Betting license: countries where bookmaker business is legal

An online sportsbook is a highly profitable venture — in 2023, the global betting market was valued at $89 billion. The regulatory landscape is complex, particularly for international operations, but navigating it is well worth the risk.

Definitions of “gambling” and “betting” vary across countries where betting is legal. Additionally, each nation has its own approach to the taxation and licensing of legal online sports betting. Before deciding to invest in a particular market, understanding the specific legal frameworks and policies is essential. Countries where betting is legal each have their own regulations. At Slotegrator, we have compiled a concise guide to assist you in exploring the prospects in these regions, focusing on legal sports betting and ensuring compliance with local laws.

How legal is online sports betting? Regulations and Rules

Every operator of an online sportsbook is well aware of the complexities and fluid nature of international sports betting legislation. Despite the challenges, there are many countries that provide stable environments for legal online sports betting.

Online sports betting laws even vary across countries where online sportsbooks are legal and regulated. Specific sports betting rules and regulations differ significantly; some nations restrict betting to certain sports or events, while others only permit specific types of bets. Additionally, the connection between online and land-based betting operations varies, with some countries requiring an online platform to be tied to a physical license, while others regulate them independently or not at all. Such betting restrictions and sportsbook rules require careful navigation by operators to remain compliant.

The biggest markets of the world: the UK, Australia, and the USA

The United States

In the USA, gambling is subject to numerous laws and regulations at the state and federal levels. Legally speaking, the regulatory landscape is a patchwork of areas with different degrees of regulation. Only in two states (Utah and Hawaii) are all forms of gambling completely banned. Other states offer varying degrees of legalized gambling activities, with an increasing number allowing legal online sports betting in the USA.

In May 2018, the Professional and Amateur Sports Protection Act (PASPA), which was a federal ban on sports betting, was declared unconstitutional by the US Supreme Court. This pivotal ruling handed the power to legalize sports betting back to the individual states. While many states still ban the practice, there is a noticeable shift towards liberalization, with the list of states where betting has been granted legal status steadily growing.

However, as more states move towards regulation, it's important for operators to pay close attention to the specifics. For instance, Mississippi and North Carolina restrict sports betting to physical locations and do not allow mobile betting, whereas Tennessee permits only online formats. The future of US sports betting regulation is under keen observation. Although a federal bill to regulate sports betting did not pass in 2020, a shift in Congressional power could lead to a different outcome in the future regarding online sports betting legal in the US.

United Kingdom

In the United Kingdom, sports betting is legal, and operators are required to have a local license. Most bets are made on football, horse racing, and dog racing. The market is extremely active, with surveys showing that more than 50% of bettors place bets on a weekly basis. According to the United Kingdom Gambling Commission (UKGC), total GGY for the gambling industry reached £15.1 billion in 2023, an increase of almost 7% compared to the previous year.

The UK has a strong tradition of wagering. Notably, UK policy seems to gravitate towards increasing regulations. Already a heavily regulated market, there are talks of further restricting marketing for iGaming operators and possibly even implementing a complete ban on advertising. This reflects the government's cautious stance on maintaining control over the gambling sector, ensuring betting in the UK remains a well-regulated activity.

Australia

In Australia, while online casino games are prohibited, both land-based and online sports betting are legally permitted and regulated at the state level. Each state maintains its own licensing authority, creating a fragmented regulatory landscape. This makes Australia one of the world’s most lucrative markets for gambling, particularly noted for having one of the highest rates of gambling participation globally.

Licensed bookmakers in Australia are part of a vibrant online sports betting market, which is projected to generate revenues of €8.92 billion in 2024. The market is expected to experience an annual growth rate (CAGR) of 5.19% from 2024 to 2028, leading to an estimated market volume of €10.92 billion by 2028.

Law and order – sports betting in Europe

Sports betting is legal in most of Europe, but it is subject to strict regulations that vary significantly from one country to another. The legal landscape across Europe is quite diverse, with each nation having its own set of rules and regulatory frameworks governing sports betting.

