Inconsistencies in how countries and states around the world legalize or restrict gambling within their regions have been a controversial topic. For instance, the US federal government has no authority to gambling on individual states. The states have the full mandate to decide whether or not to accept a particular betting provider.
On the other hand, countries such as North Korea, Japan, and UAE, among others, have entirely restricted gambling activities within their boundaries. So, why is gambling legal or illegal?
History of Gambling in the US
Nevada was the first state to legalize sports betting casino in the United States in 1931. Gambling began to spread at an unprecedented speed, and the Federal authority imposed a 10% tax in 1951 on money obtained from Nevada’s betting activities. This led to a decline in the state’s betting activity rate.
However, in 1974, the tax was lowered from 10% to 2%, leading to the spread of gambling in new locations. The federal government further reduced the tax to 0.25% in Nevada, which has been the case until today.
On August 6, 2018, DraftKings launched its activities in New Jersey as the first online sportsbook outside Nevada. Since then, numerous betting providers have stormed the US states, with only Utah and Hawaii surviving as the non-gambling states.
Is Gambling Illegal?
The gambling industry is one of the most profitable industries, with The Business Research Company stating that the 2022 global market value clocked $449.04 billion. They also state that there has been an unmatched growth of female bettors in the last decades.
Despite such huge gains, government systems worldwide are in a tough battle to balance the profit gains and ensure citizens are safe from adverse gambling effects. There are several factors used to determine whether gambling is illegal or not, such as;
Religion
For example, the Muslim religion forbids any form of gambling activity, and that’s why countries such as UAE and Qatar are free from betting. The Quran classifies gambling and other games of chance as sinful and can lead to criminal prosecution.
But, most people worldwide have questioned the credibility of religious ideas prohibiting gambling in various countries. The demand for tourism has caused Muslim countries such as Tunisia, Morocco, Lebanon, and Egypt to legalize betting activities for foreigners.
Citizens in some countries, such as Morocco, access gambling activities by signing up for online offshore accounts. Although Egypt highly prohibits online betting, over twenty brick-and-mortar casinosare available and permitted only for outsiders.
Underage Betting
This has been one of the most notable crises worldwide, as 39% of teenagers engaged in gambling in the last 12 months. Some claim that they bet for fun, while others state that they understand the effects of gambling. The media has been a fortress in underage gambling due to the uncontrolled adverts and partnerships posed on the internet.
Nevertheless, many gambling platforms have measures that restrict minors from creating betting accounts. This includes security layers and identifications to confirm the bettor’s age. Despite the government imposing age limits for bettors, most betting sites are unfair and lenient to people accessing their services.
It has become even worse with the loose restrictions in video games. Although these games do not utilize real money, most minors obtain a betting mindset from such sources. It makes it easier to switch from video gaming to real gambling.
Betting Addiction
Addiction is another major concern, as most people have suffered both mental and financial problems due to betting addiction. Most gambling addiction victims had not experienced such problems until betting was legalized in their regions. In most instances, the bettors feel excited after winning their first bets, which is later followed by a series of losses. This leads to addiction, hoping a magical bet will happen and save their finances.
Betting sites have incorporated marketing baits such as a money-back guarantee when one loses a bet which causes bettors to keep returning. Other gimmicks include free bets and no-deposit bonuses, and most gamblers are convinced of minting using these schemes.
Money Laundering
Criminal organizations, among other entities, have taken advantage of the betting industry to launder money. This happens through innovative schemes that bypass strict measures and inspections and have been a major concern for most countries. However, banks and other financial institutions have developed stricter regulations to block illegal money transactions.
How Do Countries Permitting Gambling Regulate Betting Activities
Due to the many concerns affecting gamblers, government systems have imposed measures to create a healthy legal gambling ecosystem rather than restricting it. They include;
- Self-Exclusion: These are programs where gamblers can restrict themselves from participating in any form of betting.
- GamHelp: The services have no charges and are confidential, where gamblers are offered counseling and therapies to contain their gambling addiction.
- Peer Support Programs: Such programs offer social and emotional support to people sharing similar complications, like gambling-related ones.
- Responsible Gambling Foundations: These foundations help address existing challenges among gamblers and how solutions can be implemented concerning their welfare.
The Positives of the Gambling Industry
Gambling is categorized as a recreational activity, which is why countries with restricted gambling create room for tourist betting. In addition, state authorities garner massive tax income from licensed betting companies which can be used to fund government activities and projects.
A casino and other betting facilities have also created millions of jobs worldwide. Data from the University of Michigan reveals that more than 200,000 jobs were created in the US within three years. Some of the jobs created by the gambling industry include:
- Casino operators
- IT experts
- Security guards
- Servers
- Chefs
- Managers
- Dealers
Bottom Line
Gambling is one of the hot topics worldwide, which has created numerous stories and theories. This has caused restrictions in some countries, while others fully permit betting activities. Nonetheless, people always find ways to outshine government restrictions by conducting illicit betting activities. All in all, gambling is quite a comprehensive topic, and you are required to align with what your state or country implements.
