The legality of online casinos is not that different from the regulation of normal land based casinos. Yes, transaction of money through your internet does complicate things a bit but it really is the same across most countries.
Online gambling laws have often been found to have loopholes. This actually isn’t because of the inability of the lawmakers but it is as a result of rapid development of the technology related to the industry fast tracking the development of the industry. Countries such as Belgium, Canada, Finland, Sweden have a state gambling monopoly which means that they do not grant licenses to foreign casino operators. According to the law of these countries, only the operators who were licensed on the territory of these countries are considered legal. But at the same time, they do not prosecute foreign casino operators and only block their sites. Players too are not punished if they gamble in any illegal site as they have the right to gamble at any sight that is available to them.
Some countries have specific laws related to the regulation of online gambling. Here are some of them:
Online gambling in Australia is illegal according to The Australian Interactive Gambling Act 2001, which criminalises the supply of online casino games by any operator anywhere in the world to persons located in Australia. But the legality of online casinos in Australia is quite murky as the law only targets the operators and the players themselves are free to gamble at any site they can access. Also it is important to note that no operator has even been charged with an offence under this act and many sites continue to accept Australian players.
The legality of online gambling in Belgium is determined by The Belgian Gaming Act, which allows online gambling, but only under strict surveillance and a lot of conditions.
Legality of online gambling in Canada is quite confusing, at least for some. This is because the Canadian criminal code states that only provincial governments and charitable organizations licensed by provincial governments may operate casinos in Canada. It also prohibits residents from participating in any lottery scheme, game of chance, or gambling activity not licensed or operated by a provincial government. This means that a website that is legal in one province may not be available for legal use in another province. Also then there is the Kahnawake First Nation in Quebec which has declared itself a sovereign nation and has enacted its own gambling legislation allowing the registration of over 300 gambling websites.
The Canadians not only are liberal when it comes to societal norms but also seem to be quite liberal when it comes to legality of online gambling.
In the United Kingdom, the Gambling bill of 2005 oversees the legality of online gambling. In 2014, the UK government made an amendment to the original law which now requires offshore online gambling service providers to obtain a UK license to operate in the country. Thus, the legality of online gambling is quite clear in the UK, any gambling service provider with a license is legally allowed to cater to the citizens of the UK.
Online casinos make legal money the same way as normal casinos do. The only difference here being that there is no actual contact between the dealers and the gamblers. And almost all transactions are carried out via credit cards, debit cards or other electronic mode of payment.