A More Streamlined Regulatory Process Needed For iGambling

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Thursday, November 3rd, 2016 | Written by Adam Brown

If it seems as though iGaming regulation moves at a snail’s pace, it’s not your imagination. After a state broaches the subject of online gambling, it usually sponsors a comprehensive study on the topic, followed by endless legislative discussions and argument over the merits of gambling in its legislature. As a result, getting legislation passed and signed into law can take years, but in the meantime the world of online gaming continues to advance at an exponential rate.

Further slowing down the regulatory process is the fact that a decade ago there were only online casino games and poker for states and countries to consider. Now, however, the number of opportunities to gamble online has grown considerably and is continuing to evolve and expand. Taken as a whole, this has naturally raised the question as to how regulators are ever going to keep up with rapidly changing times?

The Current Cumbersome Approach

The truth is that with the way things are now, they can’t, and as Stephen Crosby, Chairman of the Massachusetts Gaming Commission (MGC) explained recently at the Global Gaming Expo (G2E):

“You can’t look at each of these products as one off. There’s a million of them and a million more coming.”

In other words, the ever-changing landscape of online gaming calls for a completely different approach to regulation, one that is better able to adapt to and accommodate new forms of online gaming when they are introduced, rather than waiting several years down the line when the new product is eventually brought to the legislature’s attention.

For the sake of this discussion, let’s focus on the United States. At the present time, there are a number of states either toying with or actively considering the idea of legalizing online casino games and poker. Simultaneously, many of the same states are puzzling over what to do about daily fantasy sports (DFS) betting. It’s safe to say that if and when these matters are settled, the growing world of e-sports betting is going to become the next concern for legislators. And who knows what type of gaming could be developed afterward?

Taking a piecemeal approach to legalizing gaming means that legislatures have to spend time debating new laws with every innovation, and if something fundamental changes about gambling niches over time, laws might need to be revisited. As we have seen time and time again, the process of getting laws passed is lengthy, and during that time, state residents take to illegal sites to enjoy the online activities that they love. This ultimately leaves consumers vulnerable to unscrupulous sites and robs state coffers of tax revenues.

Need For Streamlined Process

There might seem to be no better way to approach gambling regulation, but Massachusetts is proof that there is. The state is taking a much different approach to the question of online gaming. While it’s being slow and methodical about the process, Massachusetts is working to create what they are calling an omnibus online gambling bill that would decide how matters related to online gaming could be regulated across the board.

With omnibus legislation, states empower their own divisions or departments of gaming to set up rules for new types of games and regulate them in accordance with a set of guiding principles. This makes the process of regulating new forms of gaming whether it’s daily fantasy sports or e-sports a whole lot simpler.

Consumer Protection

Furthermore, a gaming division that stays abreast of the latest innovations in the industry can decide independently what measures are needed to protect consumer interests and then issue the necessary licenses without having to bring legislators up to speed. It’s a win for players, for the country and for the operators.

Hopefully, Massachusetts will end up standing out as a shining example of how to get gaming legislation done. In the meanwhile, David Rebuck, Director of the New Jersey Division of Gaming Enforcement (DGE) warned about legislators focusing too much on the perceived dangers of allowing online gambling, whilst ignoring the illegal online gambling activities which take place in state across the US. Picking up on his point, Stephen Crosby explained recently:

“We need to neutralize the impression that gambling preys on the vulnerable. iGaming allows us to use responsible gaming technology that doesn’t exist in the land-based industry.”