- November 25, 2024
Employee Recruitment By Igaming Companies May Be The Next Challenge For the iGaming Industry
In recent years, with the rapid development of the global gambling industry, human resources issues have emerged as one of the major challenges facing the sector. Particularly after the Philippine government revised its policies on POGOs (Philippine Offshore Gaming Operators), many gambling companies that previously operated in the Philippines have been forced to relocate their businesses to other countries such as Cambodia, Myanmar, Thailand, Africa, Latin America, and other regions. However, these new regions also face challenges, such as an unclear compliance environment for the gambling industry. Additionally, incidents such as human trafficking, kidnappings, or unauthorized occupation of buildings and parks have added to the uncertainty and difficulty in the sector. Consequently, recruiting talent in the gambling industry has become a significant test of resilience. Today, TC-Gaming White Label will discuss the recruitment challenges faced by gambling companies, particularly after relocating to new environments. How can companies attract top talent to join their teams and promote the healthy development of their platforms? These are critical issues that must be addressed to ensure the industry's growth and sustainability.
The difficulty in recruitment is caused by a complex interplay of multiple factors.
The iGaming industry has long attracted talent with high salaries and generous benefits. However, in recent years, the industry's environment has undergone significant changes, with a range of complex factors gradually diminishing job seekers' willingness to join. These factors include not only economic considerations but also social perceptions, career development prospects, and personal safety concerns. The diminishing allure of high salaries, coupled with increased industry risks, has led more potential candidates to weigh the pros and cons and opt for other career paths. This has compelled the iGaming industry to reevaluate its white label iGaming talent acquisition strategies.
1. The impact of safety concerns on recruitment willingness.
In recent years, frequent incidents of kidnapping and trafficking within the iGaming industry have severely impacted employee safety and undermined job seekers' trust in the sector. This issue is especially pronounced in Southeast Asia, where such events are commonly reported. Consequently, potential candidates are increasingly reluctant to pursue opportunities in the field, creating substantial recruitment challenges for iGaming companies. Moreover, these negative occurrences have caused lasting damage to the industry’s reputation, reinforcing its perception as "unsafe" and "high-risk," which further restricts workforce mobility and talent acquisition.
Even though some iGaming companies offer high salaries, attracting qualified or top-tier talent remains a challenge. In regions or countries without clear legal protections and strong social security systems, iGaming companies find it even more difficult to recruit talented professionals. The absence of safety and legal guarantees significantly raises the difficulty of hiring skilled workers, as potential job seekers are deterred by the perceived risks associated with the industry.
2. Negative Public Perception Affects Job Seekers' Willingness to Join the Gambling Industry.
In recent years, the exposure of certain recruitment traps has significantly damaged the reputation of the iGaming industry in the human resources market. Some companies or teams (not necessarily iGaming companies) have used high-salary offers to attract employees, often employing tactics like false job advertisements or concealing the true nature of the work. As a result, employees frequently find that the actual working conditions fall far short of their expectations upon joining the company. In more extreme cases, employees have reported restrictions on their personal freedom and even incidents of violence. These issues have created a psychological barrier for job seekers, who fear becoming victims of criminal activity. As a result, the perceived risks associated with the iGaming industry have risen significantly, leading to higher turnover rates and deterring more individuals from entering the field. In regions like the Philippines, any criminal incident in the public eye is often attributed to iGaming companies, further tarnishing the industry’s image. These negative cases are amplified and spread rapidly online, diminishing the appeal of the iGaming sector among job seekers. Moreover, as iGaming remains a gray area in terms of regulation, the industry's lack of transparency also contributes to declining interest from potential employees. Many job seekers believe that the high salaries in iGaming come with significant hidden risks. This perception drives them to prioritize careers in more stable and lower-risk industries over joining the iGaming sector.
3. Uncertain geographical transfer and gambling legality policies
The issue of legality is a critical factor limiting recruitment in the iGaming industry, and its impact is broad and complex. While many countries maintain a relatively open stance toward the gambling business, in certain regions, the laws and regulations governing the industry are still developing and have not yet fully matured. This creates operational challenges for gambling companies and introduces uncertainty in the legal environment. It not only increases the operational risks for iGaming companies but also directly influences their recruitment strategies and ability to attract talent.
