iGaming Blog

In the iGaming sector, companies operating under a MSB license frequently face significant challenges when it comes to integrating acquiring solutions for high-risk traffic in the EEA and UK. The high-risk nature of these transactions demands strict compliance protocols, especially under the rigorous standards of PSD2 and AML. 🔹 MSB Licenses and Market Perception: MSB licenses, particularly from Canada, are often viewed with suspicion by European acquirers and banks. Despite formal compliance with AML and CFT standards, these licenses are classified as "light-touch regulation," placing them under increased scrutiny from acquiring banks. Consequently, the UBO and company directors are subject to EDD procedures. 🔹 Compliance and Regulatory Risks: The presence of UBOs from CIS countries adds another layer of complexity, automatically categorizing the entity as high-risk. European payment institutions are risk-averse and take into account the jurisdictions of the beneficial o...

  In the online casino industry, no-deposit bonuses are a powerful tool to boost player LTV (Lifetime Value) and reduce CPA (Cost Per Acquisition). However, it’s crucial to understand how effectively these bonuses convert registrations into deposits. Below is a formula that accurately measures the impact of these campaigns: Formula: Conversion = ((B × R) + ((T bonus period - B) × C) / T bonus period) × 100% Formula Logic: - B: The number of players who made a deposit immediately after registration. These are high-value players who demonstrate strong engagement from the outset. - R: The percentage of players from group B who continue making deposits after receiving a no-deposit bonus. This reflects the retention rate of your initial depositors. - T bonus period: The total number of users who registered during the bonus period, including both depositor and non-depositor players. - C: The percentage of users who made a deposit after utilizing the no-deposit bonus. This indicates the b...

  Case Study: Issues with Unverified Acquirers Recently, we encountered a significant issue with one of our acquirers. Our partner informed us that the delay in payments was due to a "greeting from Visa" (compliance fine). However, there are no official confirmations, and the issue has remained unresolved for over a year. The acquirer has not responded and has been acting rudely, claiming that a legal process is underway. We have engaged lawyers and regulatory authorities to address this problem. Interestingly, the acquirer continues to operate normally, and their business appears unaffected 🥲. This situation can be explained by the fact that our acquirer is registered as an MSB (Money Services Business) and operates as a third-party processor. This means they cannot directly receive information from Visa and can only provide verbal comments. The sub-aggregation model complicates interactions and problem resolution. Many payment companies operate under similar models, where ...