Key differences and implications of player protection laws at online casinos across various territories

One aspect that sometimes goes unnoticed yet plays an essential role in online casinos is player protection laws. Regulations surrounding this sector are not uniform and can differ significantly across various countries and regions.

Though operators would love to provide their services without territorial hindrances, the reality is quite complex. While some locations have stringent limitations, others choose to liberalise their markets.

If you’re looking to enter the gaming industry as a casino operator, owner or affiliate, factoring in the intricate concerns of international gambling laws and regulations is crucial.

Therefore, in this article, we will dissect the primary laws and regulatory frameworks across various territories, providing insights targeted towards the industry and players’ rights¹.

The online gaming world may be borderless, but the rules governing it are rooted in local legislation.

Player protection laws at online casinos in the United States

The online gambling regulations in the US² are quite complicated. Not to worry, we’ve studied these laws and explain them in detail, so you don’t have to scratch your head navigating the complexities that surround them.

A recent historic reinterpretation of the Federal Wire Act of 1961, which banned interstate sports from betting over telecommunications, now allows states to legalise online betting as well as casino games.

However, the lawmakers warn operators to keep to the Internet Gambling Enforcement Act of 2006, which prohibits gambling companies from accepting illegal online betting payments.

To understand the US player protection laws better, we provide a breakdown of some of the top federal regulations and laws that concern online gambling:

• The Federal Wire Act – 1961: At inception, this act was aimed at preventing sports betting across state lines on the telephone. Presently, the interpretation has been extended to cover internet gambling. The Wire Act prohibits owners from using interstate communication technology to conduct sports wagers. If an on-chain sportsbook wants to operate legally under this act, it has to ensure that it doesn’t accept bets from bettors outside the state in which it’s licensed.

• The Unlawful Internet Gambling Enforcement Act (UIGEA) – 2006: US lawmakers enacted this law to prevent unlawful internet gambling. Gambling businesses, under the regulation³, are prohibited from accepting payment from individuals involved in illegal gambling. – However, the law does not clearly define “unlawful gambling”. The interpretation is based on the state in which the online gambling operator operates.

• The Illegal Gambling Business Act (IGBA) – 1970: This act was created when online gambling wasn’t popular and as such, initially, targets large-scale gambling operations violating state laws. Presently, this regulation is applicable to online gambling operations as well.

• Children’s Online Privacy Protection Act (COPPA): Under this act, children below the age of 13 are restricted from gambling. Therefore, online gambling companies must not accept stakes from those under this age.

• The Professional and Amateur Sports Protection Act (PASPA) – 1992: This law makes it illegal for states to operate, sponsor, promote, advertise, license or authorise wagering or gambling based on competitive games that involve the participation of amateur or professional athletes. However, the Supreme Court, in 2018, overturned this act, allowing states to legalise sports betting.

As online betting continues to advance, iGaming laws in the US are becoming a hot topic. Acts are being enacted and amended to meet the constitutional requirements, best suited for all parties.

Therefore, owners and operators must keep abreast with the latest player protection laws at online casinos across the different regions in the United States.

Player protection laws at online casinos in the UK

Residents and tourists in the UK are legally allowed to participate in online gaming. The United Kingdom Gambling Commission (UKGC) is responsible for regulating all types of gambling in the country. The main governing authority, UKGC, was established under the Gambling Act of 2005.

This act also deals with the issuing of permits and controls businesses that support gambling, just as it protects players’ rights.

Therefore, if a company wishes to operate or offer sports betting, casino games, lotteries, bingo, arcades or gaming machines in the UK, it must acquire a UKGC license.

Note that the law strictly prohibits underage gambling, and age verification is a must for any player looking to register for an online gambling site.

Similarly, the Gambling Commission imposes requirements regarding the technical support of casinos. For instance, they must keep data on all users, including their transactions.

Player protection laws at online casinos in Europe

Of all the territories we researched, Europe seems to have the strictest regulations for operators. If not adhered to carefully, an iGaming company may easily lose its licence across countries.

Though quite complicated, with a clear understanding, online casinos can stay on the right side of the law.

The Gambling Act of 2014 regulates online gambling in the EU. The law is majorly concerned with taxation, licensing, responsible gambling, and of course, player protection. Basically, for an iGaming company to operate in EU countries, it must obtain licences for every market and adhere to relevant laws.

