Aug 13, 2024

8 min read

Guide to iGaming Laws and Regulations Around The World (2024)

Learn about the global regulatory specifics of the iGaming industry in 2024

Alyssa Abrams

Senior Content Manager

In 2024, the gambling industry incurred £67,097,966 ($86.2 million) in financial penalties globally. Just earlier this year, online gambling operator Gamesys Operations Limited was fined £6 million ($7.6 million) for social responsibility and Anti-Money Laundering (AML) failings by the UK Gambling Commission. Another recent example involves Gammix Limited, an online casino company based in Malta, which was fined record-breaking 19.7 million euros (21.5 million USD) by the Dutch Gaming Authority for offering unlicensed gambling services to players in the Netherlands.

Regulatory fines in the iGaming industry can be severe. That being said, online gaming regulations are not uniform and can vary significantly from country to country. Therefore, businesses must understand the specific requirements of each jurisdiction in which they operate to avoid AML fines or license revocation.

How is iGaming regulated?

iGaming is regulated through a combination of local, national, and international laws and regulations. Regulatory bodies aim to ensure fair play, protect minors, and prevent illegal activities such as money laundering.

In those jurisdictions where gambling is legalized, iGaming operators must obtain licenses from relevant authorities to offer their services legally. Requirements for iGaming legal compliance typically include stringent identity verification processes, Responsible Gaming measures, and the provision of fair gaming practices.

Regulators also monitor and audit iGaming platforms to ensure they adhere to established standards and protocols. Penalties for non-compliance can be severe, including hefty fines and revocation of licenses.

Additionally, many countries collaborate through international frameworks to standardize iGaming regulations and share information about operators. Despite efforts to harmonize regulations, there are still significant differences between regions, making it challenging for operators to navigate the global market.

Compliance in the iGaming industry

The iGaming industry has several laws, regulations, and standards governing operations. This includes:

Obtaining the necessary licenses
Implementing anti-money laundering (AML) measures
Ensuring data protection in line with local and applicable regulations
Responsible Gaming practices (like offering self-exclusion tools, setting deposit limits, and providing access to gambling addiction support services)
Regular audits of systems and processes to ensure they meet regulatory requirements.

Failure to comply can result in legal action, financial penalties, and damage to the operator’s reputation. Compliance teams at iGaming companies play a critical role in navigating the complex regulatory landscape and ensuring ongoing adherence to all applicable laws and standards. Continuous training and updates are essential for compliance officers to keep up with the evolving regulatory environment.

Where is iGaming legal?

IGaming is legal in numerous countries, each with its own set of regulations and licensing requirements.

Breakdown by region:

In Europe, countries like Malta and Italy have well-established regulatory frameworks that permit and oversee online gaming.
In North America, Canada and various states in the US have legalized and regulated online gaming to varying degrees.

Several Asian countries, including the Philippines and certain regions of India, allow regulated online gaming.
In Latin America, Colombia, Mexico and Brazil have legalized online gaming, while other countries are in the process of developing regulatory frameworks.
Some African countries, such as South Africa and Kenya, also have legal online gaming markets. These countries typically require operators to obtain licenses and adhere to local laws, ensuring player protection and fair gaming practices.

Check the most gambling friendly countries in this article: Top 9 Gambling Friendly Countries.

Is iGaming legal in the US?

In the US, iGaming is subject to a complex regulatory landscape that varies significantly by state. While there is no federal law that explicitly prohibits iGaming, several federal laws impact its legality. For example, the Wire Act of 1961 prohibits interstate wagering on sports, but its application has been debated regarding other forms of iGaming. The Unlawful Internet Gambling Enforcement Act (UIGEA) of 2006 does not make online gambling illegal, but restricts financial transactions related to illegal iGaming.

States such as New Jersey, Pennsylvania, and Michigan have legalized online casino gaming and poker, while Nevada has legalized online poker, daily fantasy sports, and betting. However, there is a limited number of licensed providers in Nevada.

