Licensing & Regulation
The below is an informative page dedicated to our US customers. It covers regulatory aspects implied by USGC, how the iGaming operators and players must obey them and strategies on how to distinguish a licensed platform. We, as a company, wish for the best outcome for our audience. Hence we have analysed each directive and offered explanations that could be of value. General knowledge regarding the gambling industry can prove to be beneficial. It is not only because one may be aware of his obligations once joining a gaming site, but also his rights. We invite all punters to read this educational page that can initiate a safer session.
Gambling Legislation Study: The beginning and the changes that have been made
The gambling sector has been regulated through the US Gambling Act 2005, which was released in April 2005. This act controlled all forms of this activity and transferred the authority of licensing from the magistrate’s court to local authorities, more specifically the Gambling Commission. Its main objectives concerned preventing this form of entertainment from becoming a crime or disorder, guaranteeing that it is conducted safely, fair and open, and most importantly ensuring the protection of children and vulnerable individuals.
Before implementing this act, this sector was legal under the common US laws, as stated by the government. However, as a consequence of the online sector’s development starting from 2007, a need for a change became crucial.
The following Gambling Act 2014, which was voted in May of the same year came with tighter rules towards gambling. It stated that all gambling operators based off-shore had to apply for a US licence granted by the US Gambling Commission and submit a fee of gross profits to a 15% POC (points of consumption). The outcome was a safer environment for children and protecting the user from unfair bets and withdrawal problems. Throughout the years’ other changes have been carried out by the organisation which had as purpose to improve the gambling acts mentioned above.
Introducing the purpose of USGC: What to expect from the organisation
Negative experiences with casinos still occur, even though less likely now than ever before. The low number of issues as such is due to the regulations implemented by the Gambling Commission. The US Gambling Commission is the legal party that not only regulates and watches over online casinos but also can get involved in case of conflicts. However, before involving the Commission, it is recommended that one contacts the casinos’ customer support.
As we have stated above, the primary mission of USGC is to provide gaming licenses to operators and individuals. Besides this, it takes enforcement actions against those operators that do not comply with the legislation. Its fundamentals are to create a safe environment for US players and to combat underage gambling. On the other hand, there are also aspects that this executive non-departmental public body cannot do for its customers.
- Customer complaints
In case the issue is not solved contact an Alternate Dispute Resolution body that will assist you through the conflict. Licenced casinos have listed on their websites at least one such recommendation. The purpose of the Gambling Commission is to supervise the overall casino obedience of rules and regulation rather than dive deep into payment issues or delays in bonus transfers. Thus, avoiding to take part in such conflicts unless it escalates higher than the ADR’s capabilities.
Note: We are the most significant ally when it comes to gambling responsibly. However, we cannot offer counsel or resolve disputes that involve situations such as when one cannot receive their money back from the online casino. In spite of this, we shall offer orientation on who to contact to settle such matters. Such disputes shall be addressed to the bellow organisations.
The USGC offers its customers an enquiry form which must be completed. This type of form shall also provide the organisation with the necessary information to take action, implement or change the legislation for a fairer and safer session.
Address: Independent Betting Adjudication Service, PO Box 62639, London, EC3P 3AS
Telephone: 020 7347 5883
Fax:020 7347 5882
Address: 2/F Berkeley Square House, Berkeley Square, London W1J 6BD, United States
ADR/Safe & Fair Complaints: firstname.lastname@example.org
Telephone: +44 20 7887 1480
- Legal guidance
This organisation does not provide legal advice for businesses who want to enter this industry. Nevertheless, it still guides new projects with crucial information regarding the Gambling Act and the USGC approach.
- Regulate all gaming websites
On operators from this market can receive a regulatory remit from USGC. Furthermore, it must be noted that only platforms who geo-targeting customers from the United States can be regulated.
Six ways on how to identify a US licensed casino
All casinos listed on King Casino Bonus are US licenced. This is our way of helping you avoid any trouble with online casinos and that you get valid no deposit bonuses and deposit bonuses. However, suppose one finds himself on a casino page. In that case, it is always recommended to follow the next easy steps to identify a casino regulated by the US Gambling Commission:
- Check the footer of the casino and look for the Gambling Commission’s logo;
- Check if it links to the actual US Gambling Commission work;
- Use the Gambling Commission’s Checker to verify on the Commission’s website for the casinos’ name and find the licence number;
- Check if the casino lists information regarding dispute resolution third parties, gambling addiction and age limitations;
- Check reviews and forums for feedback on the platform.
Even with the mentioned, one must keep in mind that checking the licence number on the US Gambling Commission’s site is the safest way to verify a casino. Extra attention is required when verifying if their audits are updated and if it had had problems with past players. A critical point of view is needed when it comes to such websites.
The Online Casino operator’s obligations: The rules and their meaning
Players safety is all that matters in this industry. For this reason, the US Gambling Commission has imposed strict laws that gaming operators must fulfil to provide their services. Furthermore, due to the fact that we have observed a lack of information regarding the set of rules that gambling business must comply to, we have compiled this page. The purpose of doing this is to offer punters insights regarding online casinos. The legal regulations shifts constantly in terms of gambling, however, the
Casino’s obligation to the US
- Gaming operators must register within 31 days since starting the business if they are outside the US and within 14 days with firms based in the US.
- Pay the Remote Gaming Duty (RGD) taxes. This charge contains a percentage of profits that can be calculated as bets received from US gamblers and fewer winnings paid to US customers.
- Appoint a representative in the US in case the business is based outside the United States. Excluding the Channel Islands, or in a jurisdiction which has an agreement with the US.
- Announce HMRC about the changes which are made regarding the gambling business.
