How Gambling Regulations Raise Standards, Supporting the Need to Use Trusted, Licensed Platform Listings

In the space of a decade, the U.S. gambling landscape has undergone a major transformation. Where gambling activities were once reserved for the likes of Las Vegas and Atlantic City, the rapid emergence of online gaming environments has had a profound impact, with states across the country implementing new laws to better regulate the growing appetite for iGaming and establish greater control. Despite such regulatory upheaval, however, a recent report from the American Gaming Association (AGA) has found that illegal gambling in the country is on the rise. With the unregulated gambling market up a reported 22% since 2022, it appears that players are increasingly choosing illicit platforms over trusted sites despite the risks. So, how exactly do gambling regulations raise standards – and why is it so important for players to choose licensed platforms when they play?

The risks of unregulated gambling

Unregulated gambling is any form of gambling that occurs outside of government oversight and the comprehensive legal frameworks set out to control gaming standards. In these environments, there are no rules in place to ensure fairness, transparency, or player protection. As such, there lie several inherent risks. Firstly, it is possible that games may be rigged against the player. This means that in some cases it is impossible for the player to win at all. Secondly, illicit platforms have limited consumer protections in place that give players support with issues such as withheld winnings and other financial disputes. For problem gamblers, there is also little in the way of spending restrictions and support measures designed to reduce the risk of addiction and financial issues. Finally, as these platforms exist completely outside of the law, there is an elevated risk of more serious crimes like identity fraud, financial scams, and theft. 

How do effective regulations raise standards?

In contrast, platforms that operate within the sphere of state gambling regulations must abide by strict compliance protocols, establishing clear rules regarding gaming operations and accountability that put player welfare and fairness above all else. There are four key aspects that effective regulations raise gambling standards:

Operator integrity

A combination of extensive licensing requirements, regular platform audits, and consistent game testing ensures iGaming operators are transparent with their digital services. By enforcing these integrity measures, players can trust that online platforms are fair. Because regulators can revoke licenses, these measures also discourage operators from engaging in shady practices.

Consumer protection

Regulatory oversight also ensures players are treated with respect and decency. This means that the terms and conditions related to things like bonuses, payouts, and deposits are freely available and clearly advertised. This gives vital consumer protection against misleading information, providing an essential mechanism for players to make complaints against unfair practices. 

Responsible gambling measures

By enforcing measures to minimize problem gambling, such as offering self-exclusion programs and setting wagering limits, as well as advertising the potential risks, regulators can ensure player welfare is prioritized. This helps create a safer gambling environment that protects players from exploitation.

Crime reduction

By creating a market where certain standards need to be met, the proliferation of financial crimes associated with illicit activities is minimized – this ranges from player-targeted scams to organized money laundering schemes. Simply, by bringing gambling into the legal space, illegal activities are unable to flourish.

A wave of gambling reform across the U.S.

The emergence of regulated online gambling across the U.S. presents a prime example of how more comprehensive legislative oversight can elevate standards. Slow to react to the rapid emergence of iGaming, many U.S. states have sought to legalize online casinos and sportsbooks in recent years, leading to what many have labelled an online gaming revolution in the country. 47 states now have some form of legal gaming, creating an industry supporting 1.8 million jobs with a total economic impact of over $320 billion a year. Not only has regulating iGaming created a safer, more responsible gambling environment for players, but the highly competitive market it has produced has also driven innovation in the sector that many say has improved the playing experience as well. 

The recent rise in illegal gambling reported by the AGA suggests that introducing regulations has done little to curb the appetite for illicit platforms. However, this trend is largely reflective of the patchwork nature of gambling laws across the country. With inconsistent regulations from state to state, illicit operators can exploit loopholes and regulatory gaps, enabling them to attract players seeking less restrictive alternatives. This further highlights the importance of enforcing effective gambling regulations that are consistent nationwide. 

Choosing trusted platforms

For players, there is a multi-faceted advantage to choosing trusted platforms over unlicensed sites. Playing within regulated gambling environments minimizes the risk of falling foul of cybercriminals while ensuring available games have no unfair bias against them. Furthermore, due to the lucrative nature of the legal gambling market, significant investment has been made by gaming companies, which has led to major innovations in game development, elevating the user experience. Also, while accessing illicit platforms can be complex and uncertain, it's easy to find the best gambling sites on the regulated market. Players can access a range of useful review sites and other online tools to compare different iGaming platforms and find the right site for them. Essentially, as legal gambling has become increasingly available across the U.S., it now offers a safer, easier, and higher-quality product than illegal alternatives.

The bottom line is that while unregulated platforms may look legitimate and advertise impressive-looking options, without effective legal oversight, there is no way of knowing what is hidden beneath the surface. Online gambling should be an enjoyable experience, and by playing within the parameters of the regulated market, players can access their favorite games with fewer worries. As online casinos and sports betting sites continue to post impressive revenues, it appears as though the popularity of legal iGaming is still on the rise. Looking ahead, regulators will now be hoping that illicit gaming activities soon start to fall once more.

- B.E. Delmer, Gambling911.com