CNBNews

As the casino industry continues expanding across the globe, laws and jurisdictions differ drastically between regions regarding the legality of gambling operations and games offered.

United States 

Casinos, like Crown Play Casino, are regulated at the state level in the US rather than federally. Commercial casinos can only operate in one of 30 states currently. The application process tends to be lengthy, taking 12-18 months typically and costing from $50,000 up to $1 million when accounting for investigation fees. Applicants undergo extensive background checks of all investors, operators and decision makers. Strict rules apply regarding criminal history or association with criminal elements.

Once licensed, casinos pay annual state gaming taxes ranging from 6.75% in Nevada up to 55% in Maryland. They must renew licenses every 1-5 years depending on the state. Additional requirements relate to responsible gambling, self-exclusion programs, staff training, game testing and more.

Native American tribes have separate rights to operate casinos under federal Indian Gaming Regulatory Act. Nearly 500 tribal casinos now operate in 29 states.

Canada 

In Canada, casinos can operate in any province except Saskatchewan and Ontario where only provincial lotteries offer gaming. The registration process involves extensive disclosures about financing, ownership, staffing, operations, anti-money laundering diligence and Know Your Customer (KYC) rules.

Unlike the decentralized US system, Canada has national standards. But every province imposes its own additional regulations regarding game offerings, casino tax rates from 20% up to 75%, renewal rules and restrictions for advertising or extending credit to players. First Nations bands also operate casinos on designated reserves under provincial oversight.

United Kingdom 

The UK Gambling Act of 2005 legalized casinos while establishing the Gambling Commission as industry regulator. Casinos must obtain an operating license and personal management licenses for all executives or owners with major influence. The standard gaming license costs £3,448 the first year then £2,594 for subsequent years. An application takes about 16 weeks if companies demonstrate compliance with requirements concerning crime prevention, anti-money laundering rules, player protection systems, staff vetting, game testing, tax obligations and application fees.

The Commission also imposes codes of conduct relating to marketing, advertisements targeting youth or vulnerable people, identifying risky gambling behavior and general social responsibility standards. Maximum stake amounts allowed for games gets reviewed regularly – revised downward in recent years after claims that high stakes machines lead to problem gambling.

Macau 

The Chinese territory of Macau eclipsed Las Vegas years ago to become the world’s biggest casino gambling hub. But opening a casino there requires immense resources and capital reserves. The number of gaming concessions awarded remains strictly limited to just six licensees: SJM Holdings, Melco Resorts, Galaxy Entertainment Group, Sands China, MGM China and Wynn Resorts Macau.

These concessionaires each paid a one-time upfront fee of $320 million upon awarding of their 20-year concession. Plus they pay a 35% direct tax on gross gaming revenue along with other levies totaling over 39%. Sub-concession arrangements allow other big resorts like The Venetian and City of Dreams to operate casinos under the umbrellas of Sands China and Melco Resorts.

Given the oligopoly, corporate transparency rules are stringent concerning ownership, financing, governance and regulatory compliance. Anti-money laundering regulations also apply around suspicious transaction monitoring and reporting.

Singapore 

When Singapore legalized casino gaming to support tourism, it took the approach of strictly limiting market access. Just two integrated resort licenses were awarded in 2005 – one to Las Vegas Sands for Marina Bay Sands and one to Genting Group’s Resorts World Sentosa.

The initial term runs 30 years after which a competitive bidding determines renewal. Besides an annual casino tax starting at 5% up to 15% of gross gaming revenue, resort owners pay a flat $1 billion premium to the Singapore government spread out over 10 years. Like Macau, Singapore closely examines casino operations, management practices and ownership structures as licensees must incorporate local subsidiaries specifically for regulatory oversight.

Australia 

Australia legalized small scale gambling in the 19th century during gold rush days then adopted a state-based regulatory system when casinos emerged decades later. The six states and two territories oversee separate licensing regimes covering eligibility criteria, responsible gambling obligations and problem gaming resources.

Taxes range from 10% up to 50% of casino earnings depending on the state. License durations and fees vary as well – 10 years in New South Wales at around $100,000 per year or indefinite in Queensland for $143,000 annually. Remote gambling operators must acquire offshore licenses too since interstate online betting remains banned despite lobbying efforts citing lost tax revenue.

Gaming officials closely vet applicants and may require extensive background checks, notices to the public or investigations to evaluate candidates’ integrity, business conduct and character. Application processing times typically exceed six months.

Brazil 

In 1976 Brazil legalized casinos exclusively for tourists by restricting gaming to resorts registered with Brazil’s Tourism Ministry (and prohibiting citizens from entering). But bureaucracy and legal ambiguity long hindered development. Recently though, more transparent rules seek to spur large integrated entertainment complexes like those in Las Vegas or Macau.

Rio de Janeiro now allows a public call for bids related to gaming concessions much like other jurisdictions. However Brazil imposes steep upfront fees around $200 million for 30 year licenses plus elevated tax rates up to 40%. President Jair Bolsonaro also advocates a $10 entry fee for citizens which would fund treatment programs for gambling addiction.

The fledgling Brazilian gaming market holds major promise as the economy rebounds from past instability. Savvy international resort operators are already positioning themselves through partnerships with local developers in anticipation of future expansion.