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Online/Mobile Sports Betting Regulations Globally
Key Takeaways
- The online sportsbook regulatory landscape is complex and changes quickly all over the world. While online betting is legal in many countries, the "nature and extent of allowed activities varies, with some countries permitting only specific types of bets to be made or only allowing betting on particular sports or events. In some countries, online offerings are tied to a land-based license, and in others they are regulated separately or not at all."
- Online betting in the UK is regulated by the UK Gambling Commission, which provides licenses, advice, and guidance to individuals and businesses involved in the gambling business in the UK. The commission's functions are laid out in the Gambling Act of 2005 as amended by the Gambling (Licensing and Advertising) Act of 2014.
- According to Germany's new Interstate Treaty on Gambling, "sports betting can be permitted as combination or single bets on the outcome of sports events (bets on outcomes) as well as on the occurrence of certain events during an ongoing game (bets on events). Such bets may be placed, for example, on the next goal, set or on a similar component of a final result in sports where only a small total number of these events regularly occur during the course of the event."
Introduction
We have provided an overview of notable global regulations of online/mobile sports betting across the world.
Online/Mobile Sports Betting Regulations Globally
- According to Slotegrator, "a software supplier and aggregator for online casino and sportsbook operators," many countries around the world such as the UK, Australia, Denmark, France, the Philippines, Ghana, and Colombia have legalized online sportsbooks and they have regulations in place to control online betting activities in their respective countries.
- The online sportsbook regulatory landscape is complex and changes quickly all over the world. While online betting is legal in many countries, the "nature and extent of allowed activities varies, with some countries permitting only specific types of bets to be made or only allowing betting on particular sports or events. In some countries, online offerings are tied to a land-based license, and in others they are regulated separately or not at all."
Europe
1. The United Kingdom
- In the United Kingdom, online sports betting is regulated and the law requires betting companies to obtain a local license. However, recently, the UK seems to be tightening regulations in an already heavily regulated market.
- There are plans in the pipeline to restrict the market further for online betting operators and a total ban on advertising is being considered.
- Online betting in the UK is regulated by the UK Gambling Commission, which provides licenses, advice, and guidance to individuals and businesses involved in the gambling business in the UK. The commission's functions are laid out in the Gambling Act of 2005 as amended by the Gambling (Licensing and Advertising) Act of 2014.
- The Gambling Commission maintains The License Conditions and Codes of Practice (LCCP), a list of requirements for gambling operators in the country before they are issued with a license to operate in the UK.
2. Australia
- Australia has a ban on online casino games, but it allows land-based and online sports betting, which are regulated at the state level.
- Every Australian state has its licensing authority and the industry operates under heavy regulation by the states.
- According to the International Comparative Legal Guides (ICLG), there is no single overall authority or statute regulating gambling activities in Australia, but each of Australia's eight states has separate regulations to control gambling activities within their jurisdiction.
- Here is a list of all the bodies that govern betting activities in the different states in Australia, as well as more details into the sports betting regulations.
- Some legislations that govern gambling in Australia include:
3. Germany
- While online sports betting is legal across Germany, the country's online sports betting legal landscape is considered to be very complicated. The country's betting laws are complex, there are multiple regulations at both the federal and state levels, and the authorities are constantly amending the legislation.
- Germany's new Interstate Treaty on Gambling is expected to introduce new limitations on in-play betting and restrict advertising. Currently, Germany allows land-based casinos, land-based and online sports betting, and horserace betting to take place in the country.
- In March 2020, the country approved the latest edition of the Interstate Treaty on Gambling, which will bring some changes on how online sportsbooks, which had been previously legalized, will continue to operate.
- According to the new Interstate Treaty on Gambling, "sports betting can be permitted as combination or single bets on the outcome of sports events (bets on outcomes) as well as on the occurrence of certain events during an ongoing game (bets on events). Such bets may be placed, for example, on the next goal, set or on a similar component of a final result in sports where only a small total number of these events regularly occur during the course of the event."
- The treaty also prohibits advertising for sports betting during sporting events. Sportsbooks in the country are also banned from advertising during the run-up to the game to be bet on.
- Here is a deep dive into the different regulations in Germany, as well as the different regulatory bodies involved.
4. Sweden
- Gambling activities in Sweden are regulated by the Swedish Gambling Act, which came into effect in January 2019. The legalizes making wagers for money but stipulates that all sportsbook operators must have a license to operate in the country.
- The gambling act includes stricter regulation of gambling advertising and introduces a national license system for gambling operators. The government bodies responsible for regulating gambling in Sweden are the Swedish Gambling Authority and the Swedish Consumer Agency.
- The act also requires "a degree of moderation to be employed when advertising gambling. This means that gambling operators must ensure that advertising is kept within reasonable limits and that it may not be directed to people under the age of 18. It is also prohibited to send direct advertising to someone who has excluded themselves from gambling. The prohibition also applies to advertising that is sent digitally, if this can be considered to be personalized in a similar manner as, for example, emails."
- In addition to tightening the operator licensing system and regulating gambling marketing, the act also has the following provisions:
- Bonuses are limited to the first gambling instance.
