- Moving to new frontiers: the digital gambling industry
- Online gambling with a license: what privileges do companies receive?
- Everything you need to know about getting an online gambling license
- Offshore jurisdictions for gambling business: how not to get lost in choice
- Gambling industry: What financial consequences await license holders?
- Impact factors: the importance of political and economic stability in a country
- How to protect personal data: An overview of data protection in different countries
- Stability and sustainability of the jurisdiction as a factor of success in the gambling business
- Understanding the Consequences of Operating Without a Gambling License
- Jurisdictional Clash: Examining Different Gambling Licensing Procedures
- Effective regulation: the key to safe casino gaming
Moving to new frontiers: the digital gambling industry
- VR headset market — according to Vnyz Research its revenue will reach $161.1 billion.
- Blockchain technology offers mega solutions to the security problems associated with financial transactions in gambling. TripleA estimates that there are more than 420 million digital currency holders worldwide.
- Mobile devices. Statista reports that the number of mobile gaming users will reach 1.9 billion in 2027
- Different game formats. Chess, Sudoku, Checkers, Chess, and Scrabble are becoming increasingly popular in online casinos. Cybersport shows significant growth: in 2030, the market will reach a value of $6.75 billion.
Online gambling with a license: what privileges do companies receive?
Advantages of licensed online casinos:
- Guaranteed payouts. Such online platforms inspire greater trust from clients, from players to payment system partners and providers. All financial transactions are strictly controlled by legislation, eliminating the possibility of fraud.
- Easy access to online casinos: Regardless of location and status, anyone of legal age can register and start playing.
- Fair play: Only verified and certified random algorithms are used to ensure the fairness of the game.
- Content from certified providers: Official online casinos only work with trusted developers, guaranteeing the fairness and quality of games. All games undergo thorough testing and certification.
- Client data confidentiality: The client’s personal information is securely protected from hackers and fraudsters, ensuring safety and peace of mind.
- Attractive bonuses and promotions that attract more players and retain regular customers.
- Innovations in blockchain technology: Some licensed casinos use blockchain technology to increase transparency and security in the gaming process.
With a license in hand, you will avoid the headache of risks such as transaction blocking, account freezing, licensed gaming content, sanctions, and legal issues.
Everything you need to know about getting an online gambling license
The licensor establishes the criteria for applicants and oversees their actions. These criteria encompass financial documentation, audits, and gaming operations. Compliance with the AML/KYC Directive is crucial, mandating the adoption of internal protocols to prevent illegal activities such as money laundering, terrorist funding, and corruption.
The process of obtaining a license differs between different areas, but the basic principles remain consistent. Its primary goal is to ensure the transparency of the applicant’s motives and the integrity of their business operations. The authorization process resembles a challenging endurance race, with numerous confusing bureaucratic hurdles to navigate. To successfully secure a license for a gambling establishment, certain criteria must be met.
- Charter confirming company registration
- Corporate documents
- Bank account opening references
- Copies of passports of founders and all staff, proof of no criminal record
- Business plan, financial, and marketing plan
- Technical documentation, such as software and hardware certificates.
Today, the most sought-after regions for licensing online gambling platforms are Malta, Cyprus, Macau, and the USA.
Offshore jurisdictions for gambling business: how not to get lost in choice
- The magnitude of the licensing fee can vary greatly across different countries. For instance, in the UK it is approximately £10,000 annually, in Russia, it can soar to 6 million rubles per year, and in Curacao, it amounts to €20,000 per year.
- The extent of expertise in the field, as certain jurisdictions may necessitate a specific level of knowledge to acquire a license (USA, Malta, UK).
- The number of licenses needed. In the USA, for instance, a license is mandatory for each state permitting online gambling. In Malta, it is adequate to secure a license from the Malta Gaming Authority, whereas in Curacao, an eGaming license is essential.
- Administrative costs for preparing documents and undergoing the licensing procedure. These may include legal and consulting expenses for preparing the necessary documentation, undergoing audits, paying government fees, training staff, and ensuring the security of the gaming platform.
- Tax conditions in the jurisdiction. For example, Curacao only charges a fixed licensing fee. On the Isle of Man, licensees benefit from a 0% corporate tax rate. Malta imposes a tax of around 5% on income from gambling, while there are no profit taxes in Costa Rica.
