Online Gambling Regulation and the iGaming Market: Navigating Online Gaming in the EU & USA

As the online gambling industry grows, more changes will occur in how Europe and America regulate this rapidly growing sector. Asian regulators as well as European authorities have both forged unique identities, but their regulatory frameworks are underpinned by the cultural and legal nuances of each region. We take a look at EU and US online gambling regulations now, their history, and what it means for both the players as well as operators. By the way, Banger Casino Live is a regulated, licensed operator available around the world.

Europe: A Unified and Progressive Online Gambling Regulation System

The online gambling industry in Europe has been positively influenced by the approach to regulation which follows general EU law. The likes of the UK, Malta and Sweden were the first to embrace this change as they executed comprehensive law that allowed online casinos & sportsbooks operate in a regulated way. Two of the most trustworthy regulators in online gambling are Malta Gaming Authority, and also UK Gambling Commission ensure that operators operate at high standards with respect to their fairness, security & responsible gaming.

European rules on the other hand are more focused on player safety, with strong licenses being enforced after stringent applications for each licence submitted. When it comes to online gambling, you can really only operate on certain markets if you have a valid license from EU member country. In tother words, European players get the opportunity from a wide range of licensed operators with good promotions and bonuses.

U.S: Fragmented and State-Specific Regulations

The USA has a more complex regulatory environment, due to its federal governance structure. Online gambling was largely forbidden at the federal level for years, although recent measures have since allowed states to set their own rules (in particular one full of explanations known as the repeal of PASPA in 2018), with both land-based Americans and American visitors now able to legally use internet venues.

The scenario is different in the USA as online gambling regulations vary wildly between states. Online gambling has been embraced by states like New Jersey, Pennsylvania, and Michigan where state-licensed casinos operate full slate of casino games (casino tables/slots), online poker rooms and/or sportsbook options. Nevertheless, despite these trends over the last seven years most states ban or restrict online gambling in one form or another making a complex market both for potential players and operators. In other words, U.S. players usually face a smaller pool of regulated choices because each state adopts its own legislative method to internet gambling industry legislation as compared to the Europeans who can play at almost tens times more sites than Americans

State legislatures struggle to pass new — and even update old— gambling laws, which leaves many areas missing out on the latest innovations that drive overall growth in revenue.

Taxation and Economic Impact Of Regulated iGaming and Sports Betting

Taxation is one way in which the design of online gambling markets, such as those with respect to consumer protection or advertising restrictions, are influenced by policy makers. Certainly tax rates differ across different countries in Europe but regulated gambling is a big revenue driver most everywhere. Malta and the UK have managed to draw some of the globe’s largest online operators armed with a more tax-friendly environment which in turn has been beneficial for their respective economies but also, no jobs were created.

In the US as well, states that have already legalized online gambling with tax revenues being very impressive, supporting social works such as public services and even education / infrastructure. But at the same time, high taxes can also prevent operators from entering a market which in turn leads to less competition and fewer choices for customers.

Future Trends: Towards Convergence?

The regulation of online gambling in Europe and the USA is still a work-in-progress, but it will likely change more as improvements are made. The story continues to be responsible gambling measures, with increasingly tight advertising controls across Europe and activity on problem gambling.

Across the pond in the USA, we are heading much towards more widespread legalisation as states see online regulated gambling sites can make them a lot of dollars. But the changes are occurring at an irregular pace, and it is still not entirely clear whether a more homogeneous national approach will take shape.

Conclusion: Two Paths, One Industry

The USA and Europe have implemented different mechanisms for regulating IG, consistent with their respective legal and cultural traditions. The player-first focus and humble adherence to some kind of common standard has made gambling into a multi-billion-euro economy, possibly even (gulp) more than one trillion per year across the network continent on Europe's shores; meanwhile federalism is what football looks like in between states with different forms determined very much at local level. With legislators in both regions still working through the amendment of their laws, it will be vital for stakeholders to comprehend these regulatory frameworks moving into this new era for online gaming.