One example is Germany. The country’s gambling laws are complex, with numerous federal- and state-level regulations, and German authorities are constantly revising their legislation. Online sports betting is legal across the country, which presents an immense opportunity for operators. However, at times even this area presents challenges. The 2021 Interstate Treaty on Gambling legalized and regulated online gambling, but restrictions are so tight that channelization rates remain comparatively low.

Some European countries, like Sweden and Hungary, still restrict gambling activities to a single government monopoly, but the question that often arises is if these practices can coexist with the freedom to provide services or to open a business that is guaranteed by the EU. While the Union doesn’t explicitly condemn these systems, mostly the decisions of the EU Court of Justice tend more towards liberalisation of the betting market.

After initially moving towards open betting markets, the Netherlands has taken steps to tighten regulations. Recent decisions by the country's house of representatives include a ban on online gambling advertising and “high-risk” online gambling, such as slots. This represents a shift from the previous direction towards a regulated online gambling market, which was set to begin in 2021. The ban on targeted advertising and online slots, which are considered high-risk, has garnered majority support in the house of representatives. Additionally, motions have been passed for mandatory financial risk checks and identification related to gambling. Despite this tightening of regulations, it remains to be seen how these changes will impact the gambling landscape in the Netherlands.

Volatility and opportunity – African countries

Sports betting in Africa, home to 1.3 billion people, is big business.

Of the continent’s 54 countries, only seven completely forbid all gambling activities (Mauritania, Guinea-Bissau, Libya, Sudan, Somalia, Burundi, and Eritrea). Some countries, like Tunisia and Egypt, prohibit gambling but make exceptions for tourists and foreigners. Others make an exception specifically for sports betting — for example, in Nigeria, sports betting is considered a game of skill, not chance, making it legal.

In many countries, the online side of sports betting is not regulated at all, which can make them an unstable place to conduct business. Even in regulated markets where platforms operate relatively unfettered, it’s not unknown for local governments to suddenly crack down on gambling enterprises. For example, in Uganda in May 2019, Matia Kasaij, the Minister of Finance, urged authorities to halt the issuance of new gambling and betting licenses. However, for now, there is no official indication that the country won’t license new companies.

The Kenyan government has a similarly rocky relationship with the gambling industry. In July 2019, the government suspended sports betting licenses, but a group of Kenyan legislators called on the president’s office to restore them. In July 2020, the Kenyan government removed a 20% excise duty tax on betting stakes, but then pledged to overturn this decision just days later. The Gambling Control Bill 2023, which is currently still being debated by parliament, promises to overhaul the industry entirely.

South Africa is the biggest market on the continent, despite numerous legal restrictions. Online gambling, in general, is prohibited, but bookmakers licensed at a provincial level can accept bets online. Numerous provinces have their own rules and regulations, so it is by no means easy to get sports betting licenses in South Africa.

Nigeria, Africa’s second biggest market, faces similar issues. Regulations at both the federal and provincial level often clash and overlap, creating a regulatory landscape that’s difficult to navigate and introducing a risk of being exposed to double taxation. In both countries, there are talks of introducing a unified gambling law, which would finally eliminate all of these complications.

While they are the most popular, South Africa, Nigeria, and Kenya are not the only countries that attract international sportsbook operators. Emerging markets like Tanzania and Mozambique offer a lot of potential, with considerably lighter regulations. Tanzanian legislators have amended several laws, and a new gaming regulatory system has been introduced that attracted a lot of new investors.

Asia – a tight ship

It’s no surprise that Asia, with 60% of the world’s population, is responsible for the lion’s share of global betting GGR.

Despite this, there are only a few countries where betting on sports is legal. Macau has numerous restrictions for betting. Instant lottery and sports betting company Macau Slot has an exclusive concession to operate football and basketball betting, including bets placed over the phone and on the internet. Singapore and South Korea are similar cases — heavily restricted and, with a few exceptions, state-run.

The most open and popular market in Asia for betting is the Philippines. Licensing is available only to offshore operators, which means there is no competition from domestic operators and events – a factor that has attracted a huge number of companies to the market.

In Myanmar, sports betting is illegal, like most forms of gambling, but an exception is made for tourists and foreigners. Talks of legalizing casinos were circulating on a high level back in 2018-2019, so it’s reasonable to assume that further lifting of restrictions is possible.

