Around 138 million people worldwide gambled in 2024, but iGaming isn’t legal everywhere. 

Different countries deal with online gambling in different ways: allowing all forms of gambling and issuing licenses to many operators, allowing only certain verticals for one or two operators, or completely banning it.

For example, the UK and Malta issue licenses to operators that run online casinos, sportsbooks, or provide software for these services. In the US and Canada, the decision is left to states and provinces. Ontario, Tobique, and Kahnawake each have their own regulators.

On the flip side, countries like Australia, South Africa, and China have made gambling, and online casinos in particular, illegal.

It’s time to figure out where online gambling is legal, how “particularly allowed” actually works in practice, and what happens if you offer online casinos and sportsbooks in places where it’s unconditionally banned.

Why iGaming Laws Differ Across Countries

Countries have their own cultural views, social attitudes, and economic or political reasons for deciding whether to allow online gambling.

Some nations see it as a form of entertainment, while others consider it a harmful activity and choose to ban it. In many countries, religious and moral values still play a big role, and some ban gambling because of religious rules. 

It’s unlikely that Saudi Arabia will ever allow sports betting or online casinos. But in the UAE, things are going differently. In 2024, the regulator issued the first iGaming license to UAE Lottery. Wynn Resorts is also building a gambling resort there. Since then, the regulator has given out 16 licenses, showing that the market is opening up. The Emirates is an unusual case, and we will explore it below.

Besides cultural specifics, there are also economic objectives. Some countries prefer to regulate activities that could be potentially harmful rather than ban them outright. That’s why they use the regulated gambling industry as a source of tax revenue and economic growth. 

Gibraltar is one of the strictest jurisdictions, but it earns an impressive revenue from regulating online gambling. The industry makes up about 25% of its economy and gives work to 3,500 people. The Isle of Man is similar, with online gambling making up about 16% of its economy.

Some countries prefer strict, centralized control through monopolies. Norway, Finland, and Singapore have chosen this path and see a monopoly as the “best way” to prevent potential harm.

Generally, there are three divergent legal approaches to iGaming around the world: prohibition with no legal iGaming, state monopoly with centralized control, and open licensing systems with regulated competition, multiple licensed operators, and consumer protection measures.

Countries Where iGaming Is Fully Legal and Regulated

Let’s focus on the countries that chose to regulate the industry. Instead of a total ban, they set clear rules, monitor how operators stay compliant, raise taxes, issue licenses, and introduce new online gambling regulations.

The key hubs are the UK, Malta, Sweden, the Netherlands, the Isle of Man, and several offshore jurisdictions such as Anjouan, Kahnawake, Tobique, and, the more recent player with a big potential, Nevis.

Legislation varies from country to country. In some places, compliance is very strict: operators have to undergo many checks, certify their RNGs, implement KYC procedures, and verify users’ identities and ages. 

In this sense, the UK and the Isle of Man compete over who has the tougher rules.

In all regulated markets, a license isn’t just a formality. It’s a permission granted only to operators who have passed those checks, submitted the required personal and corporate documents, proven the qualifications and experience of their staff, and demonstrated a spotless reputation with no criminal records among the founders.

Their technical infrastructure meets regulatory requirements, and, if needed, they keep data and servers within the jurisdiction like Kahnawake requires. 

Operators must prove their financial stability, strictly follow AML (anti-money laundering) and KYC (Know Your Client) procedures, verify players, track their transactions, and report them.

The regulator also ensures that operators inform customers about the rules and provide options for self-exclusion.

If an operator fails to meet the requirements during the application stage, the regulator can deny the license. 

But the penalties are much harsher if an operator breaks the rules after already receiving one. 

Despite all the challenges, operators still go for it. The reason is simple: a license boosts their credibility in the market. In return, they get legal certainty, access to reliable payment channels, and the opportunity to scale their brand into other markets. 

Countries With Limited or Conditional Legalization

There are also countries where online gambling activities are partially legal, mostly, for local operators. It’s possible to obtain a license here, but it’s close to impossible.

Uzbekistan issued licenses to operators that met very high capital requirements and implemented photo ID verification. In Austria, there’s a state-controlled monopoly. The same applies to Azerbaijan and Finland, but only for online betting. 

