With the recent developments in the sports betting law in the USA, the conversation about online gambling in the USA and around the world has started to pick up. Surprisingly, online gambling is only actually legal in certain countries and sometimes it is only legal for players to access sites hosted in other countries. Understanding these laws can be quite complicated, especially when the laws inside of one country like the USA can be different based on the various states.
For those who are trying to get into the online casino industry, it important to understand the different regulations based on this sort of business. Staying within the law when it comes to online gambling is very important and you should never go against the regulations. In this article, we are going to explore some of the worldwide regulations so if you are thinking about starting your own online casino, keep reading to find out more.
When it comes to gambling law in the USA, it can get quite confusing. In May 2018, a ruling was made to legalise sports betting on a federal level, leaving the individual states to decide if they wanted to enforce a ban. This is a huge development for the USA betting market as not only was sports betting banned but only a handful of states have legalised online casinos in the past. If you are planning on opening an online casino in the USA, you’ll need to choose states like New Jersey or Delaware if you want to stay within the law. There is hope, however, that the new law on sports betting might open the doors for more states to join those already allowing online gambling.
The United Kingdom
If you are planning on getting into the online casino market in the UK, you are likely to come out on top. The UK has plenty of online casinos for players to sign up to, but it is also one of the biggest online casino markets, so there is plenty of room for new casinos to attract new players. The law in the UK for setting up an online casino is pretty straightforward, as long as you only let people over 18 gamble and you hold the right licenses. There are a few different types of licences available from the Operating licence to the Personal Management one. What you need for your online casino will vary depending on what you are providing so make sure to find out from the licensing authority before going live.
The interesting thing about Germany is that it actually has a huge market for online casinos, but you’ll struggle to get a licence there. As of 2012, the law in Germany prohibits anyone to obtain a license for an online casino in the country. This is, of course, unless you already have a license which should be valid for its entire duration. The good news for German players is that they can’t be persecuted for accessing any sort of online casino sites that are being hosted in other countries. This means that online casinos are still able to target the German population and so if you are planning on investing in an online casino, consider choosing a different host country.
Although online gambling is actually legal in France, you’ll find that it is heavily regulated by the Autorité de régulation des Jeux en ligne (ARJEL). This means that people all over France are able to access the online casinos here and enjoy winning themselves lots of cash. Unfortunately, for online casino operators, there is not as much joy. If you are planning on starting an online casino in France, you’ll need to consider the high taxes put in place by ARJEL and how they might affect your total profits. The tax rate here is 44% and it is the highest rate across the world. This is why many people are put off starting an online casino in France so make sure to do your research before you invest.
If you are planning on starting an online casino in Italy, you’ll need to look out for the strict regulations that this country enforces. In the past, the Italian government have tried to prevent any Italian players from accessing online casinos being hosted in neighbouring countries. This was eventually overruled by the EU, but it is important to recognise how serious they are about their dislike for this sort of gambling. The only online gambling sites within Italy are forced to pay a tax rate of 20% and they cannot accept players from outside of Italy. This can majorly affect the player pool and mean that prizes are smaller. It is possible to obtain an interactive gaming license from the Italian government now, but you should be aware of the terms that they present and the cost in comparison to the profits that you will make.
Depending on where you are based, you might want to consider opening or investing in an online casino in a different country. You should always make sure that you are aware of all of the regulations that are in place across the world to ensure that you do not break the law. You should also make sure to keep up to date with these regulations as they can change so fast and soon enough you might find that you can start running an online casino in a country that previously banned it.
If you are planning on starting a casino to target the German market or another country that has strict regulations, make sure to consider using a nearby host country as these are often the only way that the German population can access these online casino sites. Don’t be afraid to test the waters and find out where you can get the most for your money as no one wants to start a business that is limited in who it can target!