A Brief World Tour of Online Gambling Regulations: Where and How?
What’s the point of assessing online gambling’s application as a regulated type of digital entertainment? What’s the point of creating an article that talks about how major regions interact with this industry?
Well, the main point that gives this piece its relevance is the idea that we are witnessing global growth. Online gambling’s CAGR has a glowing forecast, and the popularity of the medium is only increasing. Speaking of growth, there are more and more jurisdictions that are adopting this activity within their legal structures.
Whether we’re talking about progress, about new revenue streams, or just the satisfaction of public demand, there is always something with online gambling. This is why looking at its viability and adoption rate across the world is particularly important. We are here to look at it in a structured state, which is the purpose of this article.
As such, join us in understanding various methods of regulating online gambling. We’ll look at cases from major regions, how they try to attract players, how each of the best bonus casino offers is doing its part in bettering market health, and where responsible gambling lies in all of this.
Why Online Gambling Matters on a Global Stage
As far as we’ve seen, there has been an undeniable tie-in that has connected online gambling to the rise of the internet. Ever since the 90s brought about this chimera of people and content, connectivity has created the opportunity to access things that, otherwise, were too hard to reach in a conventional manner.
Consequently, digital gambling has proven that monetization through the provision of online services is not that hard, as long as it stays within certain reasonable limits. As state authorities across the world started to realize this, things moved in a much freer direction, even if cases like the online poker crackdown in the 2000s shattered a bit of its reputation after USA v. Pokerstars.
After a re-establishment of its medium, but also some parameters set by legislative bodies, we have gotten to a point where the value of the industry is immense. More and more people are finding it to be a viable, if not endearing, type of activity, which is why plenty of jurisdictions are either allowing it or are in serious talks to legalize it.
Regulations Regarding The Legality of Online Gambling
Returning to the parameters that we’ve mentioned earlier, there are certain requirements for any online gambling operation to work within a structure. That structure is the bulk of the regulations that we see across many different markets that have legalized gambling digitally, and there are numerous entries that have a powerful word.
Synthesizing them into a list would mean that we need to mention the following:
- Paying dues, like levies and the cost of a license, will always be a requirement. From the most uninvolved to the most demanding, executive authorities that oversee legal structures will always demand their due. If an activity whose nature and reputation borders on vice is a legal activity, sanctioned by the state, it needs to make it worth the while of the taxpayers who fund the regulatory authorities that oversee these gambling operations.
- Proving the existence of proper security and fairness modules is necessary. Casinos must prove that the games that they provide, slots or otherwise, are completely fair by using vetted RNG models, while their platforms must make sure that player data is safe.
- They must have a system of verifying player age and countering any money laundering operations. This means that player identity (age, location) and funds must have a verifiable source, which can validate that the one gambling on an account is using their own funds, which are not from an illicit source.
- Payment methods and customer support must be at the highest level. There’s no room for shady payment styles of methods. In some cases, even crypto or debt-accumulation methods like credit cards are not an option. Moreover, customer support must truly be helpful and responsive.
- Responsible gambling and addiction prevention tools must be an integrated part of how operators go about their business. This means raising awareness, providing self-exclusion and limitation tools, and ensuring proper assistance, including via customer support.
The USA
If there’s one thing that the USA government doesn’t like, it’s doing things under the table and handling things fraudulently. There’s hardly any operation, however intricate it is, that makes money illegally that doesn’t meet federal eyes, and, ultimately, indictments. With gambling, much of the medium’s history outside of tribal casinos, Atlantic City, and Las Vegas has been illicit.
However, the 2018 landmark ruling of the Supreme Court told everyone that legalizing online gambling is a matter for the state legislature. The floodgates opened, and many of the constituent states have adopted online sports betting, with a select number of these states also dabbling in casino gaming.
There are very distinct elements of how American states accept gambling on their front. Online gambling platforms must be very careful with how they advertise their services, but they must also promote the customary messages that promote responsible gambling. This is something that we see across all states that, in some way, legalize this activity.
However, the most interesting part about the USA’s typology of gambling legislation is the geolocation part. Since interstate traveling is so easy due to them being part of the same federation, an account must link itself to a geolocation app that can track the presence of the device that uses that account. As such, player verification is more than just proving one’s legal age. It’s also a matter of proving their location.
Europe and the UK
In this case, we need to start with the UK because, pound for pound, we’re talking about one of the biggest consumer spaces for online gambling. It all began with the 2005 Gambling Act, which has proven itself highly effective in providing a clear legislative structure. As a result, the industry flourished, with some of its biggest operators having a global presence.
One thing to note when thinking of the British model is its strictness. Its licensed operators are under very watchful scrutiny, making sure that there is no slip-up. If there are, the fines are tremendously large, and being shown a yellow card means that an operator must thread extremely lightly.
This has brought about one of the most stringent regulatory sets in the world. We’re talking about a prohibition of credit cards and cryptocurrencies, not to mention a very strong filtration system for what payment methods players can use. This has lead to very traditional payment methodologies.
Additionally, we’re seeing a very strong grip on promotions and advertisements. The UKGC, which oversees the British gambling scene, is very apprehensive about the time slots used for gambling ads. When it comes to bonuses, the authority has been gnawing away at them, resulting in pretty small offer volume-wise.
If we are to look into European models, we would hardly find much alignment. Romania has a very well-defined model, quite similarly to Sweden. We need to mention cases where the state gets involved in the operations per se, with state-sanctioned operations providing elements like lottery services.
Lastly, we also need to talk about the offshore elephant in the room: the great Maltese case. The MGA, along with the overall legislation of Malta, provides operators with an opportunity to enter global spaces where offshore gambling is legal. This works as a haven that allows gambling operators to work with more flexibility, turning Malta into a very attractive space for online casinos and their revenue.
Latin America
When it comes to the LatAm space, there are quite a few cases that we need to consider. Quite notably, this will be a very short entry into this list because, for now, there is no tradition of online gambling, which means that these markets are nascent.
Brazil, the immense Portuguese-speaking country, is one of the most interesting cases. Many have hailed it as a sleeping giant, especially given how populous, young, and sports-driven it is. This means that the recent legalization of sports betting makes even more sense when you think about it. When it comes to casino games, things are still murky, and there isn’t much traction.
Otherwise, countries like Mexico, Colombia, and even Chile have made strides in this space, with the high demand for online gambling motivating authorities to consider legalizing it.
Conclusion
To conclude, there will always be a demand for online gambling, and this is where we are in terms of legislative models. If you are a gambling person, you must respect the legislation in your country, which also means accepting the fact that you must gamble responsibly and take care of your mental health!