Sports betting has broader acceptance across the country following the 2018 Supreme Court decision to overturn the Professional and Amateur Sports Protection Act (PASPA), allowing states to legalize and regulate sports betting. Each state that permits online gaming has its own regulatory body and licensing requirements, creating a patchwork of regulations across the country. Operators must navigate these varied gambling regulations to offer their services legally in different states.

Which federal laws regulate iGaming in the US?

There are several federal laws that regulate iGaming in the US:

The Unlawful Internet Gambling Enforcement Act (UIGEA) of 2006: This law prohibits gambling businesses from knowingly accepting payments related to unlawful internet gambling. It does not specify what is legal versus illegal online gambling, leaving that determination to individual states.
The Federal Wire Act of 1961: Originally aimed at stopping sports betting across state lines via telephone, this act has been interpreted to cover internet gambling. The DOJ’s 2011 opinion clarified that the Wire Act only applies to sports betting, but a 2018 opinion reversed this stance, causing further uncertainty.
The Interstate Horseracing Act (IHA) of 1978: This act regulates interstate wagering on horse racing and was amended to include electronic forms of communication, thus applying to online betting on horse races.
The Indian Gaming Regulatory Act (IGRA) of 1988: This law governs gaming operations on Native American reservations and affects online gambling conducted by Native American tribes.
The Illegal Gambling Business Act (IGBA) of 1970: This act targets large-scale gambling operations that violate state laws and can also apply to online gambling operations.

What are the UK’s iGaming regulations?

The UK Gambling Commission (UKGC) is the primary regulatory authority overseeing iGaming in the United Kingdom. Established under the Gambling Act of 2005, the UKGC is responsible for licensing and regulating iGaming operators to ensure fair and transparent operations. The Commission sets stringent requirements for operators, including robust identity verification processes, AML measures, and Responsible Gaming initiatives.

The UKGC also mandates regular audits and compliance checks to maintain high standards within the industry. Advertising and marketing practices are closely monitored to prevent misleading promotions and protect vulnerable individuals. Operators must provide tools for players to set deposit limits, self-exclude, and access support for gambling-related issues. The UKGC’s regulations are considered some of the most comprehensive and player-focused globally, ensuring a safe and fair iGaming environment.

Is iGaming legal in Europe?

The European Union does not have a unified regulatory system for online gaming and betting yet, leaving it to individual member states to establish their own laws and regulations. This has resulted in a diverse landscape of online gaming laws across Europe, with some countries adopting more liberal approaches and others implementing strict controls.

At the same time, there are some common measures for iGaming operators in all EU member states:

Anti-Money Laundering: The EU’s Fourth Anti-Money Laundering Directive requires gambling service providers to monitor and report suspicious activities.
Data Protection: The General Data Protection Regulation (GDPR) dictates how online gambling sites must collect, process, and store personal data.
Consumer Protection: The Consumer Rights Directive (2011/83/EU) mandates clear information, transparency, and the right to withdraw, applicable to online gambling.
Geo-Blocking: Regulation (EU) 2018/302 bans unjustified geo-blocking within the EU, impacting how online gambling sites restrict access based on location.
Electronic Identification: Regulation (EU) No 910/2014 (eIDAS) on electronic identification influences authentication procedures for online gambling platforms.
Payment Services: The Payment Services Directive 2 (PSD2) affects how payments are processed in the online gambling industry.
Commercial Communication: The Audiovisual Media Services Directive (AVMSD) regulates advertising and marketing practices for online gambling.
Accessibility Requirements: The Web Accessibility Directive mandates that public sector websites be accessible, with similar principles potentially extending to private iGaming sites.
Competition Law: EU competition laws, guided by Articles 101 and 102 of the Treaty on the Functioning of the European Union (TFEU), influence market practices within the gambling sector.
Freedom to Provide Services: Article 56 of the TFEU guarantees the freedom to provide services, affecting how member states regulate gambling services from other EU countries.

