Online Gaming Law

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Legality of online gambling Majority of countries restrict betting via Internet, but it is allowed in several states in US. Government is very strict about rules of regulations for those providers who offer people online gambling services. They need to get a special license for performing their business. With the advent of internet and mobile gaming and the proliferation of sports wagering after the U.S. Supreme Court’s decision overturning the Professional and Amateur Sports Protection Act in May of 2018, we also represent technology providers for internet and mobile gaming, sports wagering operators and multimedia companies seeking to coordinate, work with and form partnerships with these new. Lawmakers passed the WV Lottery Interactive Wagering Act (H 2934) in 2019, legalizing full-scale online gambling — including online poker. The first WV online casino rolled out in July 2020, though poker is still pending launch. West Virginia online gambling partnerships.

Gambling in the United States is a very fluid landscape with more than its share of ebb and flow. The parameters change regularly, and now that state-regulated online gambling is allowed, everyone involved is taking a hard look at the laws and policies governing the various elements of the industry.

Those opposed to gambling attempt to use the laws to support their position, while those who support responsible gambling work tenaciously to expand our options within compliance of existing US laws. The complexity of the legal status of gambling in the US in all its various forms can make it difficult to follow and understand specifically what is and is not considered legal betting.

Our objective in adding this information to our LegalBettingOnline.com resource guide is to provide valuable data that empowers players to make highly informed decisions regarding what types of gambling entertainment effectively meet their needs and preferences through legally sanctioned betting opportunities. We are not attorneys and are providing this guide for informational purposes only**.

Unlawful Internet Gambling Enforcement Act - UIGEA

This is one of the most misunderstood US gambling laws and is surrounded by layers of misinformation and misconception. Many players believe that this law prohibits USA residents from participating in online gambling. This is not true. In fact, the UIGEA law does not address player activity at all nor place any type of restrictions on players themselves. Instead, this law targets banks and financial institutions that knowingly process any transactions related to online gambling.

Our page explaining the Unlawful Internet Gambling Enforcement Act will provide an accurate and understandable explanation of what this law was created for, what specific aspects of online gambling it governs, and how its implementation affects players in the US.

Professional And Amateur Sports Protection Act – PASPA

Paspa (also known as the Bradley Act) was directed specifically at the sports betting industry and provided regulation concerning US-based sportsbook gambling. It has been the center of controversy in the industry recently, bringing into question the law's range of power and presence. This law essentially makes US-based sports betting illegal in all but 4 states.

However, in May of 2018, through a lawsuit initiated by the state of New Jersey, SCOTUS ruled that PASPA was unconstitutional and the law was struck down. This has dramatically changed the US sports gambling market and has given power back to the states to determine their own will to allow or prohibit sportsbooks from operating within their borders.

Our page explaining the Professional and Amateur Sports Protection Act discusses the law's intentions, reach, and parameters, as well as how state opposition coupled with state-regulated gambling initiatives challenged the law head-on and won.

Of all of the US federal gambling laws, The Federal Wire Act one probably has the most interesting origins of them all. Who doesn't love a 'good guys vs the mob 'story? The Federal Wire Act is also one of the most debated pieces of gambling-related legislation and has sparked a great deal of controversy after the DOJ determined that the law's restrictions do include US-based online gambling. Since that time, the DOJ has issued two contradicting legal opinions in 2011 and 2019 respectively that have each redefined the application of the Wire Act and its associated prohibitions.

2011 DOJ Formal Legal Opinion on Interpretation of the Wire Act

Interestingly enough, the DOJ issued a formal legal opinion in 2011 concerning the reach of the Wire Act, indicating that the law only applies to sports gambling, and does not prohibit other forms of state-based online gambling. This literally opened the door to individual states having the authority to license and regulated domestic online casinos and poker rooms, among other forms of gambling, without violating the Wire Act. Learn more from our page dedicated to explaining the Federal Wire Act and how it impacts legal online sports betting for American players.

