Roman Baranovskyi, Senior Lawyer and Head of iGaming & Investment Legal Practice at SBSB FinTech Lawyers, specializes in international licensing, fintech regulation, and cross-border corporate structuring for gambling operators. The firm has built a strong presence across the iGaming, crypto, and fintech sectors by helping operators secure licenses, develop compliant payment infrastructures, and expand into regulated markets through tailored legal frameworks. With more than a decade of industry experience and a growing international footprint, SBSB has become increasingly visible through its work on multi-jurisdiction gaming and fintech projects.
In this CasinoRank interview, Baranovskyi discusses how payment regulation, open banking, and fintech innovation are reshaping the operational realities of global iGaming businesses. He explores the growing importance of scalable legal architecture, hyper-localized payment systems, automated compliance reporting, and AI-driven financial monitoring, while explaining how operators can balance regulatory scrutiny with seamless player experiences in an increasingly fragmented global market.
Working closely with iGaming and fintech businesses across multiple jurisdictions, what are the first legal and strategic decisions operators should prioritize when setting up an online gaming business today that have the biggest long-term impact?
Roman Baranovskyi: As we navigate the complexities of 2026, the foundational decisions in structuring an iGaming operation have shifted from mere administrative box-ticking to high-stakes strategic engineering. At SBSB FinTech Lawyers, we see the choice of lead jurisdiction as the most critical decision for operators today. It now affects not only regulatory status, but also company valuation and access to the global financial system. We are seeing a definitive end to the era of licence shopping for the lowest price. Instead, the first legal decision must be an honest assessment of the project’s long-term exit strategy. If operators aim for institutional investment or future M&A activity, they should prioritize Tier-1 or modernized Tier-2 jurisdictions that meet strict banking and payment-provider due diligence standards.
Strategically, the most impactful move we implement for our clients is the deliberate separation of operational liabilities from intellectual property. In the current regulatory climate, where enforcement actions are becoming more automated and cross-border cooperation between regulators is the norm, a monolithic corporate structure is a significant risk. We advocate for a multi-layered structure. A holding company in Malta, Estonia, or Cyprus can own the brand and software, while a separate operational entity holds the gaming licence in jurisdictions such as Curaçao, Anjouan, Nevis, or Liberia.This ensures that the core value of the company, and namely its IP which remains shielded even if a specific market faces a sudden regulatory pivot.
From a legal perspective, what are the most complex regulatory challenges operators face when managing cross-border payment flows today?
Roman Baranovskyi: From a practical legal perspective, the most significant hurdle today is the lack of a unified global standard for how gambling-related transactions should be handled. We are seeing a major shift where individual countries are no longer content with being passive recipients of international payments; instead, they are implementing their own domestic systems that require strict, real-time reporting.
For operators, legal work now goes beyond obtaining a licence. Every deposit and withdrawal must comply with regulations in both the player’s country and the operator’s home jurisdiction. Problems arise when regulations conflict. One region may require full transparency of a player’s funds, while another restricts what data can be shared across borders.
Why Payment Providers Face Greater Regulatory Pressure
Another layer of complexity is the increasing pressure on the intermediary companies – the payment processors and the banks that sit behind them. These financial institutions are now legally required to act as “gatekeepers”, and they are terrified of being held responsible for transactions that might be linked to unlicensed markets or high-risk jurisdictions. As a result, we are seeing much more intrusive audits.
From a legal standpoint, an operator’s corporate structure must now be built to withstand this scrutiny. It is no longer enough to have a contract with a payment provider. You must be able to prove, with legal documentation, exactly where every cent is coming from and that it stays within the boundaries of the specific license you are using for that region.
Finally, we have to deal with the reality that regulators are increasingly using the financial system as a tool for enforcement. Rather than just blocking a website, which is often ineffective, they are working with national banks to block payment flows to unlicensed operators. This makes the legal architecture of an iGaming business incredibly sensitive. If one part of the payment chain is flagged, it can potentially freeze the entire operational budget of the company.
