International Trade in Gambling Services: Between Prohibition and Regulation

Abstract

Gambling is a legitimate activity which presents a constantly growing important economic sector and takes part in the development of the global economy. However, gambling presents a strong problem for the countries due to the necessity to regulate a cross-border and morally doubtful activity that generates big profit (which could be redistributed for social purposes) and gambling is impossible to prevent. Currently national regulations seem not to be able to respond to the challenges of internationalization and digitalization of the gambling phenomenon which creates additional difficulties. The nature of Internet makes it clear that prohibition or regulation is to be set at the international level. The main reason is the dynamic relationship between technology and law. The major part of legal prohibition is temporary because the technology will elaborate a way to avoid it. The Article will outline the current situation where different gambling laws present serious obstacle to the international trade of legal gambling services, to the effective policy against criminality and money laundering and to the substantial consumer protection. The Article will look into the interests of various states and into the justifications of the governments. The Author will also try to propose the model for the international gambling regulation.