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Q: Which international jurisdictions permit online gambling? ( Answered 5 out of 5 stars,   1 Comment )
Question  
Subject: Which international jurisdictions permit online gambling?
Category: Sports and Recreation > Games
Asked by: zone4play-ga
List Price: $200.00
Posted: 10 Oct 2006 00:57 PDT
Expires: 08 Nov 2006 23:57 PST
Question ID: 772198
in light of recent legislation in the US, i am interested in
jurisdictions that regulate online gambling (by statute or law). the
numbers range from a moderate 50 international jurisdictions to
approx. 90 or more (as quoted by CBS). I require a full and detailed
list.
In addition, when were these approved/permitted? are any other
countries looking to regulate online gambling as a result of the US 
legislation? are any countries following the UK in relaxing the
legislation? how have these jurisdictions responded to the US
legislation relating to payment restrictions (credit cards, bank
transfers and cheques)?
Answer  
Subject: Re: Which international jurisdictions permit online gambling?
Answered By: keystroke-ga on 10 Oct 2006 22:42 PDT
Rated:5 out of 5 stars
 
Hello zone4play,

Thank you for your interesting question. I have listed out the online
gambling jurisdictions that I could find. I have listed different
parts of Australia separately because they issue different types of
licenses. It is difficult to categorize all these countries/states as
having the same types of laws because they certainly do not. There are
some that fully welcome Internet gambling companies to their shores
with no restrictions. There are some that allow sites to be hosted
within their borders, but don't allow their residents to gamble on
those particular sites. There are some that won't allow sites, but
allow their residents to gamble. Overall, there are about 80 different
jurisdictions.

I then elaborate on the types of laws that some of these countries
have, and give a timeline of when these laws came into effect.

1. Liechtenstein
   -- only allows lotteries controlled by the national government
2. Gibraltar
3. Australia
4. Antigua and Barbuda
5. United Kingdom
6. Costa Rica
7. Luxembourg
8. Sweden
9. Estonia
10. Ireland
11. Russia
12. Macau
13. Singapore
  (does not have any current laws against it except in a public place)
14. Philippines
15. Italy
16. Austria
17. Belgium
18. Czech Republic
19. Denmark
20. Finland
  -- must be a Finnish resident with a Finnish bank account to play
21. Germany
22. Hungary
23. Ireland
24. Latvia
25. Lithuania
26. Malta
27. Poland
28. Slovakia
29. Slovenia
30. Spain
31. France
  does not allow companies within its borders, but its citizens can
gamble from other companies internationally
32. Switzerland
33. Belize
34. Kalmykia
35. Panama
36. Comoros
37. Aland Islands
38. Swaziland
39. Seychelles
40. St. Kitts and Nevis
41. Venezuela
42. Mauritius
43. Kahnawake (Indian territory in Quebec)
44. Netherlands Antilles
45. Northern Territory (Australia)
46. Isle of Man
47. Alderney
48. Vanuatu 
49. Dominica
50. Dominican Republic
51. Norfolk Island
52. South Africa
53. Australian Capital Territory
54. Grand River Mohock Lands (Indian territory in Canada)
55. Jamaica
56. Tanzania
57. New South Wales (Australia)
58. Queensland (Australia)
59. Tasmania (Australia)
60. Victoria (Australia)
61. Western Australia (Australia)
62. Hutt River Province Principality
63. Maharashta (India)
64. Nepal
65. North Korea
66. Solomon Islands
67. South Korea
68. Taiwan
69. Vietnam
70. Grenada
71. St. Vincent
72. US Virgin Islands
73. Colombia
74. Iceland
75. Jersey
76. Monaco
77. Norway
78. Sark
79. Serbia
80. Israel
81. Argentina
82. Brazil
83. Chile


I have not included either Hong Kong or New Zealand because they do
not allow non-government-affiliated sites to obtain licenses, and Hong
Kong does not even allow its residents to gamble at all.

