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Online casinos are not operated by the casinos located in casinos. They are not owned by traditional brick and mortar casinos. Instead, they are licensed by licensing authorities that are often the governments of countries, states or territories. These regimes are sometimes controlled by a single government or a consortium of governments. In some jurisdictions, online casinos are prohibited, as part of gambling laws. While casinos are strictly regulated by the government, online casinos are unregulated and often seen as illegal or unethical. With online casinos, players can gamble for free, provided they do not try to win any significant amount of money. But the real money that they play with is obtained through play money money, which is virtual money that can be used in games or for deposits and withdrawals.

According to New Jersey gambling laws, an owner or operator of an Internet website which offers games of chance is presumed to be a business and not a casual, amateur, or occasional casino.

Nevertheless, the New Jersey Supreme Court has stated that even if an Internet website owner/operator is a business, he or she is not subject to the strict regulatory rules and restrictions of a New Jersey casino. As such, states like New Jersey have adopted a “temporary” exemption from state jurisdiction so that these new businesses will not have to obey the regulations of traditional casinos. Online casinos continue to be regulated by the governing bodies of the jurisdiction where the site is situated.

Today there are many online gambling casinos that do not hold a New Jersey gaming license and are licensed to operate in many other jurisdictions with similar regulations. Some Internet casinos, however, do operate under the jurisdiction of licensed gambling companies. They might do so even though they are not based in the jurisdiction where the casino is licensed. These licenses generally apply to the jurisdictions where the online casinos are based.

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The most salient feature of online casinos is the absence of a human dealer, making online gaming unique compared to land-based casinos. Other unique features include the ability to play from any Internet-connected device and the lack of social interaction. In the U.S. state of Nevada, land-based casinos are required to pay winnings for video lottery and are subject to a strict set of regulations concerning dress code, chip counts, and minimum and maximum wagers.

One common misconception about online casinos is that they are not regulated, but this is untrue. Online casinos are licensed and monitored by the respective jurisdiction in which they are being conducted, with the jurisdiction in which they are being licensed being based on the location of the casino. These jurisdictions may be land-based (e.g. the United States), land-based but additionally licensed to conduct online activities (e.g. the United Kingdom), or online-only (e.g. certain countries in the European Union).

Some online casinos are operated by large corporations. In a sign of the market transition in the modern era, some large casinos have forked their websites and switched entirely to online gaming. One notable example is that of the MGM Resorts International, which operates a variety of online casino websites, one of which, MGM Interactive, is one of the largest worldwide.