Once you decide to operate an online gambling business, you start searching for the means and guides. You see ‘get a gambling license’ among the first steps. And this raises the questions, ‘Do I need it?’ ‘What is it?’ ‘How do I get a gaming license?’ Let’s discuss them all!
Why Do You Need An Online Gambling License?
An online gambling license, or an iGaming license, is permission to create an online gambling business: casino, lottery, sportsbook, or other gambling activities on the Internet.
The main reason for obtaining this document is the legalization of your gambling business. Yet, it is not the only argument for a license. Without a gambling permission:
- You can’t open bank and merchant accounts;
- You can’t work with electronic payment systems;
- You can’t partner with licensed game developers.
With a valid license, you elevate the reputation of your enterprise and gain trust. For the regulator, it guarantees financial accounting, player rights protection, taxpaying, and legal compliance. For partners, it confirms your reliability. For players, it confirms your credibility and reputation. Plus, you can legally advertise your website the way you want it.
Who Needs a Gambling License?
- Casino operators and their beneficiaries who offer gambling activities;
- Sportsbooks that take bets on sports events, including cybersport and e-sports;
- Gaming software developers who create games for gambling platforms;
- Payment processing companies that handle payments for gambling businesses.
Other participants in the gambling industry also need gambling licenses. These can be sole proprietors and enterprises that work in the industry or offer their services to clients.
Types of Online Gaming Licenses
In essence, all online gaming licenses can be divided into international, offshore, and internal. With international gaming licenses, you can provide authorized casino and betting services in jurisdictions where gambling is not illegal. And these jurisdictions can be many.
Internal, or country-specific, licenses legalize an online casino only within one jurisdiction. Meaning, that your casino is bound to the borders of one country. The good news is you can expand your reach by getting international permission.
Well-regulated domestic markets are Belgium, Bulgaria, Estonia, Mexico, Portugal, Romania, the UK, Spain, and others. Plainly said, to offer gambling services in these jurisdictions, you must have a license from the local regulator. The same is required for a gambling software developer.
How to Get a Gaming License?
Choose a jurisdiction
Currently, online gambling is prohibited in 7 countries: Singapore, Brunei, Cyprus, Poland, UAE, North Korea, and Cambodia. In other countries, online gambling has long brought good profits to business owners and the state that receives revenues from taxes, state duties, and license fees.
When selecting a jurisdiction, pay attention to:
- Regulator’s reputation,
- Licensing requirements,
- Complexity of application,
- Duration of application,
- Initial and annual costs,
- Taxation rules.
The best jurisdictions for obtaining a gaming license are Alderney, Costa Rica, Curaçao, Gibraltar, Greece, Isle of Man, Kahnawake, Malta, Montenegro, Seychelles, and the UK.
Write a business plan
The business plan for an online casino is a summary of the project goals and the means to achieve them. In the business plan, you pinpoint:
- Company structure,
- Shareholders’ information,
- Recruitment strategy;
- Market analysis,
- Target audience,
- Financial resources,
- Software platforms,
- Payment methods,
- Marketing strategies,
Here, you should also include a quantitative analysis of the risks of starting an online gaming site. You should also specify the developer information, investment costs, and payback periods.
Design a website
It is impossible to issue a license if you don’t have a site. How to start a gambling website? There you need the following elements:
- User-friendly onboarding,
- High-quality casino games,
- Intuitive game management system,
- Bonuses and loyalty programs,
- Protection against fraudulent actions,
- Multifunctional payment system,
- Helpful customer support,
- Responsible gambling tools,
- Convenient reporting mechanisms.
To build a website, you can hire a professional to introduce the above elements from scratch. Another alternative is to collaborate with white-label providers with customizable ready-made solutions for online gambling platforms.
After developing the site, you need to buy a unique domain name, server, and software. This information is necessary for your license application.
Prepare documents and apply for a license
How to get a gambling license in different jurisdictions? You prepare the following documents:
- Application form,
- Company registration certificate,
- A copy of the trademark registration,
- Long-term business plan (at least 3 years),
- Declaration forms,
- Documented evidence of financial viability,
- Site information,
- Game software certification,
- Confirmation of the founder’s reliability,
- Bank account and processing.
Keep in mind that the documents may vary from jurisdiction to jurisdiction. When applying online or in person, make sure all the required documents are enclosed. Should you lack some, it may prolong your license procedure. In the worst-case scenario, you may need to start again and pay fees anew.
FAQ
How long does it take to obtain a gaming license?
Regulators in different jurisdictions can review applications and issue licenses from 2 weeks to 6–12 months.
How much does an online gaming license cost?
The cost of an online gambling license depends on the jurisdiction. Among the cheapest jurisdictions is Curaçao, with license fees amounting to 25,000 EUR. Another affordable gambling jurisdiction is Anjouan, whose license costs 24,000 EUR. The most expensive jurisdictions are in the EU, with licenses reaching more than 100,000 EUR.
What jurisdiction is the easiest to obtain a gambling license?
Curaçao gambling license. It is best for startups and newcomers to the gambling business. The country has a simplified license procedure and a 0% tax rate. Plus, its license is cheap and suits companies with a limited budget.
How do I get a gaming license in a country with prohibited gambling?
Violating the ban is illegal and can cause severe penalties, including criminal prosecution. It is necessary to comply with the laws and regulations of the country. The only solution is to decide on a gambling-loyal state and acquire a license there.
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