The sudden explosion of the online gaming industry calls for action from individuals, business companies, and corporations who are interested to invest in online casinos. The inclusion of dynamic and innovative technology platforms proved that online gambling is becoming the fastest growing market in the digital era. As the rise of the IGaming business continues, it witnesses an increase in the number of concerned parties. Under such circumstances, one’s best bet will be to request an online gambling license and start a profitable business.
“The casino and online gambling sector worldwide were estimated at roughly 265 billion U.S. dollars in 2019, reflecting an increase over the previous year. However, in 2020, the coronavirus (COVID-19) pandemic caused the sector to decrease to 202.54 billion U.S. dollars. However, in 2021, the market has reached 230.86 billion.” – Statista.com
The topic of legality always raises concerns in the sports betting market. To specify, running an online casino is considered legal, but the answer is not always clear-cut and straightforward. Jurisdictions fall under the categories of white, grey and black iGaming markets.
In white markets, gambling is legalized, while in black markets, well-marked restrictions exist. Gray markets are characterized by the lack of clearly formulated laws that often cause ambiguity. Nonetheless, whether you plan to enter a white or grey market, you still need a gambling license to avoid judicial complications.
Even though applying for an online gambling license is a tedious and complex process, you can always trust professional, reliable corporate service providers, avoid the long-term bureaucracy and start operating by a sublicense. We will make sure that you get the most appropriate licensing option that suits your needs and requirements. By using our service, you will get professional advice that will aid you in making the right decision. Most importantly, there won’t be a need to worry about legal obstacles.
Why do you need a license?
Your online gambling platform must be registered and subordinated to at least one jurisdiction to perform in legal terms. Noncompliance to the legal administration is a severe failure and can bring catastrophic results for your business endeavor. For instance: if you are planning to run an online betting company without a betting license, you may experience the following difficulties:
- Damage to your company’s reputation and the reputation of the whole industry
- You may not be able to open a settlement account and use merchant service providers
- No advertising
- Massive amount of fines or criminal affairs
- Great chance of being shut down and blacklisted (you won’t be able to acquire a license in the future).
A gaming license is an obligatory requisite for online gambling operators who wish to develop a business that fulfills legal requirements. License is the reliability factor for the customers. It ensures them that provided games are decent and have not been falsified. Here’s a short outline of other benefits betting license provides and reasons why you must possess it:
- Administer your service to citizens around the globe in a legal way
- Gain the trust of your players and other service providers
- Increase the credibility and authenticity of your business
- Operate on a global scale in a greater number of international jurisdictions
- Acquire the opportunity of purchasing games by leading developers
- Open a settlement account in several jurisdictions
- Have the advantage of fiscal benefits including zero tax or low tax rates in a number of offshore licensing jurisdictions
- Run advertising campaigns
- Eliminate the risk of being shut down, fined, arrested, or prosecuted due to illegal functioning
Gambling license legalizes casino business in agreement with the international laws and verifies its’ decency, honesty, and transparency in financial matters. Earning an online gambling license grants you the legitimate priority to undertake a gambling business and provide your service to international clients via the internet.
Furthermore, a license ensures players that your gaming company is reliable and trustworthy. They have more confidence playing in your casinos. In general, licenses permit you to launch the following services in your iGaming platform:
- Online Casino
- Live Betting
- Online Bingo
- Mobile Gambling
- Online Poker
- E-Sports
- Online Lotteries
- Advance-Deposit Wagering
- Sports Betting
- Live Table Games
- Fantasy Games
Authoritative offshore gambling licenses
Online gambling services give the provider the advantage of offering installed games to customers worldwide without visiting an actual casino. Instead, clients can play poker in their bedrooms, surrounded by a close, convenient space. There are various online gambling licenses that provide legal permission to serve international clients with such ease.
Curacao Gaming License
Curacao is a one-for-all outlet for any gambling product. If you have the Curacao license, you don’t need to ask for a new permit each time you plan to add a new game category to your platform. It helps with crypto-currency casinos, bingos, poker rooms, lottery, virtual sports, online casinos, etc. Curacao has been the pivotal gambling hub for global, remote gambling businesses and has tipped the scales against any other gambling license providers for quite a while.
