1. Regulating Online Gaming Sites

The number of online console gamers is expected to grow to over 57 million by 2020 and the market for PC online games alone is projected to reach a value of around 33.6 billion U.S.

States have tried to regulate Internet gambling by prosecuting sites that have allowed their residents to gamble online, when such conduct would not be permitted within their borders with traditional gaming or wagering.38Minnesota Attorney General Hubert Humphrey III has posted notice that Internet gambling within the. Experts in the testing and certification of online gambling systems. ECOGRA Established in 2003. Highly trained and specialised in the field of online gambling.

Online casinos are very popular among players worldwide, yet it is illegal in most of the United States. However, there are approximately 70 countries in the world where online casinos are legal. It is very difficult to prosecute the illegal players of online casinos, as they do this right from their homes. Typically, remaining within the law is the responsibility of each player, as they are required to agree the terms and conditions of the online casino they choose to gamble in. as it is obvious, it is very important to obey to the rules and regulations of online casinos, in order to avoid any legal issues from appearing. There are some important things you need to know regarding the legality of online casinos in order to make sure you have a completely legal and good user experience when using such websites for gambling.

Gambling Laws by Country

There are many countries in which online gambling is illegal, yet there are many countries and jurisdictions in which online gambling is already legal. Although you will find thousands of gambling sites over the internet, it is important to know whether you comply the legal rules before playing in an online casino. Here you can see some information regarding the law of gambling in specific parts of the world.

If you want to know more about the online casino industry, you can also consult our guide to Start Your Online Casino

United Kingdom

In the United Kingdom, online casinos represent a great business, as online gambling is well regulated here. Anyone over the age of 18 is allowed to gamble online in the UK, where not only are gambling sites allowed by law to operate in this country, but they are also allowed to offer their services to UK residents.

Europe

The online gambling legislation varies widely thorough Europe’s countries, as some of them allow online gambling to operate legally, while others did not legalize it yet. As the gambling laws differ from a country to another in Europe, it is important to attentively check the local law before gambling in online casinos in your country.

Canada

In Canada, the law regarding online gambling is a bit unclear, as there are actually no laws to state that Canadian residents are not allowed to place a wager or play in online casinos using real money. Additionally, there are some provincial governments within Canada that operate online casinos, but at the same time, companies are illegal to operate betting sites in this country.

United States

The legality of online casinos in the United States is a matter of difficulty, as long as the law is a bit complicated in this issue. The Wire Act of 1961 made interstate telephone betting illegal and the same rule applied later for online gambling. However, in 2006, a new act, called the Unlawful Internet Gambling Enforcement Act, was passed, and it changed things a bit, as it claimed that it was illegal for banks and financial institutions to process transactions from US residents in case they were linked to online gambling. This determined many online casinos not to accept US players anymore. Nowadays, several US states decided to introduce new online gambling legislation and regulation in order to license online casino sites within the US.

Watch this video to find out some online casino sites that accept US players:

Australia

In Australia, there is no law to prohibit Australian residents from gambling online, thus it is a legal activity in this country. However, the legislation of Australia specifies that it is illegal to provide residents with interactive gambling games.

Explaining the Gambling Jurisdiction and Licensing Authorities

As specified before, the legislation regarding online gambling differs depending on the country, so that there are online casinos that are allowed to function, while there are countries which strongly prohibit the use and function of online casinos on their territory or by their residents. Any region in which gambling sites and such related operators are licensed and regulated is known as a gambling jurisdiction. Each of the existing jurisdictions has an organization that is responsible with issuing and regulating the licensing in this matter, and these organizations are known as licensing authorities. Every online gambling site that wishes to function legally needs to hold a license issued by its licensing authority. It basically depends on the players themselves to check whether an online casino website is properly licensed before using it, in order to avoid further legal issues for using the chosen online casino.

Main Jurisdictions

There are a variety of jurisdictions that license and regulate online casinos. Some of the most popular jurisdictions in the world are the following:

• Alderney
• Antigua and Barbuda
• Costa Rica
• Gibraltar
• Malta
• Isle of Man
• Israel
• Netherland Antilles/Curacao
• Kahnawake

The different issues in the different gambling fields

Some of the problems that might occur when playing online casino games include not being paid for the money you win. For this, it is important to always play in online casinos that accept players from your country or region.

Casino Games - (Roulette, Blackjack, Slots)

Playing online Roulette is also depending on the country or region. While it is perfectly legal to play online roulette in some countries, it might be completely illegal to do this in other countries.

As in what regards playing Blackjack in online casinos, it is legal to play it for real money and you can easily find plenty of online casinos where you can play it legally. However, while some online casinos accept US players, there are also other online casinos that only accept international players. Even more than that, you can find online casinos which offer their players the opportunity to play blackjack games with live dealers. However, it is important to always be aware about responsible online gambling in order to avoid any possible legal issues.

