Every online gaming operator wants to launch in new and upcoming markets to gain market share and increase profitability. With BetProtocol, we provide the tech that can make that happen. But the question still remains, where is best to deploy?
That’s why we put together an overview of up and coming jurisdictions that may help you with your decision. Although blockchain and cryptocurrencies are global technologies, it is nonetheless critical for online gaming operators to always respect and adhere to local laws and regulations. This article is meant for informational purposes only and presented as is. Try to do your own research on these up and coming markets, and decide for yourself whether or not its the right spot for you and your business.
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In this post, we will explore the Top 3 markets globally in terms of their potential for new online gaming growth, and starting up your next venture.
SE Asia represents a host of unique opportunities for the online gaming operator. With a growing population of over 660 Million people, SE Asia is quickly becoming a powerful economic bloc in its own right, with annual GDP growth of 6.7% and declining poverty rates that saw millions of people climb out of poverty in the last decade.
Countries like the Philippines are one of the few countries in SE Asia where comprehensive and reliable gaming licensing exists. Despite the fact that gaming is prevalent throughout the entire region, only countries that seek to regulate (and thus appropriately tax) gaming activities stand to benefit from the online gaming industry.
Historically, business process outsourcing (BPO) is the key growth and dominant contributor of taxes and employment in the Philippines. Online gaming is predicted to surpass BPO in 2020 as the main contributor of taxes, employment and property demand. — EGR Jurisdictions Report 2020
Other countries such as Laos, Thailand and Vietnam are beginning to formalise and regulate their online gaming industries, in order to capture much needed tax revenue and provide protections for players. Such countries could benefit the most from blockchain based systems, since such systems could be implemented quickly and with a high level of technological standards — saving money and time while ultimately protecting consumers.
Countries with substandard or non-existent gaming licensing and regulation (and enforcement) regimes stand to gain the most from blockchain based systems. BetProtocol can programmatically provide KYC/AML and other compliance tools to make sure that compliance is handled on the technological level for nations willing to take that step.
The United States
The USA seems to be at a turning point with the repeal of PASPA in May 2018, which dropped a federal nationwide ban on online sports betting. The aftermath of such a landmark decision is that almost every state in the union is scrambling to pass state-level legislature to approve, regulate, and tax online sports betting.
So far, 15 states have enacted legislation to allow online sports betting, with up to 9 states in the process of enactment at the time of this writing.
The issue here is not so much that a majority of states still don’t have online sports betting laws on the books. The issue is that each state has its own different laws, and different ways of enforcing those laws. Smaller states with less population (and therefore less players) have little incentive to waste governmental resources on writing and enacting such laws when the potential tax revenue is low.
What we might end up seeing is the piece-meal regulatory structure in the USA that is quite similar to what is seen in Europe: each nation-state with its own regulation and taxation regime, with no unity or standard (which would boost efficiency and growth) across the entire economic bloc.
Modular blockchain based systems that can be changed to suit particular state or nation states’ requirements would be a key technological upgrade to what is now a very inefficient set of processes.
Latin America, a region with over 650 million inhabitants, is perhaps one of the few remaining untapped economic blocs in online gaming. With few robust legal regimes in place to regulate gaming, both land based and online operations are struggling to gain legitimacy and global presence.
However a few nations, such as Colombia in 2017, were among the first to setup an online gaming regulatory framework. Argentina and Brazil are both following in its footsteps, with key legislation underway to legalise and regulate online gaming.
Brazil, Mexico, and Chile have some of the highest self-employment rates in the world at 32.5%, 31.6%, and 27.1% of their populations respectively being entrepreneurs or freelancers. With the legalisation and regulation of online gaming in these countries, we can expect to see many of these entrepreneurs going into business for themselves with their own casinos or sports books. Technology that allows quick and compliant deployment of online gaming apps like BetProtocol can be key to these entrepreneurs to compete with legacy incumbents.
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