Under consideration by a legislature

RI CT NJ

WV

AR

MA

DE MD DC

U.S. EXPANSION | iGaming in the U.S. | Current Situation

Online Poker

Online Sports Betting

—

—

—

Connecticut

CT

Michigan

MI

New Jersey

NJ

Pennsylvania

PA

West Virginia

WV

Nevada

NV

—

Arizona

AZ

—

—

Arkansas

AR

—

—

Colorado

CO

—

—

Illinois

IL

—

—

Indiana

IN

—

—

Iowa

IA

—

—

Kansas

KS

—

—

Louisiana

LA

—

—

Montana

MT

—

—

New Hampshire

NH

—

—

New York

NY

—

—

Ohio

OH

—

—

Oregon

OR

—

—

Rhode Island

RI

—

—

Tennessee

TN

—

—

Virginia

VA

—

—

Washington DC

DC

—

—

Wyoming

WY

—

—

— — — — — — — — — — — — — — — — — — — — — — — — —

Online Casino

— — — — — — —

DE

— — — — — —

Delaware

Maine

ME

—

—

Only physical sportsbooks

Mississipi

MS

—

—

Only physical sportsbooks

New Mexico

NM

—

—

Only physical sportsbooks

North Dakota

ND

—

—

Only physical sportsbooks

South Dakota

SD

—

—

Only physical sportsbooks

Washington

WA

—

—

Only physical sportsbooks

Florida

FL

—

—

Pending*

Kentucky

KY

—

—

Under consideration*

Maryland

MD

—

—

Pending*

Minnesota

MN

—

—

Under consideration*

Missouri

MO

—

—

Under consideration*

Nebraska

NE

—

—

Pending*

North Carolina

NC

—

—

Pending*

Vermont

VT

—

—

Under consideration*

Wisconsin

WI

—

—

Pending*

Alabama

AL

—

—

—

Alaska

AK

—

—

—

California

CA

—

—

—

Georgia

GA

—

—

—

Hawaii

HI

—

—

—

Idaho

ID

—

—

—

Massatchussets

MA

—

—

—

Oklahoma

OK

—

—

—

South Carolina

SC

—

—

—

Texas

TX

—

—

—

UT

—

—

—

Utah

— — — — —

— — — — — —

— — — — — — — — — — — — — — — — — — — — — — — —

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U.S. EXPANSION | iGaming Statewide (the U.S.). An Up-To-Date Guide

iGAMING STATEWIDE (THE U.S.) An Up-To-Date Guide With iGaming regulations varying significantly from state to state while also developing separately from each other, the U.S. market is complex to navigate. What are the latest developments in the different sectors and states? Which operators are ready to enter the market? Where do the opportunities lie, and which states are on the back burner?

Online Sports Betting With dozens of states legalizing sports betting, a multi-billion-dollar sports betting boom seems inevitable in the U.S. There are currently more bets being wagered on sports in New Jersey than in Nevada. The boundaries that once separated gambling from sports media and professional sports leagues are disappearing, and with digital apps making sports betting possible on mobile devices, the business of brick-and-mortar casinos is under threat.

The industry is poised for explosive growth.

Full-scale regulated U.S. sports-betting

revenue across 19 reporting states more than trebled year-on-year to $3.08 billion in the 12 months to June 2021, with online gross gaming revenue leaping by 312% to $2.61 billion. Like many online activities, lockdowns during the pandemic resulted in a huge boost for the iGaming sector. Going forwards, Goldman Sachs has predicted that the market could generate as much as $39 billion annually by 2033.

Currently, 25 states have fully legalized sports betting. However, their regulations vary heavily.

Goldman Sachs has predicted that the market could generate as much as $39 billion annually by 2033.

U.S. EXPANSION | iGaming Statewide (the U.S.). An Up-To-Date Guide

Arizona is considered one of the major players, with the usual line-up of sportsbook operators (SBO).

famously, offers exceptionally uncompetitive odds for betting through the state lottery provider.

Colorado has seen massive growth in just a short period of time. Launching in 2020, it now has more than two dozen online SBOs.

Oregon is also very limited. It is only possible to bet through its Scoreboard app.

Illinois partially allows sports betting, with some prohibitive state laws, hopefully ending in 2022. eSports are currently not allowed.

Iowa is a medium-sized proposition with more than 10 online SBO apps.

Louisiana has six mobile apps and the law allows sports betting licenses for each of the 20 major gambling locations in the state. Only 55 of the 64 parishes have so far approved, but there is potential for expansion.

Pennsylvania is a prospect and has nearly a dozen apps. There are no restrictions on collegiate events or other sports in the state, only non-sporting events are not permitted.

Tennessee now has more than a halfdozen options, including a local SBO. Inplay wagers on collegiate events are not allowed, but everything else is on the table. A growth prospect for the future.

Full-scale regulated U.S. sports-betting revenue across 19 reporting states more than trebled year-on-year to

In Virginia there are eight SBOs, of which each one is a big name. Bets on Virginia universities are allowed, but tournaments are exempt from this provision.

$3.08 bn in the Nevada is a state of opWashington DC is a rathportunities: the original er complicated market.

12 months to June betting state, and the The only available app is 2021, with online first to offer online sports operated by the DC Lotbetting of any kind. Howtery. Caesar app opergross gaming ever, it remains a frusates only around Capital revenue leaping trating place to play due One Arena and BetMGM by 312% to $2.61 bn to its Draconian registraaround National Park. tion requirements. The Bets on DC universities or or 85% of the total. state has the potential to college games inside the become the undisputed district are not allowed. number one if it can push through the necessary reforms. The exWest Virginia has six different apps availpectations for sports betting in Nevada able that are all partnered with one of the are high since reforms might take place five casinos in the state. in the near future.

The two operators that are yet to launch New Jersey, the current leader, and bigin 2022 offer significant potential. gest player, has nearly two dozen SBOs, many with apps serving New York City.

Maryland continues to hammer out the Regulators have already cleared four SBOs final details on its sports betting launch, to launch their apps as soon as possible, possibly towards the end of the year, while five more have already been licensed. and what's notable about this state is Further growth is anticipated here. its sheer size. According to proposals, as many as 60 different SBOs could be Michigan is also one of the top states for based here. sports betting, with more than a dozen apps. The law does not prohibit any parOhio's new state law authorizes online ticular sports wager, only prop bets in sportsbooks that are tethered to brickcollegiate sports are still not allowed. and-mortar gambling entities in the state. This will be launched on January 1st, Montana is technically legal but ex2023, and has the potential to make Ohio tremely limited. Only a single app, and a significant player in the market.

15

U.S. EXPANSION | iGaming Statewide (the U.S.). An Up-To-Date Guide

Online Casinos

Online Poker

With land-based casinos operating in the country for centuries, the U.S. has a long history of casino gambling. There are close to 400 registered casino hotels located in the U.S., with an estimated value of $54.8 billion in 2021, plus 465 registered non-hotel casinos with similar gross gaming revenue. The potential of transferring a part of that revenue online is clearly there, especially since legal online casinos continue to grow in popularity every year. Unfortunately, laws regarding the online casino industry are quite complex. Both federal and state laws determine what is allowed, and there are just a few states where legal online casinos are publicly available .

Things are changing fast for online poker in the United States.

New Jersey is home to more online casino options than any other state.

The state was one of the first to legalize online casino gaming and now has nearly two dozen different apps.

Michigan is a new online member but is already making great progress since its launch in 2021. There are more than a dozen casino apps, with options ranging from well-known big companies to promising smaller operators under the supervision of the Michigan Gaming Control Board.

Pennsylvania's online offering has grown from just two online options in 2019 to more than twelve different apps available in 2022.

West Virginia was one of the first states to legalize online sports betting and, at present, has four online casino options with more joining in the near future.

Delaware is limited to just three online offerings, which are all hosted in association with its regulator Delaware Lottery, plus its size limits prospects of expanding its portfolio anytime soon.

Connecticut launched in late 2021 with two online casino options plus the possibility to play online poker. The industry is limited to non-commercial tribal casinos and the state has not actually launched online poker yet.

Additionally, there is a fair chance that Illinois and Indiana will legalize online gambling in 2022.

16

Since the land-based casinos are worth around $100 billion for all games collectively, there is still considerable opportunity for operators to move a slice of the poker pie online.

There are currently only seven states with legal online poker games. New Jersey, Pennsylvania, Michigan, West Virginia, Nevada, Connecticut, and Delaware — plus legal, sweepstakes poker games in other areas.

Though the boom of 10 years ago is over, online poker for real money in the United States is on the rise again.

U.S. EXPANSION | iGaming Statewide (the U.S.). An Up-To-Date Guide Since land-based casinos are worth around $100 billion for all games collectively, there is still considerable opportunity for operators to move a slice of the poker pie online.

Conclusion The growth of the legal sports betting industry and concurrent boom in iGaming revenue in the U.S. has seen it emerge as the key driver of growth in the global online gambling industry, presenting operators and suppliers with their largestever market opportunity. It allows them to dominate the development and future of the industry on both sides of the Atlantic. The market has an expected compound annual growth rate of 17.34% during the forecast period (2021-2026).

It is also notable that remote/mobile sports betting is the king of the hill in states where this is legalized. In New Jersey, Colorado, Pennsylvania, Indiana, Virginia, and Michigan, 90% of all wagers are placed remotely.

The legislation in the U.S., however, is perhaps the most complex in the world.

Although gambling is fully legal under

U.S. federal law, there are significant restrictions on a state level where each is free to regulate or prohibit the practice within its borders. Nearly every state has at least considered legalizing sports betting, but the reality is that full access will not come to more than a dozen states for a long time due to deep-seated political opposition to gambling or complex tribal relationships. A great example is Nevada, where the great Gold Rush started and could roll once again if allowed to do so. Sports betting should initially be allowed to proceed in the near future, but there is significant opposition to the online casino proposition.

We can conclude that the U.S. is, without doubt, the Lion in the game with the biggest roar. However, this lion is not that easy to tame. The market is difficult to navigate for operators, now and in the immediate future.

17

U.S. Expansion | Tapping into the Opportunities of the U.S. iGaming Market

TAPPING INTO THE OPPORTUNITIES OF THE U.S. iGAMING MARKET Jesper Kärrbrink and Elena Kvakova discuss how to successfully launch in the prosperous market.

