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Betting Sites: US Vs. EU Gambling Laws

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Betting Sites: US Vs. EU Gambling Laws

 

Still a major taboo for some, mostly those in governmental power. Casinos and gambling, the two words that strike fear into the political heart. We take a look at two sides of the argument when it comes to the legalization of gambling and licensing casinos, both online and as land-based establishments.

We will be reviewing the American stance on the gambling industry, and that of the EU’s position. What are the differences, why is there a gulf in approach, how licenses are able to work and how it has an effect on players on both sides of the pond?

Why the issues with gambling?

We all know the terms that it’s a political hot potato, no one really wants to deal with it or handle it. For a government to openly say they support gambling is voter suicide. So, when it comes to the allowance of casinos and betting sites how is it that there is a form of unspoken agreement, as long as it’s not overly in the public eye?

Orla Byrne, Editor-in-Chief of BetinIreland, spoke of the issues of unclear communication between governments and the public regarding the interest of betting sites.

“In Ireland, there is a huge betting community and interest especially with sport, most noticeably the Irish horse racing out here. With no communication, it’s the player that suffers most. From not having the guidance to legal sites, to falling foul of gambling addiction and not knowing how to seek help. Our service steps in to make sure players in Ireland are fully aware of what can and cannot be done and we’re proud to help people find licensed casinos that can support Irish players.”

On an economic basis and from this standpoint, gambling is a massive contributor to taxes if they are imposed by a government. Revenues can reach high into the billions and this is much needed income for certain countries.

Gambling, betting, playing, however, you paint the activity, tell people you do this and there is an unease, so ingrained into us that it’s bad, it is a taboo that will long remain.

What does betting offer?

From a player’s perspective, betting online offers an abundance of services. Betting online can be free in cases of bonuses. When you join an online casino, a welcome bonus is granted to new players that make their first deposit to play. Inside the betting sites, you have a huge selection of games, offering the best games and sports markets to place your bets on. The customers can stake their money on more sports and markets than what they can do at the local bookmaker, that’s if there are any local bookmakers for the public to use.

Casinos online and betting sites have fewer restrictions, and in the area of banking, a customer can have many ways of depositing into their casino account and withdrawing.

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These are just standard elements of betting, but on a personal level, betting is an escape, a means of enjoyment and entertainment, and for some, it is a source of income that could be much needed.

Even with free games, there is still an interest in playing despite free options being mainly demo games with no real cash reward, but so entertaining are they, people will still play games with no real return.

Betting is different, there is the reward, it’s something beyond simple casino gaming, there is an element of knowledge involved. It puts punters in a position not that of the player versus the bookmaker, but they become the team they are backing. It’s more personal this way, especially if they are personally invested in a sporting team.

With betting sites online, there is the added appeal of live streaming, you can bet on games in real-time and place in-play bets during a game with fluctuating odds. Because the platform of betting is global, no days pass without some form of sporting fixture taking place. It really is a world of betting that lasts 365 days of the year.

The Laws in the USA

When it comes to the US laws on gambling, you first might think they are somewhat relaxed given that the entire state of Las Vegas is the mecca of gambling in the world. This is not the case and a huge misconception.

The laws in the US are similar to a few other countries, Canada, Australia, and India to name a few.

In the United States of America, you have federal law and state law. The federal laws are made by the overseeing government and the Senate, when it comes to state law, these are controlled and ordered by that one state alone.

At a federal level gambling is banned, online and offline. So, how does Las Vegas even exist? Well, this is where the state takes control. The governor of Nevada state will overrule the federal law and control the state of gambling within that area. They can, to a degree, allow for online gambling, however, often is the case that when local law controls all i.e lotteries and casinos, they do not want individual businesses taking business away from the state, especially if you can tax people who win.

So, what about the US Powerball? The US Powerball Lottery which covers 45 states is a multi-state lottery association, again, bypassing federal law.

In Canada, this is the same with their provinces, and with the states inside India.

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So, what is the catch? Well, the catch is that US laws are only bound to US soil. The internet is a far too complex an entity when trying to write it into law. At most, you can stop foreign casinos from advertising, that is clear enough. They cannot, however, stop players from using foreign casinos. This is the loophole in the law that actually makes it legal for players inside of America to gamble inside of casinos online that are registered and licensed outside of the US borders. Those casinos then benefit from not having to pay business tax, get millions of players and the US lose out because of the political hot potato that the religious sect of America would frown on and take their votes away.

The Laws in the EU

In the EU, there is no one specific rule of law to say all is accepted. With it being a Union, countries like the states of America can make their own laws. This is the TFEU treaty of the EU rule, and to give it the full name, Treaty on the Functioning of the European Union. Gambling has the freedom to be provided as a service or business in another EU country.

