Understanding the legal framework of an online gaming business


The feasibility of joining the Online Gaming industry today is becoming more of a reality for many people. Increased sophisticated payment methods and upgraded back-office systems are just a few of the reasons as to why. The overall market size is also a significant factor. With billions of income generation, having a crumble of the pie could mean thousands of dollars for an insignificant startup.

But the growing process is not always grand; a lot of work needs to be put in place. There are crucial decisions to be made regarding licensing, choosing a gaming software provider as well as payment options. But our main area of focus will be the legal framework involved in starting up an online gaming business.

Just like any other business, your online casino needs to operate under specific jurisdiction laws. This is for legality purposes. Depending on which side of the Atlantic you are on, different legislation apply to the cosmopolitan business.

Across the EU nations, though treated as a monopoly due to their economic significance, each member state bears the liberty of creating its legislation. Meaning, as an integral unit the EU lacks a legal framework as to how gambling should be across its member states. That’s why there some EU countries take a liberal stand towards gambling while others oppose the idea entirely.

USA seems to read from the same script as EU, with each member state is responsible for drafting its laws towards online gambling mainstreaming. However, regardless of the local legislation, the set federal laws still standout. This sometimes brings a clash in the implementation of gaming services. Take for instance the gambling age limit legislation that is set to 18 years and above, but individual states prohibit players to the 21 years and above rule.

As an upcoming operator, it’s best first to understand which jurisdiction you wish to operate under. Invest mostly in advisory and legal insights as it will guide you on the most favourable online gaming licensing to acquire for your business.