The ambitious iGaming market revenue projections represent how the industry is rising. Factors like the increasing penetration of smartphones and stringent regulations are stirring new trends in this domain. A huge trend that’s emerged is the thrust on building a safe environment for responsible gambling.
iGaming is presently governed through legislation at the sovereign state level, meaning national iGaming regulations differ between countries. A few regions have stringent rules while others have liberalized the market. Regardless of the situation, local legislation informs igaming legal compliance policies, expecting players and iGaming operators to adhere to them.
This post throws light on the iGaming legal compliance landscape and offers interesting insights to navigate its complexities.
Introduction to Regulatory Frameworks
The various types of iGaming legal frameworks work towards building a safe and responsible environment for gamers and iGaming operators. The regulations range from basic licensing requirements to complex anti-money laundering regulations and responsible iGaming requirements.
For instance, the regulations for online casinos serve the purpose of ensuring social responsibility, consumer protection, controlling problem gambling, and protecting players and operators against fraud.
These regulatory frameworks vary across countries.
For instance, the US iGaming legislation differs from state to state. Some states are clear on the rules and have legalized iGaming, yet a few others are still deciding on the potential regulations.
In the European Union, these regulations differ from country to country. Some countries offer licenses and allow online gambling with set rules. While others require the operator to obtain offshore licenses. In a few countries, rules are stricter or iGaming is entirely prohibited.
iGaming operators are required to comply with these regulations to improve security and operate legally within their jurisdictions.
The International Casino Law
International casino law encompasses complex iGaming regulations with a focus on licensing, taxation, and play protection.
Licensing is primarily for the iGaming operators, regulatory bodies, and government authorities that issue licenses. For instance, licensing jurisdictions like Gibraltar and Malta among others are well-established and respected jurisdictions in the online gambling industry. They are recognized for their robust regulatory framework and high standards of player protection.
Taxation is a central aspect of international casino law and all iGaming operators are expected to comply with the tax laws enforced in their jurisdictions. Tax rates tend to vary across countries. A few countries like the UK, The Isle of Man, Gibraltar, and Curaçao among others offer favorable tax brackets to encourage iGaming industry growth.
Player protection is important to ensure iGaming legalities, responsible gaming, data protection and privacy, and game fairness. iGaming operators are expected to abide by the regulations to prevent money laundering and uphold responsible gaming practices.
Licensing in iGaming
Depending on the jurisdiction, the iGaming arena operates under various licensing structures to work its way around to legalize online gambling. These licenses usually come under one of these mentioned categories –
- Operator License: This license is granted to iGaming companies, casinos, and sports betting operators that offer online gaming services. This license covers game operation, payment collection, and customer interactions.
- Software Provider License: This license is for game developers, iGaming software providers, payment gateway providers, and companies that develop and maintain the software used by iGaming operators. It ensures fair play in online games. For instance, payment gateway providers are involved in financial transactions related to gaming. Hence, they will need a license to comply with the legal and regulatory standards, especially in fraud prevention and money laundering.
- Affiliate License: Affiliate marketing companies and marketing professionals or businesses that promote iGaming services on behalf of operators for a share of the revenue will require this license.
Depending on jurisdictional regulations, marketers may at times need a gaming license to meet online casino affiliate marketing and advertising guidelines for the target market.
A Roundup of Gaming Regulations by Jurisdictions
The iGaming regulations vary by country and are based on the prevalent legal, cultural, and technological factors.
Further, iGaming operators must apply for permission to run an ad on top traffic platforms like Google or Meta. Hence, you need alternative traffic sources, such as non-mainstream ad networks that enjoy huge traffic.
Let’s take a look at the regulations for legal online gambling that betting operators and iGaming businesses should consider for each jurisdiction.
MENA
The regulations in the MENA countries are quite diverse. On one hand, we have the African countries that are still not subject to substantial restrictions in the legal online gambling segment.
For instance, they have minor requirements for creatives like ‘do not use explicit adult content,’ ‘target the age category 18+’. All these requirements are for upholding responsible gambling and tackling gambling addiction.
On the other hand, we have Middle Eastern countries where several conservative factors are to be considered and legal online betting or gambling is prohibited.
LATAM
In December 2023, the Latin American nations introduced comprehensive restrictions and rules for iGaming advertising. Though the LATAM countries operate in gray areas, they are rapidly attempting to regulate and adapt to the growing iGaming market. They are working to legalize online gambling with sufficient restrictions in place.
Western and Southern Europe
Europe by far offers transparent legislation for iGaming ads. The rules for iGaming marketing and legal online gambling aren’t complicated. The operators and marketers must comply with the age threshold and avoid making indirect hints about winning or any such guarantees.
For instance, the UKGC (UK Gambling Commission) mandate aims to protect vulnerable individuals while promoting a safe iGaming environment.
Asia
Asia has a diverse regulatory landscape when it comes to promoting iGaming. Here’s an overview of the regulatory mechanisms in Asia by country.