In Germany, online gambling is regulated mainly for sports betting, virtual slot games, and online poker. Anyone wanting to offer these activities on the German market must show a minimum €5 million security deposit, a physical office in the EU, and robust responsible gambling and AML measures.

France is more focused on regulating poker and sports betting. That means online casinos with traditional table games like roulette or blackjack are prohibited. 

In South Africa, online casinos and poker remain illegal. Provincially licensed operators may offer only online sports and horse betting. Australia has the same legislation, with only online sports and racing betting allowed.

In general, in countries that particularly allow online gambling, only local or state-owned operators work, or specific game types permitted exclusively. In some cases, there are high capital and licensing requirements limiting market entry, as in Germany. 

These approaches aim to tightly control the market. How effective they are is a big question. 

One of the most interesting markets, the US one, is known for highly strict regulations. You can count on your fingers the states where online gambling is allowed. 

Online casinos and poker are legal in New Jersey, Pennsylvania, Michigan, Delaware, West Virginia, Connecticut, and Rhode Island. The sports betting area is under less pressure. 

But as stats show, it doesn’t help: Americans gamble about $673 billion annually through unlicensed markets. 

Countries Where iGaming Is Fully Prohibited

Another approach is to ban online gambling entirely. Countries do this for different reasons: religious objections, state ideology and economic control in countries like China and North Korea, and risk prevention elsewhere.

In most of these countries, both running and taking part in gambling bring tough penalties: heavy fines, jail time, seizure of bank accounts, and shutdowns. 

In China, online gambling operators can face up to seven years in prison or even more, depending on the scale of their operations.

The UAE is an unusual case. As noted above, licenses have been issued to certain bookmakers, yet the criminal code still bans gambling, and both the regulator and telecom companies continue to block offshore gambling websites. 

In the past, the UAE used tough penalties to keep operators away: by law, both players and organizers could be fined up to $13,600 and face up to two years in prison. These rules are still on the books, but there have been no publicly reported cases of enforcement since 2023.

Running an online gambling business here is very risky. Even an “offshore” launch targeting users in these countries can expose UBOs, directors, marketers, payment agents, and partners to criminal liability because of cross-border prosecution.

Operators and senior managers also face the risk of arrest or extradition in cross-border cases, even if they are based in third countries.

Even if key persons manage to avoid criminal charges, the platform itself will be unstable. Regulators and banks deliberately cut off payment channels to offshore casinos, block domains and apps, and restrict traffic.

Risks of Using Unregulated iGaming Platforms

Unregulated iGaming is a risky deal for both operators and players. From the operator’s perspective, it’s clear: authorities can hand out anything from multi-million-dollar fines to years behind bars. Players don’t have it any easier.

If a website isn’t under a recognized regulator, there’s no obligation to pay winnings to players. No license means no audited game fairness. In regulated markets, for example, in the UK, operators are licensed and are subject to enforcement, whether they comply or not. 

Unlicensed operators are simply illegal and outside of that protection.

The picture with data protection isn’t better. Unlicensed websites can collect passport scans, card details, and addresses without data-protection oversight or security audits. This makes doxxing, resale of data, and account takeovers more likely.

It’s easy to spot unlicensed operators by following some warning signs. There’s no regulator seal or a valid certificate on the regulator’s website. Players should be wary if they don’t see self-exclusion options, deposit and loss limits, or reality checks, all of which are required on licensed sites. 

There are also some payment “red flags,” like crypto-only deposits and no mainstream payment options, because vetted compliance is required in regulated markets.

Wrapping Up

The iGaming industry is regulated unevenly around the world.

In some countries, all types of gambling are legalized, so operators can prepare their products to meet compliance requirements, get licenses, and freely offer their services there.

In other countries, only a few companies are allowed to provide online gambling, and sometimes just a single operator has that right.

And then there’s a third group of countries that don’t allow online gambling at all and block anyone who tries to enter their markets.

We wouldn’t be exaggerating to say that it’s vital for operators to understand their potential status in the market they choose. If they get the analysis wrong, the business can quickly become unsustainable.

To avoid this trap, operators should turn to iGaming experts who know the industry inside and out and can help identify the market that best fits a specific project.

Book a free consultation to get tailored recommendations from pros with years of experience in iGaming. 

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