Exploring the origins of online gambling jurisdictions
In the third article of the SiGMA series “The Online Gambling Industry: Tales from the Past,” Ian Sherrington explores the origins of online gambling jurisdictions. What key factors contributed to the emergence of online gambling jurisdictions in the 1990s? How did jurisdictions like Antigua, Curaçao, and Belize shape the early online gambling industry? What challenges and reforms have these jurisdictions faced over the years?
The online gambling industry, began its journey in the 1990s, driven by a handful of forward-thinking jurisdictions. Locations like Antigua, Curaçao, Belize, and others played critical roles in establishing the industry, offering legal frameworks, infrastructure, and tax incentives that allowed operators to flourish.
Forward-thinking jurisdictions
Antigua emerged as a key player in the early days. Leveraging its International Business Corporations Act of 1982, it provided a tax-exempt, privacy-focused environment for businesses. Microgaming, Cryptologic, and other software giants established themselves there, drawn by Antigua’s reliable internet connectivity and favourable business climate. The jurisdiction formalised its approach to online gambling with the Interactive Gaming Regulations of 1999.
Curaçao followed a different path. Initially focused on telephone-based sportsbooks under a 1993 ordinance, it began issuing master licenses in 1996. These licenses allowed holders to issue sub-licenses, a model that proved popular due to its simplicity. However, concerns over control and transparency led to plans for reform in 2024, transitioning licensing authority to the Gaming Control Board.
Belize holds the distinction of being the first jurisdiction to adopt internet-specific regulations. Its 1995 Computer Wagering Licensing Act recognised the potential of online gambling, defining it as wagering through “Computer Internet.” Despite its innovative approach, high costs and stringent requirements limited its appeal to operators.
Other jurisdictions also made their mark. The Kahnawake Mohawk Territory near Montreal became a technological and regulatory haven, hosting hundreds of operators at its state-of-the-art data centre. Costa Rica attracted operators with its lack of specific gambling regulations, allowing businesses to operate freely under data processing licenses. Meanwhile, Vanuatu and its 2000 Interactive Gaming Act positioned the Pacific nation as an offshore gambling destination, with recent reforms making it more competitive.
These early jurisdictions laid the groundwork for the online gambling industry, balancing innovation, regulation, and opportunity.
Learn more about their pivotal role and ongoing influence
The series is a collaboration with Ian Sherrington, CEO of Crownstar and a visionary in the world of online gaming technology.
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