A jurisdiction is a legal government entity that issues licenses for gambling. In the case of online casinos, sportsbooks and Poker rooms, those licenses are usually issues by places outside the United States.

Why are the jurisdictions outside of the US?

The reason is because most of United States refuses to allow these places to have a license because it is illegal in their states to receive a bet (though not necessarily to place one). It is a very complicated subject with no easy answers, but most of the US avoids it altogether by no issuing licenses. Therefore, in order to be legal, the online casinos must go and get a license from somewhere.

Should I only gamble at an online casino that has a jurisdiction?

The answer to this question is a resounding YES. Never, EVER place a bet at an online casino that does not list a jurisdiction along with the seal of that jurisdiction. If you do, you are likely doing so at an illegal casino, and you may find that your money is being ripped off, or the games are set up so that you will always lose. Also, any personal information that you gave such as name, address and especially financial information may be compromised. So don’t even sign up for an account at one of these places.

Why do these jurisdictions issue licenses? What’s in it for them?

Many of the legal jurisdictions such as Antigua and Barbuda and Kahnawake issue licenses as a form of revenue- they can charge upwards of $50,000 for a license to the online casino applying for one. This is a great form of revenue for the government of that country. Also, they usually charge yearly fees which is yet another stream of income. Since some of these places are rather small, this is a smart way to make money while also helping the online casino industry remain honest.

What do these jurisdictions actually do?

They do much more than just collect fees. They have the right at any time to review all records and transactions at any of their licensed casinos to make sure that they are honest and fair to all customers. They also reserve the right to reject any license at anytime, which means that the casino in question would automatically become illegal and would either have to apply for another license from another jurisdiction (which is a lengthy process) or no longer accept bets.

How do I know that an online casino is not just using a seal of a jurisdiction? How do I know they actually have a license?

You can always go to the official website of that particular jurisdiction and find a list of all of their current licenses. This will ensure that you are indeed dealing with a legal and proper casino with an actual license, instead of an illegal operation looking to dupe you. It is advisable to do this, since it only takes a few minutes and can save you tons of time in the long run.