Here are some of the critical areas that concern online gambling regulations under the EU laws in member states:

• Consumer Rights Directive (2011/83/EU): This applies to online gambling and provides requirements for adequate information and transparency, including the right to withdraw.

• The General Data Protection Regulation (GDPR): Provides rules on how online gambling sites gather, process and store users’ personal data.

• The EU’s Fourth Anti-Money Laundering Directive: Under this law, gambling service providers are obligated to monitor any suspicious activities, especially those relating to money laundering.

• Regulation (EU) 2018/302: This law prohibits unjustified geo-blocking, especially within the EU. It influences how online gambling sites restrict or allow access based on location.

• The Payment Services Directive 2 (PSD2):  Monitors how online gambling payments are processed.

Europe, as one of the largest continents, consists of many countries.

So, it may take up a very large space to analyse and dissect all the player protection laws at online casinos across the various regions. The trick is to study the crucial rules and try to stick to them.

Player protection laws at online casinos in Asia

Most Asian countries either prohibit or strictly regulate gambling. Their reasoning is influenced mainly by cultural attitudes and concerns over addiction and crime.

Those that have bowed to the pressure of legalising online casinos are proceeding cautiously, with tight oversight and controls.

Online gambling is strictly prohibited in countries like China and is partially allowed in the Philippines. On the other hand, South Korea allows certain forms of online gambling, with strict rules to protect the public.

Notwithstanding, you can find casinos operating in cities like Hong Kong and Macau, with citizens from various locations visiting just to play.

Furthermore, in 2018, Japan passed a law permitting resorts (IRs) that include casinos. This, however, did not come to fruition without a series of protests and years of parliamentary debates.

The government imposed several restrictions, such as banning Japanese citizens from participating, capping casino space and imposing a high tax rate.

Though at a very slow pace, it is expected that Asia will accept gambling. For now, most of the countries in the region are still discussing whether or not to permit these kinds of games. Profitability, tourism and fun are some of the driving factors motivating the move.

Overall, Asia remains a relatively challenging territory for the iGaming industry to break into.

Player protection laws at online casinos in North America, Australia and Oceania, and other territories

Starting with North America, iGaming player protection laws are a mixture of different approaches. For regions like the US, the rules vary according to state.

For example, Nevada legalised online gambling but it is strictly controlled, while it’s illegal in most other states.

As for Canada, the federal and provincial levels are in charge of regulation, with Ontario⁸ and Quebec being the regions implementing licensing and control.

Furthermore, Australia maintains strict legislation regarding online gambling⁹. In summary of the laws, all operators must obtain licenses and comply with all regulations regarding the non-participation of underage and vulnerable groups in gambling.

On the other hand, regulations in countries such as New Zealand are less stringent, but rules are enacted to protect players.

In South America, countries like Brazil and Argentina are still in the process of accepting online gambling. There have, nonetheless, been discussions regarding the legalisation and regulation of iGaming, but the process is relatively slow.

In Africa, the regulation of online gambling varies widely. Using South Africa¹⁰ as a case study, gambling is strictly regulated and requires operators to comply with regulations.

Conclusion

Looking at the different legislative approaches regulating online gambling showcases how the rules of player protection laws at online casinos differ across various territories.

Although it may limit the freedom of operators, rigorous regulation usually translates to increased user security and trust. In the same way, liberal laws incentivise development and attract investment, but require more scrutiny to prevent abuse.

Countries adopting the mixed approach balance the interests of stakeholders, creating a secure and stable place for gambling. In any event, realising the differences and implications of player protection laws at online casinos across various territories is essential for all industry participants.

1. Your Rights as a Player, written by Giuseppe Faraone, published by CasinoTopsOnline.com

2. A History of American Gaming Laws, written by HG Legal Resources, published by HG.org

3. USA Congress. (2006). General Appropriations Act, 2007, written by USA Congress, published by govinfo.gov

4. What it means: Supreme Court strikes down PASPA law that limited sports betting, written by A.J. Perez, published by usatoday.com

5. Gambling Act 2005, written by the UK Parliament, published by legislation.gov.uk

6. Asia’s casino capital: Macau in five points, written by Agence France-Presse, published by citizen.co.za

7. Criminal Code, written by the Government of Canada, published by lois.justice.gc.ca

8. What we do: Lottery and gaming, written by Alcohol and Gaming Commission of Ontario, published by agco.ca

9. Gambling Laws and Regulations 2021 – Australia, written by Jamie Nettleton and Luke Massey, published by ICLG.com

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