Online Gambling License and Jurisdictions

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Online Gambling License

Online casinos have proven to be immensely popular and lucrative, providing players with authentic gambling experiences as well as creating large profits for their owners. With the rapid expansion of online gambling, corruption of online casinos became a major concern for both players and casino owners.

Following the proliferation of criminal activity in online casinos, the gambling community sought a way to standardize and regulate online gambling.

A number of online gambling license organizations were set up to tackle the problem, and online gambling license is now issued by a number of governments worldwide. However, online gambling is prohibited in a number of countries, and therefore online gambling licenses often arise in offshore countries.

Despite that fact that obtaining a gambling license is a complex process involving research and certification, most Internet casino businesses possess an online gambling license. Online gambling licenses ensure the legitimacy of an online casino business, as they involve regular assessments of the company’s conduct.

All legal online gambling businesses possess an online gambling license in at least one jurisdiction. The most recognized jurisdictions that issue gambling licenses are Caribbean and Pacific Island Governments such as Antigua and Barbuda, Costa Rica, St Kitts, Dominica, Curacao and Vanuatu.

Online Gambling Laws and Jurisdictions

The subject of online gambling laws and regulation is a complicated one.  Although the internet has a global audience, there is no single piece of legislation that covers the legality of online gambling all around the world. Instead, most regions have their own laws that deal with legal and regulatory issues relating to gambling activity on the web. There are also a number of jurisdictions around the world that license and regulate operators in the online gambling industry.

These jurisdictions generally have some kind of organization that is responsible for all legal and regulatory matters relating to online gaming and wagering. Some of these jurisdictions are very strict indeed, while others are much more relaxed, which means that not all operators are subject to the same standard of regulation. To further add to the complexities, many regions regularly change the relevant legislation and it can be difficult to keep up to date with exactly what is and isn’t allowed in some parts of the world.

Most of the relevant laws relate to companies that provide gambling activities rather than those that actually partake in such activities. However, it’s still a very good idea to be familiar with the legalities where you live, as you obviously don’t want to unwittingly break the law. It can also help to understand the regulatory practices in gambling jurisdictions, as this may have some impact on which sites you choose to use.

At PlayGameGuide.com we keep up to date with the legal and regulatory developments within the industry and as such we are able to offer you plenty of useful information on the subject. We have explained all about gambling jurisdictions and licensing authorities, and provided further details on many of them. We have also discussed the legalities of online gambling.

online gambling license

Online Gambling in the United States

The legalities of online gambling in the United States constitute something of a grey area. A lot of sites provided their services to US residents for many years, seemingly without any issues. However, there was an argument that the Wire Act of 1961, which made interstate telephone betting illegal, also applied to wagering and gaming over the internet. There was no clarity on the matter though. In 2006 a new act was passed, the Unlawful Internet Gambling Enforcement Act (UIGEA), which changed things somewhat.

Although the act did not specifically make online gambling illegal, or legal for that matter, it did make it illegal for banks and other financial institutions to process transactions from US residents if they were related to online gambling. For many gambling sites this was a clear enough indication that the US government considered online gambling illegal and they stopped accepting US customers.

A number of other operators continued to welcome those from America though, the argument being that if they were based in a jurisdiction where online gambling was legal then they were not subject to US laws. Although many Americans decided not to risk playing or betting on the internet, many more carried on doing so. The general consensus was that, if indeed any laws were being broken, it was the sites themselves that were acting illegally rather than any individual using them.

This situation continued for many years, until things began to change again more recently. Several states within the US have either introduced online gambling legislation and regulation or announced plans to do so. As a result there are now sites that are licensed within the US and there are likely to be many more to follow.

Online Gambling in Europe

There are many countries in Europe and for the most part they are all individually responsible for their own legislation. As such, gambling laws in Europe vary from one country to the next. The legislation is very clear about what you can and can’t do in some countries, but things are little more confusing in others. Over the last few years, many countries have been changing their policies and amending their legislation accordingly.

It is, therefore, somewhat difficult to summarize the online gambling laws in Europe as a whole. If you live in the region then you are advised to check your local laws yourself before signing up anyway.

Online Gambling in the United Kingdom

Online gambling is big business in the UK, helped by the fact it is well regulated. It is also perfectly legal for anyone over the age of 18 to gamble online. Gambling sites are not only allowed by law to operate from within the UK, those that do can also provide their services to UK residents if wish to. This is in contrast to many other jurisdictions, where licensed operators can provide their services to foreign countries but not within the region they are based.

Sites based overseas can also offer their services to the UK, providing they are in a jurisdiction that is white-listed by the Gambling Commission. This Commission is the organization responsible for regulating all gambling in the United Kingdom.

Online Gambling in Canada

The laws relating to internet gambling in Canada are a little unclear. Perhaps the most important thing to be aware of is that there is no law that states it is illegal for a Canadian to place a wager or play games for real money online. This makes sense, seeing as some provincial governments in Canada operate their own online casinos. It is however, illegal for companies to operate betting sites in the country.

It should be pointed out that the Kahnawake Gaming Commission does license gambling sites to operate from Kahnawake, which is an Indian reserve located in Canada. Kahnawake is considered a sovereign nation in its own right, though, and as such is not covered by Canadian gambling laws.

Online Gambling in Australia

Online gambling in Australia is regulated by the Interactive Gambling Act 2001 (IGA).

The IGA was passed by the Commonwealth Parliament on 28 June 2001 and was given Royal Assent by the Governor-General on 11 July 2001. The passage of the IGA was a turning point in Australian gambling legislation and the Government’s policy of preventing the escalation of the harmful effects of gambling on the Australian community.

The IGA targets the providers of interactive gambling services, not their potential or actual customers. The IGA makes it an offence to provide an interactive gambling service to a customer physically present in Australia.

After lifting the country’s eight-year-old online gaming ban introduction of IGA has created favorable environment for significant expansion of remote gambling services in the country.

The IGA made it an offence to provide poker and casino to Australian residents, leading to an estimated total of AU$790m being spent on offshore sites in 2009.

Some concessions are made for online sports betting providers since it’s not illegal to offer internet sports betting to Australian residents. It is also totally legal for Australian residents to engage in online gambling so long as they are not a provider.

September 9, 2014: posted in Top Online Gambling News No Comments

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