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We Want Your Servers Please

6 June 2011 by admin

Online gambling is spreading throughout Europe. It is not a rampant spread, but a slower, more plodding along sort of pace; kind of like the tortoise from the Tortoise and the Hare Race. Slowly but surely European countries are adopting online gambling. Some are doing so because so many of their citizens are gambling online already that it only makes sense to regulate and tax it. Others are moving to regulation because they already have some form of online gambling (think Spain), be it sport betting or tournament poker, and are wanting to expand their offerings. And finally others are hopping on the band wagon simply because they need the money.

But with regulation comes the issue of servers. Every country that is moving to regulate online gambling in their country all want one thing: to have servers located within their borders. The purpose is so that they can not only increase their revenue through online gambling, but through also offering new jobs to their citizens. Hey, someone has to man the servers.

So on one hand online casino operators have got to be thrilled to see so much happening in Europe. But what I am wondering is what are they going to do about all of the servers that they would need? The way I see it is they have a couple of options. They could expend the money and house servers in each and every country that is issuing licenses for online poker or online casinos. It would likely cost them a lot of money to do so when you consider the cost of facilities, employee payment and of course the servers themselves. Or if they do not want to set up servers in each and every country, or the cost is too high, they could always be selective of which countries they seek licenses in.

At this point it kind of makes me think of online gambling in the US, should that come to pass. Imagine for a moment that most states decide they want online gambling, but each state wants servers located within their own state. Going along with the thought that servers in every state is not an option, online casino operators have to be selective of who they seek licenses with. As a result you wind up with a country in which citizens are not likely to be playing in the same online casinos. There is the issue of borders. It would be so much easier for online casino operators to apply for a federal license.

Now take that and apply it to Europe. It might be easier and more sound in the long run to have online casino operators apply for license to a committee set up by the European Union, and then EU countries receive access to those online casinos with an EU license. Then again this is pure pondering on my part. After all we are talking about countries vs. states.

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