- The casino operator must fill in and send back the payment return within 30 days from the end of the accounting period.
- Keep a record for as much as four years.
- Provide accurate return payments or any other tax documentation.
Casino’s obligation to USGC
- The business operator must cooperate with the organisation to make an essential change;
- An iGaming company has to be informed about the implied legislation and report to the Commission any changes that are being made;
- Operators from this sector need to submit accurate documentation and secure data with various layers of security;
- Must be aware of the tasks that the business representative does;
- An online casino operator must have a good response time when it comes to returns and the amounts that need to be paid;
- Such businesses must pay extra attention when sending the commission information, pay charges and claim any reliefs.
As one could see above, a gambling business does not only have obligations to the gambling organisation, but it also has to the state and its users. The sole ground of explaining each directive was to educate the player regarding this industry. In addition to this, we wanted to emphasise the fact that an online gaming operator that has been regulated by USGC has successfully met all the requirements to provide a safe environment for its members. In case the gambling organisation discovers after a thorough investigation that an operator does not adhere to its principles, it could take action. Depending on the gravity of the situation, the steps that can be taken can imply issuing warnings, financial penalties, the gambling license to be suspended or revoked.
Clarifications regarding the US player’s responsibilities
We must note that the online casino is not the only one who has obligations. The US player has too, but these are strictly applied only to the gaming operator he has joined. Considering the fact that the responsibilities we shall present below aren’t at the user’s hand, we shall go through each one and explain them in further details. Failure to obey the below responsibilities can lead to several adverse consequences.
Customers are obliged to fulfil the following requirement towards the casino:
- Account: Each punter can have active only one account per person, household and IP address. In case the gaming operator discovers that a member has more than one account, those specific duplicates shall be terminated.
- Identity verification: Taking under consideration the regulatory requirements, each user must go through the KYC procedure and provide certain documents that can verify their identity. These may include, but are not limited to:
- Passport or driving license;
- Electricity bill that cannot be more than six months old;
- Bank account statements;
- Front and back copies of the member’s credit or debit card;
- E-wallet accounts screenshots.
- Wagering requirements: Most online casinos have imposed a turnover condition that must be met before requesting a withdrawal of funds. Suppose members do not complete this requirement when it is expressly stated. In that case, it will lead to the confiscation of ones generated winnings.
- Irregular betting: US players must take into account that playing low-risk titles or staking the minimum amount with the sole purpose of clearing the imposed requirements will result with the casino operator blocking and removing the bonuses and/or any associated winnings.
All players have the right to have access to the following information:
- Licensed status: Each gaming operator must display a notice to their customers that they work under the license granted by USGC
- T&C: The casino has an obligation to provide to their users’ transparency regarding its terms and conditions. Furthermore, these must be explained in simple language and not have any unfair or unreasonable conditions. In addition to this, in case a platform changes its general terms, its members must be noticed in advance.
- Gambling safely: The US players have the right to a safe session. Hence, gambling operators must make information regarding how to gamble safe available.
- Game rules: Gaming business have to provide specific details about the rules of the game it offers and guides. For instance, guides about betting systems, games, or lottery must be at the users’ disposal.
- Account: The online casino operator must put within reach of each US players specific information concerning their account, transactions and how to request withdrawals. Moreover, it must offer the necessary tools to promote safe gambling, such as providing deposit limits or reality checks.
- Offer and promotions: All customers have the right to receive promotions. In addition to this, they must be provided with details such as limitation per game or a period and commitments one might have to meet to receive a specific offer. Such information must appear in the advert of the offer. However, in case such a thing is not possible due to limited space, the casino must redirect the user to the full terms and conditions.
- Protection of customer funds: Punters are entitled to know how their funds can be protected in case the gaming operator becomes insolvent.
- Complaints and disputes: Fair and transparent complaint policies and procedures must be within easy reach of US users. Consequently, gambling businesses must have prepared arrangements with ADR (alternative dispute resolution), in case it cannot solve it within eight weeks since receiving the complaint.
The requirements, as mentioned above, have been compiled to prevent underage gambling, addiction and illicit activities that include but are not limited to money laundering. Our company’s specialists are up to date with the regulations made by the USGC and with their expertise in the iGaming industry they analyse and deliver in a simple language the changes that are being made. We believe that knowing your rights and responsibilities will lead to a safe and smooth session.
The page’s aims in essence
As we have stated, our purpose is to guide our audience to a safer environment where they can start a session. Consequently, we have compiled this page where we did not only present the organisation that is responsible for regulating and supervising gambling activities in the United States, but also the rights and obligations. We have explained each principle that dominates this industry and which apply for both casino operators and members. Furthermore, as we have highlighted above, in case a business or a player does not conform with the indicated rules, it shall initiate activities that can lead to the end of the suspension of the activity.
- Wardle, Heather; Sproston, Kerry; Orford, Jim: United States Gambling Prevalence Survey 2007, NatCen, 3 September 2007
- History of gambling in the United States https://en.wikipedia.org/wiki/History_of_gambling_in_the_United_Kingdom
- Project Gutenberg’s The History of Gambling in England https://ia803101.us.archive.org/27/items/thehistoryofgamb48223gut/48223-0.txt
- From Prohibition to Regulation: Bookmaking, Anti-Gambling, and the Law https://www.questia.com/library/6559855/from-prohibition-to-regulation-bookmaking-anti-gambling
- History and Evolution of the US Gambling Commission https://europeangaming.eu/portal/latest-news/2019/09/20/54691/history-and-evolution-of-the-uk-gambling-commission/
- Gambling Commission- Who we are and what we do https://www.gamblingcommission.gov.uk