Legal Updates in the Online Gambling World: Navigating the Regulatory Landscape

The online gambling industry has been around for a few decades, and in these decades, much has changed regarding the legal and regulatory landscape. What once may have been seen as open season for newcomers into the industry has been going through remarkable changes. The government is grappling with what to do with the industry, how to regulate it, and, in some cases, whether it should be legal. This puzzle is why some states have taken it into their own hands regarding legalizing and regulating it. But the rules are changing consistently, especially as the industry gains popularity.

Below, we will look at changes in the current online gambling market.

Current legal standing

While online gambling has gained traction, it is only legal in six states: Delaware, Michigan, New Jersey, Pennsylvania, Connecticut, and West Virginia. On June 20, 2023, Rhode Island became the latest state to legalize online gambling, and once the law gets implemented in 2024, this will bring the total to seven. Other states across the country have been considering the idea of legalizing online gambling, but currently, these are the only states that allow for online gambling within their borders. If found to be online gambling in other states, there could be consequences.

Platforms within these jurisdictions have to abide by the rules set by them. For instance, Michigan has the Michigan Gaming Control Board, which watches the licensing process and ensures sites comply with the regulations set out by the state. Most state regulations include age limits, taxation rates, licensing requirements, and, in some cases, what type of games are eligible for online gambling.

Licensing requirements

In all of the states mentioned above, to operate an online gambling platform within their borders, you will need to have an online gambling license. While getting a license can be fairly straightforward, you must have and demonstrate certain things to obtain it. These items include:

• Personal documents (Background check, passport, reference from your bank of choice, and proof of address)
• Certificare of the RNG
• A description of your software functionality and the games
• Agreement with software providers
• An understanding of the owner’s financial experience
• Reassurance gambling activities get presented openly and with transparency.
• The implementation of AML/KYC policies

While it is still possible to deny your licensing application, the odds of getting a license increase if these requirements are in place. But in addition to these requirements, there may be additional requirements depending on the jurisdiction you choose to apply for. Understanding the specific jurisdiction’s requirements is necessary to approve the license application.

Emerging Markets.

New Jersey was one of the first states to legalize online gambling, and so far, this market has managed to bring in $6.91 billion since first legalized in 2013. Pennsylvania has brought in $4.34 billion once it legalized online gambling. So these states, along with the other states where online gambling is legal, have shown there is a demand and room to bring in money. Pennsylvania has demonstrated to be a market with a lot of promise as the state has brought in close to the same amount of money through online gambling in less time.

As mentioned earlier, there have been other states attempting to legalize online gambling. California has been trying for many years to pass legislation, but it remains a far-off possibility. New York is the next promising market but has also found it challenging to pass legislation. Most states often bring up the topic, but not much gets down toward legislation. So, New Jersey and Pennsylvania are looking to capitalize on the limited market. But states like Connecticut and Rhode Island, two of the latest states to legalize online gambling, are looking to be emerging markets.

Emerging markets within the industry

The online gambling industry is always involved and looking to make themselves available to more people. One of the ways they are doing this is through mobile gambling apps. These apps are growing in popularity, and the industry sees this as an opportunity to reach more people, as everyone in today’s market owns a phone. Companies from this top ten list are investing more in online mobile apps, which appear to be the market with the most potential within the industry.

Conclusion

The internet has not been around for too long, but it has been making its impact clear. As opposed to going to a casino, online gambling has emerged as a market many players are switching to. It provides the convenience of not having to leave the house with the bonus of getting the same rewards you would earn from an actual casino or brick-and-mortar gambling site. This market will grow in the coming years, and more states are considering allowing their populations access to the industry. With attitudes toward the industry changing and more states seeing the economic benefit of having online gambling accessible to the population. The push to bring the industry to their state and finetune the regulations will only grow.