Online casinos have become a staple part of the gambling industry, generating lucrative revenue streams for governments and providing players with unprecedented access to a vast array of games.
However, progress has been uneven in the United States. While some regions have embraced iGaming, California is among the states which has remained resistant.
It is a similar story in the Middle East. Some countries have started to explore the possibilities in online gambling, while others strictly forbid the practice.
They include Kuwait, which has steadfastly refused to establish a formal framework for legalised gambling despite widespread calls for the government to shift its stance.
Intriguingly, players in California and Kuwait can still access online casino games via platforms licensed and regulated in other established gaming jurisdictions.
The US Online Casino Landscape
The US Department of Justice clarified that the Wire Act applies only to sports betting, giving states the power to regulate their online casinos.
New Jersey, Delaware, Michigan, Pennsylvania, Connecticut, West Virginia and Rhode Island opted to legalise iGaming. They are reaping the rewards.
The market in New Jersey has generated billions of dollars in revenue, which has been used to fund state programmes and invest in technology for safeguarding consumers.
Michigan and Pennsylvania have also experienced success since they legalised online casinos, with the sector helping to significantly bolster their respective economies.
However, despite these success stories, many states remain opposed to online casinos, with some opting to focus only on sports betting.
California has not legalised anything besides tribal and card room operations. This uneven landscape allows offshore gambling operators to fill the void.
California is an Untapped Goldmine
California is the largest untapped online casino market in the US.
Even though California has generated enormous revenue from tribal casinos, card rooms and the state lottery, all efforts to expand into online casinos have been futile.
Voters rejected two measures in 2022, with plans imploding due to a confusing campaign message and a heavy-spending campaign from the opposition.
Consequently, momentum has slowed despite over 30 states marching forward with more expansive plans for online casinos.
However, many Californians are already playing at online casinos. Offshore platforms have seized upon the opportunity to promote themselves aggressively.
These reputable online casino platforms allow players in areas such as Morgan Hill and San Jose to sign up and participate in minutes.
California is missing out in billions of dollars in tax revenue, money that could support education, infrastructure and public health initiatives.
Kuwait: Different Context, Similar Challenges
California is an aggressively liberal US state, despite its stance on gambling. By contrast, Kuwait is an ultra-conservative country that is resistant to many modern practices.
Despite this, restrictions have not eliminated demand. Kuwait has not created a licensing framework for gambling, but that has not stopped Arab players from turning to offshore platforms.
The best online casino in Kuwait allows players to open an account and play games freely. Kuwaiti citizens use Virtual Private Network (VPN) software to bypass local restrictions.
Like most other Middle Eastern nations, Kuwait is seeking to diversify its economy. Legalised online casinos could offer an alternative source of income.
However, Kuwait has refused to initiate dialogue on online casinos, making reforms unlikely. While California has debated the matter, the similarities between the two are clear to see.
California and Kuwait Could Take Lessons from Elsewhere
New Jersey and Michigan are shining examples of how a clear regulatory framework for gambling can benefit everyone.
When customers access licensed platforms, they are protected by the laws of the land. The government can also collect tax revenue to fund social programmes.
For California, if residents are already participating in offshore gambling, why not regulate, protect and tax it? The same question applies to Kuwait.
US states which have embraced online casinos have created a safer gaming environment, with strict oversight. They have garnered billions of dollars in tax revenue.
California may join them someday if it can reach a political consensus. Kuwait may take longer, but the advantages are clear for lawmakers to see.
The demand for online casinos is unlikely to fade due to legal restrictions. Online casinos are a goldmine for those willing to regulate and a missed opportunity for those who don’t.
