Digitain Expert: More Regulation Does Not Automatically Mean Better Regulation

The world of online gambling is undergoing a profound transformation characterized by increasingly stringent government requirements. Arshak Muradyan, PhD, Group Chief Compliance Officer at Digitain, has shared critical views on current developments. While his company has successfully obtained approvals in markets such as the UK, Ontario, Denmark, Bulgaria, and South Africa during 2026, the expert warns that the sheer volume of regulations is not synonymous with their quality. According to his view, compliance must not be a mere bottleneck for business but an integral part of product development.

Expansion into the UK market is considered both a gold standard and a significant challenge. It is not just about technical requirements but a deep-seated expectation from authorities regarding governance and player protection that must be lived throughout the entire organization. Muradyan, who previously served as Group COO at SoftConstruct, brings an operational perspective to the often theoretical world of legal paragraphs. He makes it clear that licensing is only the beginning of a long journey where compliance must remain stable every single day for years to come.

Numbers and facts

In November 2026, Digitain's expansion power is particularly evident. In Bulgaria, the company secured two licenses from the local gambling regulator: a manufacturer license and an importer license. This allows Digitain to offer both in-house products and certified third-party solutions. The provider is also now officially registered as a Gaming-Related Supplier in the Canadian province of Ontario. These strategic steps led to Digitain receiving four nominations at the Global Regulatory Awards 2026, including Muradyan himself as Chief Compliance Officer of the Year.

However, Muradyan emphasizes that focusing on documentation alone is insufficient. He questions the effectiveness of processes that may have twenty approval levels but barely minimize the actual risk. He calls for risk-based and proportionate regulation supported by technology and data. A particular focus lies on balance: if regulated markets become structurally unattractive, players might migrate to illegal alternatives, creating a new, much larger risk.

"More regulation does not automatically mean better regulation. The important question is whether a requirement materially reduces risk or improves outcomes." - Arshak Muradyan, Group Chief Compliance Officer at Digitain

Background

Looking toward 2027, Muradyan identifies three main topics: the new EU Anti-Money Laundering (AML) framework, the demonstration of effectiveness in player protection measures, and the use of Artificial Intelligence. Regulators will no longer just ask if controls exist but will require companies to scientifically prove their success. Regarding AI, the expert warns against blind automation of decisions. While technology helps with fraud detection, human accountability and the explainability of algorithms must be maintained.

Why it matters for German players

In Germany, the situation has been particularly strict since the Interstate Treaty on Gambling 2021 (GlüStV 2021). Players must deal with a cross-provider deposit limit of 1,000 euros per month and a stake limit of 1 euro per spin on online slots. The central supervisory authority GGL monitors this via systems like LUGAS. Muradyan's criticism of over-regulation hits home here: if barriers for German customers become too high, such as through lengthy verification processes or excessive gameplay restrictions, legal providers risk losing customers to the black market. For players in Germany, the "better regulation" demanded by Muradyan primarily means higher-quality platforms that offer safety without stifling enjoyment through purely administrative hurdles.

What it means for GGL-licensed casinos

German casinos with a GGL license must upgrade significantly in terms of IT security and player protection. Integration with systems like OASIS and LUGAS is mandatory. Digitain's approach of building compliance into the product architecture is exemplary for the German market. Providers on the whitelist must show that their measures do not just exist on paper but actively contribute to addiction prevention. In an environment where the GGL is taking a hard line against illegal offshore providers, regulatory adaptability is no longer a luxury but a core competency for economic survival.