The iGaming industry is highly regulated, with strict laws and guidelines that vary significantly across different countries. Whether it’s affiliate marketing, banner advertising, or other promotional methods, understanding these regulations is crucial to ensure compliance and avoid severe penalties. National licensing systems, particularly in countries that enforce local licenses for gambling operators, can significantly impact how marketing is conducted, especially on specific top-level domains (TLDs).

Understanding National Licensing Systems in iGaming

Global licensing systems such as the Malta Gaming Authority (MGA), Curacao eGaming, and Gibraltar Regulatory Authority (GRA) are some of the most recognized and widely used in the iGaming industry. These licenses allow operators to offer online gambling services internationally; however, they do not grant unrestricted access to all markets. Many countries with national licensing systems require operators to obtain a local license to legally target their residents.

For example, in Denmark, the Danish Gambling Authority (DGA) enforces strict regulations that require all online gambling operators targeting Danish players to hold a Danish license. This renders international licenses, such as those from MGA, GRA, or Curacao, invalid for marketing purposes in Denmark, even when marketed indirectly through affiliates or third parties. Affiliates promoting non-DGA licensed sites can face substantial fines and legal repercussions.

National Licensing Systems Across the Globe

The requirement for local licensing is not unique to Denmark. Many countries worldwide have implemented similar regulations to protect their markets and ensure responsible gambling. Here’s a closer look at some of the key countries with national licensing systems:

• United Kingdom: Regulated by the UK Gambling Commission (UKGC), known for its stringent rules on responsible gambling, player protection, and strict advertising standards.
• Sweden: The Swedish Gambling Authority (Spelinspektionen) requires operators to hold a national license to legally operate in the market, focusing heavily on consumer protection.
• Germany: Introduced a national licensing system in 2021, with strict regulations on online casinos, sports betting, and poker.
• France: The Autorité Nationale des Jeux (ANJ) regulates the French market, issuing licenses and enforcing rigorous responsible gambling policies.
• Spain: The Dirección General de Ordenación del Juego (DGOJ) mandates that operators have a Spanish license to offer services, with a focus on safe and fair gaming.
• Italy: Overseen by the Agenzia delle Dogane e dei Monopoli (ADM), Italy’s licensing system monitors and controls both land-based and online gambling.
• Netherlands: The Kansspelautoriteit (KSA) became the regulatory body in 2021, implementing a regulated market with comprehensive player protection rules.
• Belgium: The Belgian Gaming Commission licenses and regulates both online and offline gambling, ensuring compliance with local laws.
• Portugal: Managed by the Serviço de Regulação e Inspeção de Jogos (SRIJ), the Portuguese market requires all operators to hold a national license.
• Greece: The Hellenic Gaming Commission licenses online gambling operators, enforcing strict compliance with local gambling laws.
• Romania: The National Gambling Office (ONJN) regulates the market, requiring licenses for all operators targeting Romanian players.
• USA: The U.S. market is partially regulated, with each state setting its own licensing requirements. States like New Jersey, Pennsylvania, and Michigan have well-established regulatory frameworks.

These national systems aim to ensure operators meet specific standards for player safety, responsible gambling, and fair play, maintaining the integrity of the iGaming market in each jurisdiction.

The Risks of Marketing Unlicensed Gambling Sites

For affiliates in the iGaming industry, promoting unlicensed gambling operators carries significant risks beyond financial penalties. One of the most severe consequences is the potential loss of your domain and website—assets that affiliates invest heavily in developing and optimizing. This risk is particularly high for websites using national TLDs, such as .dk for Denmark, .se for Sweden, or .de for Germany.

What are TLDs and Why They Matter

Top-Level Domains (TLDs) are the last part of a domain name, representing the country or region associated with the website. National TLDs are often managed by governmental or semi-governmental bodies that enforce specific rules on how these domains can be used. Compliance with local laws is a prerequisite for maintaining these domains, and violations can lead to severe actions such as suspension or revocation of the domain.

Losing Your Domain: A Real Threat for Affiliates

If a website operating on a national TLD violates local gambling laws by promoting unlicensed operators, authorities may suspend or withdraw the domain without notice. This immediate action can result in the loss of years of work, including SEO efforts, content development, and a loyal user base. Furthermore, losing your domain can severely damage your brand’s reputation, making it challenging to rebuild trust and re-establish your presence, even if you secure a new domain.

How State Authorities Control TLDs

Many national TLDs are directly managed by state authorities, which set the regulations for their use. In Denmark, for example, the .dk domain is administered by DK Hostmaster in cooperation with the Danish Gambling Authority. These organizations have the power to enforce compliance and take swift action against domains that breach local laws, often without the possibility of appeal.

Strategies for Compliance and Protection

To avoid losing your domain and facing legal consequences, affiliates must thoroughly understand and comply with national regulations in each market where they operate. This involves staying informed about changes in the law, seeking legal guidance when necessary, and ensuring that all promotional activities align with local requirements.

Targeting the Right Markets: A Strategic Approach for Affiliates

For affiliate managers working with internationally licensed iGaming platforms (MGA, GRA, Curacao), targeting the right markets is critical to maximizing success and minimizing legal risks. Focusing on countries without stringent national licensing systems offers greater marketing freedom, fewer regulatory hurdles, and access to emerging markets with high growth potential.

Benefits of Targeting Less Regulated Markets

• Access to Markets with Fewer Restrictions: Countries like Canada (outside regulated provinces), Norway, Finland, Ireland, and Japan have fewer restrictions, allowing affiliates to market gaming products more broadly.
• Greater Flexibility and Lower Risk: In less regulated markets, affiliates can design campaigns without constantly navigating complex legal landscapes, reducing the risk of fines and restrictions.
• Lower Barriers to Entry: Markets that accept international licenses allow quicker access, enabling affiliates to launch new campaigns faster and gain a competitive edge.
• First-Mover Advantage: Regions like Brazil, New Zealand, and India are in the early stages of regulation, offering the opportunity to establish a strong market presence before stricter laws are implemented.
• Growth Potential in Untapped Markets: Countries like Japan, South Africa, and Mexico present significant opportunities for growth, with large audiences eager for new gaming experiences.

Conclusion

Understanding the complexities of national licensing systems and the varying legal landscapes is essential for any affiliate manager or operator in the iGaming industry. By focusing on markets where your licenses are valid and recognized, you can expand your reach, reduce legal risks, and seize growth opportunities. Smart, strategic targeting is the key to positioning your iGaming platform for long-term success in the ever-evolving global market.