The Legal Challenges of iGaming Across Different Countries

To own and operate an iGaming platform, it is important to know the law of the land you wish to operate in. On a global scale, this tends to vary significantly.

For online gaming, iGaming, and others, the International Association of Gaming Regulators (IAGR) is the prime regulatory authority. A voluntary association established in the 1980s, it contains representatives from gaming regulation bodies across countries. 

Further, to ensure that the iGaming platforms maintain honesty and transparency, the IAGR has labs that focus on RNG (Random Number Generators) testing. This establishes an agreed-upon process for certification and testing.

Some reputable regulatory bodies for iGaming are:  

• UK Gambling Commission (UKGC)
• Malta Gaming Authority (MGA)
• Curacao eGaming Authority
• Kahnawake Gaming Commission (Canada)
• Casino Regulatory Authority of Singapore
• Macau Gaming Inspection and Coordination Bureau

Operators for the respective countries must meet the strict requirements to obtain licenses and stay in compliance.

Owing to the fact that when operating an iGaming platform across borders, you need to meet the regulatory norms and laws for every country. And herein lies the challenge.

From flat fees to a percent as tax on winning, you may be subject to one or more forms of tax when using iGaming platforms. However, this varies depending on the country. Thus, operators have to know and adhere to the revenue and taxation for each country they intend to operate in.

Financial fraud is not unheard of on platforms that involve transactions. To prevent this, most countries have strict anti-money laundering laws and other norms in place.

Most countries have Data Protection laws in place to protect the data and privacy of their citizens. In Europe, this comes in the form of GDPR. 

Since the Data Protection laws tend to vary with the country, the operators need to know which norms to follow. One good way to address this is by opting for the highest standards of client data protection to cover the regulatory requirements and more.

Based on the region you wish to operate in, you may face the following problems:

While strict, most countries in Europe have fairly comprehensive laws in place for iGaming Platforms. For instance, the UK, Malta, and Sweden have well-established regulations in place. Further, Germany recently introduced a State Treaty on Gambling with stricter rules for these platforms.  

While operators can face a challenge when advertising their platforms, having clear laws makes it easy to navigate these. Further, it also helps establish the best practices to follow and facilitates responsible gaming.

In the USA and Canada, certain states and provinces allow iGaming while others impose a complete ban. Further, the laws for each vary slightly. Thus, the platforms can operate in only certain places keeping in line with local laws.

Other than State-run lotteries, China does not allow any other form of iGaming. In India, while the central government allows iGaming platforms to operate, certain states have their own ban on iGaming or licensing laws that operators have to follow.

This leads to the formation of legal gray areas plus high penalties for operators for any deviations.

The iGaming industry has been facing rapid growth in recent times due to countries coming up with clear laws and the increase in internet penetration.

With a move for unified regulations to improve transparency and player safety on iGaming platforms, many nations are working toward a harmonized framework. A prime example of this is Europe. Further, many countries are trying to adopt the best practices of others, thus leading to similar regulatory norms.

Blockchain adds a layer of safety to financial transactions. Thus, platforms can facilitate transactions safely while protecting the private data of their clients. This, in turn, improves the faith of users on the platform.

As iGaming platforms such as Rummy apps are gaining popularity, so is responsible gaming. Thus, platforms try to keep the best interests of their users at heart. To adhere to this, platforms are trying to enforce self-exclusion programs and betting limits. Further, the use of AI-driven tools for monitoring problematic iGaming behavior is a step in the right direction.

While iGaming laws vary across different regions, to meet compliance standards platforms can deploy the best global practices available. While this does not exempt them from having to meet local laws, it makes it easier to do so.

As a step in the right direction, iGaming companies, like those operating online Poker and Rummy, need to focus on consumer protection, fair play, and responsible iGaming policies.