Online gambling is a massive global industry that generated over $66.7 billion in revenue in 2020. However, the licensing and regulation of internet gambling sites, like Stargames casino, and services varies widely between countries and jurisdictions. This article explores the complex world of online gambling licensing frameworks and regulatory approaches across different international markets.
Recent Regulatory Developments and Trends
Several new regulatory developments and trends have emerged across major online gambling markets globally:
Tightening Restrictions
Markets like Germany enacted expanded regulations in 2021, placing restrictions on online kasinot games and adding more responsible gambling obligations. Some advert limits also tightened in the UK and Italy.
Additional Markets Opening
In late 2021, Connecticut and Louisiana launched new online gambling and sports betting markets for the first time under newly passed bills. These openings demonstrate continued growth in legal US markets.
Focus on Responsible Gambling
Many regulators in Europe and North America are prioritizing more responsible gambling protections, leading operators to invest in improving player safety tools, blocking options, training and analytics.
Emergence of Blockchain-Based Offerings
A new wave of blockchain gambling sites and crypto casinos have launched. These decentralized models allow anonymous, cross-border access but currently fall into a regulatory gray area in many regions.
As demonstrated above, various new licensing developments, amendments and trends continue shaping the global regulation and availability of interactive wagering internationally. Regulators balance multiple complex factors and policy goals in overseeing a dynamic, innovative and multi-billion dollar sector.
Growth and Revenues of Online Gambling
The advent of the internet and advancement of technology has fueled tremendous growth for the online gambling sector over the last two decades. Here are some key stats about the size and revenues of the global online gambling industry:
Table 1. Online Gambling Industry Revenues and Growth Projections
| Year | Revenues | Growth |
| 2020 | $66.7 billion | 11.6% |
| 2025 (projected) | $127 billion | 14% CAGR |
As seen above in Table 1, global revenues from online gambling amounted to $66.7 billion in 2020, an 11.6% increase from 2019. Looking ahead, the market is forecasted to grow at an aggressive compound annual growth rate (CAGR) of 14% from 2020-2025.
Models of Online Gambling Licensing Frameworks
There are several common policy and legislative models that countries utilize to govern online gambling licensing regimes:
Complete Prohibition
Some jurisdictions completely ban internet gambling sites and services, including markets like China, the majority of Arabic nations, and some U.S. states. Violators face legal prosecution and sanctions.
National Licensing
Countries like the U.K., Italy, Denmark, Spain and others have established nationwide gambling regulatory bodies that license operators. This covers factors like player verification, responsible gambling, and tax protocols.
Operators must obtain a valid license for each country they wish to offer internet wagering and gaming to. Obtaining these licenses requires meeting stringent standards.
Interstate Agreements
The U.S. and Australia have state-level licensing regimes, but allow some shared liquidity or player pooling between states under interstate accords. However, most states prohibit unlicensed offshore online casinos from offering services to their residents.
Key Differences in Regulatory Approaches Internationally
The scope and specifics of online gambling regulation varies significantly across different jurisdictions globally based on factors like:
Tax Rates
Tax rates on gaming revenues range from 15% to as high as 25% in markets like Sweden and France who apply higher gaming taxes. Select regions allow free play offers tax-free.
Permit Process
Obtaining permits can range from 6 months to over 2 years. Rigorous testing, oversight and monitoring requirements differ. Some require use of registered domestic payment processors.
Advertising Controls
Countries take divergent approaches on gambling ads targeting locals on TV, radio and online channels along with sponsorship rules.
Geo-blocking Tech
Jurisdictions like Australia, Spain, France and others mandate internet service providers to block unauthorized offshore betting sites and casinos from accessing local internet users.
As seen above, regulatory frameworks can impact operators’ costs, user experiences, responsible gambling measures and more. Thus licensing and compliance are crucial, yet complex considerations in offering online wagering globally.