We have seen a voracious appetite for online gaming in the United States, and it is only getting stronger. The number of states that passed legislation in 2021 far exceeded all expectations, and we can expect a steady increase in the years ahead. Initially, the procedure can be intimidating for organizations seeking to break into this market, but the rewards on the horizon

far outweigh the challenges. In this interview, Jesper Kärrbrink, Co-founder and Creative Director of Green Jade Games, and Elena Kvakova, Head of the U.S. Market at Internet Vikings, discuss insights to assist businesses in understanding the significant market challenges and opportunities as well as aid in the development of a flawless market entry strategy.

Elena and Jesper, given your expertise in the U.S. market and years of iGaming industry knowledge, what do you believe are the most significant considerations for companies entering the U.S. iGaming market?

Elena: First and foremost, businesses should strap in for the long haul by investing time in research, keeping abreast of industry developments, such as new players entering the market, new states enacting legislation, and legal challenges certain companies are confronted with.

Jesper: It is essential to keep in mind that you cannot enter the U.S. market alone. You must have a partner or company sponsorship, which is why securing an agreement or letter of intent with a partner who is already accredited (in the state you intend to enter) is critical. Get a head start by connecting with businesses already operating in the market that can offer valuable advice based on their experiences and day-to-day responsibilities.

Elena: Prepare to devote a significant amount of time to complete a large number of application forms and consult with professionals. Multiple states have comparable standards, so entering additional states will be much easier after you have cleared the first hurdle. Collaborating with a skilled legal and compliance team will also help to streamline the process of obtaining the necessary registration and licenses and completing state filings.

What advice can you give companies in terms of license applications and processes based on your own experience?

Jesper: When determining which state to launch in, choose the one that offers the most business potential. Follow the demand and enter each state one at a time to prevent becoming overwhelmed by the application criteria.

18

Being immersed in the market's happenings over the past year, what changes have contributed to the evolution of the U.S. iGaming market?

Elena: One of the extraordinary things we have seen is that 25 states have enacted online sports betting legislation, exceeding the initial forecasts of two or three states. I think we will continue to see more states getting on board as this year has proven that states are realizing that online gaming can be conducted safely while providing entertainment and generating additional tax revenue.

As experts who have been observing the U.S. gambling market for a few years, what trends do you anticipate in the next five years?

Jesper: We should certainly start seeing a rise in the number of European companies

Jesper Kärrbrink Chairman at Green Jade Games Ltd

Elena Kvakova Head of the U.S. Market at Internet Vikings

"

Mississippi, Georgia and California are the states that I believe are most likely to pass legislation in the near future.

I think West Virginia will soon catch up to Michigan in terms of revenue, and Colorado is another sports betting only state that sees steady month-overmonth growth.

U.S. Expansion | Tapping into the Opportunities of the U.S. iGaming Market

entering the market, increasing competition, and the transition from Gray to legal markets.

Elena: I believe that another four to eight states will likely pass legislation with a sportsbook license as a stepping stone to further legalization in the next two years. In addition to sportsbooks, more states will pass legislation to regulate online casinos, with Indiana and Idaho being the next states to join this cohort.

All eyes have been on three major iGaming markets in the United States, including New Jersey, Michigan, and Pennsylvania. How do the regulations in these states differ?

Elena: Operators, suppliers, and affiliate marketers are all regulated similarly in New Jersey and Michigan, with the lowest licensing tier being that of a vendor in both states. On the other hand, Pennsylvania requires a gaming service provider license immediately, which necessitates a more detailed application, personal disclosure, and financial forms.

In your opinion, what factors have contributed to the success of New Jersey, Michigan, and Pennsylvania?

Jesper: All three states are successful since they provide online casinos as well as online sports betting, which generates additional revenue. As a result, operators can serve more customers with a broader selection of games.

Elena: Obviously, Michigan has followed in the footsteps of New Jersey and Pennsylvania, which were pioneers in statewide online gambling, and Michigan is already

ahead of them now. The perfect timing of Michigan's launch right before March Madness and the Super Bowl, also played a role in their success.

Given your own experience with the application process, can you provide your perspective on what businesses should expect when going through the procedure themselves?

Jesper: In my opinion, these markets have a robust operational, and regulatory basis and are not difficult to enter; nonetheless, all of your legal and technical processes and documentation must be in order to avoid delays.

Elena: The complex application process can be made easier if you start preparing your teams in advance — i.e. making organizational structure changes if needed, and implementing the required internal procedures. Processing times are quite reasonable in the states of Pennsylvania and New Jersey, although businesses should be prepared to wait longer than usual for Michigan due to a backlog of applications as a result of the enormous popularity of its launch this year.

Now for the burning question: which of the forthcoming states do you believe has the highest potential for growth in the coming years?

Elena: Mississippi, Georgia and California are the states that I believe are most likely to pass legislation in the near future. I think West Virginia will soon catch up to Michigan in terms of revenue, and Colorado is another sports-betting-only state that sees steady month-to-month growth.

Conclusion Although entering the U.S. presents its challenges, once there, the procedures for each regulation are relatively similar, and the market becomes one. The result of increased state consolidation will be a sector that matures faster than any other, opening up dozens of new prospects.

To sum up, if you are considering entering the American iGaming business, you should undoubtedly get on board sooner rather than later.

19

U.S. EXPANSION | The Essential Guide for Expansion in the U.S.

THE ESSENTIAL GUIDE FOR EXPANSION IN THE U.S. In the third quarter of 2021, gambling revenue in the United States hit $48.34 billion, smashing the previous record set in 2019, which was 21% higher than the same 11-month period in 2019. December became the tenth consecutive month in which the gaming business generated more than $4 billion in revenue, a numerical milestone the industry had never previously exceeded. The future of interactive gaming in the United States is looking brighter than ever before, but establishing a firm foothold demands a well-defined strategy and approach.

Gaming lawfulness is defined and regulated on a state level, both online and offline, which means that each state has the authority to regulate it, both in the physical world and online.

As a result, all states in the U.S. should be viewed as emerging markets, with each state posing its unique set of challenges. Due to licensing and operational compliance burdens imposed in every state, expanding your iGaming business can be time-consuming and costly. Understanding the time needed for such expansion is critical since it enables your organization to adjust to new regulations and licensing, which is essential for success in a race to the top.

To aid businesses in navigating through licenses and legislation in the United States, the accompanying guide and checklist have been developed to highlight several critical factors to consider as you plan your expansion into the United States market.

Your Guide to Planning and Market Research

1

Market Accessibility

Currently, online sports betting is legal in 25 states; however, state-specific gambling laws govern or limit certain forms of gaming on a state-by-state basis. The legislation governing internet casinos, sports betting, daily fantasy sports, e-sports, and lottery vary by state.

New Jersey, Pennsylvania, and Michigan were the first three states to permit all forms of online gambling, which helped them achieve success.

down which states you may wish to enter. Assessing state performance is critical to determining the industry's effectiveness in terms of revenue generation.

For example, New Jersey is second only to Nevada in terms of gambling revenue generation. Because of its extensive online betting presence, sportsbook apps and websites account for approximately 80% of the entire handle.

Insights into the market's development and the rate at which it is expected to grow can assist you in narrowing

2

State Regulations

Depending on the type of business you operate, you will need to conduct basic to substantial studies to become familiar with the regulations in each state before deciding which to enter.

Right now, there are six states with laws governing both online sports betting and casino games: New Jersey, Pennsylvania, Michigan, West Virginia, Connecticut

20

and Delaware, while Colorado, Tennessee, Virginia, Illinois, and Indiana, as well as New York and Nevada, are among the 25 that have legalized online sports betting.

It will also be beneficial to stay up to date on the latest developments and be aware of which states are now heading towards legalization.

U.S. EXPANSION | The Essential Guide for Expansion in the U.S.

3

Skin Classifications

Because a gaming regulator has the authority to require one or both types of skins, depending on the underlying activity, it is critical to understand which kind of skin is required to enter the market. Obtaining a single skin might already be pricey, especially for a new operator; thus, states requiring the operator to purchase more than one skin type may compel them to enter a different state.

4

Competition

Understanding who your competitors are is important in determining how saturated a market already is in a particular state. In a crowded market such as

5

Because certain jurisdictions only offer a limited number of skins and may have already hit capacity, it is critical to be aware of skin availability restrictions. For instance, Michigan allows one "skin" for mobile betting, with around 15 skins available throughout the state.

On the other hand, Virginia sets a cap on the number of skins available to the market, making it possible only for larger operators.

New Jersey, where there are a limited number of skins available, operators have snatched up the vast majority, driving up the price of the few remaining licenses.

Licenses

In the U.S., there are four primary tiers of gambling licenses: Operator, Vendor, Service Provider, and Employee. Each of these licenses must be acquired according to the nature of your entity.

backlog of applications. Because the majority of states have similar licensing criteria, after you have gained access through a single state, the application procedures may only vary slightly.

Typically, states may grant a temporary license allowing businesses to begin operations within three to six months following the application. Companies seeking Michigan licenses may anticipate delays due to a

To minimize delays, invest sufficient time to investigate, comprehend, and collect all relevant documentation before submitting a license application.

6

Licensing Fees

Operating and service providers may incur licensing charges of up to $200 000, depending on the state and nature of their business. As skins become more restricted and in high demand, costs are likely to rise. West Virginia, on the other hand, a newcomer to

7

the online casino business, offers licenses at cheaper rates (up to $10,000), making it a good starting point for many operators. In addition, hosting, platforms, infrastructure, and marketing are just a few of the costs to consider.

IT and Inf rustructure

Infrastructure will play a significant role in your business's success. Determine whether your company will

invest in in-house IT or work with a third-party service.

Opting for an in-house solution will necessitate a significant amount of staff, not just to jump through the hoops of ensuring compliance procedures are followed but also to maintain the system.

U.S. EXPANSION | Development to Action Checklist

DEVELOPMENT TO ACTION CHECKLIST 1. Company and tax registration Any business intending to conduct business in the United States must first register as a U.S. company and pay taxes in each state in which they wish to conduct business. The classification of online gambling vs. sports betting will also have an effect on how the underlying revenue is taxed. For example, New Jersey imposes a 15% tax on gaming revenue generated by online gambling but only a 13% tax on online sports betting revenue.

2. Enter into an agreement with a casino or operator Operators must enter into a partnership agreement with an in-state brick and mortar casino, while suppliers and vendors must submit a letter of “intent to partner” f rom an in-state licensed operator demonstrating the necessity for this license.

3. Select a co-location or hosting provider To conduct business in the state, operators, service providers, and vendors must enter into a co-location or hosting agreement with a licensed provider in the state.

