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Online Casino and Gambling Jurisdictions


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Regulated gambling is only permissible in certain countries and Regions
around the world.

The licensing and operation of online casinos is governed by regulatory
bodies which are constituted by the governments of countries or regions falling
under specific jurisdictions.

In order to establish an online gambling operation, the relevant enterprise
is required to apply for an operating license from the regulatory body under
which their jurisdiction falls. To be successful in securing a gaming license
for online casinos, the applicant is subject to a series of assessments and
checks to ensure that they meet the standards of ethical gaming regulations.

These checks are predominantly focused around three main criteria, including
the background of the casino operator and all its participants, the fairness of
the games, and the payout procedure.

To justify further consideration in the licensing process, the casino
enterprise, its proprietors and its members, are all subject to background tests
which include financial analysis and reference checks. Exclusion from obtaining
a license is based on previous fraudulent activity, inadequate operating
expenditure and/or blacklisting.

The casino enterprise is then required to meet risk assessment standards with
regards to reported house edges and payout ratios. This risk assessment is
usually conducted by professional independent auditors who subject random number
generators to testing. They then verify the that the information is authentic
and issue a recommendation to the regulating authority. Upon receipt of a
license, the online casino is required to be independently audited on a monthly
basis to ensure continuous fairness in their gambling operations.

The final licensing requirement is the investigation into payout procedures,
which entails certifying the financial capacity of the organisation with regards
to paying winnings and ensuring that the process followed is automatic and
transparent.

It is important to note that some online gambling jurisdictions are more
reputable than others insofar as the licensing criteria are concerned, and as
such, the gambler should affiliate him/herself with the regulatory bodies and
jurisdictions that govern their casino of choice. Reputable gaming jurisdictions
include Antigua & Barbuda, Kahnawake, Curacao and Malta. Antigua & Barbadu’s
regulatory body, the Division of Gaming, accommodates approximately 50 casino
enterprises and was formed in 1994 under the Financial Services Regulatory
Commission. The Kahnawake Gaming Commission regulates online gambling activities
conducted within the Mohawk territory of Kahnawake in Canada, and was
established in 1996. It is recognised as one of the largest regulatory bodies,
comprising over 110 licensees. Netherlands Antilles is regulated by the Curacao
Internet Gaming Association which was founded in 2001. To date it has dispensed
over 30 gaming licenses. The Malta jurisdiction ‘s regulatory body is the
Lotteries & Gaming Authority, which was formed in 2001 following the enactment
of the Lotteries & Other Games Act. It’s capacity does not extend to land-based
casinos, but is currently regulating just under 20 online gambling operations.

Another consideration when assessing jurisdictional regulatory bodies, is the
location of the actual jurisdictions. It is commonly perceived that regulatory
bodies in Caribbean jurisdictions are not as formalised as those falling under
EU scrutiny. Simply put, EU jurisdictions require adherence to more stringent
assessment protocols. This does not however make them more reputable, it merely
ensures that casino operators are subject to tighter operating conditions.

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