Germany

In Germany, iGaming is regulated under the Interstate Treaty on Gambling (Glücksspielstaatsvertrag). The treaty, which came into force in July 2021, allows for the licensing of online casino games, poker, and sports betting. Operators must obtain licenses from the new national regulatory authority, Glücksspielbehörde, and adhere to strict rules regarding advertising, player protection, and Responsible Gaming.

Italy

Italy has a well-established regulatory framework for online gambling, overseen by the Agenzia delle Dogane e dei Monopoli (ADM). The country allows various forms of online gambling, including casino games, poker, sports betting, and lotteries. Operators must obtain licenses from the ADM and comply with rigorous standards to ensure player safety and fair play.

Malta

Malta is one of the leading jurisdictions for online gambling laws, with the Malta Gaming Authority (MGA) providing a robust licensing regime. The MGA oversees a wide range of online gaming activities, including casinos, poker, sports betting, and lotteries. Malta’s regulatory framework is known for its transparency, efficiency, and player protection measures, making it a popular base for many international online gaming operators.

iGaming in Curaçao

Curaçao is known as an online gaming haven, where several hundred companies have obtained licenses thanks to the island’s simple application process. However, in September 2023, a new Compliance Ordinance on Games of Chance came into force, which has brought some changes.

Check this guide to see what’s new: Curaçao Gambling System — Complete Guide 2024

iGaming in Asia

The regulatory landscape for iGaming in Asia varies widely between countries, but the general trend is stricter regulation.

The Philippines have embraced iGaming, establishing regulatory bodies such as the Philippine Amusement and Gaming Corporation (PAGCOR), which licenses and regulates operators, ensuring compliance with local laws and standards.

In India, online gaming regulations are state-specific, with some states allowing certain forms of online gaming while others impose bans.

Japan enacted legislation permitting the development of integrated resorts (IRs) that feature casinos in 2018. This move, following extensive debate, was aimed at enhancing tourism and generating additional tax revenue. However, the law comes with stringent regulations, such as limits on casino floor space, a prohibition on Japanese citizens entering the casinos, and the imposition of a substantial tax rate. Due to the lengthy approval procedures, the first integrated resorts are not anticipated to open until the mid-2020s. Furthermore, public resistance to casino gambling persists, making it uncertain whether these restrictions will be relaxed in the future.

Other countries, such as China and South Korea, have strict prohibitions against online gambling, with severe penalties for operators and players.

Australia

In Australia, online wagering, sports betting, and lotteries, are strictly regulated and subject to licensing. The country faces gambling-related problems such as high gambling participation, youth gambling, and addiction. Illegal gambling activities in the country include casino-style games (like poker, blackjack, and roulette), scratchies, and several others.

Check the full list of banned activities, as well as regulations in each state and territory, in this detailed guide: Gambling and Betting in Australia—A Complete Guide 2024.

iGaming in Latam

Latin America is gradually embracing iGaming, with several countries developing regulatory frameworks to legalize and control the industry. Colombia was the first country in the region to establish a comprehensive regulatory framework for iGaming, overseen by Coljuegos. Mexico also allows iGaming, regulated by the Directorate General of Games and Lotteries. Brazil has also recently legalized sports betting.

Other countries in the region, such as Argentina and Chile, are exploring regulatory measures to control and benefit from the growing iGaming market. The shift towards regulation is expected to increase market opportunities and enhance player protection in Latin America.

UAE

iGaming is generally prohibited in the United Arab Emirates (UAE), in line with the country’s adherence to Islamic law (Sharia). Despite the ban, some residents attempt to access online gaming sites through virtual private networks (VPNs). However, in 2023, the UAE introduced a new regulatory body called the General Commercial Gaming Regulatory Authority (GCGRA), which is supposed to oversee all types of commercial gaming. This step signals changes to come in the UAE’s longstanding position on gaming over the next few years, with the GCGRA, awarding the first lottery license in July 2024.

Read further in this article: UAE Gaming Regulations: All You Need to Know in 2024

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