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Another reason a nation may enact this legislation — a desire to produce gaming software or otherwise enter the gambling business.
Within these jurisdictions, there is usually a large central organization that both issues licenses and polices licensees.
Holding a license from one of these bodies gives a site the right to make its services available in different world gambling markets.
In most parts of the world, operating a gambling website without such a license is illegal. When an operator wants to open a new gambling website, they shop for licensing authorities much the same way we shop for a new place to play blackjack or bet on our favorite sports.
Each licensing authority has different criteria to determine what sites can earn a license and how that site must behave in order to maintain it.
The Alderney Gaming Control Commission is a respected provider of online gambling licensure. The AGCC earned that reputation by holding their licensees to high standards.
Sites licensed from the jurisdiction of Alderney are required to do all of the following. Ten casinos currently maintain Alderney licensure, all of them aimed exclusively at the UK market.
At one time, a couple of major poker sites held an Alderney license, but after the Black Friday seizure on the part of the US Department of Justice, Alderney pulled out of the US-facing online poker market.
In , this tiny island chain became the first country to offer regulatory services for online gambling.
The nation actually issues two distinct types of licenses, as follows. The first type is for providing casino games, the other for providing betting services on sporting events.
At one time, Kahnawake was the largest licensing body in the world. This tiny Native territory outside Quebec, Canada was pretty much created for the purpose of issuing online gambling licenses.
Kahnawake had a bad reputation in the past as an issuer of licenses in exchange for high fees, providing little or no enforcement or regulation once the fee was paid.
Two poker sites that cheated their players were licensed by the Kahnawake Gaming Commission. Kahnawake has subsequently taken steps to legitimize their licenses, so sites that operate on Kahnawake licensure are looking more reputable.
There is now a customer dispute center, with the goal of connecting players with issues to staff at the relevant gambling sites.
However, changes to the legal landscape in the US and Canada have led to a drastic reduction in the number of sites depending on the Kahnawake Gaming Commission for licenses, as the European market takes over.
Gambling businesses were drawn to Costa Rica in the early days of the online gambling industry because the country lacked laws governing the practice.
Costa Rican licensure is suspect, in part because there is no governing body to enforce regulations, and as far as we can tell, there are no regulations to be enforced.
What these operators hold is a Costa Rican data processing license. Gibraltar is a self-governed dependency of the British Crown, one of the few remaining territories of the old British Empire.
While Gibraltar depends on the British government in matters of foreign policy, Gibraltar gets to write and enforce most of their own laws. Their tax laws are unique in that they allow for the issuing of gambling licenses, and the country has done so going back to Gibraltar is among the best-reviewed and most-respected such bodies in the world.
The Belize Computer Wagering Licensing Board has all authority to review applications and issue licenses. Belize is not one of the better-reviewed licensing bodies, seemingly more concerned with profits than enforcing strict gaming regulations.
The main requirement for a site to earn a Belize license is that it must promise not to offer online gambling to citizens of Belize.
For example, if a casino is launched and wants to offer games to players within the UK then it must have a license with a jurisdiction such as the The Gambling Commission or The Alderney Gambling Control.
These jurisdictions have the power to award and revoke gambling licenses for different territories across the world and they keep a keen eye on those casinos that possess a license with them to maintain a regulated market.
Licensing jurisdictions usually employ third party organisations to help them regulate the casinos that are operating under their casino licensing requirements.
The aim of these regulatory bodies is to monitor casinos and poker rooms that have been awarded a license to operate under a territory that the jurisdiction awards licenses for.
The regulators can help to settle any disputes or complaints that might arise between players and the casinos to guarantee absolute fair practice at the casinos involved.
In Australia, this has seen the gambling industry regulated by State and Territory authorities such as Regulation in the Australian gambling market has become more prevalent since online gambling became more popular.
Ever since the Gambling Commission was set up in the UK with the introduction of The Gambling Act , Commonwealth countries have enforced regulation of online gambling in their markets.
This set up offers a more layered casino licensing process to gambling within Australia compared to the rest of the world where it is usually one central authority that regulates the casino licensing within the gaming industry.
The jurisdiction that a casino opts for depends on the market they wish to offer their product to. A recent law, The Gambling Licensing and Advertising Act , passed by the UK government meant that casino operators had to be located within UK shores if they wished to avoid a heavy taxation aimed at offshore-based operators.
This meant casinos that had a license with jurisdictions such as Kahnawake, Gibraltar, or Malta had to re-evaluate their approach to the UK market.
So a large number of operators were forced to apply for a license with the UK Gambling Commission in order to offer their casinos to the UK market.
There are also jurisdictions that are considered to be stricter with their guidelines and regulations than others.
The Dutch market has seen a number of developers including Sheriff Gaming and Betsoft Gaming investigated for alleged fraudulent activity due to the Dutch market's zero tolerance approach to certain aspects of its laws and this can have a big impact on the games a casino can offer.