Ask Genie: The Role of Licensing Authorities in Online Casinos

The Role of Licensing Authorities in Online Casinos
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The online casino industry has been around since the early 2000s, but it hasn’t been since recently, particularly fuelled by the pandemic, that the online casino industry has boomed in the UK. With a rapidly growing player base, the role of licensing and regulatory authorities becomes essential. Licensing bodies ensure that industry standards are kept high, and scam sites are efficiently and strictly dealt with. 

Spin Genie is a fully legit online casino, licensed by the UKGC, and in today’s article, we’ll be exploring the important role that licensing authorities play in ensuring that your online casino experience isn’t just fun, but safe and legal too.

What Are Licensing Authorities?

Licensing Authorities are regulatory bodies that oversee the licensing and monitoring of online casinos within their jurisdiction.

A jurisdiction dictates a region where a licensing authority has power (and in extension relative laws from a country/province) and is in charge of providing online casinos within that jurisdiction permission to operate. For instance, a UKGC licence lets you provide online casino games to players in England, Scotland, Wales, and Northern Ireland. As Ireland is not part of the UK, online casinos must acquire a separate license to operate there.

Different countries have different laws meaning to qualify in each jurisdiction online casinos may need to adjust offers and remove specific games, or certain features; such as Autoplay in the UK. Multiple jurisdictions can form bodies that work together for various practices (notwithstanding differing rules). For instance, the European Betting and Gaming Association (EBGA) covers several European countries.

Licensing authorities act as civilian law enforcement. Despite not making the rules for a country, the authority can utilise the police to enforce them. So, while licensing authorities cannot make laws, they help them to be enforced and provide insight to the government/legal authority of the jurisdiction regarding any need to revise or clarify existing laws by recording metrics and statistics.

Licensers also monitor the activities of casinos within their jurisdiction and oversee factors such as compliance and taxation. 

What are Licensing Authorities Responsible for?

Ensuring Fair Play

Licensing authorities work directly with third-party auditors who test casino game software. The software tested is the games’ RNG or ‘random number generator’, which is designed to ensure games produce fully random and therefore fair outcomes.  The game developer and/or the casino hosting the game will provide an RNG certificate to legitimate and fair casinos/games.

Protecting Players

Licensing bodies act as your very own metaphorical big brother, looking out for you and keeping you safe when playing. Licensors will check the security of sites, ensuring the best encryption and firewalls are used to keep your information safe. They will also ensure that payment methods are verified and safe.

Preventing Crime

The reason why, in many regions, scam online casinos are now a rarity is because of the diligent work of licensing authorities and their affiliated parties. By taking a no-nonsense approach and monitoring every facet of the goings-on in their jurisdiction, these regulatory bodies can fight crime head-on, combatting money laundering, game rigging, and other scams. Players with concerns can also make a report directly to the authorities, which they can then officially investigate.

Promoting Responsible Gambling

While all legitimate casinos should be advocates for responsible gambling practices, it is up to the licensing authorities to amplify and spread this message. This is partly achieved by the requirements the casino has to meet to be licensed, but it is also where the statistics and data the authority collects come into play. This data can give vital information to governing bodies leading to the creation and improvement of laws designed to keep players safe. A huge recent example of this was the removal of autoplay, spin modifiers, and bonus buy features from all UK slots to help combat problem gambling.

Major Licensing Authorities Worldwide

United Kingdom Gambling Commission (UKGC)

Regulating gambling and managing gaming laws in Great Britain, the Gambling Commission is an executive, non-departmental governmental organisation of the United Kingdom government. Its reach includes remote gambling, (but not spread betting) including arcades, betting, bingo, casinos, slot machines and lotteries. As dictated in the "Gambling Act 2005," free prize contests and drawings are outside of the Commission's jurisdiction.

The Commission's stated goals are to guard the vulnerable and prevent crime from finding its way into gambling both online and off. It authorises operators and counsels the government on problems connected to gaming. It also works with the police on suspected unlawful gaming. In 2007 the Commission superseded the Gaming Board for Great Britain and 2013 saw it take charge of National Lottery regulation.

Malta Gaming Authority (MGA)

The Malta Gaming Authority (MGA), formerly the LGA, regulates gaming in Malta. Land-based (casino, amusement and slot machines, betting offices, fantasy sports, and lotteries) and online (B2C and B2B) gambling are regulated by the MGA.

The MGA was founded in 2001 to govern the gaming business by assuring fairness and transparency to players, minimising crime, corruption, and money laundering, and protecting underage and vulnerable players.

The MGA was one of the first regulators to oversee online gambling enterprises and protect players. Legislation, rules, and directives govern the business, commencing with the Lotteries and Other Games Act, 2001, and Malta Laws Chapters 438 and 400. Malta's online gaming business now accounts for almost 12% of GDP, having risen rapidly since 2001.

Gibraltar Regulatory Authority

The Gibraltar Regulatory Authority (GRA), created under the Gibraltar Regulatory Act 2000, is an independent statutory authority. Their primary responsibility is to advance the interests of residents and consumers where possible by supporting competition and encouraging innovation.

The GRA has a wide range of tasks across several industries, including setting and enforcing regulatory norms in compliance with Gibraltar and EU legislation. Their responsibilities include promoting data privacy and protecting information rights, as well as regulating and facilitating competition in the electronic communications, broadcasting, and postal sectors. They also provide regulatory tasks in the areas of competition, higher education, and cybersecurity.

Why You Should Care About Licensing

Licenses are proof that an online casino has met the strict and high standards required to operate within said jurisdiction. Players can view this as a seal of approval as it indicates that the casino:

  • Operates transparently and fairly, with unrigged games.
  • Is audited by non-affiliated parties, and is monitored by their licensing bodies. 
  • Is safe and secure with high-quality firewalls and encryption. No data will be shared with unaffiliated third parties.
  • Is affiliated with numerous top-quality developers, meaning a great selection of games.
  • Allows numerous banking options for both withdrawals and deposits. 
  • Has top-notch customer support options and advocates for responsible gaming.

As you can see, a license ensures all the ingredients of a top-quality online casino are present and correct with no nasties such as rigged games or scam promotions in sight. So, if you are playing at an online casino for the first time, remember to always check for an up-to-date license before signing up.

How Spin Genie Upholds Licensing Standards

Spin Genie holds a gaming license with account number 39326 issued by the Gambling Commission of Great Britain, and you can review the status of our license by clicking the link at the bottom of every page on our site. 

When you play at Spin Genie you know you’re playing at a 100% legitimate and fair online casino that complies with the UK legal and regulatory requirements. Our site and the games we host are all frequently independently audited to ensure fairness, and as a brand, we are committed to caring for not just our players' overall gaming experience, but well-being through our advocacy for responsible gambling practices.

Never Play at Unlicensed Sites

The message is clear; if you don’t want to be scammed, experience rigged games, or have your personal data disclosed, don’t play at unlicensed sites. Licensing authorities work diligently to provide accreditation to legitimate sites and crack down on scam sites all the while recording statistics and data instrumental in the formation of laws that keep players safe. A legitimate casino will have nothing to hide and you should find their licensing information very easily. Any site without a license or with a license that is hard to find should be avoided.

At Spin Genie we are licensed and regulated by the UKGC and we work hard to maintain and improve our operating standards so our players can not only have the very best but the safest gambling experiences online. Sign up and play today.

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