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Online Gambling and the Emergence of Blockchain

online gambling, gambling websites, legislation of gambling, gambling regulation, Online gambling regulation

Online gambling regulation is a complex subject. Legislative attitudes toward gambling across the world are extraordinarily diverse. Some cultures seek to purge gambling entirely from their jurisdiction, whereas others positively encourage it as a means to boost their economy.

But online gambling is tricky to pin down and prosecute, and for countries who do embrace it, there are numerous checks and balances in place. There’s a recognition that both the player and provider of online gambling games require protection. The emergence of cryptocurrency has added another dimension to the field, and online governance of gambling is a constantly evolving subject as a result.

Those starting to set up online gambling websites need to take a few legislative factors into account when choosing the location of their site.

Overall Legislation of Gambling

Naturally one of the first things you’ll want to understand is the wider legislation of gambling. Some countries are very restrictive indeed when it comes to gambling. China and Russia, for instance, are in constant dispute with the gambling community, having enacted outright bans across the board.

The US has a complex relationship with gambling – there is an ongoing dispute as to whether the Wire Act of 1971 applies to online gambling. Some states have effectively legalized online gambling, yet at a central level it remains illegal and even companies that deal with gambling transactions can face punitive measures.

Individual Rights

The success of a gambling website depends on how a player gains access. Whilst the US cannot prosecute online websites whose physical location is outside America, it remains difficult to prosecute individuals using gambling websites.

“Access can also be an issue in states which have explicitly banned gambling. In 2012, Russia took action to force Internet Service Providers into blocking gambling websites,” says Michael Foster, editor at Study demic and Academ advisor.

There are also government schemes designed to regulate gambling. There are concerns amongst some policymakers that digitizing gambling has made it unsafe for users. Israel, for instance,  officially regulates sports betting through the ISBB, but prohibits both casino betting and doesn’t allow digital lottery.

Operational Legality of Online Gambling

Though there are many countries whose governments are quite restrictive in legislating online gambling, there are also those who have made it an intrinsic part of their economy. Within Europe, which is the largest online gambling marketplace in the world, you find two powerhouses of the industry.

Alderney, one of the smallest of the Channel Islands, is actually a key player in the gambling marketplace. As an offshore financial center, it attracts international gambling companies, incentivized by the lack of corporate or gambling taxes. So important has e-commerce been to the States of Alderney, that legislation actively encourages online gambling companies. 

The Isle of Man is, similarly, reputed to have the largest amount of online traffic for gambling websites in the world. In recognition of the security issues faced by online gamblers, they’ve set up the Gambling Supervision Commission. They have actively pursued tech and legislation to enable cryptocurrency use within the gambling community. In 2016 they approved gambling regulation to ensure that bitcoin can be accepted on gambling sites.

Use of Cryptocurrency in Gambling

“The recognition of online gambling’s inherent flaws when it comes to data security has given rise to a lot more use of cryptocurrency. Blockchain’s intrinsic transparency means that users have a greater insight into the trustworthiness of the online gambling website,” shares Johnny Hunter, gambling writer, and contributor to My Writing Way and Writing Populist

This means those websites which make use of Blockchain instill loyalty in their users. For the website owner, it also means that there is less chance of being defrauded.  In addition, cryptocurrency not only protects the user’s identity but allows them to stray beyond their jurisdictions, reducing costs for the website in the process.

In short, the emergence of Blockchains has the potential to break the mold when it comes to online gambling.

Author’s Bio: Nora Mork is a tech journalist and Top Canadian Writers and Resumention. She regularly speaks at public tech events, and contribute articles to magazines and blogs, such as Studentwritingservices.

More on this topic: How Technologies Have Helped To Develop The Gambling Industry


 

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