Online Gambling (Worldwide Laws and Regulations)
The online casino industry has become a truly international entity, reaching the borders of many countries throughout the world. The only boundaries recognized by the industry are those that are defined by the rules and regulations developed by separate sovereign nations. For instance, Muslim-based countries (as well as others in the world) do not permit gambling. Therefore, online casinos are unable to offer its services to residents from such nations.
Global Gambling
General gambling laws vary from one country to another. Countries in Europe are thought to have the most liberal attitudes towards gambling. Citizens in the UK have access to sports betting, horse racing, lotteries and brick and mortar casinos. In Asia, the gambling industry is still in its infancy, but changes are underway.
Over the last five years, Macau (China) has become a true powerhouse in the gambling industry, replacing Las Vegas as the largest provider of casino games based on annual revenues. Japan and the Philippines are also actively investing in the casino industry as well. In other areas such as Australia, gambling is accepted as a form of adult entertainment, but the regulations and restrictions tend to be cumbersome.
The North America, Canada and the United States have very unique gambling laws. Casino gambling in Canada is illegal. However, Indian Nations such as Kahnawake are considered sovereign governments, and are permitted to make their own laws. Therefore, it is legal to gamble on Indian land.
In the United States, the Federal Government has made it illegal to gamble. However, states are permitted to make its own laws. Therefore, Nevada and New Jersey have passed legislation that allows casino gambling. Other states have used "loopholes" such as Indian reservations and offshore river sites to offer its citizens casino gambling without going through the state legislature.
Online Casinos by Countries
Online gambling is difficult to regulate because the Internet has no borders. The only way for countries to enforce laws related to online casinos is to establish regulations directed at operators and adopt stringent enforcement measures. Let's take a look at the Internet gaming laws for some of the major countries in the world.
United Kingdom - Because of its liberal attitudes, most online casinos want access to the UK market. Up until 2014, that was easy to accomplish. Online casinos were permitted access to UK players with very few restrictions. In fact, several regulatory jurisdictions (Malta, Gibraltar and UK Gambling Commission) fall under British rule. In 2014, the British parliament passed legislation that made it illegal to offer Internet gambling services to citizens of the UK without a license specifically issued by the UK Gambling Commission.
Canada - Technically, Internet gambling is illegal in Canada. That said, it becomes a matter of enforcement. For the most part, online casinos are permitted to offer services to Canadian players so long as they don't reside inside of Canada. As a caveat, Canadian online casino sites can operate legally if the company resides on Indian land.
Australia - Technically, it's illegal for online casinos to accept Australian players. However, the government has not yet found a way to properly police such activity. Therefore, online casinos operate without much fear of retribution. As a side-note, online casinos that were operating in Australia prior to the passing of the Interactive Gambling Act of 2001 are permitted to continue operating under a grandfather clause.
United States - The laws pertaining to online gambling in the US are as clear as muddy water. The Unlawful Internet Gambling Enforcement Act of 2006 established that banks and credit card companies could not transact business with online casinos. However, it was never made clear if Americans were permitted to gamble online. In 2011, the Justice Department clarified that the only gambling that was prohibited by Federal law was sports gambling. Otherwise, it's up to the states. Currently, New Jersey is the only state to have legalize online gambling.
Italy - Up until 2006, gambling regulations in Italy were among the strictest is the world. In 2006, laws were passed that allowed more access to land-based casino gambling, but Internet gambling was ignored. After getting much pressure from the European Union, additional laws were passed in 2010, which permitted online gambling with strict regulations under the ADM supervision.
Asia - To date, Internet gambling is still illegal in many parts of Asia. In countries such as Thailand, Singapore, Macau and Japan, the government have a vested interest in the land-based casino industry and they don't seem likely to allow competition. There are no laws making Internet gambling illegal in Malaysia, but players who are cheated have no recourse through the Malaysian government.
The Gambling Giants in China: Macau
The Venetian Macao Casino has garnered the attention of the Chinese government with its massive gambling revenues. This has led neighboring Asian countries to follow China's footsteps in legalizing casinos to reap similar benefits. Macau's strategy is to earn and retain more from gamblers, but the question is, who are its primary target customers - ordinary customers or tycoons who frequent casinos to play games? Is Singapore challenging Macau's supremacy in the gambling industry?
According to reports, VIPs and junkets are the primary customers of Macau's casinos. Macau aims to attract as many VIP customers as possible by increasing incentives for its junket operators to bring in more VIP customers. Although Macau is a thriving region in the gambling industry, it still seeks to attract more customers.
Singapore is one of Macau's main competitors in the gambling industry, with both aiming for a faster growth in revenue. Macau expects a revenue growth of 30%, while Singapore aims for 25%. To achieve these profits, both cities need to develop strategies to attract more customers, especially VIPs, who are more lucrative for the industry.
To entice more visitors, Macau is building a new casino, the Galaxy Macau, with features such as a 550,000 square meter property, five gaming areas, more than 2000 hotel rooms, and over 500 restaurants. The casino, worth US $2 billion, is expected to open in mid-May this year at the Macau's Coastal strip, with the primary aim of attracting more visitors and VIPs from China and other parts of the world.
Macau's revenue has been soaring high, and it seems to be overtaking other reputable cities known for the gambling industry. Las Vegas, once known as the gambling core, has been surpassed by Macau, whose revenue continues to rise. As a result, Macau may not only be the gambling giant in China, but it may also be giving first-class economies stiff competition. Therefore, Macau has what it takes to be the top gambling hub in the world, which is why it earned the title of World's Biggest Gambling Hub in 2006.
The Economic Impacts Harbored by Gambling Industry
Over the past few years, the gambling industry has experienced significant expansion with the establishment of more casinos through online and traditional methods. This has resulted in better information and analysis available to gamblers, enabling them to make informed decisions when participating in gambling activities. Unfortunately, some individuals have experienced economic strain due to large transfers of money and goods for gambling purposes.
While some economists like Samuelson have criticized gambling as having no additional ability to contribute to economic production, only providing satisfaction and utility value to consumers, he has also expressed concerns about the costs associated with banning gambling. In contrast, the impact of gambling on economic development cannot be denied, as evidenced by the economic growth of Las Vegas, where gambling has led to job creation and the development of low-tax opportunities that other local governments and states have envied.
The gaming industry has had a significant impact on various communities, particularly through job creation directly associated with gambling facilities. In cities such as Atlantic, the impact of gambling has led to the building of large facilities and the creation of over 40,000 jobs, particularly for minorities.
Native American gaming has also had a significant economic impact, with detailed studies showing the payment of wages, social security, and taxes linked with Medicare and federal taxes by employees, despite the exemption of local and state taxation for Indian tribes. In states such as Minnesota, the casino gaming industry has led to an increase in wages and sales, higher property values, and the creation of employment opportunities.
Overall, the gaming industry draws money from outside regions and attracts tourists, contributing significantly to economic growth.
Summary
As you can see, the world has very diversified opinions about online gambling. Worldwide online casinos do what they can to adhere to the laws of each nation. However, the system is far from perfect and every player is required to know the laws of his country and to respect them.
