Gambling over the internet became a possibility in 1996 when InterCasino launched thanks to proprietary online payment technology developed by WagerLogic. In the first few years following this industry’s inception, it advanced steadily. However, once smartphones became a thing and internet penetration increased, the sphere expanded rapidly.
Now, estimates are that this time next year, the global online gambling market will pull in annual revenues of $93 billion and that by 2028, this figure will hit $158 billion. Hence, as the number of people playing games of chance over the internet is greater than ever, many individuals and organizations have sounded an alarm regarding a potential rise in gambling addiction rates.
Betting has never been as accessible and diverse as it is right now. Moreover, various countries that previously never considered allowing this pastime are now passing laws to permit it as a way to generate new tax revenues from which they hope to plug various budget shortfalls.
In the subheadings below, an analysis gets presented of multiple European gaming markets, and how they choose to regulate playing games of chance over the internet. Also, a short breakdown will follow regarding gambling platforms that operate without a license and the dangers they bring to players.
Markets That Take Regulation Super Seriously
Without argument, in Europe, the UK Gambling Commission is the undisputed king concerning online gambling regulation. It is a body that got birthed in 2007, thanks to the passing of the 2005 Gambling Act. The UKGC boasts a reputation as a strict regulator that sets player-safety measures that other countries’ regulators mimic. In early-2020, it introduced Gamstop, a mandatory self-exclusion scheme for all licensed UKGC-approved operators. One year later, it brought forward gameplay restrictions such as wait times between slot spins, and now, the UKGC has publicly acknowledged that they are considering implementing source of funds checks for players. Hence, operators looking to break into the UK market have a strenuous time forming appealing platform offers, particularly since UK gambling sites now also face fierce competition from casinos not on Gamstop, or foreign sites that accept British players.
Sweden is another highly-developed European gaming market. For years, the state-owned company Svenska Spel, founded in 1997, had a monopoly on online gaming in Sweden. Though, all that came to an end in 2019 when a new law opened this territory for private operators. Yet, those that wish to offer their services to Swedes face many of the same challenges as British operators. The Swedish Gambling Authority is an entity that implements many of the same rules as the UKGC, and it too has a self-exclusion system akin to Gamstop called Spelpaus. It features four irreversible self-exclusion periods of one, three, six, and twelve months.
Territories That Are Tightening-Up Regulation
While the number of regions where online gambling is legal grows by the year, laws that regulate this pastime in multiple countries are still novel, and in many more, they are non-existent.
Germany is one of the Old Continent’s most populous nations and a region that has long held a fairly restrictive position towards gambling. Things started to change on this front in Deutschland in 2012 when 16 German federal states passed a treaty on allowing betting entertainment. However, it wasn’t until July 2021 that the Glücksspielstaatsvertrag (State Treaty on Gambling) came into force, opening the German market for homegrown and international interactive gaming companies. Now operators wishing to offer their services to Germans must first attain a state permit. That entails them getting subjected to state supervision and complex legal restrictions. Furthermore, the new state-regulated system in Germany will provide the country’s population with limited opportunities to indulge in gambling fun and mainly serves as a method to combat the black market. Germany now has a self-exclusion database called OASIS, and similarly to the UK, it does not allow credit cards at online casinos, and slots must lack the auto-play function.
The Netherlands also underwent a gaming revolution in 2021. It conceived the Netherlands Gaming Authority, Kansspelautoriteit (KSA), and its linked self-exclusion network – CRUCKS. Essentially, both the Netherlands and Germany are looking to copy the regulatory goings-on in the UK market, but they are not quite there yet.
Loosely-Monitored Markets
Small countries such as those in the Caribbean have long boosted their local economies by creating lax gambling laws that allow operators based within their borders to offer their services internationally. That has been happening since the inception of this sector. Curacao and Antigua were among the first nations that decided to create internet gaming licensing bodies. Alderly, the Mohawk Territory of Kahnawake and Malta followed suit.
These regulators are the organizations behind what Brits call casinos not using Gamstop. According to the informational site non-Gamstop-casinos.com, a non Gamstop casino is an interactive gaming platform that lets players with a UK IP address join its ranks, despite the Gambling Act of 2005 advising these players that they should only play at UKGC-licensed sites. Lately, the non-Gamstop casino is a term that has received extensive adoption throughout Europe to describe platforms with an international license.
The thing with these small-country regulators is that they aim to keep their appeal by not featuring as authoritarian measures. One like those from some of the previously discussed organizations. Hence, at a casino not on Gamstop, players will not encounter any spin timers, low max bet limits, and irreversible self-exclusion bans,
It is worth pointing out that regulators like the Malta Gaming Authority and eGaming Curacao ask that their licensees have site-specific self-exclusion and allow users to set loss/deposit limits. Given that there are no universal bans here, it is up to players to decide if they will entirely neglect this hobby or jump to another operator despite an active ban at their native site.
The Unlicensed Internet Sphere
Even in this day and age, unlicensed gambling sites are floating around the digital sphere. Some people label these casinos not using Gamstop as well, even though that term mainly applies to platforms with a small-country license. Still, for Brits, any online casino that is not part of the Gamstop network can fall under the classification of a casino, not on Gamstop.
Even though unlicensed casinos may work the same as those with proper regulatory approval, meaning they may feature advanced SSL encryption, they are still dangerous. In the case of a dispute, players have no party to turn to and attain a resolution. They get left at the mercy of their unlicensed operators.
Also, on these platforms, scams are most likely to happen. Now, the word scam does not necessarily only refer to deceptions where someone gets tricked into something. It can also mean that an operator will implement complicated payout procedures and that it makes things super hard for players to see their withdrawal requests go through.
What Type Is Best For Casual Gamblers
Each level of online gaming regulation has its benefits and drawbacks. At the end of the day, it is all about finding a balance between safety and freedom. The perfect model would likely involve a universal self-exclusion program paired with the gameplay liberties one can find at non-Gamstop casinos. Everyone wants bonuses and vast game catalogs, but those that cannot control their urges may succumb to the temptation of betting more than what they can afford. For that, site-specific self-exclusion is not enough. Nonetheless, it should not come at the expense of limiting much of the fun associated with online gambling.
