The global online gambling industry is growing rapidly, fueled by technological innovations, increasing internet access, and shifting consumer habits. Projected to reach $168.2 billion by 2032, this market could expand even further as countries like France and New Zealand move to regulate online casino gaming. Let’s explore the nations on the brink of legalizing online casinos and the legislative efforts shaping their iGaming future.
Countries with Emerging Legislation for Online Casino Regulation
New Zealand
New Zealand has announced plans to introduce a licensing system for online casinos by early 2026. Spearheaded by the National Party, this initiative aims to mitigate problem gambling, boost tax revenue, and enhance consumer protection.
The proposed framework is expected to create a regulated market valued at NZ$500 million annually, although current estimates suggest Kiwis spend closer to NZ$900 million on offshore gambling sites. Offshore operators may gain access to this market through a competitive licensing process, with licenses valid for three years.
Key compliance measures include:
● Strict Anti-Money Laundering (AML) and Know Your Customer (KYC) protocols.
● Advertising restrictions and a ban on sponsorships.
● Regulation by the Department of Internal Affairs.
While sports betting and lotteries are excluded from the new system, online casino games will likely benefit from cryptocurrency payment options and game diversity.
France
France, traditionally one of the most restrictive online gambling markets in Europe, plans to legalize online casinos as part of its 2025 budget. This is a significant step for a country that currently bans all online casino games except poker, horse racing, and sports betting.
Highlights of the 2025 budget proposal include:
● Legalizing games like blackjack, roulette, and slots.
● Imposing a 55.6% tax rate on gross casino revenues.
● Establishing measures to mitigate the impact of online gambling on consumer health.
France’s illegal online casino market is valued between €748 million and €1.5 billion annually. By regulating this sector, the government anticipates generating €1 billion in annual tax revenue. If approved, online casinos could launch in France by late 2025 following a public consultation.
Brazil
Brazil is transforming its gambling landscape with Law No. 14,790, enacted on December 30, 2023. This law introduces a federal licensing system for fixed-odds betting and online gaming, marking a new chapter for the country’s iGaming market.
Key regulatory measures include:
● A five-year license for operators, costing BRL 30 million (approximately USD $6 million).
● A 12% gross revenue tax for operators and a 15% flat income tax on player winnings.
● Mandatory responsible gambling measures like self-exclusion and deposit limits.
Chile
In March 2024, Chile’s Chamber of Deputies passed a bill to regulate online gambling, signaling a shift toward a structured legal framework.
Key aspects of the bill include:
● Licensing for casino and sports betting operators.
● A 20% tax on gross gaming revenue, with additional contributions for sports and responsible gambling initiatives.
● Oversight by regulatory bodies like the Superintendence of Casino Games (SCJ).
United States
The U.S. continues to see a patchwork approach to online casino regulation, with several states embracing legalization while others remain hesitant.
● Ohio: Proposed SB 312 includes a 15% tax on online casino revenues, a $100,000 application fee, and $300,000 licensing fees. If passed, the bill could become a template for other states.
● Illinois: House Bill 2239 aims to regulate online gaming under the Internet Gaming Act, with a 15% revenue tax and a $250,000 licensing fee. The bill is gaining momentum as lawmakers push for iGaming legalization in 2025.
● New York: Senate Bill S8185 explores online casino legalization, with discussions ongoing about its potential economic impact.
Conclusion
The trend toward legalizing online casinos is gaining global traction, driven by the need to combat illegal gambling and tap into lucrative tax revenues. Countries like New Zealand, France, and Brazil are leading the charge, while South Africa, Chile, and individual U.S. states are making significant strides.
As these markets open up, players and operators alike can look forward to enhanced protections, innovative platforms, and new opportunities in the rapidly expanding world of online gambling.
