I’ve always thought that regulation is better than prohibition. As a pioneer of online sports betting before there were any specific regulations, I realized that the availability of online gambling to anyone with an internet connection, would prove to be ubiquitous and unstoppable. Better to regulate this new activity immediately and create a safe environment for the customers and we’ll all do well.

Nevertheless, from Minnesota to Kyl and UIGEA, attempts were made to prohibit rather than regulate the online gambling industry. These clumsy and often sneaky attempts were seemingly successfully as many operators were either arrested, fined and imprisoned  or at least were deterred from engaging with US customers.

However, In the long run, prohibition had little effect on the meteoric growth of the industry. Many jurisdictions such as Malta capitalized on the situation by offering a robust licensing and a safe haven for operators.  The industry has since thrived.

Prohibition just delayed the inevitable. And even worse, it can be argued that without the effects of UIGEA which enforced payment coding, the Wirecard saga would not have happened.

By effectively skirting the coding regulations, Wirecard were able to offer ‘special’ payment solutions to all and everyone. They became hugely ‘successful’ as they offered services that other companies could not offer.

I say ‘successful’, how could it not have been? The payment industry is a pretty low-risk business in comparison to online gambling and a comparatively simple proposition – the more payments you process, the more money you make. Wirecard had a significant portion of the market and should have pulled in a nice profit.   

However, Wirecard seems to have been set up with fraud in mind in the first place. An accounting fraud with their auditors hoodwinked  for years. So much of their apparent revenues have disappeared or were simply not there in the first place.  

The fallout from the Wirecard scandal is a ongoing legal and political maze, covering many countries. I’m sure this will continue for years to come.

As a final thought: This whole Wirecard palaver – and many others – could probably have been avoided if the governments had stopped attempting to prohibit the industry and decided to regulate it  much earlier than they did.

Side note: I realized I was in the wrong business pretty soon after completing the online sportsbook for Intertops.  The business of sports betting is pretty risky, hard work and lots of stress. On the other hand, payment services just seem to happen and everyone gets their cut. No risks apart from a few pesky charge-backs.

I nevertheless stayed with developing the gaming side of the industry, being at the coalface and all that. A mistake obviously. But at least I’m not on trial or on the run…  and long may that be so! 😊

Thanks for reading!

Ian