IBIA is recommending a system where worldwide operators can get easy licenses so they can expand the horizon of their services. Similar regulations have been proven successful in global marketplaces like Sweden, Spain, Denmark, and the UK.
Changes in Fees Too
IBIA has also recommended a new fee structure that will allow the market to grow. According to IBIA, the fees for permission has to be proportionate and based on an administrative outlay of regulating the market.
This model has been followed in the stated countries successfully. The IBIA says that the payments should not be a medium to make a profit but to make gambling easier and competitive.
The current structure of taxation and payments has deterred many operators from even applying for licenses. IBIA proposes that taxation should be based on gross gambling revenue instead of turnover which is both impractical and outdated. They recommended a rate of 15-20% of the gross gambling revenue.
The motivation behind this proposal is to ensure enough versatility in the market. With easier licensing and affordable taxation, the operators will be able to provide a wide array of online games and betting options that are impossible with the current structure in place.
It will ensure the proper regulation of all channels and reduce the risk of financial crime. People who like to gamble might try to avail of the unavailable products and services through unregulated channels which might cause harm in the long run.
According to IBIA, the UK Gambling Commission has worked as a motivation for them to propose these regulatory systems