White, black and grey igaming markets

If you want to start an online casino first thing you should do is learn about the regulations of the different markets to find out whether gambling in the specific iGaming markets that you plan to target is regulated.

Why should you operate your online casino business in the regulated gambling market? Because regulated countries offer a safe environment for your business and clientele. By entering into the regulated market, you are increasing the credibility and authenticity of your business, and you are not at risk of shutting down, being fined, or blacklisted.

If you need to find out more about the process of starting your iGaming business, you should check out our article about how to start an online casino. Afterwards, we also recommend you to read about how to market an online casino. These two articles will give you the detailed outline about the whole process of building your online gambling business in a step-by-step manner.

Various types of iGaming business

Some countries are regulated, meaning that they have clear, and sometimes even strict policies that define what type of gambling is allowed in the given region and what are the rules that govern the process of gambling. Such markets have a licensing criteria, and guidelines for marketing and promotional activities of your iGaming business. The regulated markets are known as white markets.

On the other side of the range, we see black markets. The country is considered a black market if it completely outlaws all types of gambling. However, this is not the major case; sometimes, we can find online casinos operating in the black market or from the black market. They are unlicensed, unregulated, rogue online casinos, prone to perform other illegal practices.

Grey markets are unregulated markets, but the difference is there are no rules that either govern or prohibit online gambling. Thus, in such regions, we face a complete lack of regulations and uncertain frame of conditions.

White (regulated) iGaming markets

White market countries are those that allow and regulate online gambling. European countries were quick to embrace the regulated gambling system. It spread quickly to other major markets around the globe.

Generally speaking, the most wealthy and prosperous iGaming markets tend to be those that are regulated. Online casino operators are more likely to expand their businesses by entering new markets that are regulated. Online casinos can only be established in white markets if they have a license.

Operators must have a local license in order to be recognized by regulators. Some jurisdictions in the world do issue licenses that are internationally recognized and highly regarded. These jurisdictions include Malta, Kahnawake, Island of Man, Curacao, Gibraltar, etc. To learn more about these jurisdictions, and to understand why it is important to get a license for an online casino before you start your iGaming venture, visit our article on online casino licenses.

Black iGaming markets

Black markets are the other end. Gambling is strictly prohibited in countries that are part of the black market. It is often justified by cultural, religious, and political reasons. Online, offline, and both types of gambling can be banned by countries. This applies to most countries in Asia, North Africa and other regions that have a Muslim population.

We sometimes face similar problems in Europe as well. In 2019, Albania, implemented an all-inclusive ban against gambling. Because of the possible connections between local operators and the criminal underworld.

Regardless of the restrictions, some online casinos still operate in the black iGaming markets. While they may enjoy the brief advantage of not paying money to the jurisdictions by bypassing the law, they are at great risk of shutting down and being arrested.

Grey iGaming markets

Grey markets are jurisdictions that don't ban online gambling or land-based gambling but lack licensing and regulations to support gambling activities.

It is a general rule that big, wealthy markets move to local licensing models. They make new regulations and issue licenses to online casino operators that want to enter their market. However, smaller markets are often unable or unwilling to provide strong supervision and regulatory services. They are referred to as the grey market.

It is important to remember that boundaries can sometimes become inconsistent and unclear when discussing jurisdictions. This is due to the distinction between online and land-based gambling, casino gaming and sports betting. Some jurisdictions, such as Macau, allow only land-based gambling and ban online gambling. Others regulate sports betting while keeping casino gaming out of the picture.

Conclusion

Choosing the right market to enter is an essential, very important decision for online gambling operators. This is one of the first steps you must take to launch or expand your online casino business. Read the full article about the white, black and grey iGaming markets to gain more information about the topic.