SOFTSWISS trends report rates iGaming 4.67/5 on digital maturity, flags regulation, fraud and trust as headwinds

SOFTSWISS has released the fifth edition of its iGaming Trends report, co-authored with WorldGaming, formerly known as Clarion. This year's edition adds a chapter called 'Beyond iGaming', which includes input from experts in other industries, among them Amazon Web Services. It benchmarks the sector against e-commerce, sports, film, gaming, streaming, e-pharma and crypto.

The report gives iGaming a Digital Maturity Index score of 4.67 out of 5. The score reflects areas such as AI adoption, mobile-first products, digital acquisition, payments, RegTech and data-driven decision-making, which places the industry at a level similar to advanced e-commerce and fintech businesses. The report estimates iGaming will generate €305bn in gross gaming revenue in 2026, making it the fourth-largest sector in the benchmark behind e-commerce, sports and film. It also records the highest regulatory load in the comparison, with a score of 5 out of 5, shared with crypto and online pharmacy.

Speaking about the findings, SOFTSWISS CMO Valentina Bagniya named three main headwinds. The first is growing regulatory complexity, as operators face differing requirements across markets and need technology that can adapt without being rebuilt for each jurisdiction. The second is cybersecurity and fraud: fintech, ICT and betting were the three most targeted industries for DDoS attacks in the first quarter of 2026, and threats increasingly include impersonation and fraud aimed at payments. The third is trust, as players have more choice and regulators are paying closer attention to player protection and responsible gaming.

Bagniya expects regulatory pressure to continue, particularly in mature markets. She pointed to the UK, where Remote Gaming Duty rose from 21% to 40% in April 2026 and the tax rate on most remote betting is due to rise to 25% from April 2027. She warned that heavier costs and restrictions could leave licensed operators less able to compete with unlicensed alternatives.

As an example, she cited Brazil, where, according to Bet Legal monitoring, the number of identified unauthorised betting operations rose from 331 to 575, an increase of 74%, one day after the new betting ban was introduced. Over five days the increase was around 464%. Bagniya noted that it is too early to judge the long-term impact, but said the figures show how quickly demand can move outside the regulated market.

To limit the damage, she called for a sustainable regulated market that balances taxation, advertising rules, bonus restrictions and compliance requirements, along with closer cooperation between regulators, operators and technology providers. From a technology standpoint, she said, compliance and security should be built into products from the start while keeping infrastructure flexible across markets.