Global Regulation in Online Gambling
August, 2011
Important Information
This review of current regulatory restrictions and International poroposals was commissioned by AZ Online Casinos in August 2011. The article is not to be reproduced without written permission, however we are happy for quotes from the article to be used providing a link back to this article in full accompanies the quote.
Introduction
Online gambling is a multi-billion pound global industry, but an industry whose regulations are forever in a state of flux. With laws not only fluctuating between countries but also between the provinces within them, there is a long way to go before an established set of legislation is reached. Casinos are in effect run from a limited number of jurisdictions, worldwide. Despite their apparent accessibility it is down to an individual's country of residence whether it is legal or not to participate in online gambling.
The following is a current explanation (August 2011) of online gambling regulations within each of the countries listed.
In Argentina, at present, online gambling is legal – though not in the city of Buenos Aires. Permission is granted by regional governments within the country; theoretically only citizens within those regions can play. In 2002 the first online casino was launched. Four years later, in 2006 the first online sportsbook was launched with an Argentinian gambling licence, but since this date only three further licenses have been issued.
In 2008 all unregulated online gambling was banned which meant Argentinian citizens could only use Argentinian based websites. However, Argentina could soon get the go-ahead on broadening legislation as the government considers further expansion.
Australia
As it stands The Australian Interactive Gambling Act permits sports betting as the only online form of betting. However, online gambling is a huge industry in Australia bringing in more than $1 billion per annum. Australian citizens are not prohibited from gambling on offshore sites. In June this year Australian government announced that there will be a wide-ranging review into online gaming legislation, joining two parliamentary enquiries and an inter-government probe to clamp down on Internet gaming.
Western Australia’s government has backed this by saying they will take steps toward the regulation of online gambling if nothing is done soon. ...top
Brazil
Brazil’s government does not offer licenses for online casinos and therefore there are no Brazilian land based casinos (local or foreign.) However, there is no legislation to ban Brazilian citizens from gambling on foreign sites. Brazil has recently taken the first steps toward banning online sports betting. The country plans to ban online transactions with credit or debit card which would eradicate online transactions all together. It is thought this proposal will be approved by a congressional committee. This legislation could mean a complete ban on sports betting before Brazil’s hosting of the world cup in 2014. ...top
Canada
Having not followed their American neighbours, Canadian online gambling sites are some of the most prolific. Canada seems to be a grey area when it comes to specific gambling regulations. Whilst the Canadian government does not issue online licenses, It does not ban them either, so all Canadian sites are hosted elsewhere.
Each of Canada’s provinces has differing laws regarding online regulations. Kahnawake, outside of Montreal, has allowed unrestricted internet gambling since 1996. The Kahnawake Gaming Law has issued over 250 gaming licenses. It charges an application fee of $15,000, alongside an annual license fee of $10,000. ...top
France:
In April 2010, the French government passed a bill allowing privately owned websites to offer bets on football, poker and horse racing only. This has resulted in an open-market approach to online gambling, in the hope of eradicating the government’s monopoly. The bill forces website owners to purchase a permit from body ARJEL who make sure websites adhere to 37 pages of rules and regulations. Their main aim is to make sure games meet guidelines, minors do not take part in luck-based games and there are no wrongdoings by online gambling firms.
Slots and other casino games (blackjack, roulette and baccarat included) were deemed too addictive and not included, meaning in live casino play these games will not be able to be offered by French licensed operators to French players. Licenses are not inexpensive, however. For a single licence websites will pay fees amounting to €5,000; or €8,000 for 2 and €10,000 for 3. The French state taxes 7.5% on player’s bets on sporting games and horse racing, however they only tax 2% for poker bets. Part of these takings goes towards anti-addiction campaigns. ...top
Greece
April 2011 saw Greece’s second attempt for a referendum on online gambling rejected. Due to financial disarray in Greece, legislation to regulate online gambling has allegedly been fast tracked to a must pass financial bill. However, conflict from the European Commission means the bill could end up in front of The European Court of Justice. The European Commission has strong concerns that the draft is not compatible with EU law.
As it stands the Grecian government does not offer licences to Greece based casinos despite their best efforts. However, OPAP hosts games such as Pronto, KINO and joker which are deemed legal. This monopolisation on the market has led to heavy criticism from rivals who believe OPAP should face fines for dominating the market.
A vote on the draft law, which is secreted into a financial bill, is scheduled for approval from 5-8 August 2011. ...top
Holland:
Online gambling in Holland has long been heavily opposed. But in March 2011, Holland became the latest country to embrace online gambling and announced it will begin licensing operators. The new coalition government released a statement saying that they will be reforming the country’s existing legislation and therefore enabling new domestic licenses for offshore casino sites. The specifics are yet to be announced. ...top
Italy:
Italy is regarded somewhat as a pioneer in Europe being one of the first European countries to legalise and regulate online casino gambling. Since 2009, the Italian online gambling market has enjoyed a progressive liberalisation. The Italian gambling regulation authority – AAMS has now truly opened the flood gates for online licences. It is thought that from 2012 – 2013 the online gambling market will turn over €15 billion.
