Online gambling is entertainment. It has been part of human society for a long time simply because it fulfills some basic human needs from excitement, but it also feeds our underlying instincts that seek intermittent variable rewards. Something that is often tied to people playing in online casinos is subject of laws that govern gambling.
When gambling is discussed on a commercial scale, laws are often entangled with the discussion. We thought about it long and hard and we realized there were several reasons why. Here are the two biggest ones:
Taxing Online Casino Websites
Anything that makes a profit must be taxed. This is a fundamental law that is the backbone of a majority of governments all over the world. While not everyone is fond of taxes, we can all agree that it is one of the reasons why countries are able to exist and function.
Gambling does generate massive profits. In fact, it is a multi-billion dollar market the world over. It is only natural in places that legalize gambling, they will be very careful to create and enforce laws that make sure that casinos and gambling halls pay their taxes as they should.
Issue of taxation is easy when it comes to land based casinos. The income is recorded on the same soil where turnover happens and it’s easy for the taxman to take the cut. Problems can arise when online casinos from abroad offer gambling to a global audience. Who does get to tax the profits from gambling overseas?
International Casino Websites Offering Gambling to Domestic Populace
This issue is approached differently across the world. Be it casino websites UK or casino websites from some other country – they will pay tax on the profit they earn in the place where the owner of the website registered the tax residence. That’s why we see offshore companies behind many casino websites. If the operator is regulated, then the place of regulation will be the place where the company is to be based and the taxes will presumably be paid there, depending on the corporate structure.
It’s different for citizens who actually win in online casinos. They are often subject to tax law of their own country or their current residence. Players in the UK are not obliged to pay taxes on their winnings. In Finland winnings in international casinos are exempt. The US is a different story – all US citizens are obliged to report and pay taxes in the US no matter where they currently live and earn their money.
Regulation Roundup
The world of gambling is something that is a mixture of luck and skill. Some games, like slots, roulette, and the wheel of fortune, are mostly luck based games. Someone needs to make sure that the casinos (both online and offline) aren’t cheating people out of their money.
Laws help to regulate places which allow gambling. If there were not such laws in place, there would be nothing stopping casinos from simply taking your money and not giving players the chance to win at all.
These two reasons explain a lot for us. There are countless other reasons as to why laws must always be entangled with the concept of gambling.
Online Slots Regulation – Ensuring Operators Return The Money
Online casinos are packed with slots that are carefully monitored and regulated. Starburst touch and the desktop version is probably the most famous slot in the world. It is released by NetEnt, which is most likely one of the most respected providers in the gaming industry. NetEnt is also known for its responsible way of operating in the markets and the company has set a path for all the other providers as well. If you are not as reliable as NetEnt, you won’t make it in this industry.
This slot has RTP of 96.1%,, which means that they return this amount of money to the players, compared to what players paid in. However, this transparency and reliability of slots we have to thank to online casino regulation which monitors and ensures that the RTP (Return To Player) that casino claims to have is correct for each separate game. How can you trust casino about the slot payouts – exactly because regulators and independent authorities are testing them.
How Mobile Gaming Has Expanded the Casino Audience
The above is even more relevant in today’s world, when mobile gaming has taken the industry by storm – this has translated into more and more people being granted access to their favourite casino games on the go. With such a vast audience of new casino players, regulators and law enforcing authorities need to be even more scrupulous with their due diligence. With the constant growth of the gaming apps market for both Android and iOS, it’s also worth noting that an increasing number of young – and potentially vulnerable – people is exposed to the threats that online gambling can present. That is why a strong enforcing and regulating action has become absolute paramount.
Starburst and NetEnt set example
Nowadays slots are under a periscope just as everything else in the iGaming industry. Online casinos and game providers must operate under strict laws. These laws and regulations can be both international and local in a specific country or market.
This means that providers are operating in a weird situation: they want to make money, obviously, but they are all the time under a close supervision. This supervision is not effecting only their business from the money side of things but it also has effects for the game content and their marketing in general.