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Posted on May 19, 2014 by Bob Hartman
Once again, everyday consumers will not be hurt or assisted by the law enacted by the country aimed at adding further rules and regulations to the most confusing online gambling and sports betting industry.
The new law this time comes from the UK and aims to force gambling operators in any jurisdiction where they already have a license (outside of the UK) to obtain a UK license allowing them to offer betting options to UK players.
The new law, likely to be finalized by July 1 and likely to enter into full force by September 1, will cost operators upwards of
"The high cost of these requirements is likely to create another scenario that will help unregulated, unlicensed operators gain a greater foothold in the industry," said CGW analyst Ryan Murphy.
The regulations that the new law enjoys are those that force newly licensed offshore operators to detect and report scrupulous behavior to protect against money laundering and help sports leagues detect fraud scandals. In addition, a portion of the money will go to further research into gambling problems and help those in need of support.
There is also the possibility of legal action by leading operators outside the UK. According to legal experts from Outl-Law.com, such actions taken by these players could ultimately result in a serious delay in law implementation, maintaining the status quo for a while.
By making licensing difficult and creating so many costly hurdles for legitimate operators outside of the UK, these operators may simply not be licensed and refuse to bet to UK players. This will open the door for black market operators who will be happy to accept bets from any player in the world without following licensing and regulatory procedures.
"In a market that is already operating so optimally, it is difficult to grasp the purpose of this new British law," Murphy told us. "It could create another wild west situation that will only hurt the consumer one more time."