AAMS have recently allowed virtual football and racing games using FOBT terminals alongside casino games, cash poker games and multi-level tournaments.
Despite the growth of Italian online gaming, there is an increasing list of out-of-country websites that AAMS is seeking to block Italian residents from accessing. As of June 2011 there are 3,000 blocked domains and sub-domains. These include big players such as: Betfair, Ladbrokes, Bet365 and Paddy Power.
Despite AAMS’ efforts of disallowing unlicensed operators accessing the Italian market, UK based William Hill have just announced they will be launching an Italian based online casino later this month (despite their name featuring on the blocked domains’ list.)
Operators pay a 20% tax on gross profit in the Italian market. ...top
New Zealand
In July 2004 a law came into effect that allowed only TAB and the New Zealand Lotteries Commission (NZLC) to operate interactive gambling in New Zealand. This law is enforced by New Zealand’s Department of Internal Affairs. New Zealand’s citizens are allowed to gamble on overseas websites. However, it is only legal for TAB or NZLC to supervise overseas gambling from New Zealand. Furthermore, it is illegal to advertise overseas gambling within New Zealand. ...top
Poland
Poland’s government does not offer licences to polish companies, so no gambling sites are run from the country. There is also a ban on their citizens playing on foreign gambling sites, however this is very badly maintained and has never been thoroughly enforced.
To offer games to a polish market companies have to pass several audits and pay extortionate fees and taxes to receive licensing. In June, Poland’s president, Bronislaw Komorowski signed a decree banning online poker. The decree denied online organisation and participation in the game within the country.
Following this ban Ladbrokes stated it will no longer be taking registrations and bets from polish customers. ...top
Romania
In March, Romania’s second attempt to legalise online gambling was rejected. The European Commission claimed the Romanian reform proposals clashed with EU law. The European Gaming and Betting Association (EGBA) and European Commision (EC) claim the Romanian reform proposals clash heavily with EU law. Most notably the proposal of EU licensed online gaming companies to be established in Romania.
The Romanian government does not give out licenses to online casinos and it looks to stay that way for the foreseeable future. ...top
United Kingdom
Online gambling is legal in the United Kingdom and furthermore, players are not subjected to taxes on winnings. This development was introduced to appease the gambling industry and to keep it inline with regular betting practices.
There is currently a proposal to restrict online gambling advertising to companies based in the UK and holding a UK Gambling Commission ("Whitelist") licence. At present, any "Whitelisted" operator can advertise in the UK but this looks likely to change soon. The Government is keen to get operators who moved to offshore jurisdictions back in the UK for tax purposes but their is opposition from the operators as tax in the UK is higher than they currently pay being based offshore in popular gambling jurisdictions such as Gibraltar and Malta. ...top
Uruguay
The Uruguayan government does not offer gambling licenses, however there is no law to stop Uruguay citizens playing on foreign sites.
This month the Uruguayan government has drafted a bill aimed at centralizing government control over all forms of gambling within the country. The draft calls for a new agency which would look after all potential and current casinos, horse racing, lotteries and online gambling sites in Uruguay. The new gambling law will shortly be sent to parliament where it is anticipated it will pass. All online casinos in Uruguay would come under this monopoly. ...top
U.S.A
With the exception of sports betting (made illegal by the 1961 Wire Act) and contrary to regular misinformed reports in the National press, online gambling in the USA is not currently illegal at Federal level. However, some States have their own laws outlawing online gambling and in general, the market as a whole is seen as too risky by most reputable operators.
In general, it is widely accepted that online gambling is illegal (or with laws so grey that it may as well be) in the following States: Illinois, Indiana, Kentucky, Louisiana, Michigan, Nevada, New Jersey, New York, Oregon, South Dakota, Washington or Wisconsin.
Up until the introduction of the Unlawful Internet Gambling Enforcement Act ("UIGEA") in 2006, a blind eye was turned to online gambling. The UIGEA made it illegal for payment processors and banks to transfer funds to and from online gambling websites. Post recession, there are political moves afoot to legalise and regulate certain types of online gambling in some States.
On June 7th 2011, Rep. Jim McDermott introduced HR2607, also known as "the Internet Gambling Regulation and Tax Enforcement Act" which, if approved, would legislate Internet gambling tax collection requirements. ...top
Important Information
This review of current regulatory restrictions and International poroposals was commissioned by AZ Online Casinos in August 2011. The article is not to be reproduced without written permission, however we are happy for quotes from the article to be used providing a link back to this article in full accompanies the quote.
