Lawsuits, especially in America, are all about money. The authorities would not go after dodgy GSPs located overseas when they can target large companies with a clear legal presence globally.
America has a very peculiar judicial system, which some countries consider an inspiration. Other countries, however, have their reservations about the American culture in this sense.
To “lawyer up” is a phrasal verb that describes this side of American culture very well. American lawyers are extremely commercially savvy, capable of negotiating the end of a lawsuit minutes before actually going to court, or during a trial.
That tendency, however, definitely isn’t confined to the private sector.
Understanding the American Legal System and How It Affects Gambling Operators
By stepping into the shoes of a local authority like a state attorney general or a federal judge, it becomes easier to understand why big names in the global gaming industry like Stake and Evolution were targeted in their famous respective lawsuits.
For starters, it’s crucial to understand that lawsuits like that are not necessarily personal. I am not accusing any American authority of malpractice. In fact, what I am describing here as the Editor-in-chief of a B2B industry portal is exactly the opposite.
Legal authorities spotted a new product that describes itself as “a gray market product”. Legal opinions, signed by prestigious lawyers, are backing their commercial presence in America. But if the authorities don’t agree with those legal opinions, how and when can they make themselves heard?
Leading industry suppliers like Evolution and leading operators like Stake have clear legal representation, unlike many GSPs and operators present in America. Some operators don’t even have an American incorporated company.
Therefore, by questioning the commercial activity of large operators and suppliers with a clear legal incorporation and legal team in America, the industry hears the message, and things eventually change.
Of course, legal action, trials, and disputes aren’t the only ways that jurisdictions can change, whether in America or globally.
Legislative Houses’ Work VS Legal Action: Different Regulatory Challenges
Legislative houses at the State Level and Federal Level in America can change the regulatory landscape, but when it comes to gray areas, it’s very common to see legal action happening before formal discussions eventually happen at the legislative level, which can ultimately lead to new laws: in our industry, this means the creation of a regulated market (white), with clear taxes and licenses, or the banning of a specific vertical like online sports betting or online casinos, for example.
The big discussion around sweepstakes casinos is whether they are a gambling product or not, which would overlap with the grounds of specific legislation regarding real-money gambling.
And, as America is a country full of numerous internal jurisdictions, each American state is a different reality.
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