International Gaming Law
International gaming law refers to the legal and regulatory frameworks that control gambling activities such as casinos, sports betting, online gaming, and lotteries across different countries.
Cultural and Religious Views
Gambling is seen as illicit or even contrary to religious practices in some countries. These tend to have the tightest gambling laws or even outlaw gambling completely. At the other end of the spectrum, some societies are so liberal that almost all forms of gambling are legal, but never without protections for consumers and society
Political Differences
Societies can be suspicious of gambling and it can suit politicians to campaign for various forms of restriction or bans on certain gambling products or activities. Where gambling is legal, most regulation is broadly similar, but differences in local laws and political priorities will impact how it operates.
Tax Policies
By far the majority of countries and states that allow gambling levy taxes in some form on either winners or, more often, those who operate the wagers. Taxes are levied at different rates, charged at different points, and collected in different ways, adding a uniquely local layer of regulation in these markets.
Legal Systems
Legal traditions differ around the world. French and Spanish-speaking countries follow Civil Law, whereas the United Kingdom and the USA follow Common Law. These are fundamentally different approaches to law and impact every situation in which the law applies, including gambling.
Key Types of Gambling Regulation Worldwide
Casino Gambling Laws
Regulation of physical casinos tends to focus on the venue in which the gambling occurs. There are often rules as to who can own a casino, and premises are licensed to conduct gambling activities. A license is contingent upon operators following strict rules covering employees, customer age verification, slot machine and table game operation, certification and inspection, and money handling, among other things.
Sports Betting Laws
When sports betting happens in a retail or racecourse environment, it is regulated in a similar way to a casino. There are rules about ownership and employees, and premises are permitted to operators provided they follow the terms of their license.
Online Gambling Regulation
Now that most forms of gambling can be carried out online, the nature of gambling regulation has become very different. Some challenges facing online gambling regulation include:
- The scale of an online operation can rapidly dwarf that of a physical one, so regulation is a much more critical activity
- The online environment allows for gambling from any location at any time, so the potential for harm to consumers is greater.
- Whilst the location of the customer is less critical, it still matters as laws differ across borders and state lines
- The age of customers is more difficult to verify and can be falsified so additional steps are specified to avoid underage gambling
- Advertising for a physical casino will tend to be local, whereas online gambling is advertised on digital platforms and across social media, requiring different regulations
- Where many casinos and betting shops have worked traditionally in cash, the online environment requires a regulated digital payment system to both deposit stakes and receive winnings
Skill Gaming
In most jurisdictions, the definition of gambling requires a chance element. As such, games of skill are viewed differently, often not requiring a gambling license. Some game creators and providers introduce a skill element to prevent their games being covered by gambling regulation.
Lottery Laws
Lotteries have become so common in western countries that they are often not seen in the same way as other forms of gambling. That said, there will always be age restrictions governing who tickets can be sold to. Lotteries can now be physical — through tickets sold at retail outlets — and online, bringing many of the challenges of both gambling types.
Regional Overview of International Gambling Laws
In the United States, states have the power to dictate their own gambling laws, and set up a state regulator to set the rules and supervise whether they are being followed. Tribal governments have a history of regulating gambling activities on their lands, and these will often not map neatly onto state boundaries.
These two factors result in:
- State-by-state regulation, meaning the types of gambling that are legal and the rules governing its operation are different in each state
- Separate agreements covering tribal casino and sports betting operations
Into this relatively stable mix has been added prediction markets. These apparent financial derivatives are widely marketed as sports betting but are regulated by a federal authority. The situation is occupying a great deal of time in the US courts, and is likely to be sorted out in the end by the US Supreme Court.
The UK has a long tradition of legalized gambling. In the early 2000s, foreseeing the coming of online gambling, it passed legislation which created a framework for it to be offered legally, regulated, and taxed. The sector has evolved rapidly since the law was passed and has been regularly overlaid with regulations covering emerging threats or harms to consumers.
The UK market is regulated by the Gambling Commission which issues gaming licenses and monitors whether operators and suppliers in the sector comply with their terms. The UK Gambling Commission has some of the widest powers of any equivalent regulator elsewhere including for anti-money laundering (AML). It also oversees one of the largest single regulated markets worldwide and has a history of applying multi-million pound fines on operators found to be in breach of their obligations.
In addition to AML restrictions, the advertising of gambling is subject to strict rules in the UK. These cover the channels, timing, messaging, and personalities who deliver them.
Gambling law in Europe is as varied as in any other region. Other than Italy and the UK, gambling was regulated earlier in smaller countries, like Malta, with large markets like Germany joining the party relatively late.
- Unlike other areas of business, EU gambling law is not harmonized, although many activities related to gambling, like payments and digital commerce, are covered by EU-wide regulation
- Outside the EU, every country has its own gambling laws, although various associations have been set up to foster greater collaboration
With very different cultural and religious traditions, Asia has a kaleidoscope of gambling laws. In most countries with Muslim traditions, gambling is strictly forbidden. However, some have created areas where tourists can play casino games.
