Daniel Grabher, Founder and CEO of Mediastream, has changed his company’s business model to work with government leaders and regulators in mitigating the harms of the gambling industry. Daniel sits down with G3 Media to explain why and how.
MORAL DILEMMA
Daniel Grabher has been in the gaming industry since 2004 since founding B2B brand GlobalBet. Supplying solutions to over 50 different markets worldwide, the last decade has seen GlobalBet become a prominent player also in emerging markets, Africa in particular. Five years ago, Daniel was stuck in a traffic jam after a successful business trip to the continent worrying that he wouldn’t make one of the few flights back to Europe. Telling the driver he would generously tip should he find a quicker way around, they took a shortcut and drove through the outskirts where, as Daniel describes, he saw “the real Africa”.
“You think you’re in Africa, but you’re going to business meetings in five-stars hotels. Physically you’re there, but you’re not really in Africa. What I saw taking that shortcut was young people gambling on the streets, many of whom were underaged, and you could see the desperation and hope in their eyes. Morally, this was something that had a big impact on me and when I got back home had decided I wanted to sell the business. I didn’t want to participate in this industry anymore. However, something also told me that this is hypocritical because if I sell GlobalBet’s structure and distribution, it’s not going to change anything. Doing this would only benefit me.
“Gambling will not stop because it’s a human habit that needs to be regulated and controlled by empowered governments and regulators. This was when I took the business in a new direction and began to create solutions and tools which would help governments and regulators with ensuring transparency.”
As well as hiding these solutions behind the development curtain, Daniel has also gone about restructuring the company from a B2B provider into a B2G (business-to-government). Mediastream is set to launch in several emerging markets in partnership with governments using its new technology tools called “ComplyGuard“ to bring custom-made technology which will help them track transactions, with a skew towards helping prevent underage gambling.
BUSINESS RESTRUCTURING
Restructuring the business to a technological and regulatory standard to be a B2G operator proved no mean feat, explains Daniel, but the company’s experiences across global markets meant they could cherry-pick what they deemed best practices from the best, such as Italy and the UK.
“We just mixed up all the best elements,” surmises Daniel. “From a regulatory point of view, our solutions will help change the game, but this can only happen where you do it in conjunction with the government together. You won’t change anything solely as a supplier and enforcement is important. Having technology is one thing, but direction needs to come from the top. Bringing Mediastream in as the tech supplier on an operational level with all our experience is like bringing in hackers to work on cybersecurity solutions. The best people to have on board are those who understand how the technology works – and where it all falls – so they can give you all the necessary insights.”
First, Daniel sought contacts. Access to those with the power to make decisions. Be it the relevant president, minister, or gaming board, Daniel would open dialogue and explain the gambling-related social problems that are affecting their populace whilst emphasising that you cannot just ban activities because of the numerous examples in history that when you try to ban something, it just pushes it underground – or into ‘grey or black markets’.
“I call it the yin and yang of gaming. Like everything in life, – you need balance. Our concept is to bring the technology and advise regulatory bodies in partnership. Next week I am attending a gala dinner as the keynote speaker for the International Association for Gaming Regulators to present our suite of tools “ComplyGuard“ for gaming regulators.”
HUMANITARIAN ACTION
A quick Google search of ‘centralised monitoring system’ show countless articles going back to 2010 of regulators from global markets stating the need to implement a centralised monitoring system. The reality, however, is that no market has one that also functions in place. To try and achieve the seeming impossible, Mediastream hired tech specialists from outside the betting industry that were attracted to Daniel’s story and the intentions underlying behind what the business is looking to achieve.
“It’s a humanitarian action what we’re doing because we’re helping to regulate gambling. We ban, we control, and we ultimately protect consumers and players. Anyone that has taken the time to understand everything about this mission, they buy in from a moral perspective. This solution we’ve created – a centralised monitoring system – a lot of people have talked about it, but nobody has seen it. We have done it. It’s a significant achievement.”
Mediastream´s solutions aren’t limited solely to emerging markets and Africa but can support any government in reaching a technological and regulatory standard to protect the most vulnerable. There is a widely held conception that emerging markets are way behind with regulations and technology and tier one markets are different, but Daniel doesn’t think so. “I believe when we roll out our solutions in Africa or elsewhere, they’re going to set a technological standard for our industry where other tier one countries will be far behind.
“For example, the gaming industry is currently getting very excited about the US, the biggest of consumer markets. We have created a solution, ComplyGuard, comprising a complete set of different tools for governments to regulate with that would be great for the US market and immediately eliminate 80 per cent of their challenges when it comes to player protection but also tax collection”
In 2022, the American Gaming Association estimated that Americans wagered over $63.8bn in unregulated sports bets that year, costing state governments around $700m in lost tax revenue. Some areas still have black market shares of around 70 per cent as of 2024 due to not just government failure but also a lack of existing or adequate technologies.
“We’re talking huge money,” underlines Daniel. “But I believe all these things can be simplified immediately with our solutions that have been designed specifically to have an immediate impact. When rolled out, these solutions can change things overnight. It’s simple, really. Our Web Filter solution filters everything which is non-regulated, and our centralised monitoring system has all operators that have a licence integrated.”
Daniel Grabher, Founder and CEO of Mediastream, has changed his company’s business model to work with government leaders and regulators in mitigating the harms of the gambling industry. Daniel sits down with G3 Media to explain why and how. MORAL DILEMMA Daniel Grabher has been in the gaming industry since 2004 since founding B2B brand…