Cobra Effect: Over-Regulation hurts Gambling Markets
HighlightsÂ
-
Gambling rules developed to ensure players’ safety have an inverse effect on the sector.
-
Strategic regulation is a way forward for regulators and operators to compete and downsize the black market.
The infamous Cobra Effect is meant to describe how a solution to a problem makes it worse, by having a contrary effect. The Cobra Effect dates back to an incident in colonial India where offering bounties for dead cobras led citizens to feed them for profit.Â
Similarly, having rigid gambling rules can indirectly drive players towards unlicensed sites, making them more vulnerable. Although rules are made in the best interest of users or citizens, restrictive measures make the licensed market least attractive to punters and some gamers. So, this makes the black market even more favourable.
So, regulators should collaborate with licensed operators to formulate strategic regulations to enhance the potency of the regulated platform to attract and retain players, along with ensuring safer guidelines.Â
The new approach to adopting a strategic regulation can benefit operators and players, leading to long-term sustainable growth.
For more details, Read Here!
Similarly, having rigid gambling rules can indirectly drive players towards unlicensed sites, making them more vulnerable. Although rules are made in the best interest of users or citizens, restrictive measures make the licensed market least attractive to punters and some gamers. So, this makes the black market even more favourable.
So, regulators should collaborate with licensed operators to formulate strategic regulations to enhance the potency of the regulated platform to attract and retain players, along with ensuring safer guidelines.Â
The new approach to adopting a strategic regulation can benefit operators and players, leading to long-term sustainable growth.
For more details, Read Here!
