The virtual gaming business is huge and enticing, full of casino-style games, sports betting options, and enticing sign-up offers all vying for your business. The industry's reach is even more astounding when you consider the reach of mobile devices. It's now possible to play in virtual casinos from virtually anywhere. But can you do it safely, legally and without undue harassment?
It depends on your current location and the gambling site you wish to access. The legality of online gambling is very complex, with a multitude of jurisdictions and regulators. Even some states that allow online gambling will only allow their own residents to play at sites approved by the state. And, of course, the online gambling site may have restrictions on who can and cannot access the site.
This guide has been structured with your location and its laws in mind. We want you to have a clear understanding of not only your options, but also the legal status of online gambling in your particular part of the world. The information below will help you stay on the right side of the law.
For those that want to jump to the chase, we have organized the information by region:
- N. The continent of South America is located mostly in the Southern Hemisphere, with a relatively small portion in the Northern Hemisphere. It lies between the Pacific Ocean in the west and the Atlantic Ocean in the east. South America consists of 12 countries: 1. Argentina 2. Bolivia 3. Brazil 4. Chile 5. Colombia 6. Ecuador 7. Guyana 8. Paraguay 9. Peru 10. Suriname 11. Uruguay 12. Venezuela and the territories of French Guiana (an overseas region of France) and the Falkland Islands (a British overseas territory). The total area of South America is about 17.84 million square kilometers. The continent's highest peak is Aconcagua (6,961 meters)
- its lowest point is the salar (salt flat) at Pascua Lama, Chile, at an elevation of about 3,280 feet.
- Australia;
- Europe;
- Asia;
- Africa, described as the second largest and second most populous continent, is bounded by the Atlantic Ocean to the west, the Mediterranean Sea to the north, and the Red Sea to the northeast. It lies almost entirely within the tropics and encompasses a wide variety of environments and peoples. Its land area of about 30.3 million square kilometers (11.7 million square miles) covers about 20.4 percent of the Earth's total area and 22.2 percent of its land surface. Its estimated population of 1.2 billion people (2013) accounts for only about 15.4 percent of the world's total population;
What Do We Mean by “Online Gambling/Licensing Jurisdictions”?
As we mentioned earlier, different areas of the world have different views on online gambling. Some have banned the whole thing, while others allow it with a light touch. And even within the same country, different states can have completely different laws! So, use an offshore site? These are all things to consider.
For example, the United Kingdom used to allow players to use virtually any online casino because gambling was legal there. But in 2012 the situation changed. Now you can only legally access online casinos that have (1) servers somewhere in the UK and (2) licenses from the UK Gambling Commission.
There are a vast number of jurisdictions and regulators, and as the previous example shows, they are in a constant state of flux. Smart operators keep abreast of local developments that affect their business - especially those of the types of organizations listed immediately below that are in the business of either licensing or otherwise ensuring compliance with gaming regulations. You can find all of this, and much more, in this handy compendium or on its companion website.
Why Is Online Gambling Regulation & Legislation Important for You?
The first reason it is important to learn about industry regulations and laws is for your financial security. Scams abound in the online gambling world, and the best offense is a good defense. If you know where to find the legitimate, licensed and regulated online casinos, you can have a great time playing their games with the peace of mind that comes from knowing you're not playing in a digital version of a back alley.
But be warned! There are certain regulatory bodies, typically in small Caribbean islands, that offer little more than a license in exchange for cash. They do not actually monitor the sites or provide any consumer protection.
Also, a handful of gambling sites will play by the rules long enough to get a license from one of the governing bodies - a license they will be happy to advertise on their websites - only to promptly stop playing by any of the rules they are supposed to be following. They lure potential players into a peaceful state of near-safety, which they obviously do because it helps them get more money under their control. But fear not! Sites like this one will help you steer clear of such sites.
Here are some links to various licensing authorities that you may see when you are looking around online. Check them out to make sure that any site you're thinking of using is actually under the jurisdiction of the licensing authority they flaunt on their home page.
- Alderney
- Antigua and Barbuda;
- Belize;
- Costa Rica;
- Curaçao;
- Cyprus;
- Gibraltar;
- Isle of Man;
- Kahnawake;
- Malta;
- Panama;
The second reason to pay attention to regulations is simply to ensure that you are not breaking any laws. Individual users are rarely punished for using illegal online casinos - they are too numerous to track - but that doesn't make the problem go away. If you happen to win a life-changing amount of money at an online casino, you may not want to play with the prospect of receiving your winnings in a way that could get you into trouble.
For a more thorough look at online gambling regulation, please see our guide dedicated to this subject:
Online Gambling Laws by Region
North America
United States
The online gambling scene in the United States is a bit murky. It is not illegal on a federal level, but it is not legal either. What is certain is that in 2006, the U.S. Congress passed a law making it illegal for banks to handle money sent to or received from online casinos.
In turn, many gambling companies stopped allowing American players to play on their sites. Nevertheless, some continued to accept customers residing in the United States, claiming that they were within their rights and completely aboveboard because they were licensed and regulated in their own jurisdictions.
Currently, the legality of online gambling is determined primarily by the state in which a person resides. Some states have not only allowed the practice, but have undertaken the task of offering their own licensing and regulatory procedures to govern it. Other states have banned online gambling altogether, while many others are still debating how to resolve the issue.
