Online gambling: is it worth the risk?
A decade ago it was illegal in many parts of the world, even if it was not yet regulated. These days, there are dozens of states that allow online gambling, but there is no consensus on how to regulate it. The most common approach is to create a small number of private companies that operate regulated online casinos and collect the tax.
Doing this is fairly simple and costs very little. It may even seem like the safest way to get into the business of online gambling. It may seem like the best option, but it may not be. In this article I will explain why.
Why the legal approach might not be the best
As a service provider, you are not really in charge of the legal situation in your country. You are forced to follow the law and you must know it before you can start offering your service. This is probably the safest way to get into the business of online gambling. There is little or no risk for the service provider.
The downside is that you are not really in charge. The rules of the gambling market are set by the government. There is no standard or legal basis for the government to interfere with your business. They may set reasonable guidelines, but they are not required to.
What if the government does not like your service? You have to follow the rules that the government sets for your business. Maybe you are not big enough, maybe you do not pay enough taxes.
But there is a good reason why the legal approach is the safe way. It is simple, it costs very little and it gives the government the opportunity to influence the business. There are no risks for the service provider and little risks for the state.
The safe way to get into the business of online gambling
The risk for the service provider is in the legal part of the business. The risk is the fact that the government may not like your service. There are a few ways to avoid this risk, but the risk is always there.
If you are interested in building a business around online gambling, you should get a license. It is expensive, but if you do it right, the government will have to agree to it.
If you do not want to deal with the government directly, you can hire a lawyer. Your lawyer should be able to obtain the license for you. If you can afford the license, it is the only way to avoid any risks.
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