Gambling has always been a controversial topic for lawmakers worldwide. Often seen as a vice, various countries like the UAE have banned all forms of gambling while others like Sweden have legalized and regulated gambling due to positive points such as increased tax revenue. Some countries like India and Brazil take a different approach where some forms of gambling are allowed (like online gambling) while others are not (like land-based casinos).
There is no global consensus for gambling laws, and even in individual countries, the rules can vary depending on the state. To make things more complicated, the rise of online casinos has to lead to international brands that operate in several markets, out of which some are regulated, and some are not.
Who regulates international online casinos?
The first question that pops into anyone’s mind regarding online gambling relates to the fairness of the games offered. How can anyone know if an international online casino is not a scam?
In regulated markets like the UK, the local governing body (UKGC) can ensure all online casinos operating in the country comply with regulations. However, in unregulated markets like India, there are no governing bodies to protect the players.
For online casinos, the best way to add credibility to your brand in unregulated markets is by obtaining an operating license from an iGaming-friendly state like Malta (via the Malta Gaming Authority). These licenses allow international online casinos to operate globally as long as they do not overstep any local laws of the country they are offering their services in.
While not perfect, licenses by authorities in countries like Malta and Curacao have helped grow the credibility of these casinos in unregulated markets. Casino Sites India, one of India’s leading online casino rating sites states that players should only stick to online casinos with a license from the MGA or an e-gaming license from Curacao. It is possible there might be sites that are not completely legit and at worse, outright scams.
An emerging and changing legal landscape
The legal landscape for gambling, and online gambling, has always been changing. However, from the looks of it and the market data, online casinos have been on the rise not only in regulated markets but also in unregulated ones.
With online gambling, the negative perception seems to have slightly faded away. Technology has also made it harder to curb gambling activities since there are no physical locations that can be shut down.
On the positive side of things, governments in unregulated markets can increase tax revenue significantly (since the tax rate on speculative winnings can be very high, just like tobacco and alcohol).
Interesting Related Article: “Trends Transforming the Gambling and Casino Industry in 2021“