This section of the website contains the major salient legal points that users should be aware of. These following legal issues are not comprehensive or definitive, but represent a general overview of those factors that are likely to be of concern to the operator and user of online gaming sites.
For your convenience the legal issues are divided between those of relevance to United States operated casinos, and those operating under the aegis of the European Union, as there are critical differences between the two jurisdictions. These jurisdictional issues and mandate concerns can be quite complex at times, but it is defiantly in the interests of both user and operator to be roughly familiar with them.

Online gaming in the EU remains a growth industry with minimal intrusive legislation specifically effecting online gaming. In the US, on the other hand, a long period of state-by-state legislation and grey area legal exploration has been clarified into the recent nation wide anti-gambling legislation. How enduring this recent round of legislation will be is under debate, and recent actions brought before the World Bank have challenged such acts as protectionist. Operators should pay close attention to such developments in the media.

The following material is a general idea of those pieces of legislation that have been passed with a direct effect on online casino activity. Readers are advised that this is a general guide, not a comprehensive directory of relevant issues, designed to provide useful and salient points.


Online Casinos & EU Legislation

Due to the EU charter, each member state is legally obligated to allow the free movement of goods and services across their borders from other member states. This general background of acceptance has garnered a welcoming climate, but recently the European Court of Justice has ruled that the matter of internet gambling is one to be dealt with by the countries themselves, rather than the higher authority of the court. This has not yet caused any serious problems, but already local legislation is significantly divergent from state to state.

These growing differences may yet lead to some problems for supra-national online casinos within the EU, but for the moment the climate is still one of favourable tolerance. Casino operators in the EU may often find that the number of regulations and bureaucracy they will have to face is daunting, but online gambling is none the less ultimately given full status as a legitimate business practice. There are extensive licensing requirements within each state, but none of the mandated necessary practices have been set prohibitively high. Many of the fastest growing online gambling markets in the world are in Ireland, France, Austria and the Nordic states. The recent acceleration of internet access and broadband technology in Europe has meant the average household’s connectivity has started to match the levels in the US, and a commensurate increase of online gaming has been noted.



The most salient restriction that operators will face will tend to be in regard to mandatory requirements for the casinos physical base of operations. Legislation such as the Dutch Gaming Act prohibits Dutch nationals from using an online casino that does not have a full accredited Dutch gaming licence. This is itself not an impenetrable obstacle, as such a licence is not difficult to obtain, but it is none the less an important aspect to keep in mind. Current UK legislation is not only favourable to foreign operators, but actually provides support for overseas operators to operate their business from the UK. The rationale behind this policy is the authorities are then able to directly regulate and police such activity within their own borders, preventing fraudulent practice and potential money laundering operations.

In general, the legal climate within the EU is favourable to online gaming businesses, and is likely to continue to be so with the growth of technology and the realisation of the EU freedom of movement of goods and peoples.


Online Casinos & US Legislation

The legislative climate for online gaming businesses in the USA seems to vacillate between unclear and unwelcoming. Due to recent legislative acts (particularly the Internet Gambling Enforcement Act 2006) and the subsequent stream of challenges against them, the current situation is unclear.

Prior to 2006 the most often used piece of legislation to limit multi-state and multi-national online gaming was the Federal Wire Act 1961. The crux of this act was to prohibit citizens from making bets over the telephone across state lines. The target of this act was specifically ‘sports betting’ rather than any other for of gambling, and was designed to counter organised crime. There were numerous attempts to extend the powers of this act, including an addendum that restricted the use of credit cards to make wagers outside of the state the card was registered. In theory this should still today limit online gambling, but the legal difficulties of implementing the act against online transactions has rendered it unusable.

The Internet Gambling Enforcement Act 2006 is the latest relevant legislation, and has changed the face of modern online gaming completely. The providence and the legality of this Act are in constant and fierce debate. Much doubt on its validity was cast by its enactment suspiciously close to mid-term election, pushed by a fundamentalist Republican congressman using vague moral issues as a bandwagon. The legislation itself was not itself individually passed, but tacked on to a large sheaf of legislation that was otherwise dismissed or completely unrelated. The Act had the effect of prohibiting all banks or financial institution from processing or honouring transactions to or from an overseas gambling operator. The effect this had on the international gaming market was to overnight wipe out billions of dollars of trade and trap further hundreds of millions of dollars in winnings in overseas accounts. The impact of this on the gaming market is difficult to overestimate.

This prohibition is not absolute in effect, and several financial avenues in and out of the USA still remain functional for casino operators. 3rd party internet payment mediums such as NetTeller have continued to be active and capable of linking foreign players with American online casinos. As the law becomes better understood, or at least more competently challenged, operators are progressively finding ways of circumventing the prohibition, and a slow return of some of the original custom is in evidence.

Both player and operators utilising online casino systems that are based in America, or in any way involve transactions across American borders should make themselves aware of the legality and current status of those facilities.



Disclaimer: Casino Business Now is not a legal service, and in no way purports to be an authority on legal matters. For legal advice, please seek the counsel of an accredited legal professional. The information used on this page is sourced from numerous news articles and journals, so accuracy cannot be completely guaranteed.