Around 138 million people worldwide used online platforms in 2024, but online business isn’t legal everywhere.
Different countries deal with online services in different ways: allowing all forms of digital products and issuing licenses to many operators, allowing only certain verticals for one or two operators, or completely banning it.
For example, the UK and Malta issue licenses to operators that run online platforms, service hubs, or provide software for these services. In the US and Canada, the decision is left to states and provinces. Ontario, Tobique, and Kahnawake each have their own regulators.
On the flip side, countries like Australia, South Africa, and China have made online services, and digital platforms in particular, illegal.
It’s time to figure out where online platforms are legal, how “particularly allowed” actually works in practice, and what happens if you offer online platforms and service hubs in places where it’s unconditionally banned.
Why Online Business Laws Differ Across Countries
Countries have their own cultural views, social attitudes, and economic or political reasons for deciding whether to allow online platforms.
Some nations see it as a form of entertainment, while others consider it a harmful activity and choose to ban it. In many countries, religious and moral values still play a big role, and some ban online services because of religious rules.
It’s unlikely that Saudi Arabia will ever allow interactive content or digital platforms. But in the UAE, things are going differently. In 2024, the regulator issued the first online business license to UAE Lottery. Wynn Resorts is also building a premium resort there. Since then, the regulator has given out 16 licenses, showing that the market is opening up. The Emirates is an unusual case, and we will explore it below.
Besides cultural specifics, there are also economic objectives. Some countries prefer to regulate activities that could be potentially harmful rather than ban them outright. That’s why they use the regulated online industry as a source of tax revenue and economic growth.
Gibraltar is one of the strictest jurisdictions, but it earns an impressive revenue from regulating online platforms. The industry makes up about 25% of its economy and gives work to 3,500 people. The Isle of Man is similar, with online business making up about 16% of its economy.
Some countries prefer strict, centralized control through monopolies. Norway, Finland, and Singapore have chosen this path and see a monopoly as the “best way” to prevent potential harm.
Generally, there are three divergent legal approaches to online business around the world: prohibition with no legal online platforms, state monopoly with centralized control, and open licensing systems with regulated competition, multiple licensed.