Regulations, regulatory bodies, and licensing boards are vital parts of any industry. When it comes to casino gaming, there’s so much money at stake, and platforms are given so much of your data, that for them to be able to operate without any effective licensing board overseeing their activities is a recipe for trouble.
One of the more pressing issues has stemmed from whether regulators apply their oversight in the correct areas and if they create a breeding ground for wealthy operators in the sector to assert their influence.
We’re not here to cast aspersions, nor are we going to. One thing we are unequivocal about is that online casino licensing boards are vital for the overall integrity of the industry. Without them, it would struggle to gain any sort of respect within the broader gaming community. Those who like to cook up conspiracies about how online slots or live tables are fixed would get a lot more mileage out of their theories because there wouldn’t be any evidence of regulatory or legal oversight without the presence of these licensing boards.
Obviously, this shouldn’t be the only reason why regulatory bodies exist; they also exist to oversee online casinos and identify and weed out rogue operators. However, by strengthening the overall reputation of the industry, they also enhance their standing within this vast global industry.
Exploring the top governing bodies
If you’re new to the online casino world, you may not be aware that some areas and jurisdictions have a greater weight or presence than others. For instance, the Malta Gaming Authority (MGA) was initially established as many multinational online casinos decided to establish their headquarters there, mainly due to its favorable tax rates.
However, as online casinos have become one of the most significant growth sectors in digital entertainment, the MGA has had to handle every type of regulatory enquiry, which has showcased why they have become more respected. They’re not a front for casinos to set up there; they regularly dish out hefty fines to casinos that do not play by the rules.
Unlike some other jurisdictions, they also work closely with larger economies and international gaming authorities such as the UKGC – the United Kingdom Gambling Commission, which is considered by many to be the gold standard in casino licensing.
Embracing new advancements
Casino gaming was one of the first industries that dived head-first into the marvels of the online world. From this perspective, it elevated itself above and beyond the concept and confines of traditional regulations.
Conventional casinos had to adhere to the laws of the countries where they operated; they would pay rent and employ staff, and if there were regulatory issues, they were easily identifiable. In the online world, a casino can be set up anywhere; technically, it could have an umbrella company in the Isle of Man and operate its casino with an HQ in Curaçao.
Traditional forms of payment are being replaced by more modern versions, including cryptocurrency, e-wallets, and other fintech innovations, each with their own advantages and risks, as well as individual regulatory requirements.
Circling back to Curaçao, for many in the casino gaming industry, their licensing board is an example of how not to do it. Casinos with their main headquarters in the region often face challenges in contacting them, and resolving issues with a third-party ombudsman is nearly impossible. There’s also a disturbing lack of proper practice in areas such as Anti-Money Laundering (AML), responsible gambling, and protecting consumer data.
Consumer credibility
You don’t need to go far to find a casino that has a reputation that is in the gutter. A quick search of poorly rated casinos will yield dozens of potential candidates. A licensing board, or one that must answer to the UKGC, the MGA or other prominent governing bodies within the US, risks significant fines and criminal penalties if it does not adhere to the rules. There’s a paper trail and a domino effect for casinos that operate within these jurisdictions.
While it might be more costly to set up within these areas, ultimately, it will showcase that the brand is above board and values their reputation rather than setting up in a country with barely any regulations and a governing body that has been set up solely as a shop front for a new casino that has zero credibility or interest in developing a strong brand.
Conclusion
For those unfamiliar with online casino gaming, having a governing body that provides a structure and a set of rules, and imposes penalties in the event of a platform circumventing them or trying to cut corners, helps bring credibility to the industry.
Although such bodies don’t always get it right, a lack of regulation and accountability can harm consumer credibility in the long run. This is ultimately what it boils down to. There’s a regulatory body for alcohol, tobacco, financial companies and tech giants. Given the amount of money that online casinos have generated over the last decade, it’s crucial that they also have a legitimate and fair licensing board. Those regulators that do it well, such as the UKGC, are beneficial for the industry, but this is offset by some of the newer licensing providers, which seem to provide a foundation for shady casino operators to flourish.
The existence of licensing bodies is crucial for the long-term potential of the industry, and we can almost guarantee that rogue licensing boards will face much harsher penalties from central governments in the years to come.
