Difference Between the UK and US Online Casino Markets
|Published: 28th September 2021 21:06|
The global gambling industry develops quite rapidly. The annual growth of the audience is reflected in the positive dynamics of the financial profit of online casinos. An increasing number of users around the world prefer to play online slot games from home in a comfortable armchair or spin the reels of slots while traveling, queuing, or on vacation.
The situation in each country is different due to the specifics of the legislation and the national specifics of the population. For example, Australia is recognized as the most gambling country today, where about $900 is spent per each of its citizens on online casinos and in sports betting. The Americans and the British are not far behind; they are limited only by the particular features of the regulatory authorities.
What is the difference between US and UK gamblers, how do the new no deposit casino UK and US websites work, and what is the difference between the online casino markets of these two countries? Let's figure it out.
Online gambling in the USA
The United States has a very long and controversial history of gambling. It dates back to the 17th century. Ever since Americans have enthusiastically surrendered to excitement. They do not spare money for it, be it betting on horse races or dice games. The Great Depression slightly diminished interest in such entertainment. But the 1950s marked the beginning of the active development of land-based casinos in the state of Nevada, namely in the city of Las Vegas.
The thrill of the competition has always been an integral part of American culture. Online gambling is not an exception as it has become widespread through the worldwide web. But due to the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA) that joined the battle against illegal gambling portals on the Internet, many providers left the market due to the prohibitions on the processing of financial transactions by US banks if they were connected transfers from online casino websites. Only in the last 10 years, online gambling has received an opportunity to develop. The first legal virtual platforms were DoubleDown Casino and Ultimate Poker.
As of 2021, gambling platforms are allowed in almost all states except two - Utah and Hawaii. American gamblers love to play lotteries, Baccarat, and online slots most of all. Each resident pays about $200 a year for virtual scratch cards only. As a result of this passion for gambling, currently, the value of the US gaming industry is $261 billion.
When it comes to payments, the 1970 law remains in effect, excluding the funds’ receipt and transfer to/from credit and debit cards. However, there are still many options for online payment, for example:
- E-wallets: Neteller, Skrill, EcoPayz;
- Cryptocurrency: Bitcoin, Ethereum, FUN, Litecoin, and others.
If the casino wants to operate within the legal framework, it shall pay taxes. The same applies to the gamblers who receive the winnings; they are charged 25% of the profit.
In general, the American market is very promising and rich taking into account that the average American income is $600 per week. Changes in legislation and the possibility of regulation at the state level became an impetus for the legal development of websites without offshore and third-party licenses.
Online gambling business in the UK
Unlike American industry, online gambling in the UK has long been regulated at the legislative level, making up a significant part of the state budget. It is evidenced by a detailed review of Statista, a statistics portal. Until 2014, the UKGC did not even order virtual establishments to obtain a license to operate, thus facilitating the acquisition of cheaper permits from Malta and Gibraltar.
However, the authorities soon realized their omission and today all online casinos operating in the UK are required to be licensed and pay a tax of 15% of income. At the same time, the gamblers are exempted from paying any part of their winnings.
To legalize a virtual business, it is required to obtain two types of licenses.
The personal license of the manager
It costs 370 pounds and is issued for five years. If the company has more than three management positions, each of the employees must apply for such a permit. It is issued to specialists involved in the following activities:
- general strategy;
- financial planning;
- IT industry;
- regulatory requirements.
Remote operating license
There are several types depending on the game content offered to users. They include licenses for betting, Bingo, slot machines, lotteries, online casino software, etc.
The British, by their nature, are very gambling people just like the Americans; in 2020, more than 32% of Britons spent time gambling once a week, and 30% of them practice gambling at least once a month. This fact contributes to the development of online gambling in general, new platforms appear, the competition gets more intense, which means that the conditions for the users improve as well. In addition, new establishments require the involvement of more specialists, which means new jobs. As a result, the economy receives dividends and demonstrates positive dynamics.
Comparing these two countries with the world's largest economies, you can see a significant difference in attitudes towards the gambling industry. While the UK has long understood the profitability of legalizing online gambling, the United States has come to this point only recently.
There are also differences in taxation. In the United States, the tax is charged from both casinos and on gamblers’ winnings, while in the United Kingdom, gamblers are exempt from the tax.
Both countries also have some points in common:
- existence of regulatory authorities issuing licenses;
- The passion of the population for gambling;
- growing demand and development of gambling;
- The intense interest of users to online platforms.
It should be pointed out that lately there has been an increasing demand for mobile applications that enable users to place bets, spin roulettes and slot reels on a mobile gadget without being stuck in front of the computer.