License Issued in the US The Gamblers’ Rights Division in the US state of New Jersey has granted Swedish provider Net Entertainment (NetEnt) a license to operate a business called the Casino Service Industry Enterprise. The department’s decision to issue the license in perpetuity puzzled many.
Although the application of the Swedish provider for the document has been considered for more than 3.5 years (since the beginning of 2015), Net Entertainment has already agreed to expand in the neighboring state of Pennsylvania, and is also preparing to continue promoting its services in other states. The provider noted several new contracts in North America and an arrangement in Canada. In addition, the provider is preparing to open the first real-time casino studio in the US.
The American authorities are against, but the players are only “for”
But the reaction of the authorities was not long in coming – they continue to resist the promotion of online casinos on specific types of licenses. Today, these types of entertainment are officially allowed in the states:
- New Jersey
- Delaware
- Pennsylvania.
Completely banned in the states:
- Utah
- Hawaii
In other states there is no clear understanding of how to develop this business. Many of these types of establishments simply evade the law (for example, under the guise of “floating” casinos on ships or temporary playgrounds).
Even though card games (particularly online poker) are not subject to gambling bans as low win games in the US market, regulators are still trying to make life easier for new licensees. They simply burden the registration period, adding a huge amount of bureaucratic and paper work to go through all the procedures.
Yes, and the authorities themselves continue to sing “old songs about the main thing” – they say, casinos are a cover for illegal money laundering. However, statistics show something else, which makes online casinos the best choice, and gambling licenses for this type of business are much safer. So, let’s take any gambling country. In states where there is a high level of gamblers, crime rates are higher than in non-gamblers by 7.6%, according to ResearchGate research. Also, in areas bordering gambling establishments, the number of crimes is 80% higher than the national average.
It turns out that crime is really growing. This is true, but this applies to live casinos and gambling houses. About online – not a word at all. Yes, and data from Las Vegas says that things are not going smoothly there, since in 2018 they lost 80% (!) Of their expected revenue. That is why the regulatory authorities found gambling negative for local businesses as well, because casinos are pulling revenues for their development.
The precedent in New Jersey showed one unpleasant fact – Americans want to gamble online. According to the annual News Gallup poll for 2018, more than 70% of players are in favor of online casinos and the ability to play online. Moreover, this is due to high profits, which, according to US laws, are necessarily taxed – 17% and 35% (depending on the amount: a rate of 17% applies to winnings up to 1 million US dollars, and 35% – from 1 million US dollars ). Therefore, regulators will have to admit their backwardness in this matter, as the live casino market remains more flexible, feels freer in terms of activity due to outdated legal restrictions that need to be reviewed.
Most likely, this year, most states will, to one degree or another, meet the needs of the gambling community. These will not be our neighbors at the virtual gaming table (if you do not play in American casinos), but within the same provider – completely.
By the way, remembering the Swedish provider, under the new terms of promotions from NetEnt, it is forbidden to connect players of only certain states. This is a rather cunning strategy, but the whole point is that the authorities do not understand the progress of this case, and therefore the auditors are trying to stop the development of platforms with bureaucracy and “paperwork”. However, this is still useless: the number of players is growing in arithmetic progression.
The first gaming license for online casinos was issued in the USA
It is important to note that the financial departments of Internet sites are also gradually improving. They reduce the maximum waiting time for payments by 4 or more times, increase the limits for payments to newcomers and regular players, develop procedures for verification and financial reliability of the client (from a bank or a borrower of funds). This helps to weed out all suspicious customers, avoids the possibility of fraud or collusion to win (by the croupiers, members of the casino or by the players). And in case of an inadmissible attitude of the client (threats, accusations or attempts to forcefully resolve the “issue”), the online service will block the user account and add it to the “black list of players”.
The online casino platforms themselves are well aware that they will face serious competition from land-based gambling houses and the state lottery. But still, they have an excellent opportunity to develop if the state and regulators understand an important truth about the Internet. Now the business of the 21st century is moving into the global network, and this is where the best opportunities for innovation, taxation, licensing, consumer protection, players and entertainment should be found.
So the precedent with the Swedish supplier NetEnt will set off a chain reaction in the development of gambling in the United States. It remains now to wait a little time for more interesting news in the near future.
Do you, for example, want to start your own business by creating an online casino? If so, then we remind you that you will need a license to conduct this type of activity. Once you get it, you can start making money from almost nothing.
If you are ready, then Law and Trust International is ready to help not only in organizing, but also in licensing the gambling business anywhere in the world. Our experts will advise you on the rules and conditions for obtaining licenses, terms of obtaining, on the package of required documents, as well as on the legislative regulation of the gambling business, licensing conditions and much more.
This is how the law helped to realize the dream of many people.