2019 DOJ Formal Legal Opinion Again Redefines the Reach of the Wire Act

The DOJ reversed their 2011 DOJ Opinion Memo on the Wire Act in 2019 to reflect a prohibition against all US-based interstate gambling. Casino, lottery, poker, sports betting, and information companies were given a 90 day period to meet new compliance standards or face violating Federal Law. This means servers, data, payment processors, etc. must be located individually within the state the business is operating gambling services in.

The reversal on the DOJ's position on the Wire Act will not dramatically impact those states that have already begun licensing and regulating online gambling within their borders, but it will impact those states that have entered into interstate gambling compacts and already share player pools across state lines. We would not be surprised to see lawsuits against the decision from those states, gambling operators and the software and technology companies providing services in the industry.

In 2014, senators Lindsey Graham of SC and Jason Chaffetz of Utah reintroduced legislation to congress that would restore the wire act. If implemented, RAWA would essentially rewrite and extend the Federal Wire Act of 1961 to make all types of gambling illegal, even if it were already legal on the state level. Marco Rubio of Florida has also recently joined the party and supports RAWA.

What do these 3 senators have in common? They are thought to be in bed with Sheldon Adelson, a multi-billionaire gambling tycoon who operates brick and mortar casinos all over the world. Learn more by reading our page explaining RAWA - Restoration Of Americans Wire Act.

Gaming

The Interstate Horse Racing Act of 1978, or IHRA, is the law that governs the horse betting industry’s off-track betting locations (OTBs) and interstate betting options in the US. This law, though enacted in 1978, also defines the rules and regulations of simulcast betting on an interstate basis, which was logically extended to domestic online betting with the advent of widespread Internet access in the late 1990s and 2000s.

Though the IHRA makes interstate horse betting legal at the federal level, individual states have the final say as to whether or not they wish to legalize horse racing or offer their residents access to interstate betting. To date, 41 out of 50 US states participate in interstate horseplaying under the auspices of the IHRA, with several other states considering legalizing the industry within their borders.

That said, the Interstate Horse Racing Act does not bar the use of overseas or international racebooks. US residents in most states (excepting WA and CT) can legally use offshore racebooks to bet on the ponies. Best of all, these books offer much greater access to international races, featuring tracks from the US, Canada, Mexico, England, Ireland, the Middle East, Japan, and Australia, among others.

Law

The brick and mortar land-based and floating casinos and poker rooms that are found in various states through the US are all governed by state gambling laws. Each state determines its own laws concerning what type of casino, poker, pari-mutuel, bingo, lottery, and other gambling they will allow within their state borders.

US Federal gambling laws primarily target US-based online gambling and sports betting. The DOJ has determined that each state can also determine their own destiny concerning legal online poker and legal online casino gambling.

Online

It depends on where you are placing your bets. There are no federal laws that prohibit US residents from participating at online casinos, poker sites, bingo sites and legal online sportsbooks that are licensed, regulated and located outside of the United States.

If you restrict your online gambling to these types of legally sanctioned gambling sites, then you will not be breaking the law. We do recommend however that you consider expert input regarding which sites are approved by professionals as providing a safe, high quality and rewarding online gambling experience.

One of the key elements that we examine during our review process is the security profile of each website. We don't provide our approval for gambling websites that simply meet licensing requirements or the lowest industry standards.

We require that a sophisticated security profile is in place that is comparable to world-class financial institutions. We want to see advanced encryption technology, firewall, and antivirus protection and fraud prevention systems, equipped with a technically trained staff to monitor these systems. These are tall requirements, and only those brands which can meet them are considered for inclusion in our guide.

If you limit your gambling entertainment to websites approved by professionals, then you can be certain that the security and level of protection you are looking for is in place. This is a trait of those sites that are legally licensed and subject to genuine regulatory oversight. Those sites operating outside of legal parameters don't typically take the time to invest in this type of security.

