Following the rapid expansion of the iGaming industry over the past decade, governments have seen the behaviors of their gambling communities transform significantly. Instead of trying their luck on the casino floor or at the bookmakers, players are now preferring to use digital platforms such as online casinos and sports betting apps. With revenue generated from the global iGaming market set to reach $107 billion, highlighting the growing domination of online platforms, lawmakers across the globe are beginning to understand the importance of updating their legislation to better regulate the evolving gambling sector.
Considering this, let’s look at the neighboring regions of North and Central America. With significant cultural differences as well as opposing positions on the global economic ladder, these two regions possess both similarities and differences when it comes to their gambling laws.
North America
United States
As with many laws in the United States, gambling is regulated at the state level with only limited federal oversight regarding gambling activities. The result of this is a complex overall situation. Some states, such as Nevada, home to Las Vegas, possess famously relaxed laws, while others, like Nevada’s next-door neighbor, Utah, prohibit all forms of gambling. Furthermore, following the Indian Gaming Regulatory Act of 1988, over 240 Native American tribes run gambling operations on their sovereign lands regardless of any prohibiting state regulations. In recent years, there have been several federal and state amendments in reaction to the global iGaming boom. In 2018, the Supreme Court overturned the 1992 Sports Protection Act, making way for states to legalize sports betting markets. Similarly, several states like New Jersey, Connecticut, and Pennsylvania have all legalized online casino platforms, leading to the development of several regulated iGaming markets. Alongside this, we’ve also seen the explosion of sweepstakes casinos, which are legal in all states except Idaho and Washington. Due to this burgeoning demand and increase in customers, we’ve seen the creation of third-party review sites like Casino.org, which cater to US players, as a way to regulate the marketplace. With the vertical constantly expanding, we’ve seen peripheral offerings constantly originating to fill any gaps.
Canada
In a similar vein to the United States, the federal Canadian government outlines gambling as a legal activity. However, each province is in charge of setting its own laws related to its regulation. Every province bar Newfoundland is home to a brick-and-mortar Casino while sports betting is legal throughout the country. In 2022, Ontario launched the first regulated iGaming market in Canada, setting the precedent for other provinces to follow suit. With other provinces like Alberta and British Columbia developing their own state-owned iGaming markets in recent years, it may not be long until online platforms have legal status across Canada.
Mexico
In contrast, Mexico’s gambling laws are regulated at the federal level under the Federal Gaming and Raffles Law of 1947. Casino gaming and sports betting are both legal and popular in Mexico, with venues requiring a government permit to offer gambling services. While the 1947 law has been continuously updated as both Mexico and gambling have evolved, it is still seen to be outdated, particularly with regard to iGaming. With no mention of online gambling in legislation, the industry currently operates in a legal grey area. The ambiguous nature of the laws related to online platforms means both offshore and Mexican gambling sites operate in the country with little regulation. With obvious issues surrounding the dangers of unregulated gambling, especially for the players, discussion about modernizing Mexico’s laws is underway.
Central America
Costa Rica
Despite being a global hub for the iGaming industry, Costa Rica possesses no specific laws regarding the regulation of gambling activities. Gambling, therefore, is not illegal, with multiple casinos available to explore for the 2.4 million tourists who arrive annually. With regards to iGaming operators, Costa Rica holds a somewhat laissez-faire attitude, allowing companies to operate under general business licenses so long as they do not offer their services to residents. Therefore, despite gambling being legal in the country, residents are not able to access the myriad online platforms that operate there. Costa Rican gambling laws appear to cater to the broader international market as opposed to regulating its national scene.
Panama
Panama, on the other hand, has a well-developed gambling legal infrastructure with legislation that takes into consideration traditional gambling establishments as well as emerging digital platforms. Overseen at the national level by the Junta de Control de Juegos, gambling is largely regulated by Law No.2 1998. Panama also became one of the first nations in the world to permit online gambling following the release of Resolution No.65 in 2002. The legal position of gambling in Panama is, therefore, very strong, with all forms of gambling permitted and significant legislation in place to regulate the industry and maintain safe practices. It is because of this that Panama has both a strong internal gambling market as well as an impressive position in the global iGaming sector.
Other Nations
Elsewhere in Central America, gambling laws become harder to clearly define. In countries like Nicaragua, Guatemala, and El Salvador, there are no laws that prohibit gambling activities, with numerous casinos operating, notably the Princess Casinos in Managua and Guatemala City. Despite this, gambling laws are often underdeveloped, with little legislation present to effectively regulate the market. Honduras is also home to numerous casinos; however, this market is catered mainly towards tourists. The country also lacks a true gambling regulatory framework, with no recognized authority to oversee gambling activities. Unfortunately, the result of this is an inconsistent market with high crime levels and little protection for the players. Assessing the difference in gambling oversight between the two regions is difficult due to the varying levels of legislative control between countries within each region. While Mexico still has no legislation related to iGaming practices, many states and provinces north of the border have become world leaders when it comes to regulating these online spaces. Central America presents a region of extremes when it comes to gambling legislation, with nations like Panama leading the way while others require serious upheaval of their gambling laws. While the root of these differences lies in a web of political, economic, and cultural factors, addressing the gap will be vital for underperforming nations to start competing.
