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However, there was an argument over whether or not the Wire Act of applied to wagering and gaming over the internet.
This act was established to make interstate telephone betting illegal, but since it was passed years before the World Wide Web was invented, it obviously made no specific reference to online gambling.
Many sites took this as a clear indication that the US government considered online gambling to be illegal and stopped taking US customers as a result.
A number of other operators continued to welcome American customers, though. Some Americans chose not to risk betting or playing over the internet, but many more carried on doing so.
In recent years, the legal landscape has changed again. A number of states have introduced legislation which openly makes online gambling legal, and some states have even issued gaming and betting licenses to operators wishing to provide their services within those states.
Several other states have announced plans to do the same, while others are continuing to debate the issue. Just to make things a little more complicated, the individual provinces within Canada are able to regulate gambling in their own regions.
Some local governments actually operate their own online betting and gaming outlets. Sites operating within and outside the region can offer their services to UK residents, provided they are licensed directly by the Gambling Commission.
This latest provision was introduced in Prior to that, any sites licensed within certain white-listed jurisdictions were able to accept customers from the UK.
The clear legislation and strong regulation in the UK makes this region an attractive market for operators; the only downside is that they have high tax rates.
Europe is made up of many different countries, and these countries are individually responsible for their own legislation.
However, they are generally free to pass their own laws as they wish. As such, online gambling laws in Europe vary from one country to the next.
The industry is well regulated in some countries and less so in others. Our guide to European gambling laws includes information on legislation in the following countries:.
This act makes it illegal for Australian companies to offer certain gambling services to Australian residents; only sports betting and lottery games are allowed.
Regulation is carried out by both central government and local governments. The online gambling legislation in New Zealand is refreshingly straightforward.
Most forms of online betting and gaming are prohibited, but this only applies to companies based in the region. The act mentioned above explicitly makes it legal for New Zealanders to use sites located overseas.
Just like in Europe, the countries in Asia are individually responsible for passing their own gambling legislation. All forms of land-based gambling are completely legal in some areas, while they are all illegal in others.
There are even some countries that only allow specific types of land-based gambling. Gambling is legal in most South American countries, although not in all of its forms.
In Brazil, for example, only horse racing and lotteries are legalized. Online gambling at foreign websites is also allowed throughout most of South America, and some countries even have their own regulatory systems in place for the industry.
Various forms of gambling are legal throughout Africa. Several African countries are home to numerous land-based casinos, and South Africa, in particular, is a popular destination for tourists looking to play their favorite casino games in a different atmosphere.
South Africa is also one of the few African countries that have passed legislation in relation to online gambling. Alderney is one of the most respected online gambling jurisdictions.
A plethora of the best overall sites are licensed by the AGCC, which generally guarantees that they are a reputable operation.
A popular part of the world for offshore banking, the country of Antigua and Barbuda was one of the first regions to establish itself as an online gambling jurisdiction.
The Antigua Directorate of Offshore Gambling began issuing licenses to gaming and betting companies back in , and at one time they had more licensees than any other licensing authority in the industry.
Belize was another early mover in the industry. The country introduced the Computer Wagering License Act in to set up a legislative framework for issuing licenses, and the Belize Computer Wagering License Board was established to approve and regulate licensees.
Changes have been made to the licensing requirements over the years, including a significant reduction in the relevant fees.
Costa Rica is home to many companies in the online gambling industry. They just need a general license, which is relatively easy to obtain.
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.
Once a protectorate of the Netherlands, Curacao is now an independent country. Curacao has been licensing online gambling sites since before its independence, dating back to the mids.
Technically, Curacao issues two kinds of gaming licenses. For those reasons, Curacao is one of the most popular licensing bodies in the world, with hundreds of member sites.
The Isle of Man began issuing gaming licenses in , and is now a respected authority in the industry. The Isle of Man is a powerful regulatory body that holds sway in the online gaming industry.
Part of the UK, this little island now employs more people in the gaming industry than any other, outside of general tourism.
All operators looking to earn a license from the Isle of Man undergo a tough vetting process to ensure compliance before a site is even granted the right to operate.
Sites are required to demonstrate true randomness and fairness in their software and algorithms multiple times a year. Malta is a little-known island nation in the Mediterranean, a hidden paradise that most Maltese hope would rather stay that way.
Most Microgaming sites hold a license from Malta, as part of a special deal between Microgaming and the Maltese government.
Cyprus Cyprus is a relatively-new licensing body. In , the Cypriot government voted to allow the licensure of online bingo and skill game sites.
In , the government agreed to test out a new licensing program for online casino and poker play, issuing a single license on a test basis.
Few details are yet known, since the first license was issued as part of a pilot program. Not all licensing bodies are created equal.