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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.
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:
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.
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.
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:
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.
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.
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.
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.
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