The online gaming industry has seamlessly been integrated into modern society partly due to the steady offer of entertainment and global opportunities for players.

As the Internet continues to penetrate all facets of society, so does the online gaming industry continue to grow. New technologies and gaming models are constantly added to the iGaming catalog, creating tremendous opportunities for players seeking fresh and stimulating entertainment.

Regulators and operators must adapt to keep players safe and promote an environment of fair play. Several ways are in place to ensure transparency in the iGaming industry, one of which is obtaining an online gaming license and upholding established standards to maintain the validity of said license. 

Operators must adhere to strict standards and regulations to acquire and retain an online gaming license. These include an obligation to promote safe play, maintain the reliability of the online platform through gambling software certificates, follow acceptable protocols for marketing and enforce age verification.

In the United States, each state has its framework and online gaming laws. iGaming licenses are issued by individual states and allow operators to offer online gaming services within the state legally. Online gaming, therefore, is not legal in all states. 

Across the pond in the United Kingdom, gaming licenses are issued by the UK Gambling Commission (UKGC), which regulates all forms of gambling in the country. To make it straightforward for operators looking to acquire and retain a license, the UKGC published the Licence Conditions & Codes of Practice (LCCP). 

More on the LCCP 

The LCCP is a set of regulations and requirements that online gaming operators must adhere to to obtain and maintain an online gambling license in the UK. It sets various requirements for gaming operators, such as gambling software certifications, anti-money laundering procedures and player protection mechanisms. Additional obligations are imposed regarding advertising, marketing and customer support.

By addressing some of the most critical challenges in the iGaming industry, Licence Conditions & Codes of Practice help safeguard the credibility of the industry. Problem gambling, for instance, is a significant concern. It is effectively tackled by requiring operators to implement strong measures aimed at preventing unhealthy behavior among players. 

Other requirements include vigorous online software checks, including the technology behind random number generators (RNGs). This reinforces industry principles of integrity and fair play. The LCCP also requires anti-money laundering procedures and reports on any suspicious activities to the relevant authorities. 

By and by, obtaining an online gaming license and gambling software certifications is no easy feat; however, by doing so, operators protect themselves and other stakeholders, including players and the industry as a whole. The LCCP provides clear instructions to operators on how to comply with these legal requirements. 

How do procedures differ from those of the US? 

Online gaming regulation in the United States differs significantly from that in the UK. In the US, the Unlawful Internet Gambling Enforcement Act (UIGEA) has had a significant impact on the regulation of online gaming. The law does not make online gaming itself illegal but creates impeding restrictions on the financial transactions associated with it. 

Nevertheless, the legal status of online gaming depends on the state. In the past years, several states have legalized online sports betting. A handful of states also allow legal online casinos to operate. Rules and regulations around operations are deferred to the state level. 

Online gaming is also influenced by culture. The US has a long history of opposition to gambling based on moral grounds, resulting in the restrictive approach to online gaming regulation. In the UK, gambling has been more widely accepted, and regulations are still strict but not restrictive. 

What are the business implications of differing regulatory frameworks? 

The approach to iGaming regulation in the US has created a fragmented landscape and has limited growth in the market. The iGaming and betting industries have proven massively popular, but navigating the complex and fragmented regulations is difficult for operators.

In West Virginia, for example, the state lottery oversees casino-style gaming. New Jersey regulations are enforced with a two-tier system formed by the New Jersey Casino Control Commission and the Division of Gaming Enforcement. In both states, online casinos and online sports betting are legal. In Texas, for example, neither is legal.

International operators have an even more significant challenge. Some US states do not require strict regulations regarding software, such as obtaining gambling software certifications. The UKGC and LCCP in the UK do.

These differences can create challenges regarding operational efficiency, market access and compliance costs. However, the iGaming industry is resilient. Despite the consistently shifting requirements and expectations, online gaming providers continue to innovate, thrive and maintain high standards. 

Final Thoughts on the Evolving Landscape of Online Gaming Regulation

Online gaming is rising in popularity and becoming an integral part of modern entertainment. Licensing is vital in regulating the industry and ensuring compliance with legal requirements. While the United States has been historically more reluctant toward liberal gaming and betting practices, the times are changing. Emulating the regulatory practices in the UK, such as the LCCP, could inspire widespread federal regulatory gaming reform in the United States.