Basically, the same rules apply for slots played in online casinos. While you can find some online casino sites accepting US players, there are also a variety of online casinos which only accept international players in their site. It depends on you to find out whether it is legal for you to play casino games from your country or region, in order to avoid any legal issues that might occur.

Poker

In what regards the legality of poker, it sometimes differs from online casino gambling, yet many of the same legal issues apply to poker as well. Online poker is legal in many countries, especially including United Kingdom and several nations of the Caribbean Sea.

Here you can see a video on legal issues regarding online poker:

Sports Betting

Sports betting is illegal in the United States and thus it is important to know that US players should not risk betting in sports over online casinos or telephone. US residents who are caught using sports betting online might be seriously prosecuted by law.

Bingo

Although land based bingo is perfectly legal within the United States, online bingo still brings questions regarding its legality. US residents can play online bingo legally, and by doing this, they won’t break any laws. Even more, they can easily get paid for playing online bingo. There are several legal bingo websites used in the US.

Consumer Protection

Unfortunately, while some online casinos are functioning perfectly legal and offer good gambling experiences to their players, there often happens that gambling sites made different frauds, such as refusing to pay withdrawals or using certain cheating software. These are known as rogue casinos.

Minor Protection

One of the main legal issue regarding online casinos includes minor protection. In most countries, it is the gambling operators who must ensure that specific policies and procedures are implemented in order to promote responsible gambling and to protect minors. The terms and conditions of each online casino needs to clearly specify that gambling is prohibited for minor players and the gambling operators must ensure that these websites are not being used by underage people.

Finding out whether an online casino is legal

You may find more information regarding this topic in our article: How to Select Good and Reliable Online Casinos.

Are all legal?

All over the world, federal and local laws are developed in order to restrict online casinos, but there are also laws that allow gambling function as legal. While the gambling laws differ widely from a country to another, it is very difficult to decide whether all the online casinos are legal or not, so it basically depends on the players to find out whether the online casino they wish to use are legal or not in their country or region.

How to find out?

There are several ways that you can use in order to find out whether it is legal for you to use the desired online casino or not.

1.First of all, you need to ensure that the online casino you wish to use for gambling is working under a legally issued license.

2.Then, you need to conduct your own research to find out whether the desired online casino is legitimate and trustworthy.

3.You need to ensure that the content used on the online casino is original and unique, as fake online casinos tend to share their content.

eCogra Role

eCogra is the acronym used for eCommerce Online Gaming Regulation and Assurance, which is a leading accredited testing agency that was founded in the United Kingdom in 2003 and which is specialized in the certification of online gaming software and systems. This means that eCogra gives its best in order to ensure that online gambling is safely used by its players.

In this video, you can find some information regarding eCogra:

Money Laundering

Money laundering is a very serious legal issue and in many jurisdictions, it constitutes a criminal offence. Unfortunately, it has covered the online gambling field as well, as some people create gambling accounts using a fake identity and place a certain amount of money into that account. Then, they place equal bets in the roulette table on red and black fields and also they place a small bet on the zero field at the same time. After this, the person who is known as money launderer withdraws the winnings from the account and then requests for a document that shows that the money is made by legitimate winnings.

Conclusion

There are some legal issues related to online casinos. Basically, the law differs from a country and region to another and it depends on the player to ensure that it is legal to use online casinos in the country or region of residence.

Bonus from the Safest Online Casinos

Gambling Law: An Overview

Gambling, though widespread in the United States, is subject to legislation at both the state and federal level that bans it from certain areas, limits the means and types of gambling, and otherwise regulates the activity.

Congress has used its power under the Commerce Clause to regulate interstate gambling, international gambling, and relations between the United States and Native American territories. For example, it has passed laws prohibiting the unauthorized transportation of lottery tickets between states, outlawing sports betting with certain exceptions, and regulating the extent to which gambling may exist on Native American land.

Each state determines what kind of gambling it allows within its borders, where the gambling can be located, and who may gamble. Each state has enacted different laws pertaining to these topics. The states also have differing legal gambling ages, with some states requiring the same minimum age for all types of gambling, while for others, it depends on the activity. For example, in New Jersey, an 18-year-old can buy a lottery ticket or bet on a horse race, but cannot enter a casino until age 21. Presumably, the age 21 restriction is due to the sale of alcohol in that location.

A standard strategy for avoiding laws that prohibit, constrain, or aggressively tax gambling is to locate the activity just outside the jurisdiction that enforces them, in a more 'gambling friendly' legal environment. Gambling establishments often exist near state borders and on ships that cruise outside territorial waters. Gambling activity has also exploded in recent years in Native American territory. Internet-based gambling takes this strategy and extends it to a new level of penetration, for it threatens to bring gambling directly into homes and businesses in localities where a physical gambling establishment could not conduct the same activity.