Our role is to help clients separate and protect financial flows across jurisdictions. This prevents regulatory changes in one market from disrupting payments to players or staff elsewhere. It’s about creating a legal safety net that allows the business to remain flexible and compliant as the global map of regulated gambling continues to change.
As online casinos expand into new markets with increasingly complex payment and licensing requirements, how can operators build scalable payment strategies that still meet regulatory expectations across different regions?
Roman Baranovskyi: To build a payment strategy that can scale globally in 2026, operators have to stop viewing payments as just a technical pipe and start treating them as a modular legal framework. In my practice, the most successful approach we see is the transition from a single, fixed payment setup to a “multi-layered” architecture. Operators are moving away from relying on one or two major providers. Instead, they build flexible systems that support local payment methods, such as PIX in Brazil or bank transfers in Canada, without rebuilding their core infrastructure for each new market. This flexibility is the key to scalability: it allows the business to adapt to local rules in weeks rather than months, ensuring that the legal and operational sides of the company are always in sync.
The Rise of Automated Compliance Reporting
From a regulatory standpoint, the gold standard for scalability today is the automation of financial reporting. Regulators in almost every major jurisdiction now expect real-time or near-real-time data on every transaction to prevent money laundering and ensure player protection. For an operator to grow without drowning in paperwork, they must implement systems where the “compliance logic” is embedded directly into the payment flow. This means that when a player makes a deposit, the system automatically checks their residency, applies the specific tax rules of that region, and flags unusual patterns based on that country’s specific risk thresholds.
Local Licensing and Banking Requirements Are Expanding
Finally, a scalable strategy must account for the increasing trend of local substance requirements. We are seeing more and more countries follow the example of Brazil or the UK, requiring operators to have a local legal presence and often a local bank account to process domestic payments. To manage this efficiently across multiple regions, we advise operators to use a unique corporate model. This involves a central holding company that manages the global brand and technology, while decentralized local subsidiaries handle the specific payment and licensing obligations of each market. This structure provides a clean legal separation: it protects the global business from local regulatory shocks while giving each regional branch the “local face” it needs to satisfy both the tax authorities and the payment providers. It is this balance between global centralization and local agility that defines a truly scalable iGaming business in today’s environment.
Payment friction remains a major issue in the player experience, especially around deposits and withdrawals. How can regulators balance strong compliance requirements with the need for fast, seamless transactions?
Roman Baranovskyi: To find a balance between strict legal rules and a smooth player experience, we have to stop looking at identity checks as a separate, forced step that interrupts the game. In modern legal practice, we are moving away from the old model where a player is constantly asked to stop and upload passport photos. Instead, the focus is shifting to background verification. When a person registers or makes their first deposit, the system automatically checks their details against government or banking databases. For a regular player who just wants to relax, this looks like instant access, even though the legal requirements for identity verification are actually being met behind the scenes.
Why Withdrawals Create the Most Compliance Pressure
The most difficult part is usually the withdrawal of funds, as this is where regulators demand the most caution to prevent money laundering. We advise operators to build what we call “closed-loop” systems. If the money comes from a bank account that has already been verified by the bank itself, the law gives the operator much less reason to delay the payout. Using modern instant payment systems allows the owner’s identity to be confirmed at the exact moment the transfer happens. This removes the need for repeated manual checks and allows payouts to be processed almost instantly without breaking any strict financial monitoring rules.
Turning Compliance Into an Invisible User Experience
Ultimately, the role of a legal expert is to help a company set up its internal rules so the system knows exactly when a check is mandatory and when it is unnecessary. If we can see that a player’s profile is clear, their source of funds is transparent, and they are staying within their limits, the law allows us to let them play without extra questions. This turns compliance from a “policing” hurdle into an invisible part of the service. In this way, safety is maintained not by creating barriers, but by making smart use of the data that is already available within the financial system.
