Sector enters era of real-time regulation and production-ready AI, SOFTSWISS iGaming Trends Report finds

SOFTSWISS’ 2027 iGaming Trends Report, released today, highlights the significant transformation in how regulators are overseeing the licensed iGaming markets, as market-wide, data-led analysis replaces individual licensee audits.

Developed with input from contributors including WorldGaming, Amazon Web Services (AWS), FinteqHub and BGaming, the report draws on a a survey of over 500 industry professionals, 65 expert interviews, analysis of nearly half a million media headlines and data from H2 Gambling Capital.

Artificial Intelligence (AI), unsurprisingly, was found to be a leading macrotrend among those surveyed, with experts reporting it is becoming rife throughout production cycles. AWS showcased examples where generative and operational AI have accelerated delivery times, automated routine functions and enabled autonomous multi-step workflows. 

Artificial Intelligence drives production

The application of AI has gained substantial momentum, the report found. particularly among regulators and development teams. Over half (52%) of surveyed industry professionals identified AI as the leading macrotrend for 2027. 

SOFTSWISS and AWS contributors emphasised that while AI will standardise reporting data, it will augment rather than replace human decision-making. 

However, an emerging challenge lies in AI-powered consumer tools: current chatbots have reportedly recommended unlicensed offshore casinos during investigations. 

Conversely, operators and suppliers have now transitioned AI from pilot phases into production deployments. One such example is iGaming developer Cubeia, which in recent months replaced its entire back and front-end with Claude-written code.

The report advised a phased approach to AI deployments, beginning with low-risk use cases.

It warned adopters to safeguard production data internally, instrument models rigorously from the outset, then scale to agentic AI with robust human oversight mechanisms and circuit breakers for critical decisions.

Real-time technical regulation sets new norms

With regards to regulation, the report suggests real-time and continuous supervision from regulators had overtaken manual compliance audits.

Operators are largely required to integrate directly with continuous data streams accessible to regulators in near-real-time.

The report termed this a “market-wide compliance layer”, comprising national identity and self-exclusion registries, cross-operator deposit limits and automated detection and enforcement systems. 

Several national case studies illustrated this change. Many markets operate a unified national self-exclusion system which applies across all licensed operators.

Regional trends

In its regional breakdown, SOFTSWISS shone a light on sports betting in Africa. As the continent’s biggest market, the report valued South Africa’s online gambling market at $3.89 billion in 2026, with 84% of gross gambling revenue generated onshore, based on H2 estimates.

Rapid channelisation to regulated markets (from 15% in 2022 to 65% in 2026) was seen in Latin America.

Notably, the report referred to tax regimes posing sudden risks with Brazil standing out as the dominant market. Brazil has, in the last few days, announced the ban of online betting companies effective immediately. Since this ban was imposed last Friday, 415 new illegal betting sites have been created in Brazil. Just under 300 of those were created on Saturday alone.

The report said evolving tax landscapes are disrupting operating models. Notable developments include Malta’s narrowing of VAT exemptions for gambling effective October 2026 and the UK’s Remote Gaming Duty increase to 40% from April. 

Global Content Director B2B at WorldGaming Robin Harrison honed in on what these regional trends can tell us about the wider picture.

“The industry is simultaneously becoming more global and more local. Regulation, tax, payments, competition and player behaviour vary significantly from market to market. Scale can get you into more jurisdictions, but it definitely doesn’t guarantee success. The next generation of leading operators is the one that understands where the local friction is, how to ease it and execute effectively.”

Market simplicity in user journeys

Payments infrastructure remained a critical battleground. The report claimed around 82% of players stayed loyal to brands with seamless payments, and nearly seven in 10 left after repeated failures. FinteqHub predicted that machine learning (ML) would handle 90% of routine routing adjustments within one or two years.

Operators are expected to market simplicity in user journeys as a premium feature amid increasing beneath-the-surface complexity. 

Effectively masking regulatory, payment, identity verification and responsible gaming requirements will become a central element of competitive differentiation.

Speaking to the report, Deputy CMO at SOFTSWISS, Alexandra Kavelich summarised the motivations needed by operators to stay ahead of the game.

“The next competitive advantage in iGaming will not come from content alone. It will come from regulatory readiness, secure payment journeys, intelligent risk management, relevant customer communication and platforms that can respond quickly to changing regulations. 

“Fintech, e-commerce and streaming have already set the standard in these areas. iGaming operators that adapt those lessons effectively will be better positioned to grow responsibly and profitably,” she added.