The regulated vs unregulated markets
7 min read
Key Highlights
In this blog post we cover the following topics:
- Why regulating iGaming is important
- Why regulated online casinos are your best bet
- The evolution of regulated markets
- The perils of unregulated play
- Your role in a regulated future
Here at Gamecheck we support responsible gambling, and one of the most crucial elements for any online casino player that wants to gamble online responsibly, is to ensure they are playing on a legitimate online casino within a regulated market.
In this article we delve into the benefits of playing on regulated markets, and how new markets such as Brazil, are contributing to a more secure iGaming landscape.
It is well known that the iGaming industry has seen significant growth in popularity in recent times.
As the iGaming industry continues its global expansion, regulatory oversight has been put in the spotlight as an essential element that underpins its sustainability.
The implementation of player awareness about responsible gambling can only be enforced through regulations. Thus, a clear regulatory framework is crucial for the industry's continued expansion in a sustainable manner.
For players, prioritising engagement with regulated online gambling markets is paramount for ensuring security and fairness.
Here are a few reasons why regulating iGaming is important:
Reduces the number of fraudulent platforms
Many times, players complain that the prize money is not transferred to their account or that a platform has fixed outcomes.
A legitimate iGaming platform usually procures an iGaming license that ensures a fair gaming experience for the players. However, it is not mandatory for all iGaming platforms to have a third-party license. This has led to many fraudulent platforms in the market. In regulated markets, such fraudulent platforms can be banned.
Reduces online gambling addiction
Regulating iGaming helps in curbing gambling addiction.
Most leading iGaming platforms have tools in place that identify patterns of gambling addiction. The platforms can provide links for counselling and support to such players.
Encourages responsible gambling
Online casino platforms can ensure that only players above 18 years can access the platform. Any player who has not uploaded the necessary documents can be banned.
Supports user data privacy
Regulating the iGaming industry ensures that the online casino platforms adhere to the data privacy laws of their country. This will ensure that players’ personal and financial data are protected.
The evolution of regulated markets
In the early stages of online gambling, the absence of regulatory frameworks in many jurisdictions created an environment where player protections were often minimal. This situation underscored the need for governmental bodies to establish clear guidelines and enforce standards.
Thankfully, the tide is turning, and regulated markets are expanding globally, bringing a new era of security and fairness to players.
Why regulated online casinos are your best bet
Today, a regulated online casino market signifies a commitment to transparency, ethical operations, and player welfare.
Supporting a regulated market – what’s in it for you?
At its core, regulation serves several vital functions:
Fair play guaranteed:
If you want to ensure you are playing fair games, it is essential that you play on online casinos registered within a regulated market.
Regulated online casinos are legally obligated to use Random Number Generators (RNGs) for all their games. These RNGs are independently audited and certified by third-party agencies (like eCOGRA, iTech Labs, and GLI) to ensure that outcomes are truly random and unbiased.
Safeguarding your funds and personal data:
In an age where digital security is paramount, licensed online casinos are required to implement stringent security protocols. This includes the deployment of SSL encryption technology, which protects sensitive personal and financial information from unauthorised access.
Promoting responsible gambling practices:
Licensed operators are obligated to provide a suite of tools and resources designed to help players manage their gambling habits and prevent potential harm.
These often include:
Deposit Limits: Allowing players to set maximum amounts they can deposit within a specified period.
Loss Limits: Enabling players to cap their potential losses over a given timeframe.
Session Limits: Reminding players of the duration of their gaming sessions.
Self-exclusion programmes: Offering the option for players to voluntarily ban themselves from accessing gambling services for a defined period.
Links to support organisations: Providing readily available information and access to professional help for individuals who may be experiencing gambling-related issues. These measures underscore a commitment to player well-being beyond mere entertainment.
Secure and timely pay-outs:
The ability to withdraw winnings efficiently and securely is a significant factor in player satisfaction and trust. Regulated casinos adhere to transparent payment policies, and their withdrawal processes are subject to scrutiny by licensing authorities. This oversight helps to prevent undue delays, arbitrary withholding of funds, or unfair terms related to pay-outs, ensuring that players receive their legitimate winnings in a predictable and reliable manner.
Consumer protection and dispute resolution:
In a regulated online gambling environment, players have a clear and established recourse if they encounter issues with an operator. Regulatory bodies act as impartial arbiters, investigating complaints and ensuring that casinos comply with their licensing obligations. This legal protection is invaluable, offering players an avenue for addressing grievances and seeking fair outcomes that are simply unavailable in unregulated markets.
A new era of global regulatory expansion
The benefits of regulation are increasingly recognised by governments worldwide, leading to a significant expansion of regulated online gambling markets.
