Matt Holt, the CEO of Gaming Compliance International (GCI), discussed the evolution of the company from its role in shaping sports betting integrity in the United States following the repeal of PASPA to addressing what he considers the industry's most pressing global issue: the illegal gambling market. In a conversation with Katie Goldfinch, Holt indicated that the focus has shifted for regulators and operators who now require support in areas of enforcement and real-time visibility, particularly as the legal frameworks across various jurisdictions become established.
A significant point raised was the inadequacy of traditional compliance methods. Holt pointed out that over 90% of gaming jurisdictions continue to depend on outdated, spreadsheet-based reporting systems. These reports are typically submitted months after activities occur, rendering tax reconciliation and enforcement inefficient.
To tackle the illegal market, GCI has developed automated audit tools that provide regulators and operators with real-time insight into wagering activities, tax exposure, and discrepancies. GCI's recent acquisition of YieldSec in November enhanced its capabilities further by integrating intelligence on grey and black markets, alongside advertising monitoring and affiliate tracking into its compliance resources.
Holt emphasized that illegal gambling poses a worldwide challenge rather than being confined to specific regions. He remarked, “It’s growing more aggressive every day. And it’s not a European problem.” He illustrated this with U.S. data showing that the proportion of bets placed legally, which was dominant immediately after PASPA's repeal, has shifted to an estimated 75% now occurring through illegal avenues.
“Those numbers are skyrocketing everywhere, and we're trying to find new innovative ways to combat that,” Holt noted. GCI's approach emphasizes disrupting the supply chain instead of relying solely on cease-and-desist letters or legal action across borders. By diminishing the discoverability of illegal operators, along with restricting affiliate marketing and payment processing, they aim to level the playing field. If consumers can't find these sites or process payments, illegal enterprises will struggle to maintain their competitive edge.
