Most of the world if heading in the opposite direction of choosing to regulate instead of restricting an industry projected to double by 2030. This is while Philippine lawmakers consider prohibiting online gaming.
Eusebio Tanco, chairman of DigiPlus said that only 18 out of 195 countries in the world currently enforce outright bans on online gambling. These include Iran, Iraq, North Korea, and Somalia.
In contrary to this, he said 177 countries allow online gaming under different regulatory frameworks. This highlights a growing consensus that regulation and not restriction offers better consumer protection, market integrity, as well as economic returns.
According to Tanco, efforts to restrict online gaming in other countries have historically driven users toward unlicensed operators, weakening safeguards, as well as costing governments billions in lost tax revenue.
The 2006 Unlawful Internet Gambling Enforcement Act drove many players to offshore platforms in the United States. The country reversed course in 2013, letting states to legalize online betting. With $16.66 billion going to state, as well as local governments, U.S. gambling revenues reached $71.9 billion by 2024.
Similar challenges have been faced by Germany and Sweden before regulation delivered measurable improvements. Over half of bets of Germany were placed by unlicensed channels before legalizing online gaming in 2021. After introducing a licensing system in 2019, the black market of Sweden shrank remarkably.
The Gambling Act of 2005 of United Kingdom established one of the most robust regulated markets in the world, prioritizing player safety.
Emerging countries are following suit. Illegal gaming once generated $30 billion yearly in Brazil. The government started regulating online gambling in the past year to recover lost tax revenue.
From 80% in 2016 to 15% in 2023, Colombia cut its black market. This is after implementing regulatory reforms. A drop from 90% to 25% after introducing licensing measures in 2020 has seen by Argentina.