For the laws on online gambling, there is a similar diversity regulatory framework that allows for business in this field as long as it is compliant with the EU laws and that of the national regulator.

In the EU there are only a handful of licensing regulators, the Gibraltar Regulatory Authority, the Malta Gaming Authority and formally of the EU, the UK Gambling Commission.

Of many of the sites you will find online, most will be licensed by the Malta Gaming Authority. The service of a casino licensed by such a body is able to serve any nation it wishes, it is merely down to the casino to set its own banking requirements as it would be for any online business to arrange the banking setup of foreign currencies.

This forms a complete circle of service as these are the very casinos that players from the US are able to join and play in.

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Central America

21VIRAL Boosts Latin American Reach Through Strategic Partnership with Virtualsoft

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21VIRAL Boosts Latin American Reach Through Strategic Partnership with Virtualsoft

 

21VIRAL, a leading games aggregator for the Central and Latin American market, has strengthened its expansion by signing an agreement with platform provider Virtualsoft

21VIRAL, a leading games aggregator for the Central and Latin American market, today announced a strategic agreement with prominent platform provider Virtualsoft, significantly strengthening its expansion across the region.

This collaboration will integrate 21VIRAL’s extensive portfolio of games into Virtualsoft’s platform, providing enhanced content options for operators across key Central and Latin American nations. Virtualsoft is a key supplier with a strong presence in markets including Ecuador and Peru, delivering innovative gaming solutions to a diverse range of operators.

Christoph HĂ€rtel, CEO of 21VIRAL, commented: “Partnering with Virtualsoft is a pivotal moment for 21VIRAL as we deepen our engagement with one of the world’s most rapidly advancing online gaming markets. Virtualsoft underpins numerous leading brands in the region, and integrating our GameConnector solution will allow swift access to their operational brands. We look forward to working closely with Virtualsoft’s talented team to deliver innovative and revenue driving gaming experiences.”

Alejandro Velez, General Manager at Virtualsoft, stated: “21VIRAL has a strong reputation for seamless integrations and profound expertise in the Latin American gaming market, making them an ideal partner for us. Together, we are streamlining operations and elevating the gaming experience for players, aiming to set new benchmarks for the industry.”

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Compliance Updates

New Bill in California Could End Online Sweepstakes Gaming

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California State Assemblymember Avelino Valencia (D-Anaheim) has introduced Assembly Bill (AB) 831 to protect Californians from unregulated online gambling by prohibiting online sweepstakes games that use a “dual currency” model to mimic casino-style wagering.

“Sweepstakes” platforms sell virtual coins that are used to play casino-style games and can be redeemed for cash or prizes, essentially operating as unlicensed gambling businesses. By exploiting “No Purchase Necessary” disclaimers, they sidestep California’s regulatory framework and evade the state’s voter-approved proposition related to Tribal-State gaming. Many of these “sweepstakes” operators are based offshore and function without proper oversight, avoiding requirements like consumer protections, responsible gaming safeguards, background checks, and tax compliance.

“We cannot look the other way while these platforms exploit legal grey areas. These operations undermine the voter-approved framework that affirms Tribal governments’ sovereign right to conduct gaming in California. AB 831 strengthens that framework and ensures gaming in California remains fair and accountable,” said Assemblymember Avelino Valencia.

AB 831 fortifies existing sweepstakes laws and clarifies the illegality of internet-based sweepstakes that use the dual currency model. It reinforces the shared responsibility between the State, licensed operators, and Native Nations to keep gaming safe, transparent, and accountable. AB 831 is co-sponsored by the Yuhaaviatam of San Manuel Nation, the California Nations Indian Gaming Association (CNIGA), and the Tribal Alliance of Sovereign Indian Nations (TASIN), reflecting strong support from across Indian Country.

“For over 25 years, Tribal governments like Yuhaaviatam of San Manuel Nation, have upheld the will of California voters by operating gaming with integrity. That commitment has allowed us to reinvest in our communities, boost local economies, and support essential public services on reservations and in partnerships across the state. Illegal online gaming now threatens this foundation—compromising voter-approved law and putting Californians at risk,” said Yuhaaviatam Tribal Council of San Manuel Chairwoman Lynn Valbuena.

“We support this legislation that will close dangerous loopholes and strengthen the integrity of California’s gaming system. We remain committed to defending a proven framework that protects the sovereignty of Tribal Nations and delivers real and lasting benefits to all Californians. Together, Tribal governments and the State of California will continue to address and take decisive action against illegal internet gaming in all its forms,” said Yuhaaviatam Tribal Council of San Manuel Vice Chairman Johnny Hernandez, Jr.