To learn the legality of online gambling in your state, please follow the links below:
Canada
Like the United States, Canada has a federal system that allows its provinces to regulate online gambling within their own borders. Some provinces rely on federal law to cover gaming, while others have chosen to establish and operate their own gaming facilities.
While there is no law in Canada that specifically states that online gambling is illegal, there is a law that criminalizes the unlicensed provision of gambling services to Canadians. As a result, similar to the United States, the legality of online gambling in Canada remains somewhat of a grey area.
For a more in-depth understanding of gambling laws in Canada, check out our full guide at the link below:
South America
In almost every South American country, some form of gambling is legal. However, the legality of gambling comes with a number of restrictions. For one thing, some countries only allow certain types of gambling. In Colombia, for example, you can participate in itinerant forms of gambling, such as lotteries and betting on the outcome of horse races. In Argentina, the legal forms of gambling are pretty much the same.
For the gambling laws in each individual country, please read our full guide linked below:
Australia
Australia has strict laws regarding gambling. Currently, the only legal forms of betting are on sports and lotteries. These are regulated by the Interactive Gambling Act of 2001, which makes casino gambling and live betting illegal in the country. However, there's a big catch: there's no law that actually stops Australians from using foreign gambling sites. And that's exactly what a lot of people in this country do.
On the other hand, neighboring New Zealand has clear and concise rules for online gambling. Since 2003, their law has explicitly stated that New Zealand citizens can legally access overseas gambling operators. The only caveat is that the sites offering these services cannot advertise in the country.
For more details about the country-specific laws in Australia, follow the link below:
Europe
Online gambling laws in Europe vary from country to country. Some ban it completely, while many others strictly regulate and allow the pastime. Recently, a country with a clear and solid regulatory process is the United Kingdom.
In the United Kingdom, all gambling establishments open to the public are licensed by the Gambling Commission. This includes online gambling. Citizens of the country are prohibited from accessing gambling websites that are operated or licensed outside of the country.
France has similar laws to the UK; they only allow foreign sites that meet their legal requirements. Individual country guides detailing the specific gambling laws of each European nation can be found below:
Asia
In Asia, gambling laws vary greatly from nation to nation. Without a doubt, Asia is a huge continent, so it makes sense that attitudes towards gambling would vary. For this reason, we have compiled some specific guides to the gambling laws of individual Asian countries.
Africa
Gambling legislation is quite unusual in Africa, with South Africa being a notable exception. There are numerous land-based gambling companies operating across the continent, but there are virtually no specific laws governing online gambling.
As South Africa is the only nation with precise legislation governing online gambling, our guide to gambling law focuses on this one country.
For more information regarding online gambling law in South Africa, follow the link below:
Regulatory Bodies/ Licensing Authorities
Alderney
In Alderney, the Alderney Gaming Control Commission is responsible for issuing licenses. The Commission is strict and demanding to the point that it can be said to have some of the most stringent requirements for license applications anywhere. We respect the Commission's work so much that we advise applicants to begin their work by preparing to meet the Commission's requirements.
Antigua & Barbuda
The Directorate of Offshore Gaming in Antigua has been issuing online gambling licenses since 1994. At one time, the notorious offshore banking center had more active licenses than any other gambling-focused regulatory body in the world.
Belize
Like Antigua and Barbuda, Belize was an early entrant into the world of online gambling licensing. In 1996, the Belize Computer Wagering License Board was established. However, until 2004, companies operating under one of Belize's licenses had to house their customer service operations in Belize. The rest of the operation could be located elsewhere.
Costa Rica
Although general licenses are available in Costa Rica, actual regulation is decidedly lacking. If an online casino only holds a Costa Rican license, that should set off some alarms for anyone thinking about becoming a customer. There are no specific licenses for betting and gambling. All that is required is a general license, which is easily obtained for a fee.
Curacao
This Caribbean island is well known for its massive offshore banking sector. However, it has also become a base for offshore gambling operations. Regulating this burgeoning industry is the Curacao e-Gaming Licensing Authority, which offers a single license for all forms of gambling, keeping things simple for both regulators and operators. In essence, if you get a license from them to conduct gambling business, you can do it in any way you want, and that would include online way.
Cyprus
Gambling regulation and licensing in this country is overseen by the Ministry of Finance. Within this jurisdiction, the only forms of gambling permitted are - Fixed-odds betting - Lottery-style games
Gibraltar
The Gibraltar licensing authority is strict and well respected. They have been issuing gaming licenses since 1998 and have an excellent reputation for their regulatory practices. Their licensing is overseen by the Gibraltar Regulatory Authority, which you could say has been investigating the licensing of eGaming since 1998 by looking at the eligibility and suitability of operations that hope to obtain a license.
The Isle of Man
In this jurisdiction, obtaining a license is not simply a matter of filling out forms and paying the required fees. The scrutiny one must pass to secure that license is intense, and it is maintained at a high level throughout the life of the operation. For potential patrons, this is a very good thing.
Kahnawake
An Indian reserve in Canada operates this regulatory jurisdiction. The Kahnawake Gaming Commission was established in 1998 and began issuing gaming licenses a year later. They work very closely with many other regulators around the world.
Malta
Panama
In 2002, Panama established itself as a jurisdiction for gambling legislation. They now have a control board that runs the gambling operations and also the establishments that are licensed to gamble. This board only certifies online gaming establishments that meet their strict standards, and they have yet to declare any non-compliant establishment as a legally operating online casino.