Guide to iGaming Laws and Regulations Around The World

The gambling sector last year paid £67,097,966 ($86.2 million) in financial sanctions worldwide. Just recently this year, Gamesys Operations Limited, an online gaming operator, was fined £6 million ($7.6 million) for social responsibility and Anti-Money Laundering (AML) shortcomings by the UK Gambling Commission. Another one who recently made it to the list of fines is Gammix Limited, a Malta-based online casino operator, which was fined record-breaking 19.7 million euros (21.5 million USD) by the Dutch Gaming Authority for providing unlicensed online gambling to customers in the Netherlands.

Regulatory fines in the iGaming industry can be severe. That being said, online gaming legislation varies and can vary immensely from nation to nation. For this reason, businesses must be familiar with the unique demands of each jurisdiction they are conducting business in so they do not find themselves facing AML penalties or licensure revocation.

How is iGaming regulated?

iGaming is governed by an intermixture of national, local, and international laws and regulations. Regulatory bodies aim to facilitate fair play, protect minors, and prevent illegal behavior such as money laundering.

Where gambling is permitted in such jurisdictions, iGaming operators must obtain licenses from competent authorities in order to offer their services legally. Requirements for iGaming legal compliance are usually stringent identity verification processes, Responsible Gaming measures, and fair gaming measure.

Regulators also monitor and audit iGaming websites to confirm conformity with established norms and procedures. Penalties for non-conformity are stringent, including hefty fines and revocation of licenses.

Moreover, the majority of countries cooperate in cross-border frameworks to harmonize iGaming laws as well as share information about operators. Despite all efforts to harmonize regulation, some significant differences still remain between regions, and it is difficult for operators to comprehend the international market.

Compliance in the iGaming market

The iGaming industry has different regulations, legislation, and standards governing operation. These are:

• Obtaining the necessary licenses
• Possession of anti-money laundering (AML) controls
• Data protection in compliance with local and applicable regulations
• Responsible Gaming policies (including provision of self-exclusion facilities, deposit limits, and access to gambling addiction help services)
• Regular review of systems and processes to ensure compliance with regulation.

Non-compliance will result in legal action, fines, and reputational damage to the operator. iGaming operators' compliance teams play a key role in navigating the complex regulatory landscape and ensuring continuous compliance with all applicable legislation and best practice. iGaming compliance officers need to be constantly trained and educated to keep up with the evolving regulatory environment.

Where is iGaming legal?

IGaming is legalized in most states, with varying regulations and licensing requirements.

Division by region:

• In the European region, countries like Malta and Italy have robust regulatory frameworks that enable and monitor online gaming.
• In North America, Canada and several US states have regulated and legalized online gaming, although to varying degrees.
• Several Asian countries, including the Philippines and regions of India, legalize regulated online gaming.
• In Latin America, there is legalization of online gaming in Colombia, Mexico and Brazil, while other countries are implementing regulatory frameworks. There are regulated online gaming markets in a few African countries, like South Africa and Kenya. Such countries typically want operators licensed to provide services and adhere to local laws to safeguard players as well as provide fair gaming.

Is iGaming legal in the US?

Lets talk about US gambling regulations. In the United States , iGaming is governed by a knotty web of legislations that vary significantly from one state to another. Though there is no federal law prohibiting iGaming, several federal laws affect its legality. The Wire Act, for example, forbids sports betting across state borders, but its enforcement has been in doubt in other forms of iGaming. The Unlawful Internet Gambling Enforcement Act (UIGEA) does not prohibit online gambling but inhibits financial transactions involving illegal iGaming.

Nevada has legalized online poker, daily fantasy sports, and sports betting and has only a few licensed providers. Online casino games and online poker have been legalized in New Jersey, Pennsylvania, and Michigan.

Sports betting enjoys broader acceptance across the country following the Supreme Court decision to overturn the Professional and Amateur Sports Protection Act (PASPA), which allowed states to legalize and regulate sports betting. All states that permit online gambling have a regulating body and licensing requirements, therefore creating a patchwork of law across the country. Operators must deal with these various gambling laws in an effort to offer their services legally across different states.