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The iGaming industry is ever-evolving and its fast-paced nature often requires some transformative changes in the legal scenario. Considering its thriving market the government is often pushed into making these changes. However, safeguarding wagering enthusiasts has always been a priority despite the rules being retained. Most of the current online gaming laws have been passed to restore the safety and security of seasoned punters, and with time more open-ended laws are going to be implemented that will allow people to indulge yet with certain conditions.
In this article, let's explore more about the legalities behind iGaming Regulation and see how we can relish the excitement of real-money games while following the rules.
According to some ruling analytics forecasters, the sports betting market is growing by 7.4% each year and by the end of 2024 online gambling market will reach an evaluation of US$27.97bn. The figures are enough to awaken the government reminding them of how profitable the future of iGamingis about to become. The industry is only meant to diversify with the changing industry trends and as a result, we can expect revision of rules to take place.
Taking a look back, when the iGaming Industry was on the rise, the world experienced a shift in gaming preference. Digital gamers and offline wagerers both found their convenience in real money games but only a limited set of Online gaming laws existed. But necessity arose where rules were imposed and the industry saw a transformation for the better. With time, as the exposure to mobile devices increased, the tendency of people to reach out for quick gameplays and easy wins surfaced. This scenario can possibly get punters hooked on instant gratification fueling the need for protective laws.
In European Countries
Europe being one of the biggest markets for the iGaming Industry has the most rigid regulations. It is estimated to reach a whopping US$46.94 billion by the end of 2024 and hence the annual CAGR is almost at 11%. Each of the countries in Europe has its separate rules laid for the citizens. States can impose their additional regulatory terms according to the laws.
1. In the UK, online gambling was legitimized in 2005 via the Gambling Act yet it was kept highly guarded with specific attention paid to player protection laws.
2. The French government selectively legalized online gambling way back in 2010 through the French Gambling Act; they allowed sports betting and poker while prohibiting other casino games online. In 2019 Autorité Nationale des Jeux (ANJ) was formed to independently supervise player safety.
3. When it comes to Germany, the Interstate Treaty of 2021 solidified the legalization of online casino games. The Joint Gambling Supervisory Authority (GGL) formed in 2023 is the centralised figure looking after the entire gambling regulation scene sanctioning licence requests from operators in collaboration with the state government.
4. In Spain, the General Directorate for Gambling Regulation (DGOJ) which is integrated with the Ministry of Social Rights, Consumer Affairs and Agenda 2030, is responsible for allowing online gaming rights bridging country and state laws.
5. In Italy, the growth rate of the online jumping industry is 5.85% as currently recorded. Although being a part of their cultural history for ages, gambling online was prohibited till 2011. Autonomous Administration of the State Monopolies (AAMS) is the sole licensor in Italy.
1. In the US, previously the Federal Wire Act of 1961 curbed every possibility of interstate sports betting. It has recently been revised to lift the ban and instead allow all kinds of sports wagering and casino games. But to complicate the scene, the Unlawful Internet Gambling Enforcement Act of 2006 restricts all real money websites to accept deposits for illegal betting. The states are authorized to have their own Online gaming laws and hence a stark contrast arises between states. New York, New Jersey, Nevada, and Pennsylvania are in favor of sports betting while California and Florida have turned it down.
Latin America is experiencing a sudden growth in its iGaming Industrywhile experts are making predictions that the industry will almost quadruple its size by 2027. It is expected to make a turnover of US$6.75 billion making it stand at the forefront of the industry’s advancement.
1. With immense potential of making a mark in the iGaming Regulation, Mexico legalized online wagering in 2004 with imposed restrictions. However major changes were added in 2020 to support its expansion by letting licenses sanctioned by autonomous operators.
2. In 2017 Columbia legalized bingo, poker, online casino games, and sports betting. The online gambling industry in Colombia is growing at a rate of 10% annually. Citizens of Columbia are particularly drawn towards local sports betting. This year online sports bettingis expected to bring a turnover of US$889.1 million.
3. Argentina lifted the ban on online real money games in 2019 and by 2021 started granting licenses to operators online.
4. On the contrary, iGaming Regulation in Costa Rica is pretty haphazard and hence, hassle-free.
1. The Interactive Gambling Act of 2001 bans online casino games in Australia; but allows offshore gaming sites to operate within the country. Citizens of Australia can lawfully take part in Casino games at offshore platforms. However, the government is looking forward to passing online gaming laws that safeguard the locals from being affected. They also have imposed certain boundaries including prohibiting credit card usage for iGaming deposits, limiting advertisements, etc.
When it comes to sports betting, a similar sudden shift has been noticed in the global sports arena. There is a spike in popularity escalating steadily which is making Government bodies all around the world rethink their decision about The imposed restrictions on sports betting. Every year a hefty amount of tax revenue is collected from the sports betting industry. This in turn economically strengthens the government making it hard for the state to shun the activity.
For example, in the UK, the government incurred a total of £635 million (approx.) in 2021. iGaming Regulation is emerging with multiple conditions to abide by the standards set by the government. Countries like Australia, Germany, Ireland, and Canada are further broadening the horizon by inviting new gambling regulatory bodies. On the contrary, gambling is banned or heavily restricted in countries like China, UAE, Turkey, North Korea, Pakistan, Singapore, and Vietnam.
However, banning or selective allowance at times can cause major black market activities within the country. To curb the rise of illegal gambling certain countries have implemented severe punishments.