- The type of gambling activity — casino, Sportsbook, or any other form of gambling. All of these are particularly popular in Las Vegas and Atlantic City, in Monaco and Paris, in Montreal, Ontario, and resort Mexico.
The top gambling territories in 2024, which guarantee honest and secure gambling practices, include Curacao with its primary overseer, the Curacao Gaming Commission, Malta (MGA) which grants permits for B2C and B2B operations, the Isle of Man with the Gambling Supervision Commission overseeing both online and land-based casinos, and Kahnawake, a Native American reservation within the state.
Gambling industry: What financial consequences await license holders?
Once the license is granted, the company is obliged to pay gambling taxes, which can also have a significant impact on the company’s financial situation. However, in some cases, companies can receive tax breaks or other benefits that can help reduce costs and increase profits from the gambling business.
How much does it cost to apply for a gambling license in different countries?
- Curacao. The cost of applying for a sub-license depends on the holder of the master’s license. The decision to issue sub-licenses and the amount of the licensing fee is made by the owners of these permissions.
- Malta. The fixed cost of applying for a license is €5000.
- Isle of Man. A fee of £5000 is required here. After successfully obtaining the license, operators are required to pay an annual fee of £35000 to maintain the status of a licensed gambling provider.
- The UK. The fee for applying varies depending on the type of license being requested and the company’s gambling revenue. The regulatory body categorizes gambling into three types: online casinos, virtual betting on various events, and bingo, as well as internet pool betting. The licensing costs for each category are £4224, £4690, and up to £7000, respectively.
- The United States of America. Before engaging in any gambling activities in the USA, it is crucial to be aware of the cost of obtaining a gambling license, which starts from $1 million. These expenses cannot be avoided, as having a license is a fundamental requirement for legal operations.
Impact factors: the importance of political and economic stability in a country
Examples of stable economic and political “foundations” for iGaming are Malta, Curacao, Kanavake, Costa Rica, and Anjouan. However, there are also counter-examples in the history of gambling:
- The financial crisis in Greece in 2009 resulted in a decrease in demand for gambling establishments.
- The ban on online gambling in the USA in 2006 — the Unlawful Internet Gambling Enforcement Act (UIGEA) led to the closure of many online casinos and poker rooms for American players.
- The economic crisis in Venezuela led to a decrease in people’s income and a reduced demand for gambling activities.
- In Turkey in 2022, many casinos closed and online platforms were even blocked due to political instability and stricter control measures in this area.
- In Japan in 2022, laws were passed to ban online casinos due to the government’s concerns about potential increases in crime and gambling addiction among citizens.
How to protect personal data: An overview of data protection in different countries
An important aspect of data protection is the non-disclosure of user information to third parties. Data protection violations can result in operators being fined and losing their license to operate in the respective jurisdiction. A high level of data protection for customers is ensured by the following measures:
- Malta: Local data protection includes GDPR
- Gibraltar: Regulated by the Data Protection Act
- UK: Data Protection Act in place
- Curacao: Improves its rules and standards year on year
- Costa Rica: Is slowly but surely improving its data privacy laws.
Stability and sustainability of the jurisdiction as a factor of success in the gambling business
Examples of countries where you can register your online gambling business in terms of sustainability and strategic suitability for the jurisdiction:
- Malta with its friendly legislation, favorable tax environment, and high standards of industry regulation.
- Gibraltar has sufficient stability and a good reputation in the international format
- Great Britain with strict gambling regulations that ensure a high level of security and legitimacy of the business
- Curacao offers a flexible tax system and relatively low licensing costs
- Costa Rica with simple and lenient rules for online gambling, which can be attractive for small start-ups and small operators.
The choice of a particular jurisdiction depends on many factors, including licensing requirements, tax conditions, the country’s reputation, and its level of sustainability.
Understanding the Consequences of Operating Without a Gambling License
Running an unlicensed online gambling venture is against the law and may result in severe consequences in the shape of substantial financial penalties, reaching millions of dollars. Furthermore, illicit gambling activities can lead to the shutdown of the website and the prohibition of the business owner from participating in similar ventures in the future. For example, in nations such as China, Thailand, and the UAE, the consequences for operating an unlawful online casino might be far less severe compared to the proposed punishment!
Do you want your company to have a negative image, zero reputation, and dreams of commercial success shattered? Owners of gambling companies must strictly adhere to the laws of specific jurisdictions and obtain all necessary permits and licenses for their operations.
