Behavioral Tracking Tools, Regulation, and Corporate Social Responsibility in Online Gambling

Abstract

Over the last decade the gambling market has changed dramatically. There are now increased opportunities to gamble almost anywhere and at any time via Internet and mobile phone technology. This article briefly focuses on corporate social responsibility in online gambling. Online gambling is regulated differently across the world. For instance, there is no European-wide regulation of Internet gambling and it is up to individual member states to decide whether to allow online gambling in their territory and to whom they will grant operating licenses. The same is also true for the USA. There are an increasing number of countries that have legalized online gambling. For example, Denmark has issued more than 30 online gambling licenses. In addition to state-licensed operators (that typically can only offer games to citizens within their jurisdiction), there are large numbers of operators located in places like Malta or Gibraltar that offer their online games to everyone worldwide. Such operators only have to adhere to the responsible gaming standards in one jurisdiction (e.g., Malta, Gibraltar), even though they operate globally. Only recently have various states in the European Union regulated their online gaming market. For instance, Italy has entrusted the governmental agency AAMS (Amministrazione Autonoma dei Monopoli Stado—Autonomous Administration of the State Monopolies) with all gaming-related matters. The AAMS is responsible for issuing gaming licenses and for enforcing all legal aspects of gambling. Consequently, Italy has shifted from banning all online gaming into being a regulated market where online gambling is offered by private organizations but monitored by a governmental body. Another example of partial regulation is currently in progress in Germany. Under a newly ratified law, 20 online sports betting licenses will be issued. Online casino gambling, on the other hand, will still not be allowed under nationwide German law. However several federal German states have different laws regarding online gambling, which has led to major legal confusion over the past year. Part of this confusion is due to the federal organization of Germany. In 2012, Delaware became the first state to enter legal online casino gambling in the USA. The legislation allows all types of online games, such as slots, roulette, blackjack, and poker. These recent U.S. developments stand in stark contrast to the Unlawful Internet Gambing Enforcement Act that was signed by George Bush in 2006. After its introduction, it changed the online gambling market, as many big operators (e.g., Party Gaming, 888) left the U.S. market. State-licensed operators are not only restricted in who can play their games, but must also follow specific responsible gaming procedures as laid down by