Introduction
Online gambling is a multi-billion pound global industry, but an industry whose regulations are forever in a state of flux. With laws not only fluctuating between countries but also between the provinces within them, there is a long way to go before an established set of legislation is reached. Casinos are in effect run from a limited number of jurisdictions, worldwide. Despite their apparent accessibility it is down to an individual's country of residence whether it is legal or not to participate in online gambling.
The following is a current explanation (August 2011) of online gambling regulations within each of the countries listed.
- Argentina
- Australia
- Brazil
- Canada
- France
- Greece
- Holland
- Italy
- New Zealand
- Poland
- Romania
- United Kingdom
- Uruguay
- U.S.A.
In Argentina, at present, online gambling is legal – though not in the city of Buenos Aires. Permission is granted by regional governments within the country; theoretically only citizens within those regions can play. In 2002 the first online casino was launched. Four years later, in 2006 the first online sportsbook was launched with an Argentinian gambling licence, but since this date only three further licenses have been issued.
In 2008 all unregulated online gambling was banned which meant Argentinian citizens could only use Argentinian based websites. However, Argentina could soon get the go-ahead on broadening legislation as the government considers further expansion.
Australia
As it stands The Australian Interactive Gambling Act permits sports betting as the only online form of betting. However, online gambling is a huge industry in Australia bringing in more than $1 billion per annum. Australian citizens are not prohibited from gambling on offshore sites. In June this year Australian government announced that there will be a wide-ranging review into online gaming legislation, joining two parliamentary enquiries and an inter-government probe to clamp down on Internet gaming.
Western Australia’s government has backed this by saying they will take steps toward the regulation of online gambling if nothing is done soon. ...top
Brazil
Brazil’s government does not offer licenses for online casinos and therefore there are no Brazilian land based casinos (local or foreign.) However, there is no legislation to ban Brazilian citizens from gambling on foreign sites. Brazil has recently taken the first steps toward banning online sports betting. The country plans to ban online transactions with credit or debit card which would eradicate online transactions all together. It is thought this proposal will be approved by a congressional committee. This legislation could mean a complete ban on sports betting before Brazil’s hosting of the world cup in 2014. ...top
Canada
Having not followed their American neighbours, Canadian online gambling sites are some of the most prolific. Canada seems to be a grey area when it comes to specific gambling regulations. Whilst the Canadian government does not issue online licenses, It does not ban them either, so all Canadian sites are hosted elsewhere.
Each of Canada’s provinces has differing laws regarding online regulations. Kahnawake, outside of Montreal, has allowed unrestricted internet gambling since 1996. The Kahnawake Gaming Law has issued over 250 gaming licenses. It charges an application fee of $15,000, alongside an annual license fee of $10,000. ...top
France:
In April 2010, the French government passed a bill allowing privately owned websites to offer bets on football, poker and horse racing only. This has resulted in an open-market approach to online gambling, in the hope of eradicating the government’s monopoly. The bill forces website owners to purchase a permit from body ARJEL who make sure websites adhere to 37 pages of rules and regulations. Their main aim is to make sure games meet guidelines, minors do not take part in luck-based games and there are no wrongdoings by online gambling firms.
Slots and other casino games (blackjack, roulette and baccarat included) were deemed too addictive and not included, meaning in live casino play these games will not be able to be offered by French licensed operators to French players. Licenses are not inexpensive, however. For a single licence websites will pay fees amounting to €5,000; or €8,000 for 2 and €10,000 for 3. The French state taxes 7.5% on player’s bets on sporting games and horse racing, however they only tax 2% for poker bets. Part of these takings goes towards anti-addiction campaigns. ...top
Greece
April 2011 saw Greece’s second attempt for a referendum on online gambling rejected. Due to financial disarray in Greece, legislation to regulate online gambling has allegedly been fast tracked to a must pass financial bill. However, conflict from the European Commission means the bill could end up in front of The European Court of Justice. The European Commission has strong concerns that the draft is not compatible with EU law.
As it stands the Grecian government does not offer licences to Greece based casinos despite their best efforts. However, OPAP hosts games such as Pronto, KINO and joker which are deemed legal. This monopolisation on the market has led to heavy criticism from rivals who believe OPAP should face fines for dominating the market.