----------------

Overview--

Many countries which are huge in online gambling, such as Costa Rica
and Antigua, actually ban their companies from marketing to local
citizens and encourage them to only market to international players.
This is a ploy to get more taxes and fees while not having to deal
with the social issues that gambling may spur, such as gambling
addiction. It is a way to be both for it and against it. Examples of
sites with these policies include:

Isle of Man
Norfolk Island
Australia and its territories

The government of Antigua and Barbuda made a complaint to the World
Trade Organization about the US efforts to dismantle online gaming.
They won the first round but subsequently the case reached a
standstill when an appeals board ruled that the first panel had not
heard all available evidence in the case. They did find that American
laws outlawing gambling between Americans and companies in Antigua and
Barbuda violated the terms of the WTO's General Agreement on Trade in
Services, or "GATS." On this level, the US could not state that its
laws were non-discriminatory, since it allows for online gambling on
horse racing. The WTO recommended that the US bring its laws into
compliance, and as of recently, the two sides disagreed on where the
US laws stand in accordance with GATS. The WTO will have more hearings
on the subject.

Contrasting with the US, many countries call for a "free market"
approach to gaming-- people are going to gamble, so the country might
as well regulate it and make money from it. Alderney declared that
they would take a free market approach in 2005, and declared that bets
could even be taken from US residents at that time.

Some call for an actual physical presence in the country, such as Dominica.

Belize has had laws on the books since 2004 allowing for licensing of
online gaming.

Casino City-- Belize Jurisdiction
http://online.casinocity.com/jurisdictions/jurisdiction.cfm?Id=18

"Online gaming licenses may be issued to businesses incorporated in
Belize by the Online Gaming Licensing Committee, operating under the
authority of the "Gaming Control (Online Gaming) Regulations of 2004."
Licenses are valid for 12 months, and require a USD $10,000 initial
payment and USD $10,000 annual renewal fee. Online gaming sites
licensed in Belize may not accept wagers from residents of Belize."

Many countries charge huge fees for a company to be licensed in their
jurisdiction for online gaming, such as Panama.

Panama's Regulations
http://online.casinocity.com/jurisdictions/jurisdiction.cfm?Id=32

"Panama adopted regulations governing the licensing of electronic
games of chance and wagering activities in late 2002. The regulations
allow master licenses to be granted that are valid for up to seven
years upon payment of a license fee of USD $40,000. There is also an
annual license fee of USD $20,000. Master license holders may grant
sub-licenses, which are subject to the annual fee. Applicants must pay
all investigation costs incurred in the processing of the
application."

St. Kitts and Nevis:
http://online.casinocity.com/jurisdictions/jurisdiction.cfm?Id=26 

"Upon approval, an initial license registration fee of USD $80,000 and
an annual license fee of USD $40,000 must be paid."

Alderney requires an initial fee of a whopping 70,000.

Within the European Union, most countries do not outlaw online
gambling. France outlaws licensing of companies but does not prevent
its citizens from participating in online gaming; it has recently been
censured by the European Commission for not allowing these companies
to conduct business freely as the EU requires.

"EU nations face censure over curbs on gambling"
http://msnbc.msn.com/id/15200158/

You may find this study on the state of online gambling in the
European Union helpful:

http://www.liebertonline.com/doi/abs/10.1089/109218802760363996?cookieSet=1&journalCode=glr#search=%22belgium%20legal%20online%20gambling%22

Italy has faced penalties from the EU for blocking IPs and traffic
from gambling sites that are not registered in Italy. Cyprus, Greece,
Portugal and the Netherlands forbid online gambling, but Cyprus has
been holding discussions on possibly opening the country up for gaming
licenses. The Isle of Man has tried to attract gamers to the island,
even announcing a zero percent income tax rate to online gambling
companies. They do forbid the sites from accepting bids from Isle of
Man residents.

--------------------

"are any other
countries looking to regulate online gambling as a result of the US 
legislation?"

I have not found any evidence of this. There are a few countries, such
as Israel and Norway, which are similar to the US in their methods to
legislate online gambling, but they started to follow the US lead a
long time ago and this is nothing new. There are no countries that I
have found that were previously amenable to online gambling which have
now turned their back on it.

--------------------

"are any countries following the UK in relaxing the
legislation?"

I believe that this is more the case rather than the opposite effect.
Gambling companies might lose half their business, and other countries
may want to see if they can provide that missing business by
deregulating their laws. However, the positions of the current
gambling countries right now is a strong one, and they don't have to
relax the legislation in order to benefit from the gambling companies.
The companies are hosted in these countries because they can't go to
other places, so the countries can continue to regulate the gambling
businesses to a certain extent-- however, there will not be as many
profits for the countries to collect in taxes, either.