- Match-fixing has been introduced as a new offense on cheating.
- Players have to specify a maximum betting amount limit.
- The act introduces a maximum new panic button for immediate self-exclusion from online betting.
- Laws against credit gambling have been tightened.
- The act has made it possible to block payments between players and unlicensed gambling operators.
- The Swedish Gambling Authority "can order internet service providers to place warning messages on websites that offer unlicensed gambling."
- Higher penalties for unlawful and unlicensed gambling activities.
- The promotion of gambling without a license is now a criminal offense.
- Here is a deep dive into the different regulations in Sweden, as well as the different regulatory bodies involved.
5. Hungary
- For a while, gambling activities in Hungary were restricted to a single government monopoly but recent online gaming legislation that will allow private operators to apply for licenses will see this monopoly come to an end.
- According to Gambling News, "the most recent gambling laws in Hungary were amended in 2014, and according to them, land-based operators were allowed to apply for online gaming licenses, but sports betting was only provided by Szerencsejáték Zrt, a state-run company that held a monopoly on the betting market."
- Here's a deep dive into the different regulations in Sweden and the different regulatory bodies involved.
6. Netherlands
- The Netherlands is leading the shift towards open betting markets. According to Kansspelautoriteit, a regulated online gambling market in the country was expected to start in 2021, with officials saying that over that more than 100 candidates were interested in getting a license.
- On October 1, 2021, the country passed the delayed Remote Gambling Act (KOA) making it legal for people in the Netherlands to place sports bets over the internet.
- According to the government, "a new licensing system will be introduced for providers of online games of chance. This will make it easier to protect players against gambling addiction and similar risks, and prevent money laundering associated with illegal gambling."
- When the gambling act when into effect, the Dutch Gambling Authority issued gambling licenses to 10 operators, who will be bound by strict laws, including:
- They have to prevent money laundering.
- They have to pay a gambling tax.
- Players should be at least 18 years of age.
- Online gambling advertising should not be misleading or lead to excessive gambling.
- Here's a deep dive into the different regulations in the Netherlands and the different regulatory bodies involved.
Africa
- Only seven of the 54 African countries have a total ban on all gambling activities (Mauritania, Guinea-Bissau, Libya, Sudan, Somalia, Burundi, and Eritrea). Other countries like Tunisia and Egypt only allow tourists and foreigners to engage in gambling activities. In Nigeria, sports betting is considered a game of skill, not chance, making it legal.
7. Nigeria
- In Nigeria, there is often overlap and clashing of gambling regulations at federal and provincial levels leading to a regulatory landscape "that’s difficult to navigate and introducing a risk of being exposed to double taxation."
- However, Nigeria is considering the introduction of a unified gambling law to eliminate the existing regulatory complications.
- Here's a deep dive into the different regulations in Nigeria and the different regulatory bodies involved.
8. South Africa
- Despite the numerous legal restrictions on gambling that exists in South Africa, it is still the biggest gambling market in Africa. Generally, online betting is banned at the federal level, but bookmakers can obtain licenses at the provincial level to accept bets online.
- Different provinces in the country have different rules and regulations on online betting making it difficult to navigate the regulatory landscape in South Africa. Just like in Nigeria, authorities may introduce a unified gambling rule that will solve all the regulatory complications in the country.
Asia
9. The Philippines
- The Philippines is the most open and popular sports betting market in Asia since betting licenses are only offered to offshore operators, eliminating competition from domestic operators and events, thus attracting many companies to the market.
- Here's a deep dive into the different regulations in the Philippines and the different regulatory bodies involved.
Latin America
10. Mexico
- Mexico is considered one of the biggest and most active markets in Latin America with online sportsbooks expected to achieve even more market prominence as the pandemic significantly affected retail operations. Online betting laws and regulations in Mexico are "relatively clear and straightforward."
- Below are some sources that describe the laws and regulations governing online betting in Mexico:
- ICLG Gambling Laws and Regulations Mexico Chapter.
- Thomson Reuters Practical Law Gaming Overview in Mexico.
11. Argentina
- While online betting is legal in several provinces in Argentina, overall legislation in the space is fragmented.
- Below are some sources that describe the laws and regulations governing online betting in Argentina:
- ICLG Gambling Laws and Regulations Argentina Chapter.
- The Gambling Law Review: Argentina.
12. Brazil
- Recently, the president of Brazil has signed a decree to privatize sports betting but this is yet to be seen in action.
- Below are some sources that describe the laws and regulations governing online betting in Brazil:
- ICLG Gambling Laws and Regulations Brazil Chapter.
- A general introduction to gambling law in Brazil.
- The Gambling Law Review: Brazil.
Other Countries
- Below are links to gambling regulations in other countries across the world, including regulations on online/mobile sports betting.
Research Strategy
We searched through the betting industry service providers/research providers such as Slotegrator, GamblingSites, VIXIO Gambling Compliance, iGaming, among others. We also used sources from sports media companies such as Action Network and Legal Guides such as ICLG, Thomson Reuters Practical Law, and The Law Reviews.