Why do you need a gaming license?
An online casino license is a document that permits you to run an online gambling business. It is issued by a special regulatory authority. To obtain such a permit, a company must meet a number of requirements. It is illegal to provide gambling services without a license. This means that you might run into serious trouble with the law, which could range from imposition of financial penalty to closure of the casino business entirely. A gambling license is an indisputable guarantee that the business has full legal backing.
Types of gaming licenses
There are several types of regulation out there in the gambling market:
- States regulating gambling business only in their domestic market.
- Countries which not only regulate gambling, but also introduce a monopoly.
- Countries which have no concept of “gambling regulation”.
- States that prohibit gambling activities of any kind.
Even if the applicable law prohibits gambling activities, this doesn’t mean that you’ll have to say goodbye to online casinos. Thanks to offshore casino licensing, an entrepreneur from any country can open an online casino business.
Basic requirements for obtaining a license
The list of requirements depends on the regulatory authority where you have applied for the license. The requirements usually relate to your company’s financial accounting system, auditing, game functionality, and description of your company’s activities.
Choosing a jurisdiction for licensing
You’ve now seen that in order to legally provide video slots or roulette services, online casinos are required to obtain a license. Your business is doomed to failure if it doesn’t have the necessary permit. First, you won’t be able to open a bank account. Secondly, you’ll not be able to host many board games on your site. Owners of legal online casinos enjoy a number of privileges—for example, simplified tax regime.
But getting a license is just half the battle. You need to choose a reliable jurisdiction, whose services are approved in many countries around the world. If you don’t know which jurisdiction to apply for legalizing your business, use the rating below. It lists all the regulators operating legally.
Popular jurisdictions
To make it easier to find a reliable jurisdiction, we publish a list of countries that offer the most favorable licensing terms. Each of them has advantages and disadvantages. It’s up to you on which particular jurisdiction to choose for honest and safe gambling.
Curacao
Curacao is a paradise island situated in the southern Caribbean Sea, about 80 km (50 miles) off the coast of Venezuela. Despite its compact size, Curacao e-gaming license is one of the world’s most popular gambling licenses.
- Fast licensing process – only 2 months.
- Low maintenance costs.
- 0% tax on casino profits.
The gambling industry accounts for the lion’s share of Curacao’s budget, which is why the country is such a tax-friendly destination for online casino owners. To create the most attractive conditions, the government has imposed a 2% tax on corporate profits. All that is required from owners of an online casino is to host their server on the island.
Malta
Malta Gaming Authority issues two types of licenses (B2B and B2C). After receiving permission to conduct gambling activities, you must comply with a number of requirements. For example, you’re required to regularly provide detailed financial statements, and guarantee protection of players’ personal data. At first, an operator obtains a temporary permit for a period of 6 months. If there are no violations and after a thorough analysis, a 5-year license is issued. Depending on the generated profit, online casinos pay about 0.55-1.25% in taxes.
Gibraltar
Gibraltar is another popular jurisdiction where you can obtain a gambling permit. However, the requirements here are much more stringent. For example, in order to get a Gibraltar license, online casino owners have to prove their financial solvency and provide a detailed business plan with step-by-step actions. Potential licensees must be ready to perform financial transactions and processing of players’ credit card data only through Gibraltar’s banks. The owners pay 1% of the annual gross profit.
United Kingdom
Even novice gamblers have heard of such an organization as the United Kingdom Gambling Commission. Indeed, it is one of the largest gaming authorities in the world. In order to obtain a license in the UK, you are expected to submit a whole package of documents, which includes proof of no criminal conviction, a ready-made business plan, and proof of financial solvency. Unlike in other countries, the UK Gambling Commission charges tax of 15-50% of gross income. You will also have to pay for annual license renewal. Incidentally, the annual fee has increased by 55% since October 1 this year.
Alderney
The Alderney Gambling Control Commission has been overseeing all forms of gambling activities in the country since 2000. Applicants must prepare paperwork and deposit funds in order to successfully register. The average license fee is £17,500, renewals are twice as expensive. These amounts depend on the annual gross income of the casino, the type of license and other factors.
How is a license obtained?
Having a gambling license ALWAYS converts into customer loyalty. When a player sees that the operator has full legal backing, he has confidence that every financial transaction is safe and that the gambling process is honest and transparent. On legal online casino sites, there is no room for fraud and manipulation.
Today, most entrepreneurs planning to open an online casino seek a Curacao license. First and foremost, this is due to the ease of processing and affordability. If you calculate all the costs, you will see that it would cost you no more than €25,000 to obtain the gambling permit. The license covers absolutely all types of gambling activities, from video slots to bingo.
It should be noted that the Curacao jurisdiction has been into gambling licensing since 1996. Over 25 years, it has accumulated a lot of experience and is rightfully considered one of the best and most trusted offshore licensors. To obtain a Curacao gaming license, an operator would need to register with the Antilles Chamber of Commerce and Industry, and also provide a package of documents and financial statements.
Despite the fact that getting a Curacao gambling license is a quick process and is not overburdened with bureaucracy, attempts to obtain it on your own may fail. Resolving problems will take a lot of time and effort that could be spent on developing your business.
When you secure GamingLicensing’s services, you’re quite likely to avoid running into any licensing obstacles. We are seasoned legal professionals who:
- Provide detailed legal advice.
- Give valuable insights to our clients.
- Help to apply for and get a gambling license without delays and unnecessary expenses.
Does gambling licensing still seem complicated and confusing to you? We can help you simplify the process and save you precious time! Learn how to apply for a Curacao license by filling out a simple form. One of our specialists will contact you shortly.