Jurisdictional Clash: Examining Different Gambling Licensing Procedures
Curacao
Curacao, located in the Caribbean Sea as a constituent country of the Netherlands, was a trailblazer in legalizing online gambling. Today, more than 450 organizations hold licenses in this region.
- Minimal tax rates
- Quick licensing process (within two months)
- Universal license covering all forms of gambling enterprises
- Option for remote license acquisition.
To acquire a license, a candidate must collect the required paperwork and deliver it to one of the Master License bureaus. Typically, the paperwork will be reviewed within a fortnight. The creators, stakeholders, and executives must have clean criminal records and financial obligations, no blocked IP addresses from restricted nations, and possess RNG accreditation or contracts with gaming suppliers. The license is valid for twelve months with the possibility of extension, and the operational tax rate is set at 2%.
Malta
The procedure of legitimizing a business in Malta is marked by a distinctive welcoming attitude. The government ensures that online casinos and other gambling establishments are given a warm welcome in this jurisdiction. What makes obtaining a license in Malta worth considering?
- Taxation in Malta is on par with that of other businesses — registration fees are reasonably priced, ranging from €25000 to 35000 annually
- Malta is recognized for its trustworthy reputation within the European Union
- A license from Malta holds great significance within the iGaming sector
- The country presents extensive possibilities in the areas of banking and payment processing
- Malta is not classified as an offshore jurisdiction
- There are four different classes of gambling licenses available — B2C and B2B licenses catering to both gambling and online casinos
The license acquisition procedure includes company registration, opening a bank account, MGA verification, business plan analysis, verification of founding documents, and a system audit. A gambling license in Malta is valid from 5 to 10 years, and the review process takes up to six months.
The Isle of Man
It’s an exclusive location in the English Channel, an offshore haven, and an important part of the United Kingdom. Why is having a license in the Isle of Man so valuable?
- Solid legal status
- Minimum tax rate — only 1.5% of profits
- A single license suitable for all, including the bookmaking sector
- Customer-oriented regulatory policy
- The opportunity to obtain a primary license (for large companies), a sub-license (for startups, small online casinos), or an additional network service license.
To start, you need to register a company on the Isle of Man, then establish an office and open an account at one of the banks. Then, the share capital is deposited into the account. Servers for the online casino platform must also be located on the island. Your business plan is reviewed by the Commission during the application process, and the technical infrastructure is checked. The application for a gaming license takes several months to be processed. Its validity period is 5 years, after which it can be renewed.
Kahnawake
For more than two decades, the Kahnawake Gaming Commission has been granting licenses for Internet gambling. Presently, approximately 300 companies have been approved by this esteemed governing entity. This can be attributed to:
- Its global reputation — its license is renowned as one of the most esteemed
- The starting fee of €10000 per annum
- An expedited licensing application process — completed in 2-3 months
- No tax on gaming profits — only fees for licensing and applications are enforced
- The option for operators to maintain anonymity.
The Kahnawake Commission provides the chance for every owner of an online gaming platform to acquire a license. Companies don’t need to have a presence in this jurisdiction. Rather, they must simply meet certain essential criteria: possessing shareholders, executives, and essential staff, as well as having the necessary equipment and software in place. The initial fee for obtaining a license is $40,000, serving as a demonstration of the operator’s commitment.
Greek
To obtain a license for conducting gambling activities from the Greek Gaming Commission, several steps must be taken:
- Apply, providing all necessary information about online games, operators, and payment systems.
- Undergo a verification of personal data and location — you must be located in the country.
- Obtain a certificate confirming compliance with Greek laws.
- Pay 35% of the gross income from games + a licensing fee, which depends on the type and duration of the license. For example, a license for an online casino costs €2 million, and for an online bookmaker — €3 million.
The license is issued for a period of up to 7 years. To obtain a casino license in Greece, the applicant must meet certain requirements, including the registration of a legal entity, minimum share capital, physical presence in the country, no criminal record, and a good reputation.
Effective regulation: the key to safe casino gaming
GamingLicensing experts provide licenses for the gambling industry and help operators launch their casino, Turnkey. We support clients at all stages of obtaining a license, starting from preparing documents to applying to the regulatory body, providing full legal support, and guaranteeing a fast license acquisition. Entrust the launch and promotion of your online casino to professionals from anywhere in the world!
