How smartphones are changing gambling and state control

The ubiquity of smartphones has transformed the gambling landscape, making access to betting, lotteries, and online casinos easier than ever. This digital shift presents a significant challenge for governments attempting to regulate the industry, as the traditional methods of control, like shutting down physical locations, are ineffective against adaptable online platforms.

Historically, gambling was tied to specific addresses, casinos, betting shops, or lottery kiosks, which could be monitored, fined, or closed. Now, the entire player journey, from registration and identity verification to payment and receiving winnings, is contained within a smartphone. This drastically reduces the distance to gambling and complicates state oversight. While a physical venue can be shut down once, a digital platform can reappear under a new address almost immediately after being blocked, often faster than regulators can react.

The World Health Organization notes that online gambling is accessible from anywhere, including countries where it is prohibited. The organization also links the industry's growth in lower-income nations to the increasing spread of smartphones. Denmark exemplifies this trend, with nearly two-thirds of online gambling revenue and over 70% of sports betting revenue now coming through mobile devices, a stark contrast to the 11% mobile share in 2012 when the market first opened.

This situation leaves authorities with critical questions: Who are these operators, where are they registered, what rules do they follow, who oversees their finances, and where can players turn if something goes wrong? In response, governments are shifting their regulatory tools from outright closure to controlling access, financial transactions, and advertising.

Norway's approach involves blocking websites and prohibiting banks from transferring funds to unlicensed operators, while also banning advertisements for such services. Kazakhstan, on the other hand, focuses on restricting individuals, allowing users to self-exclude from gambling for up to ten years via a mobile app. The law also prohibits debtors, civil servants, military personnel, and law enforcement officers from gambling. Despite these measures, regulators acknowledge that they do not completely close off access, and a significant portion of Norwegians remain unaware of which operators are officially licensed.