Taking Thailand as an example, the country has not yet established a comprehensive iGaming license system. This regulatory gap has led to many companies being unable to secure official recognition for legal operations and having to rely on risky underground activities. This model not only significantly increases the company's legal and financial risks but also makes recruitment extremely difficult. Potential employees often have concerns about this opaque business environment, which lowers their willingness to work in Thailand.
What impact does the current iGaming environment have on job seekers in the gaming industry?
The knock-on effects of policy changes in the Philippines
The Philippines was once a major hub for the Asian iGaming industry, especially with the implementation of the POGO policy, which made it a center for offshore gambling operations. However, with the Philippine government's recent ban on iGaming, many gambling companies had to relocate to other Southeast Asian countries, Africa, and Latin America. These regions, however, often still face legal, safety, and reputational issues, further complicating the recruitment process due to unclear regulations and uncertain environments.
Gaming company relocation and personnel loss
The Philippines has long been one of the key hubs for the iGaming industry. Under the earlier POGO policy and compliance requirements, many companies flourished. However, the situation has drastically changed, with POGO now being fully banned by the Philippine authorities, causing a huge impact on the entire industry. Firstly, iGaming talent who originally worked in the Philippines may be unwilling to relocate to unfamiliar regions or countries with their companies. On the other hand, the reduced mobility within the industry has increased the cost of hiring new employees.
Even though the geographical shift is not a permanent solution, it brings a series of new challenges. For instance, moving iGaming companies to new operational locations has introduced fresh uncertainties. While the regulatory environment in the new countries may be more relaxed, there are still many instabilities regarding the legal framework, infrastructure, social environment, and political factors. iGaming companies have to face new cultural differences, language barriers, and the uncertainty of local policies, all of which further exacerbate the difficulty of talent recruitment and retention.
In recent years, the employment environment in the gambling industry has already been unstable, and now the need to relocate to new countries has led to a continuous rise in turnover rates among employees. This phenomenon of personnel attrition is becoming more severe, affecting daily operations and posing potential uncertainties for the long-term development of the entire iGaming industry.
How to improve recruitment difficulties or overcome challenges?
Recruitment challenges not only limit the normal operations of iGaming companies but also hinder future development. How can companies rebuild talent attraction in this complex iGaming environment?
Enhance Compliance and Legality
To attract high-quality talent, iGaming companies must first establish a legal and compliant operational environment. A gambling license is essential, as it ensures the gambling platform operates within the local legal framework. This not only reduces the operational risks of iGaming companies but also sends a message of stability and trust to potential job seekers.
Optimize Recruitment Processes and Improve Transparency
Lack of transparency and deceptive practices in recruitment are also major factors contributing to the current recruitment difficulties in the gambling industry. Many job seekers avoid the iGaming industry due to concerns about recruitment traps. To address this, iGaming companies need to enhance recruitment transparency:
- Clearly state job descriptions, salary ranges, and benefits in recruitment ads, avoiding vague descriptions.
- Partner with third-party recruitment agencies or platforms to ensure fairness and credibility in the recruitment process.
Additionally, a dedicated candidate evaluation system can be established, such as an online platform, to help job seekers verify the background and reputation of the recruiting company, thereby eliminating doubts at the core.
Invest in Employee Development and Benefits
To attract and retain talent, iGaming companies need to place greater emphasis on the long-term development and career satisfaction of their employees.
- Providing Training and Growth Opportunities: Establish a comprehensive onboarding training program and clear career advancement paths to attract more promising young talent.
- Improving Benefits and Conditions: Offer competitive salaries, comprehensive health insurance, and paid vacations to highlight the attractiveness of the gaming industry to job seekers.
- Psychological Support and Employee Care: Provide mental health support services in high-pressure environments to reduce employee stress and improve job satisfaction.
Develop Localized and Diversified Talent
When relocating to a new third country, iGaming companies should focus more on local recruitment to reduce dependence on foreign employees. This can help lower employees' willingness to relocate while also decreasing reliance on foreign talent. At the same time, iGaming companies can explore more diverse recruitment channels, such as campus recruitment and online recruitment platforms, to attract job seekers with different backgrounds and skills.
