The legal regulation of online casinos is a problem that has been relevant since the advent of the Internet. Legislation in this area hardly correlates with the practice of its application.
Gambling on the Internet is a global phenomenon, however, there is no single legislation that would apply to gambling around the world. Instead, the vast majority of countries have their own laws regarding legal and regulatory issues. These laws are very different, making the question of the legality of a particular type of gambling completely depending on the legislation of the country. In addition, many regions often amend legislation, which adds to the confusion.
What is online gambling or licensing jurisdiction?
There are regions in the world that have special legislation which allows them to issue licenses and regulate the gambling business (including both gambling operators and developers of specialized programs). These regions are called gambling or licensing jurisdictions. As a rule, such jurisdictions have a special organization that is responsible for issuing licenses and controlling the activities of gambling sites. Such organizations are called licensing authorities.
The only way for gambling sites to legally provide their services is by having an appropriate license issued by licensing authorities. To obtain a license, a site, as a rule, must perform at least some of its operations under that jurisdiction. In practice, this leads to the fact that most gambling sites choose a place of registration depending on the legislation and regulatory practices that they will have to follow.
How do legislation and regulations affect an entrepreneur who wants to open a gamblig site?
The vast majority of gambling laws of different countries apply to companies that provide online betting and gambling services. It is very unlikely that a country categorically prohibits and considers illegal the use of such services within its borders. Thus, we recommend that you familiarize with the local legislation of your country of choice, in order to make sure that you would not violate any law.
We advise you to study the regulations of different gambling jurisdictions. Some have very strict laws, while others do not control gambling establishments so thoroughly. This means that not all gambling sites would comply with the same rules, so take this into consideration when choosing to open a business in this field. Moreover, choosing a jurisdiction with strict requirements is preferable.
Here’s some information on the gambling laws in different countries:
Online gambling in the UK is absolutely legal and very well reglemented. Sites located both within the country and abroad can provide their services to those living in the United Kingdom, if they have a license from the Gambling Regulatory Commission.
European countries do not have a common legislation on gambling, each country controls their own sites individually. The members of the EU are, to some extent, under the regulation of the European Commission, which can influence what the members can and cannot do. Still, every country has the freedom of action regarding the adoption of their own laws.
The gambling laws in Canada are far from clear. There is one law that prohibits the provision of betting and gambling services to citizens living in Canada without a government license. At the same time, there is no law interdicting residents from using sites outside of Canada.
The laws concerning gambling in the United States can be described as uncertain. Many sites provide their services to US citizens without any problems. In 2006, the Law on Responsibility for Illegal Gambling Internet Business was adopted, which slightly changed the situation. This law did not make online gambling explicitly illegal, but it prohibited banks and other financial institutions from conducting financial transactions between U.S. residents and gambling sites. Many sites took this as a clear signal that the US government considered online gambling illegal, and stopped serving US customers.
Online gambling is completely banned in Russia. Sadly, it doesn’t look like something is going to change any time soon either, although it is known many Russian residents do continue to gamble online.
Remember Panama is the tax haven for offshore entrepreneurs? There is only one regulating law there, The Gambling Act, which governs online gambling, adopted in 2002. This industry is monitored by the Panama Gambling Supervisory Council, implying the monitoring of licensed gambling sites and verification of their obedience to the law.
Now that you know more about the ways countries lawfully regulate their gambling sites, we hope you’ll be able to start your own business in the field and avoid the legal problems such entrepreneurs sometimes face!