A vote on the draft law, which is secreted into a financial bill, is scheduled for approval from 5-8 August 2011. ...top
Holland:
Online gambling in Holland has long been heavily opposed. But in March 2011, Holland became the latest country to embrace online gambling and announced it will begin licensing operators. The new coalition government released a statement saying that they will be reforming the country’s existing legislation and therefore enabling new domestic licenses for offshore casino sites. The specifics are yet to be announced. ...top
Italy:
Italy is regarded somewhat as a pioneer in Europe being one of the first European countries to legalise and regulate online casino gambling. Since 2009, the Italian online gambling market has enjoyed a progressive liberalisation. The Italian gambling regulation authority – AAMS has now truly opened the flood gates for online licences. It is thought that from 2012 – 2013 the online gambling market will turn over €15 billion.
AAMS have recently allowed virtual football and racing games using FOBT terminals alongside casino games, cash poker games and multi-level tournaments.
Despite the growth of Italian online gaming, there is an increasing list of out-of-country websites that AAMS is seeking to block Italian residents from accessing. As of June 2011 there are 3,000 blocked domains and sub-domains. These include big players such as: Betfair, Ladbrokes, Bet365 and Paddy Power.
Despite AAMS’ efforts of disallowing unlicensed operators accessing the Italian market, UK based William Hill have just announced they will be launching an Italian based online casino later this month (despite their name featuring on the blocked domains’ list.)
Operators pay a 20% tax on gross profit in the Italian market. ...top
New Zealand
In July 2004 a law came into effect that allowed only TAB and the New Zealand Lotteries Commission (NZLC) to operate interactive gambling in New Zealand. This law is enforced by New Zealand’s Department of Internal Affairs. New Zealand’s citizens are allowed to gamble on overseas websites. However, it is only legal for TAB or NZLC to supervise overseas gambling from New Zealand. Furthermore, it is illegal to advertise overseas gambling within New Zealand. ...top
Poland
Poland’s government does not offer licences to polish companies, so no gambling sites are run from the country. There is also a ban on their citizens playing on foreign gambling sites, however this is very badly maintained and has never been thoroughly enforced.
To offer games to a polish market companies have to pass several audits and pay extortionate fees and taxes to receive licensing. In June, Poland’s president, Bronislaw Komorowski signed a decree banning online poker. The decree denied online organisation and participation in the game within the country.
Following this ban Ladbrokes stated it will no longer be taking registrations and bets from polish customers. ...top
Romania
In March, Romania’s second attempt to legalise online gambling was rejected. The European Commission claimed the Romanian reform proposals clashed with EU law. The European Gaming and Betting Association (EGBA) and European Commision (EC) claim the Romanian reform proposals clash heavily with EU law. Most notably the proposal of EU licensed online gaming companies to be established in Romania.
The Romanian government does not give out licenses to online casinos and it looks to stay that way for the foreseeable future. ...top
United Kingdom
Online gambling is legal in the United Kingdom and furthermore, players are not subjected to taxes on winnings. This development was introduced to appease the gambling industry and to keep it inline with regular betting practices.
There is currently a proposal to restrict online gambling advertising to companies based in the UK and holding a UK Gambling Commission ("Whitelist") licence. At present, any "Whitelisted" operator can advertise in the UK but this looks likely to change soon. The Government is keen to get operators who moved to offshore jurisdictions back in the UK for tax purposes but their is opposition from the operators as tax in the UK is higher than they currently pay being based offshore in popular gambling jurisdictions such as Gibraltar and Malta. ...top
Uruguay
The Uruguayan government does not offer gambling licenses, however there is no law to stop Uruguay citizens playing on foreign sites.
This month the Uruguayan government has drafted a bill aimed at centralizing government control over all forms of gambling within the country. The draft calls for a new agency which would look after all potential and current casinos, horse racing, lotteries and online gambling sites in Uruguay. The new gambling law will shortly be sent to parliament where it is anticipated it will pass. All online casinos in Uruguay would come under this monopoly. ...top
U.S.A
With the exception of sports betting (made illegal by the 1961 Wire Act) and contrary to regular misinformed reports in the National press, online gambling in the USA is not currently illegal at Federal level. However, some States have their own laws outlawing online gambling and in general, the market as a whole is seen as too risky by most reputable operators.
In general, it is widely accepted that online gambling is illegal (or with laws so grey that it may as well be) in the following States: Illinois, Indiana, Kentucky, Louisiana, Michigan, Nevada, New Jersey, New York, Oregon, South Dakota, Washington or Wisconsin.
Up until the introduction of the Unlawful Internet Gambling Enforcement Act ("UIGEA") in 2006, a blind eye was turned to online gambling. The UIGEA made it illegal for payment processors and banks to transfer funds to and from online gambling websites. Post recession, there are political moves afoot to legalise and regulate certain types of online gambling in some States.
On June 7th 2011, Rep. Jim McDermott introduced HR2607, also known as "the Internet Gambling Regulation and Tax Enforcement Act" which, if approved, would legislate Internet gambling tax collection requirements. ...top