The 2027 iGaming Trends Report from SOFTSWISS, released today, reveals a significant shift in regulatory oversight within licensed iGaming markets. The trend is moving towards market-wide, data-driven analysis, replacing the traditional method of individual audits for licensees.
This report, developed with contributions from organizations such as WorldGaming, Amazon Web Services (AWS), FinteqHub, and BGaming, is based on a comprehensive survey involving over 500 industry professionals, alongside 65 expert interviews and an analysis of nearly half a million media headlines and data from H2 Gambling Capital.
Artificial Intelligence (AI) emerged as a predominant macrotrend, with many experts reporting its increasing integration throughout production cycles. AWS highlighted instances where generative and operational AI have improved delivery speeds, automated routine tasks, and facilitated autonomous multi-step workflows.
The momentum behind AI applications is notable, particularly among regulators and development teams. According to the report, 52% of industry professionals identified AI as the leading macrotrend shaping the industry by 2027.
Stakeholders from SOFTSWISS and AWS stressed that while AI is set to standardize reporting data, it should enhance human decision-making rather than replace it. However, some concerns regarding AI-powered consumer tools were noted, especially after report findings indicated that current chatbots had recommended unlicensed offshore casinos during their investigations.
On a positive note, many operators and suppliers have advanced AI applications beyond pilot phases into functional deployment. Cubeia, an iGaming developer, has notably transitioned its entire backend and front-end systems to AI-generated code by Claude within the last months.
To this end, the report recommends a staggered approach to implementing AI, starting with low-risk scenarios. It also cautions users to protect internal production data, rigorously instrument models from the outset, and expand to more autonomous AI while ensuring strong human oversight and decision-making safeguards.
In terms of regulatory change, continuous, real-time supervision is now preferred over manual compliance audits. Operators are increasingly required to connect to ongoing data streams accessible to regulators almost in real time. The report introduces the concept of a “market-wide compliance layer,” which includes national identity and self-exclusion registries, cross-operator deposit limits, and automated enforcement systems.
Specific national case studies featured in the report demonstrate the trend, with numerous markets operating a unified national self-exclusion system applicable to all licensed operators.
The regional analysis offers insights into sports betting trends in Africa. South Africa stands out as the continent’s largest market, with its online gambling sector projected to reach $3.89 billion by 2026, 84% of which is expected to be generated legally, according to H2 estimates. Latin America is also seeing a drastic increase in market channelization, rising from 15% in 2022 to 65% in 2026.
Brazil is particularly notable due to recent developments in its regulatory landscape; the country announced an immediate ban on online betting companies. Following this ban, 415 new illegal betting sites reportedly emerged in Brazil, with nearly 300 launched on just Saturday.
The report indicates that shifting tax regulations are disrupting operational models. For instance, Malta’s upcoming changes to VAT exemptions for gambling, effective October 2026, and the UK’s Remote Gaming Duty rise to 40% starting in April present new challenges for operators.
Robin Harrison, Global Content Director B2B at WorldGaming, remarked on the duality of global and local trends. He stated, “The industry is simultaneously becoming more global and more local. Regulation, tax, payments, competition and player behaviour vary significantly from market to market. Scale can get you into more jurisdictions, but it definitely doesn’t guarantee success. The next generation of leading operators is the one that understands where the local friction is, how to ease it and execute effectively.”
In the realm of payments, the report highlights that about 82% of players remain loyal to brands with seamless payment processes, while nearly 70% abandon brands after repeated issues. FinteqHub anticipates machine learning will support 90% of routine routing adjustments in the next one to two years.
Operators are urged to prioritize simplicity in user journeys as a distinguishing feature in an increasingly complex environment. Masking the underlying processes for regulatory compliance, payment verification, and responsible gaming will be vital for competitive differentiation.
Deputy CMO at SOFTSWISS, Alexandra Kavelich, encapsulated the necessary strategies for operators to thrive: “The next competitive advantage in iGaming will not come from content alone. It will come from regulatory readiness, secure payment journeys, intelligent risk management, relevant customer communication, and platforms that can respond quickly to changing regulations. Fintech, e-commerce, and streaming have already set the standard in these areas. iGaming operators that adapt those lessons effectively will be better positioned to grow responsibly and profitably.”
