Intro to Casino Games
Online Gambling and the Law
Playing in an online casino requires some license to operate in some countries. Laws prohibit gambling in some conservative countries. Often, gambling is regulated by the laws. However, online gambling is a gray area. The legitimacy of online casinos is often questioned since old laws do not cover the regulation of the use of online casinos.
Licenses for online casinos may take a year or two to process. Like in land-based casinos, the applicant will provide papers proving the company’s capacity to operate an online casino. All the costs incurred in the licensing are shouldered by the applicant. Yes, online gambling is a serious business. Licensing online casinos cost as much as $1 million. Due to this, a number of unlicensed online casinos have sprouted like mushrooms over the years. Most online casinos are built in countries where laws about the internet are not yet well defined.
Licenses for online casino are very intricate and complex. For instance, the applicant must specify how much online roulettes will be available for play. This is necessary to identify the annual fees to be collected for every online roulette. Roulette in an online casino costs at least $1,000 worth of fees if licensed. Table games like online blackjack or Online Poker have a table charge of $250-$1,000 a year. The cost inhibits most online casino operators to license their online casinos. With these annual fees paid to the government, online casinos grossing $100 million/year need to pay $7 million in fees.
The problem of licensing online casinos is not a new issue. Debates have been raised against it. Some online casino owners argue that paying fixed fees is simply unfair and bad for business. Online gambling profits depend on the number of online players and the amount wagered. In these times, there are over a hundred online casinos that compete for minimal online players. In just a month with small online players, an online casino will die.
There is also an issue on the legal basis of playing in online casinos. Online betting and online gambling in North America is prohibited. The use of online casinos is very hard to regulate. One of the problems is the impossibility to track all the users. Second, online gamblers come from different countries with different laws. If a Canadian bets in an online casino based in a country where it is allowed, Canadian laws certainly can’t prosecute him. No law has been passed that prohibits access to sites in the internet. That also applies to online casinos.
Since online gambling is not yet legalized in most countries, governments lose money. Some people have lobbied for the legalization of online gambling. Legalizing online gambling makes regulation easier and more feasible. Not to mention, revenues are collected from these online casinos if there are laws that regulate their operations.