Gambling regulations can vary a lot between different jurisdictions. Compared to most countries, the United Kingdom has long-established gambling regulations, and is sometimes used as a template by other countries.
While the UK’s gambling regulations are very established, other jurisdictions are still struggling to achieve a fully established, regulatory structure. That is definitely true of the United States, where gambling regulations are set by each of the fifty states.
While states like New Jersey, Nevada, and Pennsylvania have relatively relaxed gambling laws, other states are still debating whether or not to legalize gambling at all.
Keep reading for a closer look at the latest comparison of gambling regulations in the UK and New Jersey, and how they are the same or different.
UK Gambling Act of 2005
The Gambling Act of 2005 regulates gambling in the UK, setting the regulations for the entire country.
This includes online and mobile sportsbooks and casinos, as well as land-based sports betting, slot machines, and the lottery.
The Gambling Act also covers the UK National Lottery, charity events such as bingo, non-commercial gambling, and gambling at traveling fairs.
Every type of gambling falls under the jurisdiction of the UK Gambling Commission, which regulates all gambling companies operating in the UK. The commission can also issue huge fines for non-compliance.
UK Offshore Taxation
In 2014, the UK introduced more gambling regulations, with the Gambling Licensing and Advertising Bill.
The 2014 bill instituted a Point-of-Consumption Tax, which targets UK gambling companies that relocated to another country to avoid paying high taxes.
That included Malta, Gibraltar and the Isle of Man. The offshore tax is set at 15% for any gambling company that accepts UK gamblers. The new regulation also impacts on online sports betting; the tax for online sportsbooks was raised from 6.75% to 15%.
UK Games of Chance Get a Higher Tax
In late 2019, the UK imposed an even higher rate of Point-of-Consumption Tax; games of chance are now taxed at a rate of 21%.
Casino games like slots, poker, blackjack, roulette, and more were subject to the tax, which is levied on the profits of any casino operating within the UK.
Gamblers are impacted by these taxes, with gaming operators giving lower Return to Player rates and lower odds to make up the deficit.
A few gambling companies have already pulled out of the UK market because of this. However, most UK gambling operators are likely to stay in the country.
New Jersey Dives Deep Into Gambling
New Jersey quickly cashed-in on the online gambling revolution, and is now one of the biggest gambling markets in the US, only falling behind Nevada.
Back in early 2013, the New Jersey State legislature approved online casinos for an initial period of 10 years.
According to New Jersey gambling regulations, players must be at least 21 years old and located within the state’s boundaries.
New Jersey was also the first state to take advantage of the Supreme Court’s 2018 decision to allow both in-person and online sports betting.
NJ Generates Impressive Growth
New Jersey’s Division of Gaming Enforcement regulates the gambling industry in the state.
New Jersey’s 2019 financial reports show that tweaking the state’s gambling regulations has helped to not only generate huge revenues for the state’s operators, but also for the state in tax revenue.
Online Gambling Regulations in the UK and NJ
There are a few similarities between the online gambling regulations in the UK and New Jersey; the most notable similarities are strong gambling regulations.
While each gambling jurisdiction across the globe is at a different point, all jurisdictions can reap the rewards by having clearly defined gambling regulations.
Gambling regulations in the UK remain a good example for other jurisdictions to follow and likewise, New Jersey sets a good example in the US.