Obtaining a gambling license is one of the main steps when starting an online casino. Today, online gambling is considered a popular activity. When planning to start a business as an online casino operator, the costs of starting a business can be quite high, but the business itself can end up making a big profit once it gains customer acceptance in the gaming market. Gambling activities, while lucrative, are strictly regulated through compliance requirements for gambling licenses.
Most investors, especially those who are new to the gambling business, may not know all of the mandatory rules for obtaining a gambling license. It is important to take into account that licenses tend to differ depending on the country chosen and the different types of gambling. This is why you may need the help of qualified professionals and support in choosing a jurisdiction to run an online gambling business.
What is a gambling license?
A gambling license is a certificate issued by a licensing authority to establish a gambling platform where different types of gambling games will be offered. You can obtain a gambling license by submitting a request to the local regulatory authorities of your chosen jurisdiction. This permission is a basic requirement for a gaming platform to cooperate with payment service providers and to start a gambling business.
Regulatory requirements for online gambling in different jurisdictions
The legal framework for regulating gambling site management companies has certain differences from country to country, so the process of licensing gambling activities in recognized gambling jurisdictions can itself be burdensome. In general, the gambling market includes countries that can be divided into the following categories:
Jurisdictions that operate their own online gambling markets.
Countries that manage their online gambling markets and have a monopoly.
Countries where gambling is prohibited.
Jurisdictions that do not regulate their gambling markets.
Many countries have legalized online gambling platforms. If your platform is licensed and the game providers are certified by authorized bodies, you can operate in any of these countries. Popular gambling jurisdictions are Curacao, Kanawake, Malta, Cyprus, UAE, Macau, USA, Gibraltar. The determining factors in choosing the country for registering a company for gambling activities are its reputation, the duration and price of the license, the terms of requests for licensing.
Read more about the need to obtain a Gambling license
Acquisition of an online gambling license is a mandatory requirement for running a legal business. It will also be required for:
Opening a bank or merchant account, to work with electronic payment systems on behalf of the gambling establishment.
The use of licensed gaming software and content from whitelisted providers.
Getting significant results from advertising, and increasing traffic.
Providing and maintaining the status of the casino as a reliable and safe casino, and, accordingly, increase the confidence of the players.
But do not forget that not all States provide the opportunity to obtain a gaming license. Therefore, the process of obtaining a gambling license on the Internet begins with preparation, namely with the definition of a suitable country to host the base of the future casino.
Obtaining a gambling license in reputable gambling jurisdictions
To put a fully autonomous online casino into operation, obtaining a gambling license is an important circumstance. Apart from getting a good reputation in the global market of the iGaming industry and gaining trust among players, getting an online casino license is important for organizing a reliable financial infrastructure and working with more than half of the software and game content providers.
As mentioned above, each country has different regulations for online gambling platforms. In many countries, gambling is strictly regulated by both governmental and nongovernmental organizations to guarantee security against fraud. An example is the regulation of gambling activities in Malta, where applicants go through a strict licensing process. Moreover, this country is on the list of cheap jurisdictions to purchase a gambling license.
In some countries, for example, when getting a gambling license in the United States or Gibraltar, the price of the license is high and depends on the type of gambling and the structure of the company. So operators turn to cheaper jurisdictions such as Curacao, where the procedure for obtaining this kind of permission is only 6 weeks. It is possible to send a request to the regulator for a basic license for all types of games or get a sub-license. It is worth noting that local governmental bodies are developing stricter requirements for obtaining a sub-license for iGaming in Curacao.
Before making the final choice, it is necessary to consider all the nuances of the gambling jurisdiction.
What aspects should be considered when obtaining an online casino operator’s license?
Acquiring an online gambling license can be tricky if you don’t understand how the rules in a particular jurisdiction work. Regulators for issuing the main authorization document will require the future owner of the gambling establishment to fulfill an impressive list of requirements for acquiring an online casino license.
Generally, the conditions for obtaining an online gambling license in different jurisdictions are similar. The differences lie in the capital requirements, the responsible persons, the approval procedure, the physical presence in the territory of the country where you plan to obtain an iGaming license. From the general list of recommended actions the following can be highlighted:
- Familiarizing yourself with the list of countries where you can get a gambling license, with the conditions of issuance and cost of such permits in these countries, their tax policies;
- Choosing a reliable jurisdiction to license gambling activities;
- Selecting the appropriate software that meets the requirements of the chosen country for licensing. For example, many jurisdictions require the player to be able to self-exclude – i.e., to keep away from the game for a while;
- The registration of a company for gambling activities in the selected country for licensing;
- Preparation of all necessary documents (must be done in advance, since by the time you apply for a gambling license in Europe or Asia or any other region you are interested in, all documents must be prepared);
- Preparation of documents on the software used, the description of the programs and games, the agreement with the provider, etc;
- Checking whether the gambling site and the information posted on it meets the requirements for online gambling licensing in popular jurisdictions (meaning the countries where you have applied for licensing).
- Some of the requirements that may be imposed on organizations wishing to start an online gambling business include:
Adherence to certain standards of good behavior.
Disclosing detailed financial and organizational information about the gambling establishment, its owners, partners and other related parties.
Providing information about the professional skills and criminal record of key individuals in the company.
The requirements and standards that must be met in obtaining a gambling permit are comparable to those that financial institutions, such as banks and insurance companies, must meet. The purpose of these strict requirements is to discourage certain individuals from applying who may not have the necessary experience, financial stability to properly participate in a gambling enterprise. Many gambling regulators have streamlined the multi-jurisdictional gambling licensing application process to simplify the registration process for establishments doing business in multiple states.
Timeframe for obtaining Gambling license in reputable gambling jurisdictions
In general, getting a license to open an online casino is quite a time-consuming process that requires a responsible approach, certain material and time resources, a clear understanding of the specifics of the legislation of the particular jurisdiction where you plan to apply for a license. In this context, investors will need competent legal support at the stage of obtaining relevant permits for online casinos.
Please note that the process of reviewing the application by the regulator, and, accordingly, obtaining a license for online casinos in different jurisdictions can last from 2 weeks to 6-12 months.
Another important point to consider is that casino players, must make sure that the online casino is reputable and has been audited by an independent testing agency. From this point of view, getting an online casino license in a reputable jurisdiction becomes a powerful marketing tool. You can find out more information in the list of all online casinos on the nodeposits website.
Assistance in obtaining an online gambling license
Based on all of the above, it should be concluded that in order to successfully complete the process of preparing and submitting documents, and, as a consequence, to obtain a gaming license soon, it is necessary to enlist the support of professionals. IQ Decision UK offers advice on the choice of jurisdiction and software for gambling, our experts are ready to assist in the preparation of documents, and direct support in the registration of the company to manage gambling sites.