Enhance Brand Image and Industry Influence
The iGaming industry has had a negative image in recent years due to associations with crime, fraud, and other issues. However, improving a company’s brand image and industry recognition is an effective way to attract talent and improve public perception.
- Build a Distinctive Corporate Brand: iGaming companies should highlight their advantages in legal and compliant operations, emphasizing their unique competitive edge in employee rights protection, customer service, and technological innovation. This will help create a positive and forward-thinking brand image.
- Building industry influence: By participating in international industry events like conferences and exhibitions, companies can expand their market and attract top talent.
- Internal Culture Promotion and Employee Feedback: Developing a positive internal culture is also crucial. Sharing positive internal stories through company channels will increase employee identification with the company, turning existing employees into “brand ambassadors” who can further spread your company’s reputation in the recruitment market.
- Positive Promotion and Brand Building: Use social media and news platforms to showcase the company’s compliant and legal image, emphasizing care for employees and society, and gaining the trust of both the public and job seekers.
Can Remote Work Solve Recruitment Difficulties for iGaming Companies?
With the development of globalization and digitalization, remote work has become an important tool for many industries to address recruitment challenges. The iGaming industry, being highly reliant on technology and internationalization, could also benefit from the introduction of remote work as a potential solution to recruitment difficulties. However, this depends on the specific needs and operational environment of the iGaming company.
What are the advantages of remote work in the iGaming industry?
- Breaking Geographical Limits: Remote work allows iGaming companies to recruit talent from around the world, especially in emerging iGaming markets. The issue of local talent shortages can be partially addressed through remote work.
- Attracting Technical Talent: Many iGaming roles, such as software development, data analysis, and online customer support, can attract more competitive technical talent through remote work, reducing the need for expatriate employees.
- Reducing Office Space Costs: Remote work reduces dependence on physical office spaces, particularly in high-rent regions or countries.
- Reducing Employee Relocation Burden: For job seekers who are reluctant to leave their hometowns or are concerned about safety issues, remote work offers a more flexible option and can effectively increase the acceptance of recruitment offers.
- Enhancing Employee Security: Frequent security issues in the iGaming industry are a key factor affecting recruitment. By adopting remote work, companies can avoid exposing employees to potential risks, thus enhancing their sense of security and trust.
- Flexible Work Models Increase Attractiveness: Remote work better aligns with modern workplace demands for flexibility, especially as younger job seekers tend to favor roles and companies that offer a better work-life balance.
What Are the Limitations of Remote Work?
- Data Security and Privacy: The gaming industry has extremely high data security requirements, and remote work may increase the risk of sensitive information leaks, especially in regions lacking adequate IT infrastructure.
- Cross-Border Legal and Tax Compliance: Different countries have varying regulations regarding taxes, contracts, and legal protections for remote employees, requiring businesses to invest more effort in cross-border compliance.
- On-Site Roles Are Irreplaceable: Remote work is not feasible for certain positions, as some roles still require on-site employees or operators.
- Team Collaboration Challenges: The gaming industry involves a significant amount of real-time collaboration, such as risk control, customer service, transactions, and operations. As a result, remote work may lead to communication inefficiencies, impacting the operational efficiency of your gaming platform.
- Weakened Culture and Sense of Belonging: The lack of face-to-face interaction may reduce employees' sense of belonging to the company. This can be a potential risk, especially in the gaming industry, where strong team coordination is essential.
Suggestions for iGaming Companies to Implement Remote Work
Remote work can certainly alleviate some of the recruitment challenges in the iGaming industry, particularly for technical roles and the need for global talent. However, remote work is not a one-size-fits-all solution, as it cannot fully replace on-site work, especially when face-to-face collaboration, security control, and company culture development are crucial.
Roles Suitable for Remote Work
- Technical Positions: Highly technical jobs such as software development, website maintenance, and data analysis can be effectively carried out remotely. However, data security and management require careful consideration and balance.
- Online Customer Support: Customer support teams can be distributed across different time zones to provide more efficient 24/7 support.
- Marketing and Promotion: Digital marketing, SEO optimization, and related tasks can be fully executed through remote collaboration.