This global shift is driven by a combination of factors, including the desire to protect citizens, generate tax revenue, combat illicit activities, and foster a legitimate industry.
Brazil gets on board: a new market emerges
One of the most impactful recent developments in the global online gambling landscape is the formal regulation of the online gambling market in Brazil.
Effective January 1, 2025, Brazil transitioned to a fully regulated environment for online betting and gambling. This move in Latin America's largest economy signifies a massive opportunity for both online casino operators and players.
The new Brazilian regulatory framework, primarily governed by Law 14.790/2023 and overseen by the Secretariat of Prizes and Bets (SPA) under the Ministry of Finance, introduces a comprehensive set of requirements.
Operators must obtain a license from the Ministry of Finance, which involves demonstrating financial stability and paying a substantial license fee. This rigorous process ensures that only reputable and financially sound entities can operate.
Enhanced player protection:
Brazilian regulations are particularly robust in player identification and security. This includes mandatory monitoring of Tax ID numbers for bettors and the implementation of biometric verification methods, such as facial recognition, to prevent underage gambling and unauthorised account usage. Operators are also required to integrate with local databases for regulatory oversight.
Strict financial regulations:
To promote responsible spending, operators are prohibited from accepting credit cards or other post-paid payment methods.
Brazil's regulatory journey is not without its complexities, including ongoing discussions about state-level licensing and taxation policies. However, the overarching commitment to a secure, transparent, and player-centric market is clear, setting a precedent for other nations in the region and beyond.
Brazil's move is a clear signal of a worldwide trend. Other regions are also making strides in regulation, including:
Curaçao:
Historically known for its more lenient licensing, Curaçao is undergoing a significant transformation with its new licensing regime. This framework aims to align the island's iGaming sector with international standards, introducing stricter compliance requirements for KYC, AML, cybersecurity, and responsible gambling.
Alberta, Canada:
Following Ontario's lead, Alberta is advancing legislation to create a competitive online gambling market open to private-sector operators. This will redirect activity from the grey market into a regulated framework, ensuring player protection.
Thailand:
While still in its early stages, Thailand is actively exploring the legalisation of online gambling, a substantial policy shift in a country where gambling has traditionally been prohibited. Discussions are underway to establish a legal framework for online betting platforms, online casinos, and digital lotteries.
These developments, alongside the established and respected regulatory bodies like the UK Gambling Commission (UKGC), and the Malta Gaming Authority (MGA), collectively contribute to a global ecosystem where players can find secure online gaming options.
The perils of unregulated play
Understanding the benefits of regulated markets is amplified by recognising the inherent risks associated with unregulated platforms. Choosing to engage with unlicensed operators can expose players to significant vulnerabilities:
Lack of security:
Unregulated sites lack security measures, leaving personal and financial information susceptible to data breaches, identity theft, and fraud.
Unfair games:
Without independent auditing and regulatory oversight, there is no guarantee that games are truly random. Operators may manipulate outcomes, making it virtually impossible for players to win.
Non-payment of winnings:
A common issue with illicit operators is the refusal or indefinite delay of pay-outs, leaving players without access to their legitimate winnings and no recourse for recovery.
No dispute resolution:
In the absence of a licensing authority, players have no official body to turn to in case of disputes, leaving them vulnerable to unfair practices with no legal standing.
Association with illicit activities:
Unlicensed gambling operations are frequently linked to money laundering, organised crime, and other illegal activities, posing ethical and potentially legal risks for players.
Absence of responsible gambling tools:
Unregulated platforms typically do not offer responsible gambling features, which can exacerbate problematic gambling behaviours and lead to financial or personal distress.
Potential legal consequences:
In some jurisdictions, participating in unregulated online gambling can carry legal penalties for the player.
Making informed choices: your role in a regulated future
The power of choice rests with you, the player.
By actively seeking out and engaging with regulated platforms, you are safeguarding your own interests as well as contributing to the growth of a legitimate gambling industry.
And now with Gamecheck finding online casinos that you can trust has never been easier. Just submit the online casino’s URL into our search portal to find out whether the online casino is running fake games or not within instants.
The expansion of regulated online casino markets, exemplified by the developments in Brazil and other emerging jurisdictions, marks a pivotal moment for the industry. It signals a collective move towards enhanced player protection, and a more sustainable future for online gambling.
The future of online casino gambling is regulated, secure and exciting.
By making informed choices and prioritising regulated, legitimate platforms, players can level up their experience, ensuring it is enjoyable, secure, and fair.
By choosing to play on regulated online casino platforms, you are not just protecting yourself – you are also contributing to a more trustworthy industry for everyone.