China has the largest population of gamblers despite betting and gaming being illegal in most of the country. One region, the island of Macao, is home to some of the highest concentrations of casinos in the world under the unique rules of the administration. China’s citizens also travel overseas to countries like Australia to gamble, although this is increasingly subject to rules in those countries.
India has more of a tradition with skill games, and there is currently very little legal gambling. Differences between federal and state governments and courts make the legal landscape ever-changing.
Emerging markets like Japan and Thailand are in the process of creating and licensing integrated resorts where casino gambling is part of the tourist offer.
Latin America has different traditions and preferences in gaming, including recent developments to tighten laws around gambling advertising.
Brazil is the biggest gambling market in Latin America and only recently legalized gaming. Differences between federal and state laws have brought about some unintended consequences, particularly around license conditions and enforcement practice.
Spanish speaking countries like Colombia, Argentina, and Peru have broadly similar gaming laws, but differences at the margins make a one-size approach to the region tricky to execute. Market entry by acquisition is a preferred strategy for many international operators.
Australia is a large and mature market that regularly updates its gambling laws to take account of technological developments and changes to consumer habits. It is currently undergoing a review of advertising rules, particularly in relation to the use of influencers to promote casino games.
Australia’s gambling laws are the responsibility of its states which also have their own regulators. A united approach to tackling the black market through targeting of URLs and payment providers has made Australia one of the most channelized markets, although restrictions on certain gameplay encourages gamblers to seek offshore alternatives.
Africa is not one market but many, and developments in gambling law are very different across the continent. That said, moves to take a common approach to problem gambling and the black market have resulted in greater commonality.
There is a distinct difference between French-speaking countries and the rest. North African countries with their Muslim tradition generally outlaw gambling.
Key Challenges in International Gaming Compliance
Gambling is now an international industry with many of the main players active in markets across the globe. With this comes unique challenges.
Different Legal Environments
From an operator perspective, being able to use the same digital infrastructure in multiple markets would represent a huge opportunity to reduce cost. However, differences between legal environments is one of the main barriers to that option. Legal departments have grown and are now one of the biggest cost centres at the HQ of international gaming operators and suppliers. The cost of compliance is cited by operators as a major influence on their strategies.
International Licensing
While licenses typically operate at a domestic level, this does not automatically mean that operators must have a physical presence in all the markets in which they operate. Many operators will rely on third-party licenses to roll out their product offer across Europe and elsewhere.
Changing Landscape
Rapid evolution of gambling laws are some of the biggest challenges to international operators. Barriers to entry are relatively low and players will regularly enter or leave jurisdictions where regulation is made looser or tighter.
Financial Regulations
The financial component of gambling means the industry has to contend with financial as well as gambling regulations. Anti-money laundering will often be regulated by a financial regulator bringing an extra complexity to compliance.
How Gaming Lawyers Help Companies Navigate Global Regulations
Private practice lawyers specializing in gambling law have multiplied as the industry has grown. Gaming lawyers are retained by all parts of the industry, from regulators to operators and suppliers.
Regulators will often use 3rd-party lawyers at critical moments when new laws and regulations are being devised. This ensures quality advice without the need to employ a permanent expert team.
Although gambling operators retain an in-house legal team, they regularly rely on external counsel for advice and support. Out of house lawyers can provide advice on specific licensing issues in markets where a company is new or which is changing
Gaming lawyers also work in markets which are not legalized providing advice on how products can be structured to avoid falling foul of restrictions.
The Role of International Organizations in Gaming Law
International organizations play an important role in the propagation and enforcement of gambling law.
The International Association of Gaming Regulators
The International Association of Gaming Regulators (IAGR) is the leading body representing regulators from most countries around the world. IAGR holds regular conferences where its members will share the real-world challenges of gambling regulation and learn valuable lessons from each other.
The European Gaming and Betting Association
The industry has multiple trade associations around the world. The European Gaming and Betting Association (EGBA) lobbies governments on behalf of the industry and produces its own codes of conduct on, for example, marketing and responsible gaming.
The International Masters of Gaming Law
The International Masters of Gaming Law (IMGL) is the leading association of gambling lawyers and the only organization whose members join by invitation only. IMGL has played a significant role in the development of international gaming law and its focus on education is a vital resource for the industry worldwide.
FAQs About International Gambling Laws
Are online casinos legal worldwide?
No, online casinos are relatively new products and have not been legalized in many countries. Some operators still offer them on the presumption that they are permissible unless specifically outlawed.
Which countries allow sports betting?
Sports betting is legal in the majority of jurisdictions worldwide. The main exceptions are those countries where there is a religious tradition which sees gambling as sinful (muslim dominated countries in particular).
How do gambling laws differ internationally?
Gambling laws differ in the same way that other laws differ depending on the legal tradition, policy objectives and cultural preferences. Most have similar components but will be quite different in the details.
Who regulates international gambling markets?
There are no international gambling markets, as such. Some operators rely on licenses in one jurisdiction (and are thus regulated by that country’s gambling regulator) to offer products around the world but the applicable law covering the customer is normally that of their home country