Legal gambling Odyssey: Online casino legalization rules vary across the globe but the background is common

Unlike other countries, gambling in the USA is a relatively recent phenomenon. Indeed, not all countries allow online casinos – not only in the USA but also around the world. The main reasons for banning online casinos in different countries are much the same.

The popularity of online gambling has been soaring for some years now, especially since the liberalization of some of the markets mainly in Europe. With just a few clicks, players can find a variety of sites offering the best online roulette, poker, and slot machine games.

Legislation of physical vs. online casinos in the USA

Observing the casino legalization in the USA, ua1.com.ua experts note that only 2 states have legalized physical casinos throughout their territory, Nevada – quite obviously – but also Louisiana. Other states, such as Atlantic City and Tunica in Mississippi, have legalized casinos only on specific parcels of land.

However the situation with online casinos is quite different – most of the states allow online gambling, but it should be noted that the details of the laws may differ depending on the state. 

Pennsylvania is the fastest-growing market

Pennsylvania is the fourth and largest state to legalize and regulate online gambling. The new law authorizes online casinos, online poker, sports betting, and more. Casino games (including slot machines and casino table games such as roulette and blackjack), poker, sports/horse betting, and fantasy betting are regulated by the Pennsylvania Gaming Control Board, while lotteries are regulated by the Pennsylvania Lottery. 

What’s more, according to data published by the AGA (American Gaming Association), total gross gambling revenues for Pennsylvania casinos amounted to around 3,226.92 million USD in 2017, which was second only to Nevada. Therefore, the regulation of online casinos in the state is expected to increase the number of downloads of various online casino games and add more revenue to the overall online gambling market. 

Following the imminent launch of internet gambling in 2019 in the state of Pennsylvania, companies are forming partnerships to manage the demand boost for these online casino platforms and offer consumers a better online casino gaming experience. However, online gambling tax rates in Pennsylvania are high. There are three separate tax rates for online gaming, namely slots (54%), table games (34%), and poker (16%).

On the other part of the Atlantic, the rules are much stricter

In other corners of the world, the legalization is much more limited – in France, for example, the government is still thinking about making legislation in this area more rigid. It is therefore legal to gamble online in France today, but all this is subject to fairly strict rules. French lawmakers have clearly separated games that require certain deductive skills on the part of the player to win from those that are based on chance.

The Autorité de Régulation des Jeux En Ligne (ARJEL) publishes the list of legal gaming operators. For the moment, games such as video poker, roulette, and virtual slot machines are still prohibited in France. Players wishing to gamble in online casinos must register with foreign sites based in Curacao, Gibraltar, or Malta.

Europe is not united in legalizing online casinos

As far as the European continent, in general, is concerned, the countries that fully authorize the activity are Malta, Denmark, Italy, and Great Britain. Outside of the European Union – Switzerland, too, passed laws on this market some time ago. Also, Ukraine legalizes online gambling with leading casino sites such as Favbet.

There are a number of European countries that do not yet allow this market and are even strongly opposed to it. Among the strictest in Europe are Germany, Portugal, Hungary, Sweden, Finland, and Slovenia.

Reasons for banning online casinos         

The main reasons for banning online casinos in different countries are much the same. It’s true that the financial repercussions can be enormous for states thanks to taxes, but betting and online gambling in general could have a significant cost for public health. Problems linked to debt, addiction, and isolation are recurrent in gambling, and this could cost state institutions a great deal.

There are several reasons why governments and authorities might choose to restrict online gambling. Here’s a list of some common reasons:

• Addiction and problem gambling: As the AGA points out, slot machines, especially when offered online, present proven risks of excessive gambling and hence addiction. This is the main argument put forward by the US authorities: casino games, particularly slot machines, can lead to addiction. This is why online casinos have been banned in some of the US states.
• Youth protection: The players of online casinos are left without a safety net, deprived of all the protective measures put in place by regulations for legal offers (gaming limits, gambling prohibited to minors…). Today, anyone (even a minor) can register with their bank card, make deposits, and enter a false date of birth which can lead to underage gambling and potential addiction problems at a young age.
• Money laundering and criminal activities: The casino environment guarantees anonymity, which criminals do not hesitate to exploit. By providing the gaming establishment with false, incomplete and/or vague identification information, players avoid having their identity trigger any alerts. Similarly, in an online gaming context, they can create and use multiple accounts to avoid any rapid reporting of suspicious transactions.

In summary, the prohibition of online casinos across various countries stems from a convergence of core reasons. While potential tax windfalls could be substantial, the broader societal toll on public health poses a significant concern. The balance between potential revenue and safeguarding the well-being of citizens comes into sharp focus.

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