The first online casinos were launched in the mid-1990s. At first, people saw them as a novelty, but later, iGaming has grown into a multi-billion-dollar industry. Like other internet-based businesses, though, online casinos were also ahead of regulations – for years, authorities simply didn’t have a legal framework to work with. In many areas, the industry went unchecked. Slowly, the laws caught up with the industry, leading to comprehensive regulations and a system of checks and balances, However, there are still countries where the legislation regarding online casinos is still lacking – or they are simply banned. Today, let us take a look at some arguments against this, and reasons why regulating the iGaming industry is in the governments’ best interest.
First of all, regulating online casinos helps protect consumers from unfair and fraudulent practices. Regulation can ensure that casino operators adhere to standards set by the government, like fair game outcomes, transparent terms, and responsible gambling practices. This helps to safeguard the interests and funds of players.
Prevention of Problem Gambling
Regulations usually include measures to identify and assist players with gambling issues. Mandatory responsible gambling tools, such as self-exclusion programs and spending limits, can be implemented to reduce the risks of problem gambling.
Fairness and Transparency
Operators like Springbok Casino in South Africa work in a legal grey area. They are not required to disclose their payout percentages or undergo randomness reviews by South African authorities. Regulations can require all this, and more – complete fairness and transparency of the operators wishing to access a certain country’s market.
Tax Revenue and Economic Growth
Gambling can generate significant tax revenue. These funds can be used to support various public services, including healthcare, education, and infrastructure development. Besides, a regulated online gambling industry can create jobs in various sectors, such as technology, marketing, and customer support. It can also attract foreign investment in the gambling sector.
Combating Illegal Gambling
Perhaps most importantly, regulation can help in reducing illegal and unlicensed online casinos. By providing a legal and regulated alternative, players are encouraged to choose licensed operators, which can help curb illegal gambling activities. This ensures more protections for the players and more revenue for the state.
Preventing Money Laundering
Regulations usually require online casinos to implement anti-money laundering (AML) and know-your-customer (KYC) measures. This can help prevent the use of online casinos for money laundering and other illicit financial activities.
Finally, regulations can enforce strict age verification processes to ensure that only adults of legal age can access online gambling platforms, thereby protecting minors from exposure to gambling.
Banning online gambling is not a viable solution because there will always be players who circumvent any preventive measures and still play. But in this case, money flows out of the market with no returns whatsoever – and the players don’t benefit from the protections of the local law. Regulating online gambling can prevent this, bring operators to the right side of the law, and ensure that the players get all the safeguards and protections they need – and they can play responsibly.
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