4. Equipment Hardware for online gaming must be purchased from a registered vendor.

Vendor registration is free in all states and often takes no more than 35-40 days, but it does require the vendor to complete two disclosure forms with the casino and the state gambling commission.

5. Complete And Submit Your Application Depending on the nature of your business, you will need to apply for a license in each state. Prepare to spend considerable time acquiring the necessary information to avoid delays.

Investing in the iGaming industry may be both enjoyable and profitable, as the landscape is continually evolving and improving. However, European enterprises need to comprehend the language and culture of American gaming, which differs significantly from that of Europe and varies by state.

Given the volume of legalese and procedures described in this guide, it is understandable that there may be some confusion regarding the legality of online gambling in the United States; yet, overcoming daunting obstacles will result in gratifying rewards. By reviewing your strategic approach, utilizing available resources, and working with an established brand, you may easily overcome that cultural divide and create a foothold by leveraging an already established audience.

22

iGaming in LATIN AMERICA | Current Situation

iGAMING IN LATIN AMERICA Current Situation

MEXICO

BAHAMAS DOMINICAN REPUBLIC

CUBA HAITI BELIZE

JAMAICA

ST. KITTS AND NEVIS

HONDURAS GUATEMALA EL SALVADOR

ST. VINCENT AND THE GRENADINES GRENADA

NICARAGUA

ANTIGUA AND BARBUDA DOMINICA ST. LUCIA BARBADOS

PANAMA

TRINIDAD AND TOBAGO

COSTA RICA

VENEZUELA

GUYANA SURINAME

COLOMBIA

ECUADOR

BRAZIL PERU BOLIVIA

CHILE

— Authorized and regulated nationwide or in certain regions — Legalization in progress — Moving toward legalization — Monopoly — Unregulated — Prohibited — Foreign iGaming sites are not restricted

PARAGUAY

ARGENTINA

URUGUAY

iGaming in LATIN AMERICA | Current Situation

Country

Argentina Belize Colombia Dominican Republic Jamaica Nicaragua Panama Peru Saint Kitts and Nevis Suriname Venezuela

Foreign sites are not restricted

— — — — —

—

— — —

—

— — —

—

—

—

—

—

—

—

—

—

—

—

—

Brazil

Prohibited

— — — — — — — — — — — — — —

Paraguay

Unregulated

—

Mexico

Monopoly

—

Costa Rica

Moving toward legalization

— — — — — — — — — — — — — — —

Antigua and Barbuda

Authorized & Legalization regulated* in process

Barbados Bolivia Dominica Ecuador El Salvador Grenada Guyana

—

—

—

—

—

—

—

—

—

—

—

—

—

— —

—

— — — — — — —

Guatemala

—

— — — — — — — — — — — — — —

The Bahamas

—

—

Uruguay

—

—

Chile

—

—

—

Haiti Honduras Saint Lucia Saint Vincent and the Grenadines Trinidad and Tobago

Latin America is currently experiencing rapid economic development and regulatory overhaul. The continent presents a wide range of opportunities for those looking to expand their global footprint. Despite higher inflation, less favorable lending conditions, fiscal policies, elevated inflation, and political uncertainty, the iGaming industry is still vast and growing.

The GDP rate is forecast to slow in 2022, but overall spending is robust. A recent report for the region showed the iGaming market generated $3,5 billion in 2021 with projections estimated to increase to $5,1 billion by 2024.

Each territory in the region has a unique story, but there are some common threads. Players in LatAm bet lower amounts at higher frequencies with sports betting

* - Authorized and regulated nationwide or in certain regions

—

—

—

—

—

—

—

—

—

—

Cuba

—

being the most popular vertical while slots, poker, and bingo are also widely played. There is a mobile-first dynamic; as mobile broadband subscriptions are more widespread than fixed connections, and people’s only Internet access is usually through their phones.

As for regulation, not all territories are at the same stage of development. Colombia is fully regulated, while others such as Brazil and Chile are still working with operators and regulators to create legal frameworks. The ‘sleeping giant’ of Brazil could finally awaken and go live with iGaming in 2022, with the region set to support dramatic expansion and countless opportunities for gaming operators. In 2020 Brazil's reported revenues were BRL7 billion and the territory already ranks as the third-largest customer base worldwide, with more than 30 million players.

27

LATIN AMERICA | The Latest Developments and Future Forecasts of the Key Markets

THE LATEST DEVELOPMENTS AND FUTURE FORECASTS OF THE KEY MARKETS Expert overview from Sebastian Perrier, iGaming Sr. Executive specialized in Latin America.

Latin America has been labeled ‘the land of promise’ for the iGaming industry. To get a deeper understanding of the market and its opportunities, we researched the LatAm iGaming market and met with Sebastian Perrier — iGaming Sr. Executive, specializing in Latin America — to share his thoughts on the evolution of the key markets over the past few years as well as his forecasts for the future development in the coming years.

The land of promise “Latin America, like the rest of the world, is in the process of legalizing and regulating iGaming. So it is a very interesting moment in time and the trends are changing fast. The land-based gaming industry has been shaken, and together

with the pandemic, has accelerated the development of online offerings” — says Sebastian.

There are no official statistics that allow us to know in detail the exact size of the Latin American market. Reports indicate that the region, which is made up of 26 different territories and more people than Europe, was worth anything between $2 and 7 billion by the end of 2021.

That is quite a range, and much depends on the source. Clearly, there is not much reliable quantification, but even at the lower end, that is more than three times as much as Southeast Asia, which is experiencing a gambling boom in its own right. Brazil alone, the region's largest market, could be worth US$10 billion by 2025 and many analysts feel that within the next ten years, the LatAm market as

Many analysts feel that within the next 10 years, the LatAm market as a whole will be competing with Europe

Sebastian Perrier iGaming Sr. Executive specialized in Latin America. Co-Founder at Neko Games.

"

iGaming in Latin America is

LATIN AMERICA | The Latest Developments and Future Forecasts of the Key Markets

a whole will be competing with Europe.

Significant markets for operators in the next few years include Mexico, Brazil, Colombia, Chile, Argentina, Uruguay, Peru, Venezuela, and Ecuador.

catching up with

Sebastian claims: “There are multiple countries with a wide range of cultures across LatAm, However, 6 countries account for 80% of the population and GDP. Given that localizing a website for Paraguay takes the same amount of work as doing the same for Brazil, the industry will focus on the large markets at first.”

technology and this

Brazil

transitioning from an absence of regulation to a regulated market.

The region is

will provide many opportunities in different countries for operators to grow their businesses.

In February 2022 Brazil’s Chamber voted to legalize online and land-based gambling in a landmark decision. The bill is set to regulate casinos, online gaming, horse racing, slot machines, bingo, and jogo de bicho operations. Casinos are to be established in each of the 26 states, in the form of integrated resorts, with licenses available through a tender process. The government has yet to decide on the number of licenses that it will be handing out, and more importantly, under what terms. An industry report highlighted “whilst progress has been slow, once live, Brazil's sports betting industry could develop itself into one of the most lucrative markets on a global stage.”

But once the new regulations do come into effect, Brazil will have the continent’s largest land-based and online sports betting market. With an estimated 63% of its population who have access to smartphones and a nationwide

passion for sports — particularly football — Brazil is a potential dream come true for operators who want to expand into South America.

Experts are expecting a significant iGaming industry boost in the very near future. The country could see gross profits of $10 billion as early as 2024.

The argument is that Brazilian punters are already active anyway, and just taking money to offshore casinos. By fully implementing the legislation, Brazil would see a massive boost in revenue, both from players in the country and from tourists.

Mexico With a population of almost 130 million people, little needs to be said regarding the opportunity for huge growth in both online and land-based gaming in Mexico. Mexico, of course, is already regulated, and the natives’ love of U.S. sports such as the NFL, Hockey, and Baseball, combined with their fondness for Soccer, means it is a thriving market. From a technological perspective, the country is also attracting big interest from operators. Being LatAm’s second-largest smartphone market after Brazil, and with the number of smartphone users constantly rising, the country’s future looks rosy.

Although gambling is a permitted activity in Mexico, a new raft of regulations will make the local iGaming industry more attractive. Gambling is currently subject to federal jurisdiction, with

29

LATIN AMERICA | The Latest Developments and Future Forecasts of the Key Markets

operators seeking governmental authorization to conduct activities from the competent authority. However, the prospect of wider and stronger regulation is attracting the attention of both local and global operators keen to diversify their revenue sources from the traditional European markets.

Colombia is essentially paving the way for countries like Mexico and Brazil to follow suit and fine-tune and update their existing gambling laws to meet contemporary demand. With recent headway made to end decades of conflict and revolution between militia groups, is finally emerging from that shadow.

Over 60% of Colombian adults regularDespite the positive outlook, the Mexily place wagers. Land-based casinos, can scenario does pose some challenges slot parlors, bingo, and lotteries are to maintaining steady growth momencurrently legal. Only this year, Leading tum. The current regulatory framework U.K. company Betfair received a fivedraws criticism for being too slow, but year iGaming license from Colombithis is not the only problem. Although an regulator Coljuegos, becoming the the country boasts good Internet pen17th authorized gambling platform in etration, even when compared to other the country. Betfair will now be able to Latin American countries, offer slot gaming, online less than half of Mexicans poker, daily fantasy sports with Internet access have betting, and sports waOver access to a bank card. Angering in the jurisdiction. other major challenge that According to Coljuegos Mexican-licensed operapresident Galiano, the new tors face is the relatively license shows that the Cohuge marketing budget lombian gaming market of Colombian required. In some cases, up is well anchored into the adults regularly to half of revenue spendnational economy and on ing is marketing, just to the rise. To operate legalplace wagers grab local punters’ attenly in Colombia, operators tion and compete with need to pay a licensing fee internationally licensed of around $200,000 a year operators. Locally licensed operators and a 15% tax on gross gaming revemust also pay 30% IEPS (excise tax) on nues. Coljuegos said Betfair alone could their gambling revenue, which, when bring up to COP$23 billion (~$6.5 milcombined with their marketing costs, lion) to the national economy. means they cannot be as competitive as international peers.

