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The Rationalization for Microgaming

Microgaming’s decision to block and ban online casino gamblers from the United States has been met with criticism by some but more often than not just a bit of head scratching as to why the company chose to issue the ban right now instead of two years previously when the UIGEA came into effect. Microgaming actually game an illuminating statement this week to a journalist for InforPowa. The company noted that it actually does not dictate policy to the online casinos licensing Microgaming software, but instead, the company US facing licensees chose to institute the geoblocking technology, and once there were only a small number of Microgaming sites accepting US gamblers, the Microgaming chose to make it a company policy.

Basically, the US banned offshore online casinos from accessing the US market roughly two years ago and yet many companies remained in the market. But at the same time, even before the gambling ban, many of Microgaming’s US facing sites had already chosen to block gamblers from certain US states because of the individual state legislation. In light of recent events, Microgaming’s licensees began to accept even fewer US states because of tightening controls in some US states. At the point that there were only a few online casinos sites without the US geo-blocking in place, Microgaming discussed with those sites the possibility of simply blocking certain US states as a Microgaming policy in the effort of cost savings.

Once those sites agreed Microgaming merely made a company policy that reflected the actual policies that were already in place at the majority of Microgaming’s licensees. That is why and how Microgaming came to release the much debated exclusion list of US states that are geo-blocked at the IP address level from accessing online gambling sites.

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