An online casino is also known as a virtual or internet casino. It is an online alternative to regular, physical casinos. Online casinos allow gamblers and betters to wager on and play casino games on the Internet. Online casinos are divided into two main types, web-based and download-only. This division is by the type of software the games use.
In web-based software, the casino operates a website where players visit and play the games without any form of a download. However, in download-only software players are required to download the software as an application to play. Whichever type of casino you intend to start, it is important to understand the legal implications involved and how to handle or navigate them.
The Legality of Online Casinos
When the first physical casino was opened in Venice in 1638, their activities were mainly regulated and streamlined. Players had to go to these casinos to pay, play and win. This was not exactly convenient, sometimes players would disagree and fight over winnings. However, after the first online casino launched around the nineties, a lot has changed since then. The casino business is quite profitable and continues to attract investors every day. The benefits of online casinos are numerous to both players and owners. Yet, the big question remains, Is it legal to start an online casino?
Yes, owning a casino online is legal at least in most countries. In some countries, online casinos are heavily regulated while in others, they are illegal. Hence, it is a priority to research the gambling and casinos in your local country before embarking on establishing an online casino.
Countries Where Gambling and Casinos are Legal
The United States of America
In the USA, gambling and owning online casinos are legal. However, there are regulations in place to ensure that players are protected and not exploited by owners. There are acts enacted to this effect, as the Unlawful Internet Gambling Enforcement Act of 2006 and The Interstate Wire Act of 1961.
Canada
According to Canadian laws, the only forms of legal gambling are betting on lawful races or sports games and betting on running or trotting. However, states like Ontario and New Brunswick have laws that allow most forms of gambling and regulate the activities.
Mexico
The Mexican law accommodates and regulates all forms of gambling. The government even runs a national lottery it regulates and controls.
The United Kingdom
The UK is one of the major pro-gambling countries in the world. Their gambling laws are specific and detailed and they address specific types of gambling. These regulations ensure that the rights of players are protected. Some of them include the Horserace Betting & Olympic lottery Act, 2004 and Categories of Casino Regulation, 2008.
Other relevant jurisdictions include Antigua and Barbuda, Malta, and CostaRica. If you live in any of these regions, starting an online casino is legal and you can go ahead to start your business.
Countries Where Gambling is Illegal
In some countries, gambling is regarded as a criminal offense and you can be jailed for owning a casino. Hence, it is important to note the list of such countries to avoid any problems.
The United Arab Emirates
The UAE is a very conservative Islamic nation and this is very evident in their laws. Gambling of any form including online gambling is prohibited in the UAE. The penalty for this crime is up to two years imprisonment. The country's internet is also heavily censored to prohibit online casinos from operating.
Qatar
Qatar has one of the strictest laws against gambling. This is mostly because it is also an Islamic nation. In Qatar, every known type of gambling is banned. Ironically, Qatar citizens make up a significant percentage of gamblers patronizing online casinos hosted in other countries.
North Korea
It is not surprising that a state run by a dictator would ban any form of gambling. North Koreans are not allowed to participate in any form of gambling. However, visitors are allowed to gamble as much as they please.
Lebanon
Lebanon has very strict laws against gambling. The government blocks any online casino spotted on the internet. The only online casino allowed is regulated by the government, the same applies to the physical casino. The Casino du Liban in Jounieh is the only official legal casino. Although, occasionally a casino ship takes the citizens away on international waters to gamble without restrictions.
Conclusion
The question of whether it is legal to start an online casino is relative and mostly depends on one's country's laws on gambling. While it is legal and authorized for citizens of the USA, UK, etc. gambling and owning online casinos are banned in North Korea, Qatar, etc. Hence, it is your task to check your country's legislation on casinos and betting before proceeding to invest or start your online casino to avoid lawsuits and even jail terms.
