Largely, the legality of online bingo is a hazy and nebulous question as the legal status of the game is dependent on sovereign laws. Some countries allow it, some don’t—but like anything on the internet bingo providers aren’t limited to the borders of the country in which they are operating. For example, online bingo is not legal in Japan—yet Japan represents the world’s second largest market for online bingo which is run from exclusively off-shore servers. The biggest market, the US, laws differ from state to state. Gaming is legal in the third largest market, the UK, but online bingo companies must adhere to strictly regulated practices dictating such things as advertising, or they risk losing their licence.
Concerning the US Market
The US Appellate Court first established the legality of online bingo in 2002. While it limited sports betting via the internet by forbidding interstate betting, games if chance (bingo) were not subject to these restrictions. However, the Safe Port Act of 2006 barred banks and other financial institutions from transacting with gaming websites. Even so, this did not prohibit individuals from placing monies in third-party accounts for use on gaming sites—this act also doesn’t stop players from betting on websites. That said, banks do have the right to fire clients that are demonstrably participating in online gaming.
The Internet Gambling and Enforcement Act of 2007 enabled federal licencing of online bingo as well as other online gaming sites. Additionally, The Skill Game Protection Act of 2007 ensured the legality of games of skill online (of which online bingo was categorized) as an exception to the Unlawful Internet Gambling Enforcement Act of 2006. However, gaming is otherwise given legal status by the state though; online bingo is illegal in only 11 states including Illinois, Indiana, Louisiana, Michigan, New York, New jersey, Oregon, South Dakota, Wisconsin, Washington and surprisingly Nevada.
Concerning the UK Market
The Gaming Act of 1968 made cash bingo a regular instalment on the great British high street so there was little encumbrance to online bingo providers during their proliferation at the beginning of the 21st century. However in 2007, when the UK Gambling act of 2005 finally went into effect, the advertising efforts of online bingo sites began to be regulated. One of the law’s provisions meant that only domestic online bingo sites and bingo sites from a select few countries could advertise within the UK—effectively shutting out foreign sites from the UK market. Also, sites must now be licenced and as such, must satisfy standards preventing minors from accessing gaming.
Additionally, advertising must adhere to government standards set out by the Advertising Standards Authority. For example, minors or otherwise ‘vulnerable’ individuals may not be exploited, and ads can only be played before 9am or after 9pm (except during sporting events where they are allowed).