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Differences Between American and European Gambling Regulations

The gambling industry is constantly in flux, and new technology is changing the landscape quickly. The industry has seen rapid growth over the last decade and when we take a look at the regulatory frameworks, which are in place, they differ greatly. Let’s look at the US and European online casinos from the CasinoGap.org list and how there are differences in regulations, licensing, taxation and player protection measures. Through this article, we will look at these differences and compare the regions.

United States Gambling Regulations

The global online gambling industry is worth billions, and by 2025, it is expected to reach over $97 billion. If we take a look at the US where, the situation is a little more complex than in Europe. The regulatory landscape in the US is done at the state level, not the federal level. This means there are many differences between each state across the US. There are even differences in licensing across the US.

States like New Jersey, Pennsylvania, and Michigan have produced strong and reliable regulations and frameworks. These regions have created licensing similar to that of the UK. To operate in these states, background checks will need to be completed, responsible gambling practices in place, and strict regulations followed.

This is not the case all over the US, unfortunately, because other states either ban online gambling or have no regulations in place. This discrepancy in US gambling regulation when it comes to online gambling means gambling operators do not have a clear picture in place. It can be very tricky to navigate the complicated rules from state to state. Some of the differences operators will need to navigate are higher compliance costs and operational challenges.

Europe Gambling Regulations

There is currently no unified regulatory framework for online gambling in the European Union. Each member state has the right to implement its own regulation, framework and licensing. This means that it is a fragmented framework completely different to the United Kingdom, which has a well-established regime in place. In the UK, the UK Gambling Commission is well respected for its strict and regulated approach to online gambling. In the UK, the standards are high, which means the gambling platforms are fair, there is financial stability and measures to prevent money laundering.

If we take a look at other countries like Malta, which offers a much more friendly business-orientated regulation and licenсe to operators, this means it has become very popular among gambling operators. The Malta Gaming Authority is in place in the country and offers licenсes which are respected around the EU. There are some regions where gaining a casino licenсe is too easy. This has raised concerns among some because there is no consistency in regulations across the EU.

Taxation

In Europe, the online gambling taxation rules change from country to country. In the UK, operators will have to pay a 21% tax on their gaming revenue. There are some who argue this, saying it prevents competition as well as innovation. In Malta, there is more relaxed taxation with a sliding scale depending on the gambling services you are offering. These fees start from 5% of revenue earned. This is exactly why Malta is such a popular choice for operators around the globe. In Europe, there tends to be a lower rate of taxation than in the US.

In the United States, the cost of taxation differs from state to state but is usually higher than that of Europe. In New Jersey, there is a 15% tax on gaming revenue, while in Pennsylvania, there is a tax rate of 54% for slots, while it is lower on table games and online poker.

Player Protection Measures

The UK Gambling Commission leads the way when it comes to player protection and strong regulation. In the UK, mandatory self-exclusion programs like GamStop and strict age verification procedures are in place. For those wondering how to cancel GamStop, it’s important to know that self-exclusion through GamStop is designed to be a long-term commitment, and typically cannot be cancelled before the self-exclusion period ends. 

However, once the selected period has expired, players can contact GamStop directly to request removal from the program. Additionally, you will find limits on advertisements aimed at vulnerable gamblers. Other European countries like Sweden and Germany have strong measures in place, such as deposit limits, timeouts, and bonus offer restrictions.

In the US, this is a key issue, and each state offers different measures. New Jersey offers self-exclusion programs and responsible gambling advertising. One area where the US has been consistent is when a player has self-excluded in a state, they can not start gambling in another state. They have implemented a statewide self-exclusion program.

Conclusion

When it comes to online entertainment, there are different cultures in the US and Europe, and this is reflected in their differing regulation and licensing frameworks. You will find lower taxation in Europe, which will open the door to a host of operators. There are also challenges when it comes to consistency and enforcement within Europe. In the US, each state has its own rules and licensing, plus higher fees.