Some companies that have opened themselves up to more business
recently are Cyprus, Macau, China, Vietnam and Singapore.

As far as Asia goes, China has begun to look at legalizing online
gambling and taking a huge cut in taxes, just as they do with winnings
in Macau, a Las Vegas-like city famous for gambling.

CNET
"Is online gambling coming to mainland China?"
September 14, 2006
http://news.com.com/2061-12572_3-6115701.html

Singapore used to have laws against gambling, but recently they
repealed them in order to compete with Macau as a gaming mecca. They
have no laws specifically prohibiting gambling and, especially since
they have legalized land casinos, they probably will not outlaw
internet ones any time soon. In addition, many people hope that they
will issue online gaming licenses as they do land licenses. The
Philippines started a program like this in 2003 and so far, 45
licenses have been issued.

"Online Gambling Laws in Singapore"
http://www.wwlegal.com/index.php?module=subjects&func=viewpage&pageid=53


--------------------

"how have these jurisdictions responded to the US
legislation relating to payment restrictions (credit cards, bank
transfers and cheques)?"

Norway as early as 2004 was seeking to ban its residents from placing
bets with international bookmakers, but any legislation of this type
has not passed yet, even with wide support. Israel is not conducive to
online gambling, either; its main online gambling site is affiliated
with the government and the profits go to sports in the country. Many
people affiliated with that site were very happy to see the US ruling
and hope that Israel will follow suit and ban credit cards and online
gambling altogether.

Globes Online
"US ban encourages Israel Sports Betting Board"
http://www.globes.co.il/serveen/globes/DocView.asp?did=1000138483&fid=1725

Australia has followed the Americans' lead in many respects. After the
US banned credit card payments to gambling sites in 2004, Australia
wanted to follow suit.

Gambling Licenses- Australia
http://www.gamblinglicenses.com/LicencesDatabaseDetail.cfm?Licenses_ID=54&Region=Asia%20Pacific

"May 7, 2004: Following the move by the US government to ban credit
card usage on online casinos, the Australian government is planning to
take similar actions. A proposal to enforce the ban on foreign online
gambling sites by blocking credit-card transactions is being
considered by the Federal Government as part of a review of the
Interactive Gambling Act."

-------------------------

Timeline

1985-- 
Australian Capitol Territory-- the Bookmakers Act of 1985 is passed,
under which the state will later authorize itself to issue licenses to
Internet gambling companies

1994--
Antigua and Barbuda, Divison of Gaming

1995--
Liechtenstein starts the InterLotto, its national online lottery, with
restrictions on residents of Austria and Switzerland (its neighbors)
from using the service. The current site does not have any such
restrictions.

1996--
Mauritius
Kahnawake-- Gaming Commission established

1998--
Gibraltar
Norfolk Island
The Bahamas indicates to US Congress that it will ban online gaming

1999--
Anjouan in Comoros passes legislation allowing for international
companies to site their companies there
Australia-- decides to pass national legislation to restrict Internet
gambling and prevent sites from catering to Aussies
Solomon Islands-- grants first license

2000--
Alderney-- Gaming Commission established
Belize-- Gaming Control Act, Revised Edition, passed
Malta-- Public Lotto Ordinance to regulate licenses
Costa Rica-- announcement is made that operators will have to pass an
Interpol check and buy a $150,000 operating license

2001--
Isle of Man
Australia  -- Interactive Gambling Act of 2001 passed
sites cannot allow Australians to gamble

2002-- 
Panama
Argentina--
  "CryptoLogic Inc. a leading supplier of software to the Internet
gaming and e-commerce industries, announced in that Argentinean
licensee Casinos del Norte S.A. has launched its online casino, Casino
Sur. Casino Sur will be the first Internet casino licensed and
operated in Argentina, the largest Spanish-speaking market on the
continent."
Argentina-Gambling Licenses
http://www.gamblinglicenses.com/LicencesDatabaseDetail.cfm?Licenses_ID=72&Region=South%20America
Venezuela decides to begin a national lottery

2003--
Seychelles -- Interactive Gambling Act of 2003 passed
Sark Island-- Gambling Law passed
Tanzania-- Playtech announces online casino in Tanzania
Vanuatu-- relaxes licensing regulations for gaming companies
Panama-- begins licensing