The US and Canada
In the United States, the legal framework for iGaming is pretty complex. The iGaming laws depend on federal and state regulations. A few states fully embrace online sports betting and casino games. But most have limited or no iGaming possibilities and do not tolerate illegal gambling practices.
The Federal Wire Act of 1961 was initially considered for iGaming practices; however, in 2011, the Department of Justice reversed its long-held opposition to many forms of iGaming, removing a big legal obstacle for states wanting to sanction it. This paved the way for states to decide on iGaming regulations.
Thus, varied rules apply across different states. Few states like Nevada, New Jersey, and Pennsylvania have legalized iGaming (casinos and poker). Yet, states like Florida and California have outlawed any form of iGaming. Several other states have failed to issue an official stance on the matter.
Here’s a list of the US states open for iGaming businesses with their licensing divisions.
The iGaming scenario in Canada is also regulated on a state level. Each province or state regulates local laws for legal online betting and iGaming. Here are the provinces with their respective iGaming regulators.
The Need for iGaming Legal Compliance
iGaming legal compliance is critical to offering a fair and secure ecosystem for players and operators. Failure to comply with these legal requirements has longstanding and bitter consequences for iGaming operators.
Any form of non-compliance puts the business at risk of legal and financial consequences.
- Hefty fines: Depending on the jurisdiction and the violation severity, a sizeable monetary fine is imposed on non-compliant operators who indulge in illegal betting and unethical practices. These fines on illegal gambling and unethical iGaming practices can hit the million-dollar mark, causing iGaming and betting operators a major setback.
- Asset Seizure: Legal authorities can seize the assets of non-compliant operators who are involved in illegal gambling. This can include equipment, funds, and any property related to the iGaming business.
- Reputational Damage: Being non-compliant can cost operators their reputation. This makes it challenging to earn player and partner trust.
- Severed Partnerships: Business partners, vendors, and service providers steer clear from non-compliant operators to avoid legal battles and reputational damage.
Hence, staying compliant with the iGaming regulations is critical for operators wanting to scale their business. This contributes to building a safe and responsible iGaming environment for all.
Affnook: The iGaming Affiliate Platform That Helps You Stay Compliant
At Affnook, we understand how complex and dynamic the global iGaming legality is. We are here to support you as you navigate the complexities and challenges of iGaming legal compliance.
Affnook takes the guesswork out of regulatory alignment.
Here’s why you should choose Affnook –
Built with Compliance at Its Core
With Affnook you can confidently expand your iGaming business while staying compliant with the regulations. We adhere to stringent regulatory requirements of both GDPR and CCPA, ensuring high-level data protection and privacy.
Our robust security features offer multiple levels of protection to secure your business from fraud and prevent costly fines or legal charges.
With Affnook you can control permissions for each partner. The custom settings for each user ensure better control.
Deep Understanding of Industry Ethics
Having had a rich experience in the iGaming domain, we at Affnook understand and stand by the robust code of conduct set to ensure all aspects of the ecosystem are secure and stable. Hence, we strictly adhere to high ethical industry standards, thereby upholding fair play, transparency, and responsible iGaming.
With our affiliate marketing platform, you can be assured of seamless implementation of the local code’s provisions.
Advanced Security Features
With Affnook’s advanced fraud detection feature, you can block fraud traffic from data centers, blacklisted IPs, and unknown devices without manual analysis of the attribution data.
The advanced features let you –
- Block data center traffic to reject traffic sent from data centers like AWS, GCP, etc. often used by frauds.
- Blacklist traffic from repeat offenders like blacklisted IP databases is marked as fraud.
- Allow traffic from known devices while customizing or white-labeling the tracking links.
- Block proxy IP traffic using our robust fraud shield. That way, frauds cannot hide behind VPNs.
Non-compliance with iGaming regulations can cost you a lot in terms of hefty fines, loss of license, and criminal charges.
Hence, it is wise to choose a GDPR and CCPA-compliant partner that ensures peace of mind that your customer’s valuable data is handled with care and transparency.
Affnook’s geotargeting feature allows you to tailor campaigns to specific regions while aligning with the local iGaming laws.
A Dedicated Customer Care Team
Affnook’s team of experts stays up-to-date with the latest regulatory developments, ensuring your campaigns remain compliant and effective.
Once you onboard with us, you get access to a dedicated customer success manager who will elevate your partner management platform experience. Our customer support team is available 24/7 to guide you through the legal complexities of the iGaming world.
Summing Up
As we explore the intricacies of the iGaming legal frameworks, one thing that emerges is that this industry operates in a complex and ever-evolving legal environment. We are confident that this article has offered you a comprehensive overview of the global iGaming legality.
If you are a growing iGaming business looking to make a mark, you must ensure your business and the affiliate programs you initiate comply with the ethics and regulations of this sector.
When it comes to ensuring iGaming regulatory hygiene, Affnook can be your co-pilot. Request a free demo now to scale your business. You can also get in touch with our sales team to share about your iGaming goals and challenges you face.
