The Difference Between US & European Gambling Regulations

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Published on September 25, 2024, 10:29 am
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Generally, gambling regulations vary significantly across different countries, and these legislative policies are typically shaped by cultural sentiments, existing legal frameworks, and economic factors. The US and Europe, in particular, have some key differences in their approach to gambling oversight and regulations. This is especially true when considering countries like Norway, Germany, and the former EU member, the UK.

Historical Context

The United States is known for its diverse approach to gambling regulations, where each state establishes its gambling regulations that might be the polar opposite for neighboring states. This means that while one state may embrace gambling practices, another may restrict or ban gambling all together.

Despite these differences, the US reached a milestone by legalizing sports betting in 2018, leaving it up to the different states to determine specific gambling regulations. For example, New Jersey has a comprehensive legal framework in place for gambling, whereas Texas restricts most forms of gambling, and Utah has a ban on all forms of gambling.

Europe, on the other hand, has clearer regulations on gambling but varies significantly between countries. This region also has a mix of regulations ranging from embracing legislation to strict laws that are not as permissive as in other countries, as we will see below.

Norway’s Approach to Gambling

Norway has legalized but regulators opted for a more conservative approach. Currently, the market is strictly controlled by two state-owned entities, Rikstoto and Norsk Tipping, which are the sole gambling operators. This restrictive approach is designed to prioritize social responsibility over market growth, severely limiting revenue generation potential for the government.

The country has an established infrastructure capable of facilitating a broader gambling ecosystem but took on a stricter stance by maintaining a state monopoly on wagering activity. However, offshore casinos have entered the market providing more options to choose from and according to Thomas Groenvold, gamblers using international online gambling platforms do not have to trade off features for other benefits due to the available extensive selection (source: https://sikrebettingsider.com/nettcasino/). 

Despite the restrictive nature of the Norwegian gambling market, its core difference from the US is the uniform approach that stands out, providing clarity on regulations that vary state-by-state. However, Norway’s regulations also differ from other countries in this region such as the UK and Malta, who have taken a more liberal stance. These countries allow various forms of gambling, creating more open markets.

The UK: A Liberalized Market

The UK remains a prominent gambling hub in Europe, despite no longer being part of the EU.  The Gambling Act of 2005 legalized various forms of gambling, including online casinos and sportsbooks as well as lotteries. This is very different from countries like the US where some states do not permit certain gambling or online gambling.

Both the US and UK are constantly reviewing their regulations to ensure that they are fostering innovation and generating as much revenue from gambling activities. For example, the UK is currently overhauling its regulations, while states like New York are also re-examining the existing regulatory framework. Despite some differences in regulatory uniformity, there are some similarities between regulatory bodies overseeing gambling in both these countries.

Germany: A Hybrid Approach

Similarly to the US, Germany has adopted a complex approach. This might be confusing to some citizens and tourists alike. The 2008 Interstate Treaty on Gambling legitimized certain types of commercial betting while imposing restrictions on others. Operators initiated legal disputes with regulatory bodies to petition for clearer regulations. In 2021, a new framework known as the Gambling Treaty of 2021 was developed.

Although these new regulations were expected to be more comprehensive, they still selectively legalized certain forms of gambling, such as sports betting and poker. Similarly to the US, Germany has varying regulations depending on each specific part of the country. Some states in the US have well-regulated legislative landscapes and have made several forms of online wagering legal for players.

US Gambling Regulations Compared With Other Countries

The US struggles to introduce uniform regulations due to the cultural diversity that varies in some states. Some communities are more conservative than others, making it challenging to introduce real money games and betting on various sports, whether online or in a brick-and-mortar establishment.

Significant effort has been invested in keeping the local gambling market competitive with other world-class markets in Europe. Maybe in time, a semblance of harmony in regulations can be attained globally, as the acceptance of gambling continues to grow.

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Featured image credit: DepositPhotos.com

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Jonas Bronck is the pseudonym under which we publish and manage the content and operations of The Bronx Daily.™ | Bronx.com - the largest daily news publication in the borough of "the" Bronx with over 1.5 million annual readers. Publishing under the alias Jonas Bronck is our humble way of paying tribute to the person, whose name lives on in the name of our beloved borough.