Not so many years ago, the online gambling environment looked like the Wild West, with bookmakers, casinos and poker rooms operating by their own rules. The most important gambling markets were eventually regulated and respectable licensing bodies now oversee the activity of casinos. The number of countries that still ignore this lucrative market is shrinking and many more are quickly moving towards tougher laws. The UK Gambling Commission and the Malta Gaming Authority are two of the best-known and most respected regulatory bodies in Europe. The casinos licensed by them are held to the highest standards and they appeal to prospective players because of their fairness and reliability.
Online gambling in the crosshairs of governments
The aforementioned regulatory bodies and their counterparts from other European countries do a great job at keeping online gambling safe. The US market is growing and you can find more information here regarding online sports betting regulation. Local governments are also interested in maintaining transparency and fairness, while also taxing the industry. State coffers receive a lot of money from online gambling, so they are particularly concerned about what’s going on. Ultimately, their citizens benefit from this influx of capital, as the money is spent on education, healthcare and infrastructure.
This is perhaps the main advantage of having the online gambling industry fully regulated, but there are other pros worth considering. When casinos and bookmakers are given free reign, there is always the risk of them exploiting the proverbial house edge. In the absence of checks and balances, dishonest operators could cheat players and take advantage of the most vulnerable punters. Both are serious threats to the online gambling ecosystem and a regulated industry greatly decreases the odds of fraud.
Another reason why it is important to have online gambling fully regulated is that licenses level the playing field. When every operator is bound to play by the same rules, nobody can cut corners and try to get an unfair advantage. The only way of bringing in new players while keeping existing members happy is to provide the kind of services they demand. Generous bonuses, a nice selection of sports and games, as well as a professional and friendly attitude are needed to thrive in this competitive industry.
The threat of over-regulating gambling
There are clearly more reasons in favor of having a fully regulated online gambling industry, but there are also shortcomings. When the governments are heavy-handed and intervene without understanding the intricacies of Internet gambling, the results are negative. Excessive taxation is the biggest threat, as most online bookmakers, casinos and poker rooms have a slim profit margin. If they have to pay a significant amount of their turnover in taxes, they risk going bankrupt.
Many choose to relocate to other countries, but most will simply reduce the number of promotions, while offering smaller bonuses. This means that players are indirectly affected by such measures, so the authorities need to act carefully. Public consultations with the gambling industry and even the players are recommended to maintain the fragile balance.
Title: Pros and Cons of fully regulating online gambling
Posted On: 12/11/2019
Author: The Casino Sites