Interactive PAYSAFE - THE YEAR OF REGULATION
Te year of regulation: GDPR, PSD2, and what they mean for the gaming industry
In today’s digitally connected world, data is being produced in huge volumes, at an incredible pace. Tis has certainly been evident in the gaming space, where the rise of apps and websites have contributed to the sector becoming one of the earlier digital adopters. Recent findings suggest the UK online gambling sector will grow by nine per cent to reach a value of £5.95bn by 2019. Clearly, data growth is inevitable with each mouse click and every app log-in creating a data footprint.
Elliott Wiseman, General Counsel and Chief Compliance Officer, Paysafe
By requiring banks to make their data available to third- party companies through open technology development tools – Application Programming Interfaces (APIs) – ‘open banking’ becomes a genuine option. In essence, with every company in the payments chain benefitting from mutual information and technologies.
P58 NEWSWIRE / INTERACTIVE / MARKET DATA
For gaming operators today, harnessing these data flows is no longer an optional exercise – it is a necessity. 2018 has been billed as ‘the year of regulation’, in which legislative pressures will peak at the deadline for the General Data Protection Regulation (GDPR) on 25th May, following the rollout of the second Payment Services Directive (PSD2) in January this year. While the specific requirements of each piece of regulation differ considerably, the realities of non-compliance are significant. Failure to comply will put operators at risk of heavy fines – not to mention a loss in consumer trust and reputation – which means data protection and customer privacy should be at the very core of everything gaming operators do going forward. But although it’s easy to view these new regulations as a burden, both PSD2 and GDPR offer a platform for competitive advantage, and an opportunity for operators to get their house in order for longer-term gain.
THE CHANGING REGULATORY LANDSCAPE PSD2 came into effect on 13th January,
representing an evolution of the existing directive. Aside from enhancing consumer protection within payments, and boosting security, a side benefit of the directive is the
improvement it will drive in terms of new and innovative services. PSD2 aims to make it simpler for technology start-ups, payment processors and banks to communicate with each other; share feedback and information gathering. By requiring banks to make their data available to these third-party companies through open technology development tools – Application Programming Interfaces (APIs) – ‘open banking’ becomes a genuine option. In essence, with every company in the payments chain benefitting from mutual information and technologies, competition can prosper and new services can be developed at the benefit of the consumer.
In addition, gaming companies should note the security implications of PSD2. It insists operators implement stronger (i.e. multi-factor) customer authentication methods. Ultimately, the updated directive is designed to make digital payments easier for consumers, while guaranteeing them greater security over the transactions related to their accounts.
Te forthcoming GDPR builds on the existing Data Protection Directive, which has been in place since 1995, and is out-of-touch with the
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