Because the vast majority of all US friendly gambling sites are located offshore, they must be located in a jurisdiction that already offers legal online gambling. They must also be regulated by a governing body under strict oversight. We have a detailed article explaining what a gaming commission is and which jurisdictions are the most reputable in the industry.

Additional Gambling Laws By Country

Us Online Gambling

**We do not hold legal degrees or training and provide this information based on personal experience and research, not as experts in interpreting the law. If you seek professional legal advice or services, we recommend you contact an attorney familiar with gambling laws.

Before opening an online project, every operator primarily asks the question: what market to choose? Where can I operate freely, and where do I need to go through the licensing procedure?

Slotegrator examined this question. Our experts prepared a list of countries where online gambling operation is legal.

To make it even more convenient, we sorted them by continents. It includes not only those countries subject to certain requirements and where online gambling is regulated by law. There are also those countries where online gambling is neither regulated nor prohibited.

Online gambling availability in the World 2021

Depending on different approaches to gambling regulation in the world, all countries are divided into 4 groups.

Online Gaming Laws California

Countries where foreign online casinos are not blocked:

AfricaAsiaEuropeNorth AmericaSouth AmericaOceania
Eritrea
Nigeria
Azerbaijan
Brunei
Hong Kong
Japan
Kyrgyz Republic
Laos
Malaysia
Qatar
Singapore
Uzbekistan
Yemen
Cyprus
Bosnia and Herzegovina
Czech Republic
Iceland
Luxembourg
Serbia
Slovakia
Cayman Islands
Salvador
Mexico
BrazilAmerican Samoa
Australia
Guam
New Zealand

The local regulators do not apply any legislative requirements in these countries. Foreign gambling sites can be licensed in any jurisdiction or generally operate without it.

However, it should be noted that gambling is not necessarily legal in these countries.

For example, the Cayman Islands completely prohibit gambling, while the local residents are liable for participation in gambling. The fact that foreign online casinos are not blocked now can only be explained by the inability of regulator to do this. And if the online gambling is not legalized, blocking of foreign sites is just a matter of time.

Countries where gambling websites must be licensed by the local regulator:

AfricaAsiaEuropeNorth AmericaSouth AmericaOceania
Ethiopia
Mayotte
Reunion Island
Georgia
Sri Lanka
Austria
Belgium
Bulgaria
Croatia
Denmark
Estonia
Finland
France
Germany
Italy
Netherlands
Poland
Romania
Spain
UK
Antigua and Barbuda
Guadeloupe
Martinique
Panama
Saint-Barthélemy
Saint-Martin
Virgin Islands (USA)
Falkland Islands
French Guiana
French Polynesia
New Caledonia
Wallis and Futuna Islands

These countries use the most competent approach to online gambling regulation. Each operator (whether it is local or foreign) must acquire a license and fulfill certain legal requirements. Conditions are equal for all. Everyone is obliged to pay taxes to the budget. Only in this case, the operator has the right to work legally. Otherwise, the online resource will be blocked.

The following countries require a license of the local regulator only for the local gaming sites. Foreign platforms can work without it:

AfricaAsiaEuropeNorth AmericaSouth AmericaOceania
Comoros
Gambia
Guinea
Mauritius
Rwanda
Seychelles
ArmeniaGreece
Hungary
Ireland
Latvia
Lithuania
Macedonia
Moldova
Monaco
Norway
Montenegro
Portugal
San Marino
Slovenia
Sweden
Switzerland
Aruba
Belize
Canada
Curacao
Dominica
Dominican Republic
Greenland
-Fiji
Vanuatu

As in the first group, these countries do not apply any legal requirements to foreign sites. A foreign operator may be licensed in any jurisdiction and, in some countries operate without it at all. However, all local casino owners are required to undergo the licensing procedure of the local regulator and to pay taxes to the local treasury.

