Saudi Arabia is building a strictly controlled payments ecosystem through open banking, regulatory sandboxes and blockchain experimentation.
The Saudi Central Bank’s (SAMA) open banking framework is designed to facilitate secure, consumer-driven data sharing.
Open banking allows licensed financial technology companies to access banking data via heavily regulated channels, creating a unified financial system in which identity, transactions and affordability can be verified in real time.
The system will not only be a game-changer for established industries, but may also open the door for currently taboo sectors to become legitimised.
These include gambling, which has traditionally been frowned upon in the Middle East. However, this has not stopped Arab players from visiting online casinos.
Many Saudi citizens use comparison platform saudia-online.com to find tested and trusted operators which offer games such as blackjack, roulette and slots.
Those sites already have payment options such as open banking embedded, which allows Arabs to seamlessly make deposits and withdrawals.
With Saudi Arabia now embracing open banking, it is not too much of a stretch to imagine this could have a knock-on effect to their stance on gambling.
Real-Time Data and Risk Controls Reshape User Verification
The emergence of companies such as Lean Technologies shows just how influential the open banking infrastructure is becoming.
Lean Technologies has connected over one million bank accounts and analysed over one billion transactions. Their growth shows the scale at which financial data is being processed in the Kingdom.
More importantly, it reveals how data can be used. Its know-your-customer processes, real-time income verification and advanced risk modelling are already being deployed in lending and payments.
In digital gaming, this technology can be used to run affordability checks and automate them, painting a more accurate financial picture.
Instead of relying on self-reported income or arbitrary limits, operators can access a player’s financial position in real time, ensuring players can spend within a threshold.
This level of detail would support responsible gaming. It can help to detect problematic behaviours earlier and make data-driven interventions.
Sandbox Innovation Creates a Blueprint for Regulated Rollout
Saudi Arabia’s regulatory sandboxes can also play a key role in paving the way for regulated online gaming in the country.
Companies can test their financial products and solutions in SAMA’s fintech sandbox and Riyad Bank’s Jeel and Ripple initiative before deploying them at full scale.
This approach of testing before rolling out products is important for online gaming, an industry where regulatory caution is very important.
Using these sandboxes, authorities can simulate real-world conditions and test payment flows, monitor transactions, and evaluate risk controls without exposing the system to uncertainty.
The collaboration between Jeel and Ripple, which focuses on blockchain-based payments and digital asset infrastructure, is the perfect example of how this model works in practice.
Saudi regulators can examine transaction speed, transparency, compliance and several other facets of new technologies in a sandbox, assessing whether they meet national standards.
Any potential gaming market will have to follow a similar process before authorities start issuing licenses.
A national regulator will want to see how payment systems, identity verification processes and consumer protection measures work in a controlled environment before approving operations.
This staggered process ensures that when products reach consumers, they are tested and trusted, reducing any systemic issues.
Payments, Trust, and the Pathway to Regulation
Payment friction and consumer confidence are usually decisive factors in adoption in markets where online gambling is legal.
Bettors are eager to ensure that their transactions are secure, withdrawals are reliable and their data is protected. Open banking ticks those boxes.
Pay-by-bank solutions remove intermediaries from the equation, reduce transaction costs and improve settlement times.
The direct connection between banks and licensed operators improves transparency and makes it easier for regulators to monitor flows and enforce rules.
Saudi Arabia has already been pushing digital payments, including blockchain-based international solutions, further watering the ground for the potential legalisation of online gambling.
Faster and more transparent payment rails provide the infrastructure to support any high-volume digital service.
If Saudi Arabia decides to legalise gambling, these systems will already be in place. Operators will not need to build bespoke payment solutions or enter outdated financial networks.
They can plug into an existing ecosystem designed with security, compliance and scalability in mind.
