iGaming Centre

The Free Trade & Processing Act (1994)

history_culture

The Free Trade & Processing Act (1994) was a landmark piece of legislation passed by the Caribbean nation of Antigua and Barbuda, recognized as the world's first law to grant licenses for companies operating online casinos. This act is a pivotal moment in the history of igaming, establishing the legal precedent for the industry's future development.

Origins of Online Gaming

Before the passage of this act, online gambling was largely a theoretical concept. The 1994 Free Trade & Processing Act provided the essential legal framework necessary for the practical establishment of internet-based casinos, effectively kickstarting the online casino origins.

Key Pillars of Early iGaming Development

  • Legitimacy: The Act provided government backing, lending credibility and a legal foundation to early online gambling operations.
  • Infrastructure: It enabled servers to be hosted in Antigua and Barbuda, offering a tax-friendly and regulated environment for businesses seeking an Antigua gambling license.
  • First Movers: This legislative foundation paved the way for pioneering software companies like Microgaming and CryptoLogic to launch their initial online casino platforms shortly after its enactment.

This foundational legislation transformed a speculative concept into a tangible industry, laying down the essential legal groundwork that shaped the early days of online gambling and influenced regulatory approaches globally.

← Back to Glossary

Related Terms

  • Provably Fair

    A blockchain-based technology that allows players to verify the fairness of a game outcome manually.

  • Craps

    The legendary dice game offering some of the best odds in the casino, centered around the "Pass Line" bet.

  • Turnover (Handle)

    The total amount of money wagered by a player or group of players over a specific period, regardless of wins or losses.

  • NGR (Net Gaming Revenue)

    The actual profit figure for an operator, calculated by subtracting bonuses, taxes, and commissions from the GGR.

  • Revenue Share (RevShare)

    An affiliate commission model where the webmaster earns a percentage of the players' net losses for the lifetime of the account.

  • KYC (Know Your Customer)

    The mandatory process where operators verify a player's identity to prevent fraud and money laundering.