Slotegrator offers licenses for legal operation in different markets. We help to obtain gambling licenses from Curacao, Malta, Isle of Man, Kahnawake, Belize, Gibraltar, and Alderney.

The following countries have no restrictions for the gambling sites at all:

AfricaAsiaEuropeNorth AmericaSouth AmericaOceania
Angola
Benin
Botswana
Burkina Faso
Burundi
Cameroon
Cape Verde
Central African Republic
Chad
Congo
DR Congo
Egypt
Equatorial Guinea
Gabon
Ghana
Guinea-Bissau
Côte d'Ivoire
Kenya
Lesotho
Liberia
Madagascar
Malawi
Mali
Morocco
Mozambique
Namibia
Niger
Sao Tome and Principe
Senegal
Sierra Leone
South Sudan
Swaziland
Tanzania
Togo
Tunisia
Uganda
Western Sahara
Zambia
Zimbabwe
Bangladesh
Macau
India
Mongolia
Myanmar
Tajikistan
Albania
Andorra
Belarus
Faroe Islands
Gibraltar
Isle of Man
Kosovo
Liechtenstein
Malta

Bahamas
Barbados
Bermuda
Costa Rica
Djibouti
Grenada
Guatemala
Haiti
Honduras
Jamaica
Nicaragua
Saint Kitts and Nevis
Saint Lucia
Saint Vincent and the Grenadines
Turks and Caicos
Argentina
Bolivia
Chile
Ecuador
Guyana
Paraguay
Peru
Suriname
Trinidad and Tobago
Uruguay
Venezuela
Cook Islands
Kiribati
Micronesia
Nauru
Northern Mariana Islands
Palau
Papua New Guinea
Samoa
Solomon Islands
East Timor
Tonga

This is the largest group of countries. Many of them do not regulate gambling activities at all.

Online gambling laws around the world

Today almost every country has its own rules regulating the land-based gambling. However, the situation with online gambling is more ambiguous. As can be seen, the attitude towards local and foreign operators differs fundamentally from country to country.

In the European Union, for example, the operators of the foreign gambling sites are subject to the requirements of the EU law. However, not all countries agree that foreign operators don’t pay taxes to the local treasury. Contrary to the requirements of the EU, they put the foreign operators under own regulations forcing them to obtain a local gaming license and pay taxes to the local budget. Among these countries France, Germany, Italy, etc.

The second reason for the different attitudes to local and foreign operators is that many countries (especially those not technologically advanced) simply do not have the resources or tools to prevent foreign companies from operating in their territories.

China Online Gaming Laws

Follow the Ukrainian gambling industry legalization and development. Find more about the legaization process, roles of gambling lottery commission and how to start your own casino in Ukraine.

Gambling Laws By State

Summing up the availability of online gambling around the world:

  • 32 countries prohibit the local operators from working without a license, but those gambling sites that operate from abroad can easily offer their services to local residents. Among them, the following countries: Seychelles, Armenia, Dominican Republic, Greece, Monaco, Norway, Canada, Sweden, Switzerland, etc.
  • 32 countries allow online gambling only with the local license. For example, Austria, Denmark, Finland, France, the UK, the Netherlands etc.
  • 28 countries prohibit locals from gambling and block sites of local gambling operators. However, foreign platforms can work freely, even if they have no license. These states are either unwilling or are not able to prevent them. For example, Australia, Brazil, New Zealand, Mexico, Japan, Singapore, Nigeria, etc.
  • 93 countries do not prohibit online casinos and do not license them. They include Bolivia, Uruguay, Venezuela, Bahamas, Argentina, Egypt, Kenya, Tunisia, Kosovo, Gibraltar, etc.

Michigan Online Gambling Law

Slotegrator offers everything gambling operators need to launch and expand online casino and sportsbook projects. The company offers a wide range of products, including White Label online casino and sportsbook platform development, game content, betting data feeds and payment systems integration. Slotegrator also provides legal consultancy and administrative assistance for gambling license acquisition and regulatory compliance.