Once a system rife with corruption and illegal gaming activity, Coljuegos has There is still much to be optimistic transformed the market, with Colombiabout, however. The country could well an law the catalyst. By creating realistic emerge as a major player once the regulations that fully reflect modern current regulatory framework evolves. gambling trends, both revenues for the Even though the process of regulation government through taxes and licenses advances more slowly than it should, it and profits for operators have increased, is important to note that new impendwith the added benefit of creating a safing regulation is not a matter of ‘if’ but er environment for players. ‘when’. This all adds to the market’s future lucrativeness, contributing to the Sebastian points out: “While offshore/ country’s investment potential and unregulated has the taxation loophole, appeal. It is now up to legislators to there are many restrictions on marketmake it happen. ing and payments in order to operate an iGaming website successfully in LatAm. Colombia Therefore, the regulation trend is key to allowing companies to implement comThe iGaming market in Colombia was plete marketing plans and localized paythe first jurisdiction in Latin America to ment solutions, which in turn increases set up a regulated online gambling envirevenues. At the same time and perhaps ronment. The eGaming Act has already most importantly, they are protecting been approved in 2016, and since then, players, controlling KYC, access to minors it’s been open to licensed operations. and preventing gambling addictions.”

60%

30

LATIN AMERICA | The Latest Developments and Future Forecasts of the Key Markets

Argentina In Argentina, many provinces have taken steps toward regulation, with at least 14 of the 24 jurisdictions legalizing online betting. This is an even split between government monopolies, incumbent land-based operators, and new licensing regimes. Some require international operators to have a local base and others do not. This kind of wide variation in requirements and legislation makes it difficult for commentators to predict how things might pan out here.

LatAm vs Europe As for operators, how does Latin America compare to mature markets like Europe? On the one hand, LatAm is not that complicated for gambling companies to market, unlike Europe, which is made up of many countries with different languages.

Of course, most Latin American countries speak Spanish, with the main exception being Brazil. Although the territories are unique in their own right, they are also countries with similar histories i.e. were mostly Spanish colonies and got their independence in the early 1800s. The region has a relatively young population, and young millennials prefer to bet online over brick-and-mortar establishments. The younger generation also has access to smartphones and are tech-savvy.

On the other hand, consumers in LatAm are not fully aware of online entertainment as an option, less so if you have to pay for it.

31

To operate legally in Colombia, operators need to pay a licensing fee of around $200,000 a year and 15% tax on gross gaming revenues

LATIN AMERICA | The Latest Developments and Future Forecasts of the Key Markets

“The Internet is still seen as a place of a regulated market. The region is catchfree stuff with a high risk of hacking. ing up with technology and there will be There is a lot of mistrust in online transmany opportunities in different countries actions. Consumers in Europe have for operators to grow their businesses. As been exposed to online gambling offerregulation comes into play it is definitely a ings for much longer and are protected new territory of opportunities and in that by local institutions attending to their respect promising.” concerns. For example, GDPR requirements in Europe strongly protect playBut, Sebastian advises, “I would be cauer data online, thus helping the overall tious about the market size, at least at ecosystem to become a safer place to the beginning. This is for two main reahave fun and enjoy. Latin America is a sons: first, it is an immature eCommerce few years behind and will take more audience, and although they are very time to catch up. Although LatAm is active online, they are not necessarily mostly bound by a sindoing transactions and gle language and shared purchasing online. Sechistory, they are different ondly, GDP-wise, LatAm GDP wise, LatAm countries, with different is not a strong GDP per is not a strong GDP cultures, audiences, and person region. Therefore, users with unique prefthe value of the market per person region. erences, which will all cannot be extrapolated Therefore, the value require different strateeasily via the number of gies.” — Sebastian says. players vs player values of the market cannot seen in mature regions be extrapolated And despite all the potensuch as Europe.” easily via the number tial — even exponential in some cases — one theme “LatAm is very different of players vs player is common. In regulatofrom Europe in that it is values seen ry matters, Latin America an almost untouched teris far behind Europe. This ritory and its full potential in mature regions is mainly due to the lack cannot be even forecastsuch as Europe. of control and regulation ed. But the overall immamechanisms by governturity of eCommerce and ments. One commentator market changes make it from the Association of State Lotteries very difficult to predict and because of of Argentina highlighted that the birth political changes and currency fluctustage of the sector calls to pay attention ations, it is a complex mix of challengand not make past mistakes of develes.” — Sebastian sums up. oped markets, such as Europe’s. He stated “I believe that the lack of planning in So, what does the future hold for iGamthe development of online gambling, ing in the region? LatAm may have pockadded to the demands brought by the ets of gambling, but there are different pandemic, caused countries or regulaapproaches to how it is regulated, what tors to grant licenses chaotically. This the laws should be, and who should be was without a deep study of the subable to access it. ject, developing regulations with legal loopholes, plus not very comprehensive Some countries, like Brazil, have startor unclear rules.” ed taking steps forwards, but even the countries more advanced in regSuch judgments foresee that the main ulating the market are still divided challenges to the development of the internally on the direction of travel. region are the licensing regulations, Nonetheless, there is a glimmer of their scope of application, access to relihope that increasingly countries are able and consolidated electronic means seeing the benef its of legislating the of payment, and, finally, clear legislation market and are beginning to open up to combat illegal gambling. to its real potential.

Sebastian adds: “It is very easy to conclude that iGaming in Latin America is transitioning from an absence of regulation to

The bottom line is that it really depends on regulators and relevant lawmakers on how quickly this might materialize.

33

iGaming in EUROPE | Current Situation

iGAMING IN EUROPE Current Situation

ICELAND

SWEDEN

FINLAND

NORWAY

RUSSIA ESTONIA

LATVIA

DENMARK LITHUANIA RUSSIA

NETHERLANDS

IRELAND UNITED KINGDOM

BELARUS

POLAND

GERMANY BELGIUM

LUXEMBOURG

UKRAINE

CZECH. REP. SLOVAKIA

LIECHT.

FRANCE

HUNGARY

SWITZERLAND

ROMANIA

SLOVENIA CROATIA

MONACO

SAN MARINO

ANDORRA

B.H.

ITALY

PORTUGAL

SPAIN

SERBIA KOSOVO

MONTENEGRO

VATICAN CITY

KAZAKHSTAN

MOLDOVA

AUSTRIA

BULGARIA GEORGIA

NORTH MACEDONIA ALBANIA

ARMENIA

TURKEY

GREECE

AZERBAIJAN

MALTA

— Authorized and regulated nationwide or in certain regions — Emerging regulated market — Monopoly — Unregulated — Prohibited — Foreign iGaming sites are not restricted

CYPRUS

iGaming in EUROPE | Current Situation Country

European Union

Prohibited

Foreign iGaming sites are unrestricted

—

—

— — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — —

—

—

EU

—

Belarus EU

—

EU

Cyprus

EU

Czech Republic

EU

Denmark

EU

Estonia

EU

France

EU

—

—

—

— —

—

—

Croatia

— —

—

Bosnia and Herzegovina

— — — —

Georgia EU

Ireland

EU

Italy

EU

Latvia

EU

—

—

—

Hungary

— — —

Lithuania

EU

Malta

EU

—

—

—

Liechtenstein

— —

—

—

—

Moldova

—

Montenegro Poland

EU

Portugal

EU

Romania

EU

—

—

—

North Macedonia

— — —

—

— — —

—

San Marino

—

Serbia Slovakia

EU

Slovenia

EU

Spain

EU

Sweden

EU

—

—

—

— — — —

Switzerland

—

Ukraine

—

United Kingdom

—

Russia Germany

EU

Greece

EU

Luxembourg

EU

Netherlands

EU

Finland

EU

— — — — —

—

— — —

EU

— — — — —

Bulgaria

Turkey

Unregulated

—

Armenia

Norway

Monopoly

—

Andorra

Belgium

Emerging regulated market

—

Albania

Austria

Authorized & regulated*

— —

— — —

—

— —

—

Kazakhstan

—

Monaco

—

—

Vatican City

—

— — —

Azerbaijan

—

Iceland

—

Kosovo

* - Authorized and regulated nationwide or in certain regions

37

EUROPE | Old World Europe or a New Dawn for iGaming?

OLD WORLD EUROPE OR A NEW DAWN FOR iGAMING?

Mainly consisting of EU countries, Europe is a group of autonomous states, free to set their own gambling rules, as long as they comply with the fundamental freedoms and general provisions as established under the EU Treaty. However, those rules can vary to such an extent that in some jurisdictions, regimes are completely open and in others monopolistic.

Western Europe is the 2nd most casinopopulated region after North America,

online gaming revenue generated

by European countries is expected to reach

European market overview Europe is, without a doubt, the 'Godfather' of iGaming, with a long-established gambling tradition, legal market, and a wealth of consumers while being at the forefront of game development. No other area of the world can compare when it comes to size. By the end of 2022 online gaming revenue generated by European countries is expected to reach €40 billion. To put that into a global perspective, this iGaming sector accounts for nearly half of the world’s revenue.

By the end of 2022

€40 billion. To put that

and not counting French and U.K. casinos, hosts over a hundred casinos between Germany, Spain, and Italy.

into a global perspective, this iGaming sector account for

iGaming accounts for approximately 30% of GGR with the U.K. as the largest (around 30%), followed by Germany (12%), France (9%), and Italy (8.7%). Sports betting is Europe’s most popular iGaming product, worth around €15 billion and accounting for 40% of all online income. In 2020, Sweden was the European country with the highest share of gamblers betting online (66.2%), followed by Denmark (59.4%), the U.K. (59.3%), Finland (58.5%), and Romania (56.7%).

Most countries in Europe regulate the main forms of gambling while some, like the Netherlands, only recently legalized iGaming.

The Dutch market already has an estimated 1.2 million active players, and is set to become one of the important iGaming markets in Europe.

Some forecasts report the market could be worth as much as €18.2 billion by 2024

nearly half of the world’s revenue.

EUROPE | Old World Europe or a New Dawn for iGaming?

GGR in Europe

% of Gamblers Betting Online

80%

66,2%

30%

59,4%

40,3%

59,3%

58,5%

UK

Finland

56,7%

60%

UK Germany

40%

France Italy 12% 8,7%

20%

Other countries

9%

0% Sweden

Germany is at the verge of becoming the largest iGaming market in Europe, but due to high taxes and strict regulations, it is difficult to consider the territory as the promised land right now.

Denmark

Romania

Emerging markets Though it is true that some countries like the U.K., Ireland, and France have been home to a thriving gambling tradition for an age, historically, this is not the case for a bunch of others. Social and economic liberalization which took place, beginning with the end of the Cold War and accelerated in recent years with legal, cultural and technological developments, has changed the landscape across the continent.