Internet Gambling

Federal Regulation

In the 1990s, when the World Wide Web was growing rapidly in popularity, online gambling appeared to represent an end-run around government control and prohibition. A site operator needed only to establish the business in a friendly offshore jurisdiction such as the Bahamas and begin taking bets. Anyone with access to a web browser could find the site and place wagers by credit card. Confronted with this blatant challenge to American policies, the Department of Justice and Congress explored the applicability of current law and the desirability of new regulation for online gambling.

In exploring whether an offshore Internet gambling business taking bets from Americans violated federal law, attention was focused on the Wire Act, 18 U.S.C. § 1084 (2000). The operator of a wagering business is at risk of being fined and imprisoned under the Wire Act if the operator knowingly uses a 'wire communication facility' to transmit information related to wagering on 'any sporting event or contest.' 18 U.S.C. § 1084(a). An exception exists if that act is legal in both the source and destination locations of the transmission. § 1084(b). The Wire Act’s definition of “wire communication facility” appears to embrace the nation's entire telecommunications infrastructure, and therefore probably applies to online gambling. See § 1081.

The Department of Justice maintains that, under the Wire Act, all Internet gambling by bettors in the United States is illegal. U.S. House of Representatives Committee on the Judiciary Hearing on Establishing Consistent Enforcement Policies in the Context of Online Wagers, 110th Cong., Nov. 14, 2007 (testimony of Catherine Hanaway, U.S. Attorney (E.D. Mo.), Dept. of Justice). The Fifth Circuit disagreed, ruling that the Wire Act applies only to sports betting, not other types of gambling. In re MasterCard Int’l Inc., 313 F.3d 257 (5th Cir. 2002).

In 2006, Congress passed the Unlawful Internet Gambling Enforcement Act, which made it illegal for wagering businesses to knowingly accept payment in connection with unlawful Internet gambling (though it does not itself make Internet gambling illegal). 109 Pub. L. 109-347, Title VIII (Oct. 13, 2006) (codified at 31 U.S.C. §§ 5301, 5361–67). It also authorizes the Federal Reserve System to create regulations that prohibit financial transaction providers (banks, credit card companies, etc.) from accepting those payments. See 31 U.S.C. § 5363(4). This Act, along with threats of prosecution under the Wire Act from the Department of Justice, has caused several Internet gambling businesses to withdraw from the U.S. market.

In response, House Representatives introduced multiple bills in 2007 to soften federal Internet gambling law. If passed, the Internet Gambling Regulation and Enforcement Act and the Internet Gambling Regulation and Tax Enforcement Act would license, regulate, and tax Internet gambling businesses rather than prohibit them from taking bets from the United States. Alternatively, the Skill Game Protection Act would clarify the Wire Act to exempt certain games such as poker and chess.

State Regulation

In addition to federal measures, some states have enacted legislation to prohibit some types of Internet gambling. In 2006, Washington State amended its Code to make knowingly transmitting or receiving gambling information over the Internet a felony. See Wash. Rev. Code § 9.46.240 (2006). Other states with similar prohibitions have made it a misdemeanor instead. See e.g., 720 ILCS 5/28-1 (2007).

States have not been particularly active in enforcing these laws, possibly due to a conflict with the dormant Commerce Clause doctrine. That doctrine theorizes that state law applying to commerce outside the state’s borders is unconstitutional because that power lies with federal, not state, government. In particular, federal preemption has obstructed states’ attempts to regulate gambling activity on Indian reservations within state borders. See Missouri ex rel. Nixon v. Coeur D’Alene Tribe, 164 F.3d 1102 (8th Cir. 1999). The federal Indian Gaming Regulatory Act, 25 U.S.C. § 29 (2000), governs gambling activity on Indian reservations, but the extent to which it and other federal gambling laws preempt state action in the Internet arena is uncertain.

menu of sources

Federal Material

U.S. Constitution and Federal Statutes

• U.S. Code: Title 15, Chapter 24: Transportation of Gambling Devices
• U.S. Code: Title 15, Chapter 57, Interstate Horseracing
• U.S. Code: Title 18, Chapter 50: Gambling
• U.S. Code: Title 18, Chapter 61: Lotteries
• 18 U.S.C. §1953 (Interstate Transportation of Wagering Paraphernalia Act)
• 18 U.S.C. §1955 (Illegal Gambling Business Act of 1970)
• 25 U.S.C. §§2701-2721 (Indian Gaming Regulatory Act)
• U.S. Code: Title 28, Chapter 178: Professional and Amateur Sports Protection
• Code of Federal Regulations: Title 25, Chapter 3: National Indian Gaming Commission, Department of the Interior
• Proposed Internet Gambling Prohibition Act of 1997 (not passed)

Federal Judicial Decisions

• Greater New Orleans Broadcasting Association, Inc. v. United States, 527 U.S. 173 (1999)
• Ratzlaf v. United States, 510 U.S. 135 (1994)
• Chickasaw Nation v. United States, 534 U.S. 84 (1999)

State Material

Other References

• '14 Charged in Internet Betting' (Washington Post, March 5, 1998)

Regulating Online Gaming Sites

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