How to get a Curacao gaming license?
Application for a Curacao gaming license involves a suitable and proper test to confirm that the applicant has a clear criminal record and is a person of good conduct. This test aims to ascertain who you are, where your funds are coming from, your intention in this business, etc. Your skills and experience in conducting the operations of an online gambling company will also be inspected. If you want to know more about the given topic read our article about How to get a Curacao iGaming License in 2023.
Besides, every official person involved in the management of your company (shareholder, director, beneficial owner) must provide the following documents: CV/Resume, approved copies of passports and utility bills, Professional letter of reference from lawyer or accountant, proof of domain ownership, copies of terms & conditions of underage gaming policy, player KYC policies and responsible gaming policies. Original banker’s reference, third-party certification of the RNG applications, and copies of software agreements will also be necessary.
Price for Curacao license
The cost of a gambling license will vary according to the precise needs and circumstances of your business. Nevertheless, the main advantage of the Curacao license is its’ low price. Curacao license has one of the most affordable prices among all gambling licenses. In total, it will cost you under 20 000 euros to get this gambling License.
Besides, it does not require payment of gambling taxes and has only 2% income tax for betting companies. As long as the revenue stems from the abroad countries, there are no taxes payable on any income. Furthermore, Curacao imposes minimum requirements on software manufacturers of a gambling portal, thus, allowing to run online slots and RNGs that are still in beta testing mode.
This jurisdiction has a stable, decent reputation and very high levels of trust from players and operators. Therefore, holding a Curacao license is already a strong advantage of your business.
Malta Gaming License
Malta Gaming License is one of the most popular gaming licenses in the gambling world. Only the Curacao license stands above when it comes to prestige and fame. Recognized authority and high reputation are the building blocks of its jurisdiction. Needless to say, such prestige is appropriate when, by obtaining this license, the doors of the EU home are open for you.
Malta offers two types of licenses, B2B and B2C. B2B is a license for the leading software and game developers who handle their products to game platform operators. It is a legal requirement that you must purchase games from licensed developers to obtain Malta Gaming License.
B2C is a license in which you have to be interested if you want to expand your gambling business into the EU market. Like Curacao, it allows you to provide different types of gambling content to your prospective customers by getting one license for all.
How to get a Malta Gaming License
In Malta jurisdiction, the process is more complex and rigorous than other gambling license application procedures. However, it is feasible that appropriate checkups and inspections can be administered due to the high reputation of the Malta Gambling License.
The term of the license is active for ten years. Passing a “Fit and proper test” is mandatory. You also need to present a complete business plan and compliance and software audit. Furthermore, it is an indispensable requirement for all operations and gaming servers to be inside the territory of Malta. If you want to know more about this theme, read our article – How to get Malta Gaming License in 2023.
The Cost of Malta Gaming License
Despite the renowned fame and notoriety of the Malta Gambling License, its benefits come at a price. A license fee is €25 000, the price of application processing is €5 000. The systems audit fee is €2 500, while compliance audit amounts to €3 500.
The License application is lengthy, complex, and requires relatively high costs. Patience, diligence, constant in-person discussions with regulators and various bureaucratic processes are the stepping stones to the final aim. Nevertheless, patience always pays off. The latter is especially true in the case of Malta jurisdiction.
Isle of Man Gaming License
The Isle of Man has one of the most distinguished jurisdictions and an attractive environment for accessing the gambling industry. In this territory, the first organization for regulating online gambling appeared as early as 2001. The Isle of Man offers applicants a list of various advantages. In the first place, a stable environment and high reputation are the most notable features of this jurisdiction.
It has three different types of licenses, which can be issued according to the characteristics and size of your business. The first type is the main OGRA license with one bulk package for all sorts of gaming applications. It is mainly issued for corporations that operate and run the business independently.
The second is the sublicense. It is preferable for the small casino projects to start their business as representatives of the larger independent organizations and only develop into prominent corporations after a certain amount of time. The third type is a network service license, which is retrieved with the primary license and grants the holder freedom to offer gambling services to users outside the Isle of Man.
How to get the Isle of Man gaming license?
