Laws That Online Casinos Must Abide By – 2021 Guide
New online casinos are becoming extremely popular with players across the world, providing ever more exciting ways to play.
Although exciting, the reality is that new casino sites must abide by a strict set of laws if they are to continue trading and succeed as a business.
In this article, we will take an in-depth look at the laws that online casinos must abide by in the UK and the US. From the licensing arrangements to the laws around advertising, we will look at all relevant areas.
As the industry grows, comparison sites such as casinosites.org are cropping up to provide players with neutral, high-quality information on everything from a site’s software to its customer support to the legal requirements they must abide by.
First and foremost, let’s take a look at the UK online casino industry, beginning with some background as to how the law works in this particular nation.
The background to UK online casino industry law
To comprehend how the laws that online casinos in the UK must abide by, it is key to understand the workings of the Gambling Act (2005 & 2014).
Once upon a time, when the online casino business was starting out, the internet was packed with untrustworthy casino sites. In these somewhat lawless times, there were literally no laws for casino sites to abide by and players would run into all sorts of issues.
Seeing this, criminals took to using these sites for laundering money. The UK government knew they needed to act, and so they did.
The Gambling Act of 2005 looked to combat the use of online casinos for money laundering and other criminal activity. Launching the United Kingdom Gambling Commission (UKGC), which continues to license and regulate all online casinos in the UK, the legislation also sought to safeguard children from using online casinos.
Some nine years later the act was updated, this time with advertisers in its crosshairs. Again, children and the vulnerable were the targets of protection, with the Gambling Act 2014 taking drastic action to prevent these groups from being stung by nefarious sites.
How the law works in the UK today
Nowadays, the UK is home to some of the strictest laws around gambling on earth. Although fully legal, the conditions for licensing in the UK are known for their strictness, contrary to the belief of some politicians. Harmful and false online casino sites are almost non-existent in the UK as a result.
Across the globe, players know that when a site is UKGC licensed, it is safe to say that is fully secure. Players can enjoy quality, safe games without any fear of being stung in any way if a site is licensed in the UK. Due to the fact that casinos in the UK must abide by some seriously strict protocols, players in this nation can enjoy some of the most secure casinos on earth. With a dedication to quality, legal gaming, the UKGC leads the world in many ways when it comes to laws around online gaming sites.
Laws that online casinos in the US must abide by
In terms of the law in the United States, things are somewhat more complicated than the situation in the United Kingdom today.
For starters, America is home to some of the strictest and most complex gambling laws around. Truth is, the enjoyment of online casinos and indeed any other type of gambling is prohibited in all but a few states. These are Nevada, Delaware and New Jersey.
So, why is gambling illegal in the US? Well, most of it is down to the Federal Wire Act. In the last few years, there have been calls for many for the legalization of the industry on a number of levels including economic, entertainment and indeed political.
Then came a big break. In 2018, the US Supreme Court changed a 1992 ruling that banned sports betting across the US, perhaps initiating a change in the industry. Certainly, illegal bookies and gambling across USA gross hundreds of billions of dollars every year and so surely it won’t be long until the tide changes.
On the other hand, this was two years ago and there has still not been any real movement around changing the law around gambling in the United States.
How do new US casinos get a license?
For fresh faces in the business of online casinos who want to play in the United States, there are some ways to setup.
First and foremost, you will need to abide by the law and set up your online casino is one of the three states to possess a legalized and regulated online gambling arrangement. Nevada, New Jersey and Delaware each have a system whilst California and Pennsylvania have made steps toward legalizing the businessuid too, yet it might take many years to reach a working state.
For brand new US casinos, getting the right registration details done in one of the permitted areas is key. With that said, we will now look further into the three states that permit gambling and what you need to do to gain one.
For many, Nevada is a true hub of global gambling. Home to Las Vegas, Reno and other famous gambling cities, this great state is forward-thinking when it comes to online casino law. The Nevada Gaming Commission and the Nevada Gaming Control Board regulate all forms of gambling here, including online gambling, which is permitted since 2013.
Right now, there are regulatory bodies that only permit casinos that have a Nevada license to offer their wares to gamers within the state itself. There is plenty of online casinos offering those within Nevada a fun experience online!
Let’s head east now to New Jersey, where the tale is not unlike that further west. For eight years now, the state has allowed it’s residents to play at US casino sites as long as they are registered and abide by New Jersey law.
Finally, Delaware is renowned to be a forward-thinking part of the US that legalized online casinos in 2012. As with this other state, Delaware allows residents to play at online casino sites registered in the states.