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CFOs in iGaming Adjust to Rising Taxes and Regulatory Fragmentation

CFOs in Global iGaming Face Rising Tax and Compliance Burdens – How Regulatory Fragmentation Is Reshaping Financial Strategy

Key Takeaways

• CFOs in the iGaming sector report rising tax burdens and compliance costs across Europe and the Americas.
• Regulatory fragmentation is shifting capital allocation from rapid expansion to market-level profitability.
• Mergers and acquisitions are increasingly used to secure licenses and infrastructure, but require deeper compliance due diligence.
• Financial planning now prioritizes scalable compliance systems, tax management, and jurisdiction-specific reporting.

Heavier Tax Regimes and Compliance Costs Reshape Financial Priorities

As global iGaming markets mature, finance leaders report a structural shift in how companies plan growth and allocate capital. In a roundtable discussion published by iGaming Expert on March 24, 2026, chief financial officers from Codere Online, Evoplay, and RubyPlay described how rising taxes and expanding regulatory frameworks are altering the financial model of the industry.

Marcus Arildsson, CFO at Codere Online, stated that tighter fiscal regimes in established European markets such as Spain and Italy are compressing margins. He cited heavier taxation, stricter advertising rules, and more prescriptive responsible gaming frameworks as factors increasing the structural cost of doing business.

At the same time, Latin American markets including Mexico and Argentina are introducing licensing and compliance requirements that differ by jurisdiction. According to Arildsson, this creates a patchwork of obligations that requires more selective and disciplined investment decisions. He said the focus has moved away from expansion at all costs toward sustainable profitability under conservative regulatory assumptions.

Vasilena Mantsiou, CFO at Evoplay, described compliance as one of the largest operating expenses. She pointed to ongoing investments in know your customer, anti money laundering controls, responsible gaming measures, and reporting systems. In her view, compliance is no longer an incremental cost but a core component of protecting licenses and brand standing. She added that differing tax rules between jurisdictions complicate financial planning and require flexible models and financial buffers.

Motti Gil, CFO at RubyPlay, emphasized that the difference between theoretical profit and retained cash has widened in regulated markets. He highlighted the need to account for jurisdiction-specific gaming taxes and indirect taxes such as VAT, GST, and PIS COFINS in Brazil. These frameworks often require real-time reporting and technical systems capable of tracking player and supplier location.

Gil also referenced transfer pricing requirements for companies operating across borders, noting that updated studies to justify intercompany transactions are now a non negotiable operational cost. In addition, he identified the OECD Pillar 2 global minimum tax initiative as setting a new reporting baseline. Even companies below the revenue threshold, he said, must build data systems capable of jurisdiction-level reporting.

Mergers and Acquisitions Used to Manage Fragmentation and Entry Costs

The executives also addressed how market fragmentation is influencing merger and acquisition strategy. As regulatory frameworks become more localized, the cost of entering new markets organically has increased.

According to Motti Gil, entering a new jurisdiction now typically requires a license, technical adaptation to local requirements, and often a physical presence. He said acquiring a local entity can reduce market entry timelines by 12 to 18 months. However, he stressed that due diligence must extend beyond revenue and EBITDA analysis to include deep audits of regulatory and tax compliance history.

Vasilena Mantsiou described the trade off as speed versus complexity. Acquiring a licensed operator with an existing customer base can create synergies through shared technology and cost efficiencies. However, buyers also assume regulatory frameworks, potential tax liabilities, and exposure to ongoing investigations or liquidity requirements. She stated that post merger governance and compliance structures are essential to ensure that expected rewards materialize.

Marcus Arildsson added that acquisitions may provide access to licenses, infrastructure, and local expertise that would otherwise be unavailable. At the same time, they introduce integration risks and regulatory liabilities. He noted that organic growth in stable and well regulated markets can offer more predictable returns than aggressive expansion into jurisdictions with uncertain tax or regulatory regimes.

Regional Developments in the US and Latin America Under Close Review

The roundtable participants identified specific regional developments they are monitoring. Motti Gil said RubyPlay is closely following potential legislation of additional US states for online casino. While sports betting has expanded, he noted that online casino regulation has lagged. According to Gil, further legalization would require significant capital readiness due to state specific licensing fees and varying tax rates.

In Latin America, Argentina remains a focus because of its province by province regulatory structure. Gil compared this to the state level model in the US, but noted additional financial complexities including currency controls, exchange rate fluctuations, and inflation.

Brazil was also highlighted as a key market. Gil said RubyPlay has analyzed the country’s layered tax regime, which includes gaming taxes, indirect taxes, direct taxes, and withholding obligations, and structured its operations accordingly. Ongoing monitoring of changes in gaming and indirect taxation remains part of the company’s financial planning.

Across regions, the CFOs described a shift away from broad regional budgeting toward jurisdiction specific financial strategies. Scalable compliance systems, centralized risk management, and automated reporting tools are increasingly viewed as necessary infrastructure rather than optional enhancements.

Operational Infrastructure Becomes Central to Financial Strategy

A recurring theme in the discussion was that compliance infrastructure now competes directly with marketing and expansion for capital allocation. According to the participants, technology investments in reporting automation and risk management are essential to maintain margins under fragmented regulation.

For suppliers operating on a business to business basis across multiple jurisdictions, tax withholding on intellectual property licensing and royalties has become a central element of cash flow planning. Companies must also prepare for jurisdiction level data reporting in anticipation of global tax initiatives.

The cumulative effect, as described by the executives, is that efficient growth has replaced growth at all costs. Financial leaders are required to integrate tax strategy, compliance systems, and regulatory monitoring into core business planning.

Our Assessment

The roundtable discussion indicates that CFOs in the iGaming sector are responding to higher taxes, localized regulation, and expanded compliance obligations by prioritizing profitability, jurisdiction specific planning, and infrastructure investment. Mergers and acquisitions are being used to secure licenses and spread fixed compliance costs, but require deeper due diligence. Across Europe and the Americas, financial strategy is increasingly shaped by regulatory fragmentation and the need for scalable reporting and tax management systems.