Applicants must confirm the transparency and trustworthiness of their business activities. Each person or partnering company involved in the application will undergo a detailed, scrupulous financial and legal due diligence audit. The application processing may take 10 to 12 weeks. Nevertheless, the deadline may be expanded in case of additional complications.
Furthermore, you have to provide a detailed business plan, description of your gaming library, Software description, TST report, confirmation of the absence of criminal records, Third-party RNG certificate, bank references, and utility bills. Bear in mind that the servers of your online casino must be located inside the territory of an island.
The cost of the Isle of Man License
The initial license application fee for the Isle of Man gaming license is 5 000 pounds sterling. After that, you have to pay £35 000 for the full OGRA license. Afterward, you can run your licensed company for the initial period of five years.
The cost of sub-license is £5 000. The price for the network license amounts to £50 000. The Isle of Man’s tax policy is very profitable for casino operators. With its’ 0% capital gains tax and 20% VAT rate, it provides one of the most hospitable residences for online casino businesses.
Kahnawake Gaming License
Kahnawake is a small area near the city of Quebec, Canada. It belongs to one of the native Indian tribes. In this territory, the distribution of licenses started in 1999. In the following time, its jurisdiction has gained reliable, honest stature and high prestige.
Application and setup processes are inexpensive, low-cost operations. It issues different licenses for various gambling games. You can apply for the license of slot machines, lottery, bingo, and casino. Each license has slightly different requirements.
How to get a Kahnawake Gaming License
The essential steps for getting a license include:
- Assigning a key persons
- Assembling the necessary paperwork
- Applying with the payment of its fee
The time until the final response can amount to eight weeks. Furthermore, you have to consider that the license will be issued only after six months if the application is approved. License is active and operational for five years. Afterward, the commission will assess the business activities of your casino and decide whether to renew a license for another five years or not.
The application process for Kahnawake Gaming License is fairly easier. Although, it requires all the documents that are listed in the requirements for every gambling license. You also need to host your servers on Kahnawake territory and run basic operations from there.
If your only intention is to build the online gambling site, you have to apply for two licenses, Key Person Permits (KPP) and the Client Provider Authorization (CPA). The owner of CPA is deemed as an authorized client provider and can set up an online gambling platform from Kahnawake. KPP requires the application of at least one additional person who can supervise managerial or operational functions for the entity that has a CPA license.
The price of the Kahnawake Gaming License
The price of application for a Kahnawake Gambling License is $40 000. This fee must be paid to Kahnawake Gaming Commission. It involves the licensing fee for the first year and the price for Key Person License Application. Your corporate structure is required to integrate a Kahnawake company, offshore license holding company, and contracting company.
The inclusion of the contracting company will ease negotiating with third-party members and opening settlement accounts. The taxation is another plus of a Kahnawake jurisdiction. It attracts casino operators with a 0% corporate tax rate without the additional gaming taxes.
In which markets can you use your license?
There are certain jurisdictions in which online and offline gambling are completely banned and prohibited. Moreover, your e-sports betting license will not allow you to spread your service to the countries, which are blacklisted by the FATF (Financial Action Task Force), including Iran and North Korea. These countries have black gambling markets, and legal businesses can’t operate in these regions.
Besides, various countries block gambling activities for religious or cultural reasons. These countries involve Egypt, Qatar, United Arab Emirates, Brunei, Jordan, Somalia, Lebanon, Albania, Kuwait, Sudan, and Indonesia.
It is crucial to remember that a particular license cannot permit you to operate your business in specific countries. For instance, the Malta license does not serve in the United States of America, but you can use it in all countries that don’t inhibit local gambling. Holding a Kahnawake license cannot give you the right to offer your service to US clients, and the power of the Isle of Man License does not spread in the territory of the USA too.
Curacao license is not functional in Australia, Aruba, France, Netherlands, Spain, Curacao, Bonaire, UK, United States of America, Saba, Statia, and St Martin. Countries excepted from this list are open towards the reviewed gambling licenses, and you can still offer your service to a wide variety of international clients.
How to Choose a Proper License and Jurisdiction for Your Online Casino?
The process of decision-making is the most critical and insightful step when you are starting your online casino from scratch. Sometimes business is all about making the right decisions and choosing between the alternatives. It is a high-wire act that needs to be performed analytically and with diligence.
