One option that the small nation of Estonia is considering is regulation. What this typically means is the government creates a system of rules that is intended to do at least two things. The first is to protect. Regulations of gambling often take into consideration problem gamblers and the protection of children. In addition it may protect gambling businesses that already exist within the borders of the nation before opening the borders to outside competition. The second thing it does is create a system of cash flow. Generally this takes the form of fees and taxes.

Along with this there is licensing. This is partially included in protection. It allows the government to track activity and gives an official way to grant, deny and suspend the right to participate in the activities that are being regulated. The license fees also generates a nominal revenue for the government and, if nothing else, helps to cover the administrative costs.

These are significant realities of allowing a new industry, even if it is based in an age-old one. Having an entire framework in place before legalizing the activity is not a bad idea, and we all know that it takes time to do something. It is likely that as regulations become standardized and government are more certain they are ready to cope with the realities of online gambling, that the transitions from illegal to regulated will become easier for the nations whose people want that shift.

Until then the world can watch as smaller countries venture into the still somewhat uncharted waters of online gambling, and we can only hope that whether our nations choose to illegalize or regulate the activity that they have learned well from the nations that have gone before.