Online gambling (also known as iGaming or iGambling) refers to any form of gambling conducted over the internet, including virtual poker, casinos, and sports betting. The first online gambling venue debuted with the ticketing for the Liechtenstein International Lottery in October 1994. Today, the global online gambling market is valued at approximately $40 billion annually.
Legal Landscape
To minimize tax liabilities, many online gambling companies operate from tax havens near their principal markets, such as Gibraltar, Malta, and Alderney. In Asia, online gambling is permitted in the Philippines, regulated by the Philippine Amusement & Gaming Corporation (PAGCOR), and Macau was previously considered a tax haven until its removal from the EU’s blacklist in 2018.
History
The Free Trade & Processing Act passed by Antigua and Barbuda in 1994 allowed licenses for online casinos. Microgaming produced the first operational gambling software, enabling safe transactions. By 1996, the Kahnawake Gaming Commission was established to regulate online gambling from the Mohawk Territory.
Gambling websites grew from 15 in 1996 to 200 by the next year, with revenues surpassing $830 million in 1998. The early 2000s saw various legislative attempts to regulate online gambling in the U.S., leading to the Interactive Gambling Moratorium Act, which made unlicensed online casinos illegal in Australia.
Types of Online Gambling
Online Poker
Online poker offers various game types, including Texas hold ’em and Omaha. Players compete against each other with card rooms profiting through “rake” and tournament fees.
Online Casinos
Online casinos provide popular games like roulette, blackjack, and baccarat, where players gamble against the house.
Sweepstakes Online Casinos
Sweepstakes online casinos allow players to participate without wagering real money, operating under a dual currency system offering “Gold Coins” and “Sweepstakes Coins.” This model is designed to comply with U.S. sweepstakes laws.
Sports Betting
Sports betting involves predicting outcomes and placing wagers, often allowing in-play betting on events as they occur.
Bingo
Online bingo games replicate traditional bingo playing environments on the internet.
Lotteries
Governments run most lotteries, with the first online versions typically operated by private entities. Government-controlled lotteries have also begun offering online games.
Mobile Gambling
Mobile gambling refers to playing games of chance via smartphones and tablets, allowing users to gamble anywhere with internet access.
Legal Status Around the World
Argentina
In Argentina, online gambling is subject to provincial laws with no federal regulations. Buenos Aires and Córdoba have passed their own laws to regulate the industry.
United States
The U.S. has a complex legal landscape around online gambling. As of now, various states are moving towards legalization, especially for sports betting as seen with New Jersey’s legislation following the Supreme Court’s ruling against the PASPA.
United Kingdom
The UK Gambling Act of 2005 set the framework for gambling in the country, ensuring no connection between gambling and crime while protecting children and vulnerable adults.
Problem Gambling
Online gambling can lead to addiction, affecting the brain’s reward system and resulting in significant emotional and financial turmoil for individuals and their families. Treatment options include cognitive behavioral therapy (CBT) and support groups such as Gamblers Anonymous.
Responsible Gambling Practices
Online platforms are increasingly utilizing Responsible Gambling Features (RGFs) to prevent gambling addiction, including deposit limits and self-assessment tools.
Conclusion
As the online gambling industry continues to evolve, regulatory frameworks must adapt to ensure safety and integrity in the market for players globally.