2004--
South Africa-- National Gambling Act passed to legalise online gambling
United States-- bans credit card payments to online casinos
Australia-- considers following US's lead
Chile-- begins national lottery with Finnish company running

2005--
United Kingdom-- casino-style games prohibited

2006--
US ban
Macau loosens restrictions

Sources:

Internatioinal Herald-Tribune
"Online gambling: New arena for U.S.-European conflict"
http://www.iht.com/articles/2005/04/24/business/gamble25.php

New York Times
"Hot Technology for Chilly Streets in Estonia"
December 2005
http://www.nytimes.com/2005/12/13/technology/13skype.html?ei=5088&en=06f1efc1e11e7049&ex=1292130000

World Casino Directory-- Russia
http://www.worldcasinodirectory.com/russian-federation

Tangent E-Zine-- "Macau Booms"
http://www.hoteltravel.com/tangent/022006/tangent_4th_article.htm

CasinoMeister-- "SINGAPORE COULD BE A MAJOR ONLINE CASINO HUB"
http://www.casinomeister.com/news/july2006/online_casino_news4/SINGAPORE-COULD-BE-A-MAJOR-ONLINE-CASINO-HUB.html

Nation News
http://www.nationnews.com/editorial/299570371505449.php

Casino City
Jurisdictions Page 1:
http://online.casinocity.com/jurisdictions/Index.cfm
Jurisdictions Page 2:
http://online.casinocity.com/jurisdictions/Index.cfm?Start=16
Jurisdictions Page 3:
http://online.casinocity.com/jurisdictions/Index.cfm?Start=31
Isle of Man--
http://online.casinocity.com/jurisdictions/jurisdiction.cfm?Id=21
Alderney--
http://online.casinocity.com/jurisdictions/jurisdiction.cfm?Id=17

CasinoZone Jurisdictions--

Antigua and Barbuda--
http://www.casinozone.com/directory/jurisdictions/details.asp?iid=5

Antigua and Barbuda Division of Gaming
http://www.antiguagaming.gov.ag/

Wharton School
"The Odds Are Good That Online Gambling Will Continue to Thrive -- But
at What Price?"
http://www.whartonsp.com/articles/article.asp?p=402222&rl=1

Isle of Man Government Gambling
http://www.gov.im/gambling/

History of Vietnam online gambling
http://www.gamblinglicenses.com/LicencesDatabaseDetail.cfm?Licenses_ID=105&Region=Asia%20Pacific

Gambling Jurisdictions
http://www.gamblinglicenses.com/licensesDatabase.cfm
Sark Islands-
http://www.gamblinglicenses.com/LicencesDatabaseDetail.cfm?Licenses_ID=126&Region=Europe
Comoros--
http://www.gamblinglicenses.com/LicencesDatabaseDetail.cfm?Licenses_ID=28&Region=Africa
South Africa--
http://www.gamblinglicenses.com/LicencesDatabaseDetail.cfm?Licenses_ID=78&Region=Africa

Online Jurisdictions
http://www.winneronline.com/articles/september2006/onlinegamblingjurisdictions-2.htm

"Gambling and the Law"
http://www.gamblingandthelaw.com/antigua.html

Parliament of Australia
"Gambling Policy and Regulation"
http://www.aph.gov.au/library/intguide/SP/gambling_ebrief.htm

Search terms:
european union online gambling
estonia online gambling
macau online gambling
singapore online gambling
online gaming jurisdictions
jamaica online gambling
online gambling jurisdictions
vietnam online gambling
israel online gambling
argentina internet gaming
australia internet gambling

If you need any additional clarification before rating, let me know
and I'll be glad to assist you.

--keystroke-ga

Clarification of Answer by keystroke-ga on 13 Oct 2006 00:16 PDT
Hello zone4play,

Here are two more which I have found and will now append to my answer:

84. Myanmar
85. Aruba

Have a good day!

--keystroke-ga
zone4play-ga rated this answer:5 out of 5 stars

Comments  
Subject: Re: Which international jurisdictions permit online gambling?
From: myoarin-ga on 10 Oct 2006 03:16 PDT
 
Just a free comment:

I expect that you are asking about *national* jurisdictions that
permit gambling online,  but that is immaterial.

More important, you should know that the email notification system is
defunct, so you will have to check back yourself to see if anything is
posted.

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