Global sports betting and gaming entertainment Entain has increased its compliance by announcing its intention to exit any markets “where it no longer sees a path to domestic regulation.”
The Road Map
The measure is part of a greater plan initiated in 2020 when Entain announced that all jurisdiction revenues would be 100% regulated by the end of this year 2023.
Distinguishing Who Has a Chance
This set off a series of withdrawals from any market deemed unlicensed while categorizing certain emerging jurisdictions as “regulating,”
Finishing the Job
Entain is now ramping up the process “by exiting its few remaining markets where there is no clear path to market liberalization via domestic regulation.”
Reserving Judgement for Some
Entain will continue to maintain a presence in “a small number of markets where it expects regulation changes will enable it to obtain domestic licenses in due course.”
A prime example of the due course provision is Brazil. After the much-anticipated announcement that the country was set to publish guidelines for sports betting, outgoing President Jair Bolsonaro refused to sign them and set the entire movement back to proverbial square one.
What we see is Entain taking a hard look at the jurisdictions where it operates to fulfill a greater goal of uniform compliance faithful to the ideals of iGaming.
Entain Leader Speaks
Entain Chair Barry Gibson clarified the recent announcement further:
Today’s announcement is therefore a continuation of that strategy, and should be taken as a clear demonstration of Entain’s commitment to the highest standards of corporate responsibility, governance, sustainability, and player safety.
Gibson continued that the new measures are just fulfilments of the previous organizational commitment and reflective of Entain’s greater leadership goals:
We stated at the outset that we would exit any market that wasn’t able to regulate at a sufficient pace or to the right standards, and we have acted decisively to do so. We are proud to be leading our industry as the only global operator taking this approach of solely operating in markets where there is domestic licensing.
The impact of the withdrawals on overall revenue is minimal and will have little impact on 2023 expectations.
The last year 2021, was an impressive performance, as confirmed by new ESG figures reporting that 99% of Entain revenue was sourced to locally regulated markets for the year.
While making judgment calls about where to stay open to regulation, Entain is effectively fulfilling the ideals of iGaming that all operators should strive for.