Online gambling is a global business that necessitates a system of comprehensive laws that are designed to ensure transparency, integrity and player protection. They also help to protect players through age verification programmes and self-exclusion schemes.
Although federal law, including (just barely) the Wire Act, continues to prohibit certain types of online gaming, state legislatures are allowing online sports betting and real-money casino gaming with greater approval. State by state, we have an odd type of jazz.
Legality
In reality a highly regulated multibillion-dollar frontier industry, which is fully or partly banned – depending on where it is functioning. In some jurisdictions substantial yet reasonable regulatory frameworks have been implemented, guaranteeing clear rules of play and venture transparency, while at the same time combating money-laundering activities, risk mitigation strategies and information exchange. In particular, regulatory bodies either provide the leadership or are part of the consortium that supports such goals as transperancy and fairness and combating money laundering activities via supervisory actions and information exchange, in support of risk mitigation and resilience.
Licensing – the second ‘L’ of the Four ‘Ls’ – is undoubtedly the essential component of online gambling regulation. It provides the public with assurances that online operators are meetut high standards of consumer protection and data protection law, are not engaging in misleading advertising, and are committed to ensuring that consumers are able to make informed choices about the types of gambling experiences they would like to engage in.
The positive examples have been states such as New Jersey, Pennsylvania, Delaware and Nevada, which have been at the forefront of online regulation. Since the introduction of online gambling, this process has provided a viable and lucrative example for other states to follow. All the while, providing the consumer with greater advantages, benefiting the economy and raising more tax revenue. But, some states are still in a position where they put too many restrictions on operations.
Regulation
The online gambling industry is worth billions of pounds. Regulation is extremely important for operators and players alike – it ensures games are run fairly and protects consumers from fraud and other unscrupulous practices. Regulatory bodies also carry out a very important role in providing players with the right environments to gamble responsibly.
The political dimensions of legal gambling online also vary from country to country. A number of countries offer fully regulated gambling environments, while others prohibit or heavily restrict (for instance advertising is prohibited while playing is not) online gambling altogether. And the US has a haphazard approach to regulation, with New Jersey, Delaware and Nevada being among the first movers.
Regulation of online gaming by governments is often tied to taxes collected from those who participate in gaming (taxes used to support public services). Taxes on gaming activities can impact player profitability and motivation for participation in different gaming activities. Anti-money laundering (AML) regulations are relevant to efforts to avoid financial crime in gaming activities.
Licensing requirements
As well as being a closely regulated industry that imposes high standards on people involved with the business, every operator running an online gambling site requires a licence to operate, which imposes certain conditions, including minimum consumer protection standards and anti-money laundering (AML) measures that provide a bulwark against financial crime while helping to maintain the integrity of gaming operations.
KYC requirements are mandated by regulators to determine the identity of players and assess their risk profile through documentation validation by customers ranging from government ID cards, proof of address documents, source of funds and political exposure proofing certificates; enhanced due diligence is also undertaken for high-risk customers, such as politically exposed persons (PEP) or customers from high-risk jurisdictions.
Online casino gambling law and practice changes, alters and adjusts as technological developments and attitudinal changes occur. It is a dynamic area of the law, as some states and jurisdictions impose hard sanctions on gambling online while other states and jurisdictions operate and regulate to encourage responsible gambling. Awareness of the trends will help regulators to enact better and, at the very least, fairer policies; and it will allow players to better protect themselves from so-called ‘regulatory arbitrage’, which occurs when a gambling operator takes advantage of different regulatory regimes to gain an advantage over its competitors – ie, when operators engage in the sort of creative loophole searching that pays them to say no when it happens elsewhere.
Restrictions
Thanks to the availability of online portals, gambling has recently become one of the most popular after-work activities and past-times, especially because it allows people to both acquire strong emotions and win large amounts of cash prize. However, to help users gamble responsibly and secure their safety, some industry guidelines, including self-exclusion schemes, reality checks, limit on deposits, detailed terms of service and compliance enforced by the gambling regulators, such as anti-money laundering (AML) rules, have been imposed on online casinos.
Legality varies by state, with some states allowing sports betting and casino gaming in official capacity or otherwise, while others do not. Staying abreast of current legislation and regulations is necessary for players to stay away from legal grey spots and remain in compliance with the existing rules.
It’s this one: Seattle Seahawks quarterback Russell Wilson celebrates his winning touchdown in the 2015 loss to the Carolina Panthers in the NFL Super bowl. Photo by Carolyn Kaster/APOnline gambling is once again on the rise and barrelling towards a whole-sale legalisation, resulting in new restrictions such as ban for advertisements during live television events and mandatory checks by the company to determine your ability to afford whatever you buy. Not only must companies collect data on nationwide sports betting but the surgeon general must submit an annual report on health issues related to problem gaming.