The initial burst of online casinos soon after the internet revolution has started was accompanied by much critic due to some fraudulent behavior and lack of transparency because the online gaming industry was not being regulated.
A need arose for such regulations that will see online casinos being licensed and subjected to a fixed set of rules mainly to do with the principles of fair play and privacy protection of players and their personal and banking information.
Right from its inception the online casino industry started rolling large sums of money and therefore caught the attention of several governments looking to fill in a void and make some money in the process.
The government of Antigua Barbuda was the first to pass a law that enables it to license and regulate online casino operators. They have done so in 1994 and since then several other countries have followed suit and passed laws that enabled them to do the same.
Those countries created supervised bodies that issued paid-for licenses to online casinos and offered to act as regulatory and judicial bodies for the online casino industry.
Not all the countries that issued online gambling licenses were developing countries in search of extra income to help fatten their state's pockets. Countries like Canada, who had many online casino software companies and operators located in its territory, also started offering online gaming licenses as a means to protect their residents and try to inject regulation, security and trustworthiness to the industry.
Nowadays it is hard to find many online casinos that operate without a license and in case you stumble upon one of them make sure to stay clear of it and not deposit any of your hard earned cash to such an online casino. Always opt for the regulated and licensed ones where your money will be safe.