New entrants to iGaming have appeared with new opportunities for operators to expand. Bulgaria, Poland, the Czech Republic, and Germany all fit that criteria, with Switzerland and Luxembourg liberalizing alongside.

Germany lifted its restrictions for online casinos in 2021, with revenue for online gambling forecast to grow to €3.3 billion by 2024. Although land-based venues indicated a drop in earnings during 2021, the online sector, including sports betting, picked up the slack. Some forecasts report the sports betting market alone could be worth as much as €18.2 billion by 2024. Germany has every chance of

becoming the largest iGaming market in Europe, but due to high taxes and strict regulations, it is difficult to consider the territory as the promised land right now.

Poland launched its legal market in 2017 and is now impressively worth more than €5 billion.

The Czech Republic market has started growing again, with revenues exceeding €1.36 billion.

Bulgaria, in the last few years, boasted an annual exponential growth of around 20% for sports betting, and a further 30% for online casinos. The Bulgarian market is worth around €350 million and, as more operators launch in this country, is on track to surpass €550 million by 2024.

Localized games are currently under development by operators in order to capitalize on the local's keen thirst for casino and sports betting offerings.

Over in Switzerland, online casinos generated a GGR of more than €21 million in the first six months since their opening in 2019 and this number is still increasing.

Conclusion A mixed bag of old and new, Europe offers something for everyone, and there's no doubt opportunities can still be found for operators. Whatever the case, the territory is a complex mix of rules and legislation, together with a myriad of technical specific requirements operators must meet to legally hosting an iGaming entity. It's always advisable therefore to engage with the relevant legal and technical experts operating in the field before jumping in.

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EUROPE | iGaming Regulation Changes in Germany: Trick or Treat for Operators?

iGAMING REGULATION CHANGES IN GERMANY: Trick or Treat for Operators?

Following regulation changes last year that lifted the prohibition of online casinos across Germany, some commentators announced future exponential growth for the iGaming market. But, as with many new changes in federal policy, the devil is probably in the details. We will take a closer look at what this entails for operators.

Licensees are required to provide a security deposit of €5 million in the form of an unlimited, directly enforceable bank guarantee from a credit institution resident in the

Why is Germany significant?

ISTG 2021 in focus

Germany has the largest consumer market in the European Union and has the potential to be the largest single market in the region for iGaming. Revenue for online gambling hit €2.2 billion in 2019, and forecasts suggested this would grow to €3.3 billion by 2024. Although land-based venues indicated a drop in earnings during 2021, the online sector, including sports betting, picked up the slack, with the industry as a whole growing. Some forecasts report the market could be worth as much as €18.2 billion by 2024.

There are separate policies for online gambling (which includes sports betting) and online casino games. For online gambling, a policy is set at a national level and although the regulatory framework is less restrictive than before, there are still stringent controls designed to protect players and prevent addiction.

This includes limits on spin-stakes, ingame sports betting, and slot machines with the amount limited to €1000.00 per player per month across all platforms.

The player must make a monthly deposit for this amount, and measures are in place to monitor operators. Online platforms that breach these rules may find themselves facing license withdrawal and other sanctions.

EU/EEA, plus they need to obtain all

The regulation (ISTG 2021) came into force on the 1st of July 2021, providing new licensing opportunities, together with new rules on advertising, licensing conditions, and tax rates. This was a major departure from the old system, which previously only allowed restricted elements of online gambling to a single state, Schleswig-Holstein. However, the rules and regulations have been and continue to be far from straightforward.

To obtain an operator's license, applicants must have a registered office in an EU member state, which, if not based in Germany, must appoint an authorized domestic representative who meets certain requirements. All ownership relationships

Some forecasts report the market could be worth as much as €18.2 billion by 2024

necessary insurance for the protection of players and submit annual reports to the competent authority pertaining to ongoing measures taken to detect gambling addiction.

EUROPE | iGaming Regulation Changes in Germany: Trick or Treat for Operators?

There are also heavy restrictions on advertising. Adverts will not be allowed between 06:00 and 21:00 and cannot target minors or some categories of "vulnerable" people.

and participation relationships must be organizers licenses. Companies who are disclosed, with sufficient “own funds” to issued licenses will be able to operate ensure sustained business activity and across the whole country and be perproper conduct. Licensees are required to mitted to offer sports betting, virtual slot provide a security deposit of €5 million in machines, online poker, or other “games the form of an unlimited, directly enforceof chance.” Licenses granted under the able bank guarantee from a credit instinew system are valid all across the countution resident in the EU/EEA, plus they try for a period of five years initially and need to obtain all necessary insurance then seven years on renewal. for the protection of players. They are also obligated to submit annual reports to the Online casino games, however, will be competent authority pertaining to ongodetermined differently by law within the ing measures taken to deindividual federal states. tect gambling addiction.

License specifications will It's highly Finally, operators must likely be modeled on the submit an annual report laws relating to the operadvisable to use a from a qualified, indepenation of more traditional, recognised, fully dent external professional land-based casinos, but exregarding compliance. actly how this will pan out serviced and reliable is unclear at this time. partner with tons of There are also heavy restrictions on advertising. Adverts With taxation, taxes will experience in these are not allowed between generally have to be paid matters, such as 06:00 and 21:00 and cannot by all German and foreign Internet Vikings. target minors or some catgambling operators. Sports egories of “vulnerable” peobets are taxed at the rate ple. Furthermore, no crossof 5% of the stake, and lotadvertising on platforms, for example, teries are taxed at 20% of the stake. Virtual promoting an online casino while the slots and online poker games are subject user is engaging with their sports betting to a uniform tax rate of 5.3%. The time at platform. There are additional rules on adwhich the tax was incurred is the point vertising relating to sports gambling, i.e. when the stake was made. bet advertising on a live broadcast sports event immediately before or during that Technical Solutions event on a single channel is not permitIt is highly probable that as a result of the ted. Jersey sponsorship and other gennew legislation, separate provinces witheral sponsorship of sports teams are in Germany will have different license reallowed, but with limits relating to the quirements or inconsistencies, especially use of athletes promoting betting comwith online casinos. This could pose sepanies. Misleading advertising as well as rious difficulties for operators to comply the promotion of gambling as a means with. Technical solutions using localized of resolving financial issues is banned, data centers for example could ensure as is direct and targeted advertising via data is secured on a province-by-province SMS and phone calls. basis. And of course, in this case, it is advisable to use a recognized, fully serviced, The new national gambling regulator and reliable partner with broad experibased in the German state of Saxony-Anence in these matters. halt is the body responsible for issuing

Conclusion The German market cannot be called straightforward and due to high taxes and strict regulations, it is often not considered the promised land for iGaming right now. However, despite all the challenges, the potential is there, and the market could still become the largest iGaming market in Europe.

Perhaps the key point is, that there are many obstacles to remaining compliant and navigating the complex legislation, so any operator in this market should ensure they have the right technical partner by their side.

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EUROPE | Time to go Dutch for iGaming?

TIME TO GO DUTCH FOR iGAMING? An Expert Overview of the Netherlands Market Peter-Paul de Goeij and Wesley Kock discuss how to successfully launch in the Netherlands market.

On 1 October 2021, the Netherlands opened its regulated online gambling market, clearing the way for players in the country to place legal sports bets and play casino games over the Internet. This has put the country in the spotlight of the entire iGaming industry. With an estimated 1.2 million active players, the territory could become one of the most important gaming markets in Eu-

rope. But venturing into this legislative territory in the making is no mean feat.

This interview is with Peter-Paul de Goeij, Managing Director of the Netherlands online gambling association (NOGA), and Wesley Kock, Head of Hosting Sales at Internet Vikings. Together, they discuss how to equip and guide operators with the essential knowledge they need for a successful entrance into the Dutch market.

Peter-Paul de Goeij Managing Director at NOGA | Netherlands Online Gambling Association

"

What we have seen is a two-staged opening whereby the existing land-based incumbents and a few new entrants have had the possibility to launch but the vast

Wesley: The Netherlands has been officially open to iGaming operators for a few months now. How can you assess the state of the market now?

Peter-Paul: What we have seen is a two-staged opening whereby the existing land-based incumbents and a few new entrants have had the possibility to launch but the vast majority of international operators had to wait in a ‘cooling-off period’. The market initially opened with only a limited number of offers (below five operators in the first week). After a month, around eight of the ten initially licensed operators were live. Currently, the number of live operators stands at approximately 14.

Now that the cooling-off period has ended on 1 April, it is expected that many more international operators will receive their licenses.

A big issue during the startup phase from October 1st was that mainly the incumbent state-owned companies flooded the advertising market. This has led to a public outcry and action by Parliament calling for a ban on nontargeted

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advertising for online gambling, citing concerns about over-exposure to problem gamblers. But that is concerning for us, as an advertising ban really works against channelization and thus consumer protection. Advertising for the licensed offer plays a key role in channeling players away from illegal to legal offerings. Advertising is key to informing players. I believe that a ban on advertising would negatively affect channelization, which we hope to prevent.

Wesley: How does the Dutch market compare to other European markets? Are there things to be learned / improved?

Peter-Paul: Well, the market is new, so it is still evolving fast-paced. In comparison to other EU countries, we are the baby, Sweden is the toddler and Denmark is the grown-up parent. Denmark is where we aim to get to. How quickly we can achieve that depends on how regulation develops. The market is probably bigger than was realized.

Currently, parliament is concerned that increasing (maybe too many) Dutch citizens started gambling and there

majority of international operators had to wait in a ‘cooling-off period’.

"

The lottery is the undisputed number one right now.

It has 200 years of unrivaled existence and the total lottery market is probably worth €2.4 billion right now in the Netherlands.

EUROPE | Time to go Dutch for iGaming?

could be an imminent push-back on advertising. The reality though, is that players were probably playing on illegal websites and were largely invisible. After the legalization they became visible, thus distorting the view and seemingly showing a huge increase in Internet gambling. We are at such early stages we really do not know how well the current legislation is working and the industry, being forced to restrict advertising as a result of this, could be significantly harmed in its development. Our association has a player protection first approach, and, as previously mentioned, advertising is essential to channelization and responsible development.

Wesley: Which opportunities does the newly regulated Dutch market offer? What verticals of iGaming are the most popular in the Netherlands — casino, sports betting, poker, etc?

Peter-Paul: Which is the most popular vertical? Well, licensees probably know better, there is no clear publicly available information yet. But the lottery is the undisputed number one right now. It has 200 years of unrivaled existence and the total lottery market is probably worth €2.4 billion right now in the Netherlands.