- Risk Control: This can also be managed remotely, provided that the gaming platform offers secure and reliable remote access tools and data processing systems. With the integration of AI tools and real-time monitoring platforms, remote risk control personnel can respond promptly.
Strengthening Technical and Management Support
- Deploy Remote Work Tools: iGaming companies can use specialized project management tools (such as Trello, Asana) and secure communication platforms (such as Slack, Zoom) to ensure collaboration efficiency and data security. Many iGaming companies already have their own independent remote work tools.
- Enhance Data Security: Invest in VPNs, encryption technologies, and remote access monitoring to ensure the security of sensitive data.
- Train Managers: Provide remote team management training to help supervisors effectively lead distributed teams.
Hybrid Work Model: Combining Distributed and On-Site Teams
iGaming companies can adopt a hybrid model, such as "core teams working on-site + support teams working remotely." For example, setting up small operations centers in emerging iGaming markets while having technical, customer service, and marketing teams spread globally to optimize costs and resources.
Summary
The global iGaming industry is facing severe recruitment challenges due to policy changes and security issues. The Philippine government's ban on POGO has prompted many iGaming companies to relocate their operations to countries such as Cambodia, Myanmar, Thailand, Africa, and Latin America. However, some of these new regions or countries still have unclear compliance environments and security situations. Frequent security incidents and negative publicity further increase the uncertainty and operational difficulties for iGaming companies.
At the same time, the traditional advantage of high salaries attracting talent in the iGaming industry is weakening. Job seekers are increasingly concerned about the legality, security, and career prospects of the work. The spread of negative news has damaged the reputation of the iGaming industry and reduced talent mobility. These factors together make human resource management more challenging for iGaming companies. Even if some companies offer competitive salaries, they still struggle to attract qualified or high-end talent.
At this stage, TC-Gaming White Label has summarized some of the problems iGaming companies may face when relocating their business:
Issues with Relocating iGaming Operations to Third Countries:
- Legality Issues: Some countries have underdeveloped iGaming regulations, making it difficult to obtain licenses and increasing operational risks.
- Security Issues: Kidnapping and trafficking incidents involving employees are frequent, and employee safety is not guaranteed.
- Lack of Compliance Environment: The absence of a comprehensive regulatory system makes it difficult for companies to ensure legal and compliant operations.
- Damaged Industry Reputation: Frequent negative news has reduced job seekers' trust in the iGaming industry.
- Decreased Job Willingness: Safety concerns and legal issues discourage more talent from joining the industry.
- Increased Talent Loss: Existing employees may leave due to concerns about security and career prospects, increasing staff turnover.
- Fake Job Listings: Exaggerating salaries, hiding work locations and duties, and discovering discrepancies between job descriptions and actual conditions after hiring.
- Non-Standard Contracts: The absence of legal labor contracts leaves employees' rights unprotected.
- Poor Work Environment:Excessive overtime, lack of benefits, and low employee satisfaction.
- Decreased Corporate Competitiveness: Inability to attract and retain top talent makes business innovation and service quality difficult to improve.
- Limited Industry Scale: Talent shortages may force iGaming companies to scale back operations and limit market expansion.
- Increased Risks: To fill human resource gaps, there may be violations of labor laws, increasing legal and operational risks.
In the future, remote work could emerge as a potential solution to alleviate recruitment challenges. This is because remote work breaks geographical barriers, allowing companies to attract and retain talent from a wider pool. At the same time, this innovative work model enables businesses to not only attract high-quality employees but also reduce operational costs, making the operation of gambling platforms more flexible. In the future, remote work may emerge as an innovative working model to alleviate recruitment challenges. Remote work can break geographical barriers, attract and retain talent, and reduce operational costs. This approach allows iGaming companies to operate more flexibly. However, iGaming companies need to balance the advantages and limitations of remote work, particularly when it comes to data security, legal compliance, and team collaboration. The effectiveness of measures, as well as the feasibility of making remote work a long-term norm, remains to be seen and requires careful consideration by companies.
Due to the frequent incidents of white label fraud, please contact us through the following official social media accounts
Official Telegram
Official Whatsapp
Official Facebook
Official Instagram
Official Email