While many countries have laws restricting online gambling, a growing number of nations have legalized it. In the United States, many Canadian provinces, most of the European Union and several nations of the Caribbean have made it legal for residents of those countries to play games. In many legal markets, online gambling service providers must be licensed by the United Kingdom Gambling Commission and Pennsylvania Gaming Control Board. Here is a look at online gambling regulation and its effect on the gambling industry.
Problem gamblers
Many people assume that online gambling is the cause of their problem gambling, but the truth is quite different. Problem gamblers with Internet gambling also engage in land-based gambling. Thus, blaming online gambling for problem gambling is unhelpful and overestimates the role of Internet technologies. Researchers have yet to identify any specific factors that are specifically associated with online gambling, and further research is needed to establish a causal link between Internet gambling and problem gambling.
The social costs of problem gambling are staggering. Not only does it lead to increased revenues for state governments, but also to higher rates of divorce, violent crime, and bankruptcy. In fact, it costs the society more than ten billion dollars a year in lost productivity and economic damage. The average cost of a problem gambler’s life is approximately $10 thousand per year. Sadly, it’s easy to lose sight of the fact that online gambling can lead to a life of extreme poverty.
Regulation of online gambling
The European Commission issued a Green Paper on Online Gambling in 2011, seeking feedback on the existing EU online gambling market and key policy issues arising from the development of online gambling within the EU. During this Consultation, the Commission sought to address the wide divergence in the approaches to the regulation of gambling among EU Member States. While the EC Consultation focuses on the current state of the market, it also addresses the potential for further EU harmonisation.
Although state governments are responsible for overseeing gambling, historically congress has played an important role in shaping the industry. The Unlawful Internet Gambling Enforcement Act of 2006 prohibited payments to illegal internet gambling businesses but did not ban all forms. Another federal law, the 1961 Wire Act, interpreted by the Department of Justice to allow states to regulate internet gambling, with the exception of sports betting. A number of states have introduced their own legislation limiting the federal government’s role in online gambling.
Impact of Internet gambling on gambling disorders
This study examined the impact of Internet gambling on various aspects of gambling disorders. While the proportion of respondents who engage in online gambling decreased, their overall frequency increased. The number of people who increased their frequency was low but surprisingly high. In addition, only a small percentage of respondents reported increasing their frequency for online gambling, which may suggest that people who are prone to GD are primarily attracted to this type of gambling.
However, conventional analysis of gambling variables is confounded by user behaviour and demographics, which limits its ability to accurately determine the true consequence of a particular variable. Future research should explore these factors in isolation to identify how they interact and contribute to the development of Internet gambling disorders. To do this, researchers must take into account the different social, economic, and technological factors that impact gamblers’ behaviour. It may also help to design interventions that help these individuals find alternative forms of boredom relief.