Even if all other online games were combined, it would still be nowhere near the lottery. It is going to take years to catch up to those numbers.

"

The market is still new, and evolving fast-paced. Compared to other EU countries, we are the baby, Sweden is the toddler and Denmark is the grown-up parent and Denmark is what we are aiming for

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EUROPE | Time to go Dutch for iGaming?

Wesley: How difficult is it for an operaWesley: How about the new law that tor to enter the market? What should obliges operators to share player data be done? (anonymously) with researchers. What Peter-Paul: The Netherlands is attractive, do you think about it? but a very tough market to enter. ConPeter-Paul: This probably refers to the sumer protection is central to general central database connection that is policy, which is great, but there are many mandatory for all operators. It gives the other things stacked on top. For examKSA a great level of detail on all transacple, the average tax rate is 29%, existing tions and all the data. If this information incumbents have a very good market is shared with research companies in an position and are protected somewhat, anonymised way, I think that will give they are able to advertise a lot of insight into how effectively with substanwell responsible gambling tial budgets, and licensing is working and whether represents a tough barrier the operators perform the to entry. Any new entrant duty of care. It also gives would need to deal with us more concrete market that plus have enough figures which is good as I think that any funds to build a brand, and right now discussions are operator should that means a substantial largely based on assumpmarketing budget. It is not tions and fear. aim for market the place to experiment, share which is there needs to be vision Wesley: What are 3 key and investment for at least factors that can ensure sustainable in the medium term. On the the success of iGaming the medium other hand, the Netheroperators in The Netherterm firstly, with lands still lags behind othlands market? er EU nations and the marPeter-Paul: I think that an emphasis on ket is growing at a much any operator should aim investments in faster pace than others, for market share which is so there are potential resustainable in the medithe short term. wards for operators who um term, with an emphaare prepared to invest. sis on investments in the short term. Furthermore, Wesley: Back in April 2021, before the you need a very good understanding of market opened, 35 operators applied the legislation and regulations, which for a Dutch license, but as of the end of are vast and pretty complex. Finally, it the year, only 11 operators had received is advisable to have someone on the licenses. What do you think the refusground in the Netherlands who speaks als to other operators are related to? the Dutch language, to help guide you Peter-Paul: The honest answer is that around on a local level. To kind of boots nobody knows, except for the regulaon the ground, so to speak. tory authority Kansspelautoriteit (KSA) and perhaps the operators involved.

Wesley: Is it a good idea to partner with KSA doesn’t publish any application a trade association? information bar any general numbers Peter-Paul: Absolutely. It is highly adbecause applications are considered visable to become a member of a trade confidential. The general view is that association, preferably, ahead of being the picture is mixed, some operators awarded a license as it gives you the inwere refused whilst others had not yet formation advantage over companies been informed or perhaps still needthat go it alone. You can learn from the ed to supplement their application, experiences of other members and enor provide more background checks gage with the various working groups for example. Some applications were we have such as the technical working submitted after the closing date of 15 group, the sports betting integrity workApril, so they would not be issued the ing group, the public affairs working license in the first batch. In any event, group, and the tax expert group. A trade it is a tough procedure that requires association like ours does not really give lots of documentation. individual advice, but it helps members

"

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to foresee what is coming down the line, by providing regular updates, trying to help set the agenda locally, contributing to local discussions, and researching fact-based information. We can then take these facts to regulators in order to get the best regulation ensuring consumer protection and a tenable position for the industry. Trade associations like NOGA, for example, can give information on how the market is developing, and what to expect in the future.

Wesley: What are your forecasts for the development of the iGaming market in the Netherlands in the next two to three years?

Peter-Paul: Well, if Parliament allows the market to develop in a healthy and organic way, without too many restrictions such as a ban on advertising and other distorting measures, maybe we can get to the toddler market level like Sweden a few years from now.

Conclusion For operators who are prepared to invest for the longer term, the Netherlands represents an attractive opportunity. There is no doubt that the legislation is formidable, and therefore it is always advisable to engage with industry experts that are already operating in the territory. Information, resources, and support are readily available from a number of sources, such as trade associations and suppliers that are already in the market.

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TECHNOLOGY | How Infrastructure Helps Improve Your Business's Performance

HOW INFRASTRUCTURE HELPS IMPROVE YOUR BUSINESS’S PERFORMANCE Kristoffer Ottosson speaks about how IT infrastructure is critical for the performance of your iGaming business.

The iGaming industry is one of the most demanding verticals of doing business in today's digital world, and it is possibly the most competitive too. Functioning in the global market necessitates a robust, reliable, and expandable online infrastructure. A 500-millisecond increase in network delay already doubles the likelihood of online participants abandoning a game. Each second lost owing to lag or jitter can be detrimental to a

company's reputation, resulting in decreased sales and potentially costing millions of dollars in revenue, all due to a single moment of latency.

We are all aware that latency is a significant factor in the performance of iGaming operators. What, in your opinion, are the most frequent errors made by operators that contribute to unacceptable latency levels?

Inadequate cloud and network performance, propagation delay, and peering are just a handful of factors that influence how much latency end-users experience. Businesses, for example, may invest in vast peering networks to reduce lag on behalf of gamers; nevertheless, this method has limitations and can only take you so far due to the capabilities of underground fiber, which can only deliver a limited amount of speed. Distance from the host server is typically the primary cause of latency. If a person is playing on a server that is based thousands of miles away, there will almost certainly be a time delay.

So, to avoid the loss of confidence in an operator and, as a result, revenue loss, what latency level is considered ideal?

Anything with a response time of less than 100ms is appropriate for online gaming.

However, 20-40ms is the ideal timeframe.

What kind of delay is considered critical and bears severe ramifications from a technical standpoint?

When latency interferes with a player's overall experience, they are more inclined to abandon the game. Anything more than 100ms to 150ms in response time, depending on the game's demand, is considered detrimental to the operator's reputation.

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In this interview, we speak with Kristoffer Ottosson, Head of Hosting Services at Internet Vikings, about the steps that iGaming businesses can take to ensure that their games provide the ideal environment for optimal play.

In your opinion, what actions can gaming operators take to solve technicalities related to latency?

Invest in infrastructure. Whether built in-house or through a partnership with a supplier, infrastructure has a substantial impact on latency and other performance metrics.

Latency can be caused by a variety of variables, including distance to the host server, traffic levels, and overcrowded systems.

If your servers are overburdened, extra servers may help alleviate the situation.

The physical location of a data center is absolutely essential. The closer the data is to the intended audience, the less distance it must travel, resulting in lower latency. As a result, the more data centers a hosting provider has distributed around the world, the more effectively it can deliver low latency.

While some businesses may invest resources in developing and maintaining

Kristoffer Ottoson Head of Hosting Services at Internet Vikings

"

Latency can be caused by a variety of variables, including distance to the host server, traffic levels, and overcrowded systems. If your servers are overburdened, extra servers may help alleviate the situation.

"

Gaming operators would be wise to partner with a hosting company with a global data center network and leverage their local infrastructure.

TECHNOLOGY | How Infrastructure Helps Improve Your Business's Performance

internal infrastructure, this is not feasible for all. Thus, for gaming operators, it could be a solution to partner with a hosting company with a global data center network and leverage their local infrastructure.

Are there additional benefits to these actions apart from reducing latency?

From a strategic standpoint, the ability to scale and penetrate different markets worldwide can be accomplished more rapidly with increased data center availability. In addition, deploying your system in many regions adds redundancy to your architecture and makes it more resilient to regional failures. When one of your cloud services goes down, you will have another one that is up.

The need to team up with an established hosting provider that complements your business goals has been brought up, but are there any other factors to consider when making this decision?

The iGaming industry is distinct from other industries and should be regarded as such. When selecting a hosting provider, choose one specializing in the industry since they will understand the nature of your organization, how milliseconds of latency may result in hours of lost revenue and a tarnished reputation, and how to mitigate these risks.

While it is not yet possible to completely eliminate latency, with strategic planning and selecting an excellent online hosting provider, it is possible to minimize latency to a level that will not interfere with your players' gaming experience. Taking the recommended steps will benefit iGaming operators by ensuring not only lower latency, but also resilience to inf rastructural failures and compliance with data governance regulations — all of which are key drivers for globally distributed data architecture.

Anything with a response time of less than 100 ms is appropriate for online gaming. However, 20-40ms is the ideal timeframe

TECHNOLOGY | Transatlantic: the Future of Data Security and Data Protection

TRANSATLANTIC: the Future of Data Security and Data Protection Max Schrems, the lawyer and privacy activist, discusses the current and potential developments in data protection with a focus on the iGaming sector.

Schrems II ruling continues to have a significant impact on businesses worldwide, following the European Court of Justice judgment which invalidated Privacy Shield in 2020.

While others were all talking about it, Internet Vikings in collaboration with Holm Security proudly hosted a live webinar session with the man himself — Max Schrems. Lawyer, author, and privacy activist, Max became famous for

his campaigns against Facebook for privacy violations, and complaints under GDPR against Amazon, Apple Music, DAZN, and other big tech companies.

The most interesting part of the webinar featured a Q&A session between various stakeholders, who posed realworld concerns directly to Max. The resulting discussion detailed in-depth what application of the judgment actually means for iGaming.

Max Schrems Lawyer, author & privacy activist

"

In a recent case,

Max, as a world-renowned privacy activist with substantial knowledge of the subject, what would happen if somebody's data ends up in the NSA data center?

Such problems could stem mainly from conflicts of interest resulting in actions ranging from simple visa issues to surveillance to targeted attacks. In a recent case, SDKs built into apps figured out locations, and forwarded information to the U.S. military. One case in Austria, a neutral country but with substantial trades with Iraq, Iran and Russia, fell under possible sanctions from a U.S. perspective. Similarly, around Nord Stream 2 there are significant issues for the companies engaged in that.

If you were to utilize a European provider, are there any European laws like the Cloud Act that would subject companies to the same kind of risk?

From a practical perspective, the capabilities of Europe compared to the

U.S. are lower and there is no strict alignment between member states presently. Some states like Germany, France, and Sweden have the capacity for surveillance where others do not.

From a legal perspective, article 4 of EU law exempts from GDPR, and compliance issues are simply not there because of the exemption. Basically, if you host in Europe, you are compliant.