With fintech innovation introducing digital wallets, alternative payment methods, and blockchain-based systems, how are these technologies changing the legal and risk landscape for gaming operators?
Roman Baranovskyi: From a legal standpoint, the rise of new fintech tools, like digital wallets and instant bank transfers, has completely changed how we evaluate risk. In the past, the main danger for an operator was simply a transaction being blocked or a player’s credit card being declined. Today, the risk is much more about traceability. Regulators now expect every digital payment to carry a clear history of where the money came from and who it belongs to. While these new technologies make payments faster for the player, they also make the operator more responsible for the “cleanliness” of that money. If you accept a payment from a digital wallet that doesn’t have strong identity checks, you are the one the regulator will hold accountable if that money turns out to be linked to something illegal.
The Legal Risks of Borderless Payment Technologies
Another big change is how these technologies affect the geography of risk. Digital wallets and blockchain-based systems are borderless by nature, but gambling laws are still very much tied to physical borders. The legal risk here is regulatory overlap. An operator may use a wallet that is legal in its home market. However, accepting payments from countries where that method is not approved for gambling could result in major fines. Having a licence is no longer enough. Operators must ensure every payment rail complies with the laws of the player’s location.
How Fraud Risks Are Evolving Beyond Chargebacks
These innovations have changed the risk of fraud. While traditional credit card chargebacks are becoming less of a problem with new “push” payment methods like instant bank transfers, we are seeing a rise in more sophisticated identity-related risks. From my perspective, this means that the contracts we sign with fintech providers have to be much tighter. We have to clearly define who is responsible if a digital wallet’s security is breached or if a seamless payment method accidentally allows a minor to play. In 2026, the risk isn’t just about losing money on a single transaction; it’s about the legal danger of losing your entire license because your payment technology moved faster than the compliance rules of operators.
Looking ahead, what major regulatory or technological developments in fintech do you believe will most strongly influence how payments operate within the global iGaming ecosystem over the next few years?
Roman Baranovskyi: As we look toward future years, the most significant shift will be the transition from “reactive” to “proactive” compliance, driven by the massive expansion of open banking. For a long time, verifying a player’s identity or financial capacity was something that happened after the fact, often causing delays. Now, with open banking becoming the standard in Europe, Canada, and Latin America, the payment process itself is becoming the primary tool for regulation. We are moving toward a world where the moment a player initiates a deposit, the system can instantly confirm their identity and even check their affordability without them having to upload a single document. This isn’t just a technical upgrade, it’s a legal one that allows operators to meet the strictest requirements while keeping the user experience completely seamless.
AI-Driven Monitoring and Precision Regulation
Another major development is the intelligence being built into payment systems through AI. We are seeing a move away from simple, rigid rules, like blocking any transaction over a certain amount, toward systems that look at the context of a player’s behavior in real-time. From a legal perspective, this is a game-changer because it allows for precision regulation. Operators no longer need to apply the same level of friction to every player. Low-risk users can enjoy a smoother experience, while the system automatically adds protections when suspicious patterns appear. This shift helps operators prove to regulators that they aren’t just following the letter of the law, but are actively and intelligently preventing harm.
The Rise of Hyper-Localized Payment Infrastructure
I believe the most influential trend will be the localization of global finance. We are seeing more countries launch their own national instant payment rails, which often become the only way to effectively reach a local market. For an iGaming business to stay relevant, its legal and financial structure must be flexible enough to plug into these diverse local systems. The future isn’t about finding one global payment provider – it’s about building a legal architecture that can manage dozens of local ones at the same time. This “hyper-local” approach is what will separate the leaders from the rest, as it allows operators to grow into new regions with the confidence that they are operating exactly as the local law intends.
With a background in digital media and a keen eye for emerging technologies, Ronaldo bridges the gap between players and platforms through clear, insightful reporting to the iGaming industry.
