Regulating bodies covering online gaming vary in each jurisdiction.
In some jurisdictions, the regulators have been established as separate statutory entities which conduct the duties of a regulatory body and other state duties like policy advisor and regulation formulation.The regulatory framework created for regulators takes into consideration the circumstance of the regulator and its other functions but focuses on the regulatory functions performed by this body.
Why is a regulatory framework necessary?
In general terms, the framework is needed to ensure that regulators perform their functions and achieve their objectives creating an ongoing positive effect on the regulated areas. The framework aims to reduce unnecessary inefficiency and ensure that regulators administer their duties with the minimum impact on those they regulate, while still performing their function. For example, to successfully prevent fraud and minimize uncertainty in the industry. In addition the framework assists regulators to live up to the expectations of the community and thus bringing about public confidence.
Implementing a regulatory framework allows regulators to give objective reports on their administrative activities and determine if their efforts have been carried out fairly, efficiently and effectively. A framework is also an invaluable tool for regulators to spot where there is room for improvement and thus better allocating resources for maximum impact. With the implementation of a framework, it is easier to identify where improvement could reduce compliance costs.
Regulation from a legal standpoint
No matter which sector you are looking at, whether it is medical, financial or the gaming industry, companies operating within a defined and regulated Framework have a clear understanding of the legal regulations they must abide by. Companies operating according to a Regulatory Framework are aware of the legal framework of their activities and that if they operate according to the laws of that framework they don’t have to worry about sanctions from the authorities.
If a company holds a legal license and is operating according to clear regulations there is less risk of legal complications or sanctions. For example, as long as a bank is operating under a banking license and is operating according to the regulations, like KYC, then there is less risk that the bank will face criminal charges for money laundering.
Regulation reduces costs in the long term
The cost of regulation does not come only from the design of the regulations. When regulations are poorly administered this can create additional costs which reduce productivity. The costs eventually filter down to the businesses and the entire industry even if the initial impact is on a particular business. These additional expenses can negatively impact the viability of a business, especially domestic businesses competing with international companies. For this reason, the government has developed a framework to assess regulators and issue a public report on the performance of the regulator. The introduction of a framework for regulators gives businesses, the industry and individuals confidence in the regulators and their ability to perform their functions effectively and risk-free. The government’s deregulation agenda defines a regulator as a government body that administers, enforces or monitors regulation.
The government recognizes the vital role regulators play in protecting the industry, community and individuals. When a regulatory framework is efficiently administered it can improve businesses, industries and the economy in general creating benefits for all and lead to a reduction in the resources needed by regulators. The framework will assist regulators in fulfilling their role in the best possible way.