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Winning Strategies for Entering Regulated Markets
According to Dr Robert Zammit, Partner at WH Partners, that’s a fundamental miscalculation. “The biggest underestimated challenge is not regulatory or legal but cultural,” he says. “Entering into a regulated market does not bring only new regulations and requirements, but also a change of approach which might be totally different from what one would be used to.”
That cultural pivot is where many operators stumble. The shift isn’t just about meeting new compliance standards; it’s about reshaping corporate DNA to align with accountability, transparency, and governance. The most successful entrants are those that start thinking like locals before they even apply for a licence.
“When entering certain regulated markets, the first thing to consider is having the necessary understanding of the new jurisdiction’s regulatory requirements and therefore local expertise is essential,” Zammit explains. “Secondly, I would say having a clear understanding of the costs related to obtaining the licence and maintaining it to ensure having the necessary financial backing for the project. For startups this is essential.”
Embedding local insight into company culture
That local insight is often the dividing line between a smooth launch and a costly delay. But understanding regulation is not enough, embedding it in company culture is the real differentiator. “This is a mentality – business should not see compliance as a burden but as an opportunity,” he says. “If you inbuild compliance into the mentality of your company it will not be treated as a tick-box exercise, but it will be considered on all levels of the decision-making process.”
The regulatory landscape itself is becoming more assertive. “Different regulators tend to have different focus – sometimes driven by the different type of political environment the jurisdiction is passing through,” Zammit observes. “The shift towards stronger regulatory enforcement however is evident.” This means global operators can no longer rely on a template. “An operator can’t go in with a one size fits all mentality as no one jurisdiction is the same as another, assuming this is basically starting off your operation in a jurisdiction on the wrong foot.”
M&A comes with its own traps
For CEOs eyeing new markets in 2025, Zammit’s advice is pragmatic: “Be cautious and study the target market before taking the leap. There might be pitfalls that you might not see from the outside, so getting local input is essential.”
Mergers and acquisitions can seem like a shortcut to market access, but they come with their own traps. “Acquiring an already established licensed business is a very good way to enter a market fast, but this comes with its own risks – acquiring such a target means acquiring its history, its problems, its suppliers, liabilities and assets, employees included,” Zammit warns. “Such a deal might require regulatory approval… All of these issues could delay the acquisition which might not make it as attractive as starting from afresh.”
Even as data privacy and player protection become central to gaming regulation, Zammit rejects the idea that compliance and innovation must be at odds. “Regulation should not hinder development and innovation, but there should be a healthy discussion with compliance whenever an innovative tool or approach is suggested,” he notes. “At the end of the day, there must be a clear understanding of the regulatory requirements.”
Looking ahead, he hopes for a more constructive relationship between regulators and operators. “We can only hope that regulators take a more open approach towards operators and involve them more in the decision-making process. Regulators should be the first to learn from each other and be ready to understand the concerns of the market.”
Finally, Zammit turns to the next generation of gaming lawyers – an investment in the industry’s sustainability. “The gaming industry is still a niche practice area, so we strongly believe that the way forward is by providing opportunities to law students to be mentored by the leaders in the field.”
It’s a fitting conclusion. For Zammit, regulation isn’t a hurdle, it’s a sign of maturity. The companies that understand this not only win licences; they win longevity.
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