Recent years have seen an explosion in online gambling. Internet and smartphone technology have made remote gambling easier than ever. Online casinos, sports betting, and poker sites are readily accessible. State and federal laws regarding online gambling remain ambiguous or contradictory, complicating the regulation process. Regulations and new laws are needed to keep up with the growing online gambling industry.
Expanded state level legalization
Legalized online gambling is likely to expand at the state level. The online gambling industry is largely confined to states such as New Jersey, Pennsylvania, and Michigan. Online gambling is only allowed in some states or is prohibited in others. More states will recognize the revenue potential of regulating online gambling as they face revenue shortfalls. Several states are considering legalizing online casinos, sports betting, or both in the future.
Greater federal oversight
Up until now, states have taken the lead on online gambling regulations in the absence of significant federal oversight. But calls are growing for greater involvement from federal agencies and new federal laws to regulate elements of online gambling. Proposals like the Sports Wagering Market Integrity Act would establish federal standards for sports betting. Other bills would create a framework for states to pool players across state lines for games like online poker. Federal agencies like the FBI and IRS also increase the scrutiny on operators to enforce laws related to money laundering, tax evasion, and fraud. Though state-level rules would remain largely intact, the federal government appears poised to take a more active regulatory role.
Operators like Zeus bro138 Game. Stricter regulations could be placed on KYC (know your customer) rules, responsible gambling features, marketing limitations, and requirements to detect and report problematic behavior. Regulators in some jurisdictions like Sweden and Spain have already begun imposing tighter requirements in many of these areas. Other regulators follow suit if they determine some operators enable excessive gambling or allow access to underage players. Higher costs of compliance for these new rules could also drive further consolidation in the industry.
New technologies and competition
Some of the biggest disruptions in online gambling come from new technologies and competition. Blockchain-based gambling sites and decentralized apps are touted as being virtually unregulatable. Several cryptocurrency-based gambling sites like EarnBet have already gone live. If these sites gain traction, regulators forced to rethink old approaches to online gambling oversight. The rise of video game loot boxes and “play-to-earn” crypto games is also creating new grey areas ripe for regulation. And competition from large tech firms like Apple, Amazon, Google, and Facebook could quickly displace incumbent online gambling operators. These tech giants push regulators to update rules to accommodate their entrance into the market.