All the casinos in the world are licensed and regulated by one of the many licensing authorities that license, monitor and regulate all gambling activities offered and promoted by the licensee. These licensing authorities ensure that the licensee follow fair promotion and gaming practices and that the content is not misleading in anyway. These authorities promote responsible gaming to ensure only the right people legally eligible people are part of the game.
Providing the right information
The licensee has to ensure that all the promotions and advertisements released should contain accurate information and should not mislead anyone. The information provided should be precise and the licensee shall be held responsible and even penalized in case any player is affected due to misinformation. The licensing authorities are very particular about providing the right facts and monitor and investigate complaints seriously.
Responsible gaming practices
The licensing authorities stipulate that the promotions should target people from countries where they can legally participate in betting. The content of the games should be available to only those players who are legally eligible to participate in gambling activities. The authorities take note of any violations that might take place and ensure that the guilty licensee is penalized accordingly.
Keeping minors away from the games and promotions
Nearly all the licensing authorities unanimously instruct the licensee to refrain from using any content in their promotions and advertisements that might attract minors. They are also advised to ensure that the links on their gaming or promotional site does not direct or expose the users to harmful or malicious content.
Anti money laundering measures and sufficient credit reserves
Licensee is expected to monitor and report any suspicious activities regarding transaction of a large sum of money. They are expected to put effective anti money laundering measures in place to identify suspicious transactions and to notify the appropriate authorities. The licensee should also ensure that sufficient stock of cash to pay out all the prizes won by players.
Some of the popular gambling licensing authorities are:
- Gambling Supervision Commission, Government of Isle of Man
- Gibraltar Gaming Commission, Government of Gibraltar and many others
- Collectively, these two Gaming Commissions collectively provide licenses to a majority of popular online gaming sites. Many of these sites figure on the list of the best online casino games as experienced by the players.
Gaming tax
A simple gaming tax depending upon the licensing authority and the region are levied on the turnover reported by the licensee. There a minimum and a ceiling level to the tax and the licensee is required to pay the tax annually.
Bank Accounts for trading
The rules stipulate that the accounts that are used to deposit customer funds, rewards, prizes, etc. are to be fully controlled by the licensee. The gaming licensing authorities many times ask for audited accounts when a licensee files for annual renewal, failing which the authorities may not renew the gaming license for that particular company.
Testing and operating code
The licensing authorities require all the games, services and promotions to be tested and certified by a compliant agency. Operating codes as laid out by the licensing authorities ensure that all the licensees follow a uniform code that outlines a regulatory framework within which the licensees should operate.
Summary: There are other acts and regulations that clearly define the boundaries within which the licensees should operate. These regulations have been established to ensure that all the licensees follow fair gaming practices and that only legally eligible players are able to participate in the games offered by the licensee.
