Legalization of gambling: global experience and current challenges

In the modern world, gambling has long become a popular topic of discussion. After all, the field of gambling has acquired considerable scope and, with the right approach, can bring a lot of benefits at the state level. One of the main strategies used by leading states to replenish the budget is the legalization of casinos and betting companies. In this article we will look at the features of the legalization of gambling around the world and variations in the deformation of the legislative framework.

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Introduction to the Legalization of Gambling

Industry trends predict a constant influx of new players and fresh revenue as people turn to online platforms to replace their usual pastimes. The surge has been noticeable throughout the COVID pandemic, resulting in entirely new markets and audiences emerging. A globalized audience demands an increasingly globalized product, which means that targeted gambling localization is indispensable.

Even despite strict gambling regulation and challenges, more and more countries are inclined to believe that the legalization of the gambling business is more profitable than a complete ban on this sphere: statesmen are gradually coming to a consensus that control of this legal sphere of the economy is more profitable than the shadow gambling sphere, which not only creates a worsening situation with crime and deprives players of the protection of the law, but does not create additional income for the state budget.

Global Gambling Experiences

Reasons for the development and popularization of implementation of responsible gambling measures are as next-mentioned.

  1. The emergence of new regions available for work.

Many online marketers thinking about trying their hand at promoting online casinos are intimidated by the amount of initial costs to enter the vertical. Regions where promotion is considered the most profitable have high rates and, as a result, great competition. The legalization of casinos in individual countries has provoked the emergence of new countries available for promotion.

  1. The reality of winning.

Contrary to the common misconception that the probability of winning in online slots is extremely low, licensed online casinos have a high RTP level. RTP determines how many bets a player will need to make back his original budget if he plays for a long time. If the RTP is 100%, this means that the chances of winning are equal to the chances of losing money. The average RTP of licensed online casinos fluctuates around 96% and only with rare exceptions falls below.

  1. Safe gambling.

In countries where online casinos are legalized or partially legalized, a license is required to conduct gambling activities. It allows special commissions to monitor gambling activities and protect the rights of players at the international level. Licensed online casinos are mistakenly considered representatives of the gray market. Like any businessmen, they are interested in ensuring that their players are satisfied with the quality of the services provided and therefore are focused on cooperation in the long term.

Worldwide Gambling Industry: Regulatory Frameworks

For the safe operation of the project, it is important to adhere to the official rules in each region. Different jurisdictions have their own requirements for hosting, liability, advertising and other industry specifics. Some markets are known for their strict regulatory policies regarding gambling, with significant fines and even blacklisting of companies that break the rules.

Depending on the industry infrastructure in your target market, processes such as player support, settings, and account verification may also vary. For example, in some countries, players must present identification documents before playing. And in other markets, players are asked for identification only before withdrawing money.

Information attacks are traditionally carried out against the legalization of gambling, the purpose of which is to turn society against online casinos and obtain political dividends. But in fact, problems exist where the principles of responsible gaming are not respected, that is, in the illegal market. Paradoxically, before the issue of legalizing gambling was raised, the problem of gambling addiction was actually kept silent.

Therefore, today’s statements by experts and a number of media outlets that the legalization of gambling has caused the spread of gambling addiction is a systematic manipulation. Why not attribute the risk of its spread to the work of illegal operators, since they do not care about protecting players, do not pay out winnings, and do not respect people’s rights to receive reliable information.

At the same time, legal operators treat their customers much better, because they are forced to compete with each other. They protect the rights of players, do not transfer their personal data to third parties, and invest money in software and equipment. Such companies do not skimp on lucrative offers.

Economic Impacts of Gambling Legalization

In addition to the significant financial impact on the state budget, the law on gambling has other positive aspects, for example:

  • development of the IT sphere;
  • attracting foreign investment;
  • increase in tourist flow;
  • creation of additional jobs.

Despite the huge number of advantages, the bill also has opponents. They argue that as a result of legalization, criminal elements will try to launder money, advertise, and involve minors in gambling activities. It is worth noting that this argument does not stand up to criticism and is used by those who are not familiar with the main provisions of the bill. Only citizens over 21 years of age will be able to visit casinos and register on gaming portals. At the same time, a register of users suffering from gambling addiction will be created, and such clients will be restricted from entering establishments.

There is an increase in the popularity of instant games based on draws and scratch-offs, especially in European countries, which can positively affect the growth of the market under study. The increased expansion of smartphones is leading to an increase in the number of mobile app-based lottery games. The end user has the convenience and comfort of gambling in the comfort of their own space, which is one of the main drivers of the segment. Casino gambling has been one of the fastest growing gambling categories due to its ease of use and optimal user experience.

As for the challenges in gambling legalization, we should mention that global legalization of gambling can lead to the following:

  1. The mobile gaming segment will slow down. The stunted growth is due to monetization and user acquisition challenges faced by mobile game developers.
  2. The active involvement of automation, AI technologies and biometric identification mechanisms will continue.
  3. Easing the tax burden on gambling companies.

The gambling industry continues to develop. New GEOs, slots, approaches to promotion and even payment methods appear regularly. In addition, more and more countries are reviewing their policies regarding the gambling business.

Today, legalized gambling trends continue to occupy top positions among online marketing areas available for promotion. Contrary to the established opinion regarding the taboo nature of gambling, more and more countries are reviewing their policies and gradually introducing changes to legislation, allowing players to spend time playing their favorite game without any interference. At the same time, representatives of the digital sphere are also reconsidering their views on the gambling vertical.

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The article’s author is Denys Chernyshov – founder and CEO of the globally-famous organization Eternity Law International.