If you look at the timeline back to 2015, there have been many developments, such as the U.S. Patriot act, Cloud Act, and Privacy Shield. It seems there are always inconsistencies between EU regulations and the U.S. What can we expect in the future?

There is a high probability that these conflicts will continue and increase. For a long time, globally, there was little regulation of the Internet, but this has changed substantially and nowadays, we are seeing so much more. Unfortunately,

SDKs built into apps figured out locations and forwarded information to the U.S. military.

TECHNOLOGY | Transatlantic: the Future of Data Security and Data Protection

"

From a practical perspective, the capabilities of Europe compared to the US are lower and there is no strict alignment between member states presently.

there is not much of a coordinated approach, so the legislation will simply conflict more often. It is hoped that soon, at least within the EU, there will be a uniform approach to a range of different privacy issues and what we will probably see moving forwards are more data localizations as a result.

Would the US comply with EU law? Is this ever likely to happen?

That became much more likely following the second judgment, as the U.S. began to understand the stance of the European Commission. However, much will depend on the U.S. administration of the time, and the feeling is that any changes will take time and be difficult, as fundamentally it would mean the U.S. giving rights to non-U.S. citizens.

If you were to use a U.S. cloud supplier, would encrypting your data help?

Maybe, providing there are actual assurances that no U.S. entity could see the data. The main problem however is once the data rests in the U.S., there is no set standard for encryption, how that would even be performed, or a system we know that does the task adequately. At the end of the day, cost and legally wise, it is probably more efficient to just host in Europe.

Max, you know a lot about U.S. and European law and how they interact and often conflict. What are the actual risks and consequences an iGaming operator would face if they were to utilize AWS, Google cloud or similar services?

The most common cases, presently, involve organizational workers or customers.

A company might have a dispute with a union or customer (usually about something else) which then escalates to an investigation into the privacy policy. In Portugal, one case began on the basis of complaints, but on further examination of data transfers, discovered a U.S. provider involved in a breach. The company became exposed to a class action for emotional damages, which can be much larger than any GDPR fines. Based on Schrems II ruling, organizations should urgently find alternative legal solutions to work with U.S. vendors.

Would a solution be for U.S. hosting companies to just set up a legal entity in the EU? Technically that could be a solution, but complicated due to rules about ownership ties. Presently, it is not known if anyone has successfully done that. It would be necessary to further investigate with specialists in corporate or company law on this matter.

One Swedish government agency recently published a comment that based on Schrems II ruling, organizations should try to find alternative legal solutions when working with U.S. vendors.

What is your comment?

If there was a straightforward legal solution to hand, I would definitely present it. Maybe, instead of Privacy Shield, standard contractual clauses could be used, which could work if your recipient in the U.S. is not an electronic communication service provider. But it would be very difficult to implement until there are concrete changes in the relevant legislation.

Conclusion According to Max Schrems, the potential implications for the iGaming industry regarding data privacy of clients and players are extraordinary. The discord that exists between GDPR and Cloud Act regulations, in the absence of Privacy Shield protection, means European organizations are facing substantial risk.

Traditional cloud solutions from tech giants such as Microsoft and AWS no longer provide sufficient security, and companies transferring data outside the EU need to increase their efforts to

comply. As more legislation inconsistencies emerge, there will be more data localization. It will simply become impossible for organizations to comply with all the rules at the same time.

The safest or preferred solution, in this case, would be to use European-based hosting services that are fully ISO certified, compliant with GDPR, provide bespoke custom-made solutions, and possess the necessary expertise in order to safely protect your data.

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TECHNOLOGY | How to Choose Your Hosting Provider

HOW TO CHOOSE Your Hosting Provider The ever-evolving online gaming industry is expanding rapidly and great games necessitate excellent infrastructure thus making hosting and technology an essential component of your online business.

Many businesses cannot carry their own infrastructure. In contrast, others who have the infrastructure capacity would benefit more from prioritizing their core business, be it creating and developing games and entertainment or services for the industry. Once you have identified

the value of selecting a provider to care for your infrastructure needs, it is time to choose your hosting partner. This is where cloud and hosting providers come into play, but with so many options available, how can you determine which is the right fit for your business?

A service provider that understands the industry comprehends the enormous impact that a single

In this checklist, we offer vital factors to take into consideration, not only to operate efficiently and expand in the iGaming market but also to pair with a partner who will complement your business.

second of downtime can have on your revenue and reputation.

TECHNOLOGY | How to Choose Your Hosting Provider

To operate efficiently in the iGaming industry, you need:

1

Industry Specialists

A provider with experience in your industry and a solid understanding of your company's operations to swiftly adapt to your specific needs. The provider can promptly handle industry-specific challenges if they understand the industry and its pain points.

2

Support & Personal Contact

Examine the SLAs and what is included in your services, as well as the provider's ability to deliver attention when you require it most. Determine if you will receive help via personal interaction or automated systems, which often need longer to handle issues and eventually cost you income.

3

Attention to detail

If your service provider understands the iGaming market, they will be able to not only solve problems rapidly but also examine the issue further to make improvements (even after a case has been resolved), thereby reducing the likelihood of it occurring again in the future.

4

Company size

It is more common to f ind greater scalability when working with small companies, which may be better equipped to adapt to your specif ic requirements. With a smaller business, there is often less red tape to navigate.

5

Physical Location

Evaluate that the data center you will be using is in the appropriate physical location. Your ideal hosting provider should have space and power accessible in close proximity to your target market.

6

Reputation

Find out what customers are saying about the hosting provider's services.

Do they have a proven track record of providing excellent customer service, and scalability, and do they meet the infrastructure requirements?

7

Solutions

Determine which specific products and services are best suited for your business strategy. If necessary, check whether the provider tailors solutions to your specific business demands.

8

Scalability

The greater the number of data center locations provided by your service provider, the greater your ability to scale your business.

9

Latency

Confirm the provider's latency guarantee. A hosting provider's uptime should be at least 95%, with 99.99% being optimal.

10

Flexible

A rapidly changing industry necessitates a robust and adaptable hosting provider capable of adapting its services in response to industry changes.

11

Compliant and Certified

Check that the service provider has all of the required licenses and certifications. (ISO certification, iGaming license, and certified data centers)

Conclusion

Choosing a hosting partner whose core ethics are based on relationships and partnerships will propel your company to new heights. A service provider who understands the industry comprehends the enormous impact that a single second of downtime can have on your revenue and reputation.

Furthermore, an industry-focused provider will not only work with its clients as a unit to resolve issues but will also be more likely to meet the industry's high demands with quick turnaround times. In essence, assisting your company in adapting to the ever-changing iGaming environment.

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INTERNET VIKINGS | A Leader in Global Online iGaming Hosting

INTERNET VIKINGS: a Leader in Global Online iGaming Hosting

"

We help our customers focus on driving value to their business whilst we handle the technical aspects.

Rickard Vikström | Founder & CEO at Internet Vikings

Internet Vikings is a global iGaming Hosting Services Provider dedicated to building better online gaming and sports betting experiences. Our flexible, innovative, and reliable IT services help to build players’ confidence and trust in iGaming brands and, by doing so, we enable our clients to gain a competitive edge in their respective fields.

Our experts ensure that iGaming companies around the world are given the opportunity and the right support to reach their full business potential. With a passion for the game and commitment to our clients, players, and the industry, we continue to deliver beyond expectations.

Established in 2008, with its HQ in Stockholm and over 50 experts spread across 5 countries, Internet Vikings have been disrupting the status quo for 14 years.

Born out of the urgent need to bridge the gaps in the marketing and technolo-

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gy sectors, we have transformed the way iGaming companies operate.

Thanks to our expertise in Hosting Services we assist iGaming businesses in securing commercial growth, remaining compliant in new countries, protecting their client's data, and providing cutting edge hosting solutions. By constantly changing our approach to match the needs of our clients, we have proven ourselves as undeniable industry leaders.

We believe that a better online gaming and sports betting experience is one where businesses are given a stable, yet flexible foundation to grow and develop. A foundation that is safe for players while leaving as little impact on the environment as possible.

Today, Internet Viking is proud to be fulfilling our purpose and creating positive changes in the world.

INTERNET VIKINGS Global Presence

DATA CENTERS USA Arizona Colorado Connecticut Illinois Indiana Louisiana Michigan Mississippi New Jersey Ohio Pennsylvania Tennessee West Virginia Wyoming

CANADA Toronto, Ontario EUROPE Malta | Malta Netherlands | Amsterdam Sweden | Stockholm-1 Sweden | Stockholm-2 ASIA Singapore | Singapore Taiwan | Taipei AUSTRALIA Australia | Sydney

OFFICES USA New York City SWEDEN Stockholm MALTA Sliema

UKRAINE Kyiv Poltava Odesa SOUTH AFRICA Knysna Port Elizabeth

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INTERNET VIKINGS | Services

SERVICES Helping our clients to provide the best secure and uninterrupted gaming experience worldwide.

Premium Cloud Hosting Our Cloud Servers are cost-efficient and secure, with instant scaling on-demand

Our commitment to your iGaming business: 14+ years of experience 24/7 support under extended SLA ISO 27001

iGaming Hosting

certified

Take your business to a new height with hosting infrastructure designed for iGaming operators

600 servers 20+ data centers worldwide VMware partner 99.999% uptime SLA

VMware Hosting Set up and manage your virtual machines with our VMware services

ON (CA)

North America Expansion

MI

WY IL

IN

OH

PA

CT NJ

WV

CO TN AZ LA

At Internet Vikings, we have seen a successful boost in the industry since our expansion into the U.S. in 2021. Our team is currently offering licensed iGaming hosting solutions in 14 U.S. states as well as in Ontario, Canada. With at least seven new upcoming data centers we are looking forward to expanding even more and creating new partnerships.

Replication Server in Malta With Malta having become the European iGaming capital, very few companies would risk missing their spot in the sun.

Currently, MGA requires all iGaming companies to obtain Maltese licensing passes before collecting data. At Internet Vikings, we help companies to comply with MGA regulations while keeping your clients’ data secure and avoiding additional hassle.

Expand your business in the iGaming Capital of Europe: — Bespoke services for Malta-licensed iGaming companies — Replication server which complies with MGA regulations — Data stored in a secure facility — Monitored environment to ensure 24/7 operation and availability of service

Reach your business potential with us.

We are your reliable and innovative global experts in iGaming hosting solutions. Available for your business in the U.S., Europe, and everywhere around the world.

