Gambling has a long history around the world, evolving into various forms over the years. The sector is evolving from traditional casinos to online gaming platforms. In addition to these two segments, the sports betting sector is becoming increasingly important. This is where the regulator comes into play with its prohibitions.
Prohibition of gambling
The reasons for the prohibition of gambling are a controversial issue in several parts of the world. At certain periods in history, gambling was associated with bad habits, along with alcohol and other practices. They were persecuted and sometimes banned. Although it is relatively acceptable now, not all states have the same rules, which is why some people do not have bookmakers like 1xbet, casinos or online gambling sites. Which countries without casinos maintain restrictions?
Brazil
A symbolic case of prohibition is Brazil. The practice of gambling was frowned upon for decades, and in 1941 they decided to censor it legally. In the absence of casinos, the only options are state-controlled lotteries and horse racing. The big exception is poker, which is allowed as a sport.
However, recognizing that these laws are outdated, there have been many attempts to change the situation. In 2015, the first private lottery, run by a group of companies, began operating. Three years later, sports betting was allowed. Although brick-and-mortar casinos have not yet been legalized, it is only a matter of time before this happens.
China
The Chinese government has created a special situation. The ban is in effect across most of the country. However, they are not going to miss the opportunity to accumulate the money that these establishments generate. Especially when it comes to tourism. Thousands of travelers spend part of their budget on gambling.
When they arrive in a new place, some enthusiasts consider the first thing they do to find a city casino. For this reason, it was decided that the tourist regions of Hong Kong and Macau, which receive thousands of visitors each year, should be able to operate both casinos and racetracks.
United States
In the past, the US government banned casinos, along with alcohol. Citizens had to seek their gambling desires elsewhere, such as Cuba or Mexico. But these restrictions have been relaxed, and today Las Vegas is one of the entertainment meccas.
While there are some states in the country where lotteries are not yet allowed, such as Arkansas, Mississippi, and Hawaii, sports betting has only become openly available since 2018.
Russia
The country experienced a gambling boom after gambling was legalized in the 1990s. Cases of gambling addiction increased, and the government decided to reintroduce a ban in 2009. However, in order not to lose tourism revenues, some regions, such as Krasnodar and Altai, still maintain freedom of action.
The situation is similar with China. Russia is one of the few European countries that maintains restrictions, as most have allowed the opening of physical casinos, online casinos or bookmakers.
Mexico
Mexico has had a ban since 1947. Before that, casinos were popular, partly because American tourists were not allowed to gamble on their territory. However, Mexico followed suit, except in certain tourist areas.
A 2014 law came close to lifting the ban, but the Senate rejected the proposal. Only a handful of establishments operate in the country, both physically and online, without facing serious sanctions.
Variety in regulation
An important aspect of this sector is government regulation aimed at controlling the gambling market and minimizing the risks associated with gambling.
Great Britain and Malta: a smart approach
For example, countries such as the UK and Malta have a long tradition of regulation. These countries have a clear legislative framework that regulates the licensing of gambling operators and protects the rights of players. The UK Gambling Commission and the Malta Gaming Authority are well-known supervisory bodies that ensure that licensees adhere to strict rules.
Germany: a national puzzle
Regulation in Germany is complex and is governed by the laws of 16 federal states. Until recently, there was no single national regulation, which led to a patchwork of different regulations. Each federal state had the right to adopt its own laws, which led to significant differences. Thanks to the Interstate Treaty, which entered into force on July 1, 2021, Germany is moving towards national regulation. Supervision of gambling is now entrusted to a central authority, the Federal Ministry for Economic Affairs and Energy. The aim is to create a single legal framework that covers both online gambling and land-based casinos.
Switzerland: clarity through strict regulation
Switzerland has a strict regulation system. The Swiss Federal Gambling Board (SFGB) is the central supervisory authority responsible for licensing and monitoring gambling operators. The SFGB ensures that providers meet high standards of security, fairness and protection against gambling addiction.
Switzerland has also created a clear legal framework for the online industry. Only companies that already operate land-based casinos can obtain a license to operate online games. This approach aims to guarantee the integrity of the market and ensure that only reputable operators can offer online gambling.
Austria: between monopoly and new approaches
Austria has traditionally had a state monopoly on these entertainments. Austrian lotteries and casinos have been the main players in this market. However, the European Union has been putting pressure on Austria to liberalize the industry and encourage competition. The Austrian government responded by reforming the law in 2010. This allowed foreign providers to apply for licenses. However, the state reserves the right to maintain a monopoly on certain types of gambling activities, especially in the area of lotteries.
Asia: a mix of liberalization and restrictions
Asia is a diverse continent when it comes to such entertainment. In Macau, the gambling capital of Asia, there is a liberal attitude towards casinos, making it one of the largest gambling centers in the world. However, there are countries, such as North Korea, where everything related to this is prohibited, and severe punishments are applied to players.
Singapore is an interesting example of a happy medium. The government has legalized casinos, but at the same time has implemented strict regulations to minimize the social impact of gambling. Licenses are issued by the Casino Regulatory Authority (CRA), which aims to ensure that operators operate responsibly and guarantee integrity.
North America: differences between the USA and Canada
In North America, there are significant differences in regulation between the United States and Canada. In the United States, regulation is carried out at the state level, resulting in a wide variety of approaches. Nevada is known for its liberal approach to casinos, especially in Las Vegas, while other states have a more restrictive approach.
Canada, on the other hand, has a federal structure, but the provinces have broad regulatory powers. This has led to a mixed picture, with some provinces actively promoting casino development, while others take a more restrictive stance.
Australia: a highly regulated market
The Australian gambling market is heavily regulated, with varying levels of regulation across states. The Australian Communications and Media Authority (ACMA) is the central regulatory body that ensures that gambling operators comply with national regulations. The online gambling market in Australia is heavily regulated, and the government is taking steps to minimise problem gambling behaviour.
Conclusion
Overall, gambling regulation around the world shows striking diversity. From the liberal markets of Europe to the tightly regulated, no-gambling environment of Australia, there is no one-size-fits-all solution to controlling gambling. The differences in approach reflect the cultural, political and social differences that exist within each country.
The different approaches in Germany, Switzerland and Austria reflect the diversity of international regulation of gambling and sports betting. Germany advocates national regulation that covers all relevant areas. Switzerland advocates clear regulation and the creation of a central supervisory authority to ensure the integrity of the market and sports betting. Austria tries to strike a balance between state monopoly and competition in both gambling and sports betting.
It is still unclear how industry regulation will evolve in the coming years, especially in the context of increasing digitalization and global interconnectedness. However, one thing is certain: licensing will continue to play a key role in ensuring fair, safe and responsible service provision in this area.
