Online gambling is a thriving business that is slated to grow at a CAGR of 9.96% for the period between 2022 and 2027. The industry has evolved dramatically over the last two decades or so to provide advanced gaming solutions. As online gambling gained prominence, calls to regulate the industry increased. Gambling has always been a heavily legislated sector, but the advent of online casinos presented new challenges. Countries had to revise laws and come up with new ones to govern online gambling operations. Presently, most countries have regulators tasked with keeping an eye on internet casinos and related services.
Some of these authorities are more reputable than their counterparts because they have higher standards and a long history. In some countries, online gambling regulation has been a priority for years, while others are playing catch-up. Thus, licences from certain regulators, like the UKGC, carry a lot of power. What does a regulator do, though? When searching for an online casino, you know it has to be registered by a reputable agency. What roles do these bodies play in ensuring players gamble safely? Understanding these facts reinforces the importance of casino licensing.
The Operation of Regulatory Authorities
National gambling regulatory agencies have different organisational structures, but their roles remain, somewhat, similar. A regulator’s responsibility is to implement government policy by ensuring operators satisfy their legal requirements. It establishes rules for online casinos to guarantee they provide services and products safely to players. Unlike in brick-and-mortar casinos, internet gambling requires you to entrust your money and data to a faceless third party. So, you are banking on the operator’s reputation, reliability and good faith that you will be safe when using its platform. If a gambling site is under the mandate of a regulatory body, then the trust increases. Regulators perform a set of different roles, but it all comes down to protecting the consumer. For this reason, always gamble on licensed platforms. When looking for Casinos accepting Solana, stick to the operators recommended on objective review sites. Licensing reduces the risk of online casinos taking advantage of players since regulators cover the most critical components of online gambling.
Regulatory bodies award and revoke licences to businesses providing internet, online or remote gambling services. Licenses are given out in accordance with national, federal or state laws. A regulator can restrict the number of gambling licences awarded or not. Some countries have an open licensing regimen, meaning that operators can hold more than one license. However, some regions limit licences to avoid market saturation. The regulator determines the type of entity that qualifies for a gambling licence. Different nations have varying definitions of iGaming, which determines the licensing requirements operators have to meet. Also, most countries require separate licences for different kinds of games and betting offerings.
Suitability of Owners and Executives
iGaming brings in considerable revenue, hence the reason it’s an attractive venture for many entrepreneurs. Regulators exist to make sure that not every individual or entity that wants to put up a gambling platform can do so. Not everyone is qualified to run this type of business. Due to the large sums of money involved and the data collected from players, internet gambling attracts various bad actors. Criminals can use these sites to launder money or fund illicit activities. Regulators prevent this by assessing the owners and executives to verify their suitability to operate online casinos.
One way to feel safe when using an online casino is to know the games and other services are fair. Regulators institute guidelines for fair play. Licensed operators must provide fair games that give players equal winning probabilities. Casinos must demonstrate that RNGs and the gambling software have not been tampered with in any way. Theoretical payout percentages must be verified to ensure an operator is not taking advantage of customers through false advertisements.
Accounting Systems and Procedures
The manner in which an online casino provides financial transactions is paramount to its service delivery. Internet gambling for real money requires you to deposit funds into a casino account. You must also be able to withdraw money when necessary. Therefore, an operator must offer dependable and secure payment solutions. Regulators have to make certain customers can transact safely. Additionally, they require licensees to protect customer funds by segregating them. It means a casino should keep players’ monies separate to cushion users in the event the business went down.
Promoting Responsible Gaming
The argument that online gambling increases the risks of problem gambling has been going on for as long as internet casinos have existed. For this reason, regulatory agencies have been vocal about implementing measures to reduce the risks of gambling addiction. It’s why regulators require licensees to advocate for safe gambling on their platforms. Regulated casinos have responsible gaming resources to help players control their activities and know when they need assistance. Operators have tools, such as deposit limits, time-outs and self-exclusion that customers can employ to avoid developing problem gambling.
A critical factor to keep in mind about online gambling regulation is that it doesn’t have one global entity doing it. The industry has too many interested parties for this to be possible. Therefore, regulators operate under specific jurisdictions. Some of these jurisdictions have built solid reputations, making them the go-to for top-rated casinos. The more reputable a regulator is, the tougher it is on operators. These authorities also charge more for licences than their less recognised counterparts. Some of the most prominent jurisdictions include the United Kingdom, Alderney, Isle of Man, Kahnawake, Malta, Gibraltar and Queensland.
As online gambling continues gaining popularity, regulation becomes ever more important. Regulatory authorities are integral in protecting players and ensuring operators offer legal gambling services. The roles regulators fulfil are almost standards across different jurisdictions, although mandates can vary widely. Regulators oversee licensing, accounting procedures and game fairness, among other crucial elements.