How Global Regulation Could Respond to App-Based Gambling Booms

Online gambling has developed from simply placing bets online to an amalgamation of diverse gaming options, innovative tech, and other great features. Globally, smartphone demand is still growing, albeit more modestly. IDC projects around 1.26 billion units to be shipped in 2025, marking a 2.3% rise year-on-year. With this latest cell phone boom, many gambling operators have moved away from online convenience and toward mobile apps instead. 

Not only does this present a great opportunity for businesses, but it also offers consumers convenience and ease of access as a selling point. However, app-based gambling brings new challenges and hurdles for global regulators, as website-based rules do not apply. It begs the question of how global regulatory bodies will adapt to guarantee player safety and integrity. 

The New Digital Frontier of Gambling

The emergence of gambling and casino apps has been a game-changer for many bettors, who can enjoy their favorite games with a few clicks. Even more, these apps are user-friendly and easy to navigate, encouraging players to engage with the platform more often. More recently, there has been a move toward combining mobile casinos with popular social media and messaging apps. People can now play directly from Telegram, with access to thousands of exciting games, key benefits, excellent packages, and bonuses. Integrating these features into messaging apps offers bettors increased accessibility, convenience, and opportunities for community building.

Beyond accessibility, these gambling apps also have a gamification element that is usually missing from traditional iGaming websites. This includes daily bonuses for logging in, loyalty programs or VIP rewards, leaderboards, tournaments, and achievement badges. A login bonus or reward encourages bettors to use the app regularly, increasing engagement and bringing in a high revenue stream for operators. A result of these regular logins and encouraged gameplay is data personalization, wherein algorithms customize player experiences based on their preferences and gameplay. Of course, this makes players feel noticed and like there is a payoff for their consistent efforts.

Instant gratification also plays a large role in this new era of mobile gambling, as bettors no longer need to set up their laptops to gamble (or travel to a physical casino). Instead, your phone (and, essentially, your mini casino) is always in your pocket so you can quickly play your favorite slots game while waiting for your coffee order. Additionally, these apps often encourage micro-betting or mini transactions with low entry barriers, adding to significant long-term losses. There is also the added bonus of integrated payment systems, where you can link your PayPal, Apple Pay, or Samsung Pay directly to your gambling app.

The Mounting Challenges for Global Regulation

Although these all sound like amazing features for consumers, they are a nightmare for regulatory bodies on a global scale. Unfortunately, many of these apps usually operate on a global scale, which makes it that much more difficult for a regulator to oversee. Without a centralized authority, ensuring that the service offerings being put out are safe is nearly impossible, and another hurdle is added when it comes to payments. Borderless transactions mean there is no way for a particular financial entity or lawmaker to manage criminal or suspicious activity.

Some bettors use their cryptocurrency to gamble, and the speed and anonymity of such transactions are impossible to track. The decentralized nature of crypto transactions adds an extra layer of difficulty for regulators, as they won’t be able to track funds or prevent illicit account activity. Equally as important is the safety of bettors when it comes to regulations regarding advertising and responsible gambling tools. Without adequate oversight in place, it is exceptionally challenging for any regulatory body to track which demographics of people have access to these apps. 

Proactive Solutions for a Modernized Framework

There are a few solutions regulators could make use of, although many of them would require much effort from their individual sides. Global cooperation is the first and most obvious option, wherein regulatory bodies from across the globe can collaborate and share data. Doing so creates an opportunity for them to draft universal standards on how these gambling apps can be overseen. 

Another solution could center on creating new licensing models that apply specifically to app-based gambling and prioritize player safety. An example of this would be having licensing requirements in place for gambling operators to adhere to beyond their geographical location. If they use a specific technology in their apps (e.g, AI or VR), they must meet certain standards to guarantee that it won’t harm customers using the app.

Regulators could use the same technology leveraged by these apps as a tool for monitoring gambling activity. Realistically speaking, regulatory oversight on a global scale might prove an impossible task without the help of AI or other monitoring technology. This way, oversight becomes that much easier as AI tools (for example) can be used to track punter behavior patterns and how they engage with the app. Even more, should operators or players participate in any problematic behavior or potentially violate regulations, these tools could easily pick up on it. 

Conclusion

While the app-based gambling boom is here to stay, there are a few tech-savvy ways regulators can ensure consumers are safe. Although it might require additional effort to execute this globally, it could offer many regulatory bodies significant payoffs and peace of mind. As the app-based gambling sector continues to grow, it helps to remain mindful of the platforms you are using and whether they are compliant with regulatory standards. Staying safe is as simple as checking app reviews, reading up on operators, and checking for the relevant licensing information.