“Tribal government gaming contributes nearly $25 billion to California’s economy, sustains over 112,000 jobs, and funds critical community programs. Unregulated online sweepstakes threaten this voter-approved system by imitating casino gaming without oversight, accountability, or community investment. These illegal platforms erase the benefits of regulated gaming while exposing consumers to serious risks,” said CNIGA Chairman James Siva.

AB 831 is pending a hearing in the Senate.

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Compliance Updates

New Initiative from DI Council Aims to Enable Betting on Professional Sports

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New Initiative from DI Council Aims to Enable Betting on Professional Sports

 

The Division I Council introduced a proposal that, if adopted in October, would change sports betting rules to permit student-athletes and staff members to bet on professional sports and refocus the Association’s enforcement efforts on college sports betting and behaviors that directly impact game integrity. If adopted, the change will be implemented only if Divisions II and III also vote to allow betting on pro sports.

The council’s introduction of the proposal, which comes after a directive from the Division I Board of Directors in April that the council adopt changes to sports betting rules, is not an endorsement of sports betting behaviors, especially for college athletes. The NCAA’s prohibition against betting on college sports would remain in place, as would the prohibitions against sharing information about college events with bettors. The NCAA also would continue to maintain its prohibition for NCAA championships  against advertising and sponsorships associated with betting.

“NCAA rules prohibiting sports betting at all levels were written and adopted at a time when sports gambling was largely illegal nationwide,” said Josh Whitman, athletics director at Illinois and chair of the council. “As betting on sports has become more widely accepted across the country, Division I members have determined that further discussion of these sports betting rules is warranted, particularly as it relates to the potential distinctions between betting on professional versus collegiate sports. Throughout our discussions, the council has remained focused on student-athlete wellness and educating student-athletes about the risks and potentially harmful impacts of betting.”

Current NCAA rules do not allow student-athletes or institutional staff to engage in sports betting at any level (professional, college or amateur) for any sports that have NCAA championships, and NCAA members have continually maintained that any betting by a student-athlete on his or her own team or own sport in college should continue to result in a permanent loss of any remaining collegiate eligibility. However, in 2023, Division I changed the reinstatement guidelines for student-athletes who participate in sports betting on professional sports to focus on harm reduction for problematic betting behaviors.

“Deregulating professional sports betting may provide schools an additional opportunity to implement harm-reduction strategies, which can be more effective and have long-term benefits not seen with abstinence-only approaches. Harm-reduction strategies include education, stigma reduction and acknowledging actual behaviors,” said Dr. Deena Casiero, NCAA chief medical officer. “By meeting student-athletes where they are, schools may be more effective at preventing, identifying and supporting student-athletes with problematic gambling behaviors. Regardless of the change, schools are encouraged to use the many sports betting resources already available.”

The recently released Harm Reduction Considerations for Gambling & Sports Betting in Collegiate Sports references available sports betting resources, including the NCAA Mental Health Best Practices. Additionally, more than 100,000 student-athletes, coaches and administrators have been reached through the NCAA’s education efforts with EPIC Global Solutions, and the NCAA has launched an e-learning module to educate student-athletes on problem gambling harms and the integrity risks associated with sports betting.

Several sports betting-related violations by staff members at NCAA schools have been resolved through the infractions process in recent years, and the enforcement staff is working on issuing Notices of Allegations in several ongoing cases that involve allegations of betting on professional and college sports by student-athletes and/or athletics department staff members at a handful of NCAA schools.

The proposed rule change would not be retroactive. If it is adopted, it would apply only to sports betting activities that occur after the effective date of the proposal.

“The enforcement staff’s sports betting-related caseload has significantly increased in recent years, and our staff — including our new sports betting integrity unit — has been effective in detecting and pursuing violations,” said Jon Duncan, NCAA vice president of enforcement.

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The Association prioritizes competition integrity, which is vital to college sports. The NCAA uses a layered strategy to respond responsibly to the rise in sports betting across the United States by monitoring over 22,000 contests per year, advocating for limits on  prop bets that pose heightened risks, reducing the potential for student-athlete abuse by aggrieved bettors, and creating greater transparency to assist with the timely investigation and resolution of integrity-related issues.

This layered approach includes the most recent agreement extension with Genius Sports to establish unprecedented betting restrictions on high-risk proposition bets. Sportsbooks licensing NCAA championship data must cooperate fully with NCAA investigations, including providing access to account data, financial history and geolocation records. This will allow the NCAA to work with the sportsbooks to gather detailed account information when harassers are identified to prevent repeat offenders from continuing to place bets across platforms, increasing safeguards to protect student-athlete mental health and well-being.

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