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iGAMING EVENTS 2022

7

14

15 11 9

32

20 5

25

34

FEBRUARY 1

2

Feb 16 EGR Power LatAm Summit / Buenos Aires, Argentina

17 3

27

Feb 24 EGR Nordics Briefing / St Julian’s, Malta MARCH

3

Mar 15 - 17 GAT Expo Bogota / Bogota, Colombia

4

Mar 21 - 23 SiGMA Asia / Dubai, UAE 30

APRIL 5

Apr 7 - 8 All American Sports Betting Summit / New York, USA

6

Apr 12 - 14 London ICE / ExCel London, UK

7

Apr 19 - 22 Indian Gaming Tradeshow & Convention / Anaheim, USA

8

9

10

1

JUNE 14

Jun 6 - 10 SiGMA Americas / Toronto, Canada

15

Jun 7 - 9 The Canadian Gaming Summit / Toronto, Canada

16

Jun 7 - 9 Betting on Sports Europe (SBC) / London, UK

Apr 26 EGR East Coast Briefing / New York, USA

17

Jun 16 - 17 iCA l iGaming Central America / San Jose, Costa Rica

MAY

18

Jun 28 - 30 WGES Barcelona / Barcelona, Spain

Apr 21 - 22 Fantasy eSports Summit / Amsterdam, Netherlands

May 9-11 EGR Power 50 Summit / Marbella, Spain

JULY

11

May 12 - 13 iGaming NEXT New York / New York, USA

19

Jul 5 - 8 iGB Live / Amsterdam, Netherlands

12

May 24 - 25 iGG l iGaming Germany / Berlin, Germany

20

Jul 12 - 14 SBC North America / New Jersey, USA

13

May 24 - 26 Casino Beats Summit / Malta

21

Jul 25 - 27 ASEAN Gaming Summit / Manila, Philippines

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16

19

12 31

33

22

18

24

28

10

2

13 35

26 29

36

4

21

23

OCTOBER 30

Oct 3 - 4 Chile iGaming / Santiago, Chile

31

Oct 19 (TBC) iGB Affiliate Berlin / Berlin, Germany

32

Oct 11 - 13 G2E Las Vegas / Las Vegas, USA NOVEMBER

AUGUST 22

23

Aug 22 - 25 SiGMA CIS / Belgrade, Serbia Aug 24 - 26 G2E Asia / Marina Bay Sands, Singapore

33

Nov TBC EGR UK Summit / London, UK

34

Nov 1 - 3 SBC Latinoamerica / Hollywood, Florida

35

Nov 14 - 18 SiGMA Europe / Malta

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Nov 17 - 18 Gaming & Sports Summit / Dubai, UAE

SEPTEMBER 24

Sep 8-9 iGaming Crossroads Summit / Tbilisi, Georgia

25

Sep 12 - 14 EGR US Power Summit / California, USA

26

Sep 15 - 16 Gaming & Affiliate Marketing Expo / Athens, Greece

27

Sep 15 GAT Showcase / Bogota, Colombia

28

Sep 20 - 22 SBC Summit Barcelona / Barcelona, Spain

29

Sep 27 - 29 iGaming NEXT / Valletta, Malta

— iGaming events with exact dates — iGaming events TBC * All data reflected in this article was validated in May 2022

During these events or at any other time, Internet Vikings is ready to bring your business to the next level.

Visit our website and book a meeting with a hosting expert. internetvikings.com

INTERNET VIKINGS | Driving Collaboration & Networking

DRIVING COLLABORATION & NETWORKING Events, Webinars, and more With an eye on the future and our finger on the pulse of the most recent developments and trends to come in the iGaming world, Internet Vikings has started building communities seeking to drive collaboration with like-minded partners. In the past years, we organized and hosted a number of digital and offline events with the purpose to share knowledge and expertise, as well as build stronger relationships between the industry members.

Victor Jerlin

Tech Community Gatherings A relatively new, yet perhaps the most important addition to the portfolio of our events — TECH Gatherings hosted by our tech masterminds Victor Jerlin, Kristoffer Ottosson, and Rickard Vikström.

As an IT services provider operating within the iGaming realm, we realize what crucial role technology plays in the expansion of the online gambling sector. Hence, we feel the need to bring

industry tech leaders together to share ideas and solutions to current and forthcoming challenges.

Founder & CTO at Internet Vikings

In the coming year, we are preparing to host even more interactive and informative meet-ups, introducing new formats and making sure that we have the most productive environment. Together, we will build an ecosystem that will propel iGaming evolution across all verticals.

Rickard Vikström Founder & CEO at Internet Vikings

BUSINESS NETWORKING

TECH DINNER

Kristoffer Ottoson Head of Hosting Services at Internet Vikings

Webinars Our webinar series was born out of the need to raise awareness of certain topics that often draw the line between failure and success within the iGaming industry, but don’t always get the necessary attention.

We have hosted several pertinent webinars touching on various subjects such as data management and security, the U.S. iGaming scene, hosting, brand protection, and general industry updates.

This year, we, alongside the top industry experts, will continue to share our knowledge providing you with all the necessary information on how to leverage your business potential.

Live Streams Our weekly short Wednesday Expert Online sessions launched in December 2021 have quickly become popular and much anticipated by many industry members.

Initially, the session was created as an opportunity to meet our very own experts and find out how they tackle their day-today tech-related operational challenges.

It grew into a much broader rubric about all iGaming-related topics with invited experts to discuss anything from the hottest markets to the most recent industry trends or very specific topics.

Internet Vikings’ Padel Tournament Our quarterly Padel tournaments on the island of Malta have been a great success. Community building, industry binding, and breaking the ice are what it’s all about. These friendly competitions are aimed at supporting and building the strength of the iGaming world by offering the chance to get to know lots of other players in the game through an inspiring and informal setting. Mixing fun, sport, excitement, and social interaction, the events have helped to create stronger bonds with our clients and partners.

More — on our Youtube Chanel

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INTERNET VIKINGS | Earth First. Green-Initiatives

EARTH FIRST Green-Initiatives At Internet Vikings, we hold the well-being of the Earth’s environment at the top of our list of priorities. We recognize the fact that an improvement of even the smallest details can collectively have an enormous effect on the bigger picture.

Both the company and the individual must be committed to change for the greater good. According to Internet Vikings’ Internal IT Manager, Steve Pace, the “technology business is a very environmentally friendly sector” as it changes around us.

Going hand-in-hand with the Green movement, our internal IT carefully chooses and supports partners, watching how each application affects the environment — by simplifying processes we can thus create a smaller footprint.

As environmental warriors, we lead by

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example and are dedicated proactive members of a variety of both internal and collaborative eco-initiatives aimed at reducing our carbon footprint.

One of our goals is to soon achieve the ISO14001 certification, a system of requirements that regulates and improves the company’s Green-based tactics, as well as procuring low-emission hardware and even saving every bit we can by shutting down all machines when possible. Over and above this we seek to encourage an environ-centric approach with all of our clients and carefully select partners who are mindful of all basic ecological principles. Even shutting down monitors when not being used, as well as using rechargeable batteries or finding suppliers who use recycled materials can make a change.

Steve Pace IT Manager at Internet Vikings

"

Compared to 2020, we have registered a substantial reduction in our carbon footprint.

INTERNET VIKINGS | Earth First. Green-Initiatives

Through the process of continually reviewing and adjusting our strategy, we aim to become climate neutral in the near future. We fully recognize the need for every individual in our team to be a part of this movement in their daily habits. Furthermore, we are working primarily with eco-friendly suppliers.

Just two examples are our energy suppliers in Stockholm (with “Bra Miljoval” certification) and our biggest network and collocation supplier which uses only 100% renewable energy, thereby reducing harmful emissions.

We are working to integrate a unified approach amongst all of our employees in their respective countries. This includes a variety of minor and large-scale initiatives, such as:

Anna Dobrovolskaya CMO at Internet Vikings

"

We strongly believe in collaboration with other companies within the industry.

‒ Regulating the recycling of waste in all offices ‒ Switching to long-lasting, energyefficient LED lighting in all of our offices, which are mercury-free ‒ Choosing to exclusively select environmentally-friendly electricity suppliers ‒ Installing water filters on the taps in our offices, thereby reducing the use of plastic bottled water ‒ Choosing a stationery supplier that plants a tree for every order they receive as well as eco-friendly companies to take care of our manufacturing and merchandise requirements. ‒ Creating bicycle parking bays in an effort to discourage the use of environmentally-unfriendly public transport ‒ Decreasing the use of internal flights between offices and using trains whenever possible for domestic travel ‒ Making use of online meetings to reduce the use of traditional transport ‒ Making use of climate-smart hotels and venues for business travel

trips. During this year we minimized our air travel by 50% and significantly reduced our emissions. Not to mention the projects which we have supported over the last few years. We are continually investigating new ways to engage in climate compensation. Along with this, we have updated our sustainability strategy to include more event and social media-based initiatives. Even our data centers use only 100% renewable energy.

Anna Dobrovolskaya had this to add: “We strongly believe in collaboration with other companies within the industry. We realize that these initiatives not only help to change the internal mindset, but as such we act as influencers, spreading the motivation to live cleaner lifestyles and to get involved in activities that benefit not just the individual but the planet as a whole. Internet Vikings does not push or put pressure, but rather encourages the team to participate in a proactive way, through collective brainstorming and the communal sharing of ideas and new concepts.”

From the smallest changes, like adding the strap-line “Consider the Climate” to the end of our emails, to more complex developments such as obtaining the ISO14001 certification and regular training for employees, there is no doubt that Internet Vikings is holding the torch for a greener future in the iGaming world.

One of our Green initiatives which proved to be a great success was our Ocean Cleanup Day. The company organized a collaborative activity to remove garbage and waste from the coastal waterfronts and beaches, which can harm the environment and poison the earth. Our teams gathered close to 200 kilograms of garbage and made Malta a little cleaner.

The BreakIT Challenge has allowed our company to analyze the emissions caused by frequent air travel for business

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INTERNET VIKINGS | Industry Recognition. Awards

INDUSTRY RECOGNITION Awards

DATA CENTRE OF THE YEAR | 2021

CORPORATE SERVICE SUPPLIER OF THE YEAR | 2022

GLOBAL GAMING AWARDS

SERVICES PROVIDER OF THE YEAR | 2022

SiGMA AMERICAS AWARDS

HOSTING PROVIDER OF THE YEAR | 2022

WE ARE SHORTLISTED FOR

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Your Strategic Par tn er