Endless potential – Latin America

After Colombia was the first to regulate online gambling in 2016 and the market started booming, it seems other countries are following suit. The degree of legalization, though, varies on a country-by-country basis. In Argentina, for example, online betting is legal in several provinces, but overall, legislation is fragmented.

Brazil, long on the watchlist of potential emerging markets, recently took massive steps towards full legalization. Brazil's Chamber of Deputies granted final approval to regulate the market in 2024. The approval follows the passage of Bill 3.626/2023, which not only regulates sports betting but also allows gambling. It will be passed to the office of President Luiz Inacio Lula da Silva for final approval. All the tax proposals submitted by the Economic Affairs Commission on November 22 were also approved. The full rollout of sports betting regulation is planned to be completed by July 2024.

Mexico is among the biggest and most active markets in the region. Online sportsbooks are poised to be even more prominent than before, as retail operations took a hit because of the crisis. Regulations in the country are relatively clear and straightforward.

Among the more uncertain regions is Costa Rica, which is neither moving towards tightening regulations nor towards explicitly supporting the gambling industry. The online sector is still unregulated, while there are a number of restrictions and rules for the land-based portion of the market. Time will tell if online sports betting will draw more attention from the government.

Licensing

It should be noted that legislation doesn’t always change for the worse.

When markets open up, many operators seize the opportunity to expand. But to do that, the sportsbook should satisfy legal requirements and obtain a license. In certain rare instances, countries recognize valid licenses issued by a foreign authority (for example, it used to be the case that the UK accepted licenses issued by Gibraltar), but this is extremely risky, as legislation may change.

The lack of a local license doesn’t necessarily mean operators can’t accept players from a different region, but at the very least, it would prohibit them from advertising there. So operators could end up in a situation where, for example, they aren’t breaking the law if they accept some players from the United Kingdom while being licensed in Curacao, but would be if they target this audience specifically and deliberately. Some sportsbooks, however, manage to attract audiences from other countries with little to no direct marketing.

While it’s true that obtaining licenses and entering new markets is both tricky and risky, operators all over the world pursue these opportunities to enlarge their player base. Many sportsbooks based in Australia started targeting the USA as soon as the process of legalization started in 2018. This is far from being an isolated case; every time the sports betting ban is lifted in a country, all the companies that were previously working in the legal gray area hurry to seize their share of the market.

By following due process and making sure to review and understand relevant requirements, sportsbook operators can transcend borders and enjoy a level of growth that is impossible when focusing on a single region. But deciding if one market or the other is worth the risk of a long-term investment is not easy to make without investigating the smallest details and understanding the intricacies of local policies.

Countries where online betting is illegal

While sports betting is legal in many parts of the world, there are many countries where it is strictly prohibited. In these regions, the reasons for making online betting illegal often stem from religious beliefs, concerns about social issues, or the desire to limit economic problems related to gambling. Is it illegal to bet on sports online in these areas? Yes, and doing so can lead to significant penalties.

One common legal stipulation is the prohibition of betting without a license, which is enforced to prevent unregulated and potentially fraudulent betting operations. In places where online betting is legal, these laws ensure that the market is monitored and that only authorized operators can offer gambling services, helping to protect both the integrity of sports and the welfare of the bettors.

Conclusion

When it comes to launching an online sports betting platform or expanding your current sportsbook into new territories, the importance of securing the necessary licenses cannot be overstated. No matter how closely you follow global trends or how ready you feel to tap into new markets, obtaining a betting license is a fundamental step that cannot be skipped.

The licensing process is crucial not only for compliance with local and international laws but also for establishing credibility and trust with your customers. Each jurisdiction has its own specific requirements and regulatory hurdles, which can include everything from proving financial stability to demonstrating responsible gambling practices. Navigating this complex landscape often requires in-depth knowledge of both the legal framework and the particular market conditions of the countries you are interested in.

We closely follow world news and trends and keep our ear to the ground to anticipate the latest developments in legislation all over the world. If you are opening an online sports betting platform or considering new areas of operation for your existing sportsbook, we are more than happy to share what we know — for free.