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Authorities Look to Online Casinos for Additional Tax Revenues

The issue of casino regulations is quite complex. First, there are three main types of casinos: land based casinos, online casinos, and mobile casinos.

Legal and not Legal

Land based casinos are legal in many countries and illegal in many others. Online casinos are legal in many countries and illegal in many others. Mobile casinos are usually legal but not always.


There are 193 nations in the world. Any single country that legalizes casino gambling will have its own set of laws. Land based casino regulations may be vastly different than online casino regulations under the auspices of the same jurisdiction. If to the total of 193 countries we add sub-jurisdictions such as US states and Canadian provinces, the number exceeds 250.


The laws that govern casino gambling are often confusing. For example, the law passed in the United States called the Unlawful Internet Gambling Enforcement Act (UIGEA) made it illegal for any financial institution to transfer money from one American account to an online casino.

This became the law in a country with hundreds of legal land based casinos. Thus, a credit card company could facilitate a money transfer to a land based casino but not to an online casino.

The United States is also comprised of 50 independent states so, now that states need money desperately and see online gambling as a way to get more tax revenue, states are starting to circumvent the UIGEA and set up their own online gambling protocols. The sheer number of jurisdictions makes the situation in the US even more complex. In order to get an online casino license in one state, you might need to comply with one set of regulations whilst to get a license to do business in another state, you might need to comply with a very different set of regulations.

Land Based or Online

Land based casinos have it much easier in regard to regulation because each casino is clearly located in one jurisdiction. Each casino follows the laws and regulations of the jurisdiction in which it is located. Even multi-national casino conglomerates that have land based casinos in many locations simply know that they follow the laws of the place where the casino stands.

Online casinos run on international communication systems. They have no specific location. So, they may have to have landing pages for any number of jurisdictions as the regulations may differ from place to place so much that a landing page appropriate to one place may be inadequate to another.


The situation in Canada is also a bit indistinct. It is illegal for online casinos that are not licensed in the country to offer gambling to Canadians but it is not illegal for Canadians to accept such offers from offshore casinos.

So, in Canada, many players use offshore casinos and the country is deprived of the tax revenue that would come were the casinos duly licensed in Canada.

Also, in Canada each province can set up its own rules.

Great Britain

Here gambling is strictly regulated and legal. This has made the UK the focus of intense competition especially amongst online casinos. The high level of competition means that gambling is marketed intensely in the UK and the high tax rate for earnings and winnings means that the national treasury brings in vast sums from gambling.


The European Union allows member nations to regulate gambling as they see fit. This sounds better than it is; in this regard Europe is a complex web of regulations.


An Australian online casino has a problem similar to what obtains in Canada. No Australian company may offer online gambling services to Australian citizens except in the areas of lottery and sports betting. The law does not prohibit Australians from accessing offshore online casinos and gambling there. As in Canada, this law prevents the Australian government from collecting tax revenue from the gambling activity it knows that its citizens are enjoying.

South America

Most countries in this continent allow online gambling with just a few idiosyncrasies.


This vast continent has many different regulations affecting gambling both land based and online. Some nations prohibit gambling on religious grounds. Alternatively, Singapore, for many years, disallowed gambling on moral and social grounds. Singapore recently accepted the concept of the Integrated Resort where the casino would be a small part of the attractiveness of the resort to the extent that families could come for the waterpark or amusement park and the great hotel and restaurant facilities and not even be aware of the presence of a casino.


Here, too, there is a veritable cornucopia of rules and regulations.

Impact for Online Casinos

Online casinos have long stated that one of the advantages of online gambling is that since overhead is less, return to player rates from online gambling are greater than at land based casinos. ass overhead increases due to the need to comply with an array of rules, the overhead for online casinos may rise to the point where they exceed the overhead of land based casinos.

Aggressive Expansion

The possibility that online casinos may someday become more expensive to run than land based casinos has not deterred online casino growth. Today there are thousands of online casinos. Some, like WPokies Online Casino see themselves as primarily serving one constituency even though they are available to gamers from all over the world.

WPokies is a quintessential Australian casino accepting deposits in AUD, running promotions geared to the Aussie gamer, and carrying a dizzying array of great pokies and all other casino games from a well-selected group of independent casino game providers.