The intricacy is most apparent when it comes to legal basis and coordination. Nevertheless, you can always use the help of professional service providers, such as Upgaming, who will easily weigh the pros and cons of each jurisdiction and give you the best advice about the possible list of relevant, suitable licenses for your company.
As a precaution, you need to evaluate your purposes, set clear expectations and figure out the main goals. It will help you discern what you want to achieve and what you plan to do with it. Once you have a plan in mind, it will be easier to differentiate your requirements and choose the license that meets your concerns.
The second significant factor you need to consider is the cost of a gambling license. Each license has a different price and it’s up to you to decide how much you are willing to pay for it. You can try to invest in offshore countries, which have lower prices for a license. However, you also need to consider annual payments for permission to organize casino and quarterly fees, which are different in every jurisdiction.
The third factor is time. Time has an invaluable price, which often strikes obviously in critical moments. It is not only about your Gantt chart or project time plane table. What matters is the precision, accuracy, and efficiency of the planned processes.
In various jurisdictions, you can pay additional fees to acquire your license sooner than the average time it takes to get it. Nevertheless, it’s also worthy of regard and requires discussion with your board members and companions before arriving at a final decision.
Apart from the aforementioned essential criteria, there are other important key points to consider before commencing the application process. By devoting the effort to each of these elements, you and your corporate services provider will easily distinguish the casino license and the favorable jurisdiction for your online gambling company.
Sustainability
Sustainability includes every aspect of the economic, social, and financial agenda, spread across the particular jurisdiction. For example, some Jurisdictions may offer gambling licenses, but the absence of the strategy, appropriate frameworks for asset management, and relevant privacy rules are other topics you need to examine.
Is there a hospitable environment for your business? Are there any of your competitors running their business in the same jurisdiction? These are the types of questions you need to ask yourself before deciding to start your company in the given area of authority.
Due to the requirement of preliminary research, it will be your best choice to ask for the professional help of the Upgaming team. We will provide the necessary information and give your business the headroom for further growth.
Double Taxation treaties
Any specific jurisdiction can negotiate double taxation treaties with other countries. Your business will thrive less effectively if you are obliged to pay tax in two different jurisdictions simultaneously. Offshore companies may seem like an attractive investment option, but you still need to consult with professionals and choose wisely.
Political and economic stability
The region’s political situation and economic development are serious factors that every investor must consider. If a country is on the verge of war or financial breakdown, the investor must find other places for the startup. You have to settle on land with a balanced social, economic, and political atmosphere.
Financial stability gives you the advantage of relaxation. You don’t have to think about profit remittances, arranging the terms with third-party contractors, and exchange rates.
Confidentiality
Each licensing authority has particular, often dissimilar requirements for distributing information, confidentiality, and sharing personal details about ultimate beneficial owners. The question of privacy also concerns the inner culture of your company and your future employees. Based on your condition and demand, you have to decide the seclusion level you want and how much privacy you need. Afterward, you have to choose your online gambling license accordingly.
Our staff has the adequate skills and professional experience to aid you in these complex operations. We will manage the process, ensure assistance, provide efficient advice, and lead you until the finish of the entire procedure. Remember, we are always keen to collaborate with our clients and customer care is always our top priority. Therefore, you will be informed about every detail and micro process that runs through the backbone of your upcoming project.
Conclusion
The iGaming business is booming and more clients and operators are exploring the borders of this vast industry. Statistics and business data show unbelievable amounts of financial flows and growing numbers of money invested in Global Online Gambling. It is an excellent field for corporate businesses, large-scale companies, small business operators, and startups.
The First step towards the iGaming world is to acquire your gambling license. By starting your online gambling business, you are making a leap into the world of great opportunities that eventually bring success. Yet, we all know that Rome was not built in a day. Success requires diligence, hard work, deep analysis skills, investigation, and proper assistance from the companies which provide unique service to you.
You should know when it is right to step back for a while and enjoy the professional service offered by our team, who know the online gambling world from A to Z. The team of Upgaming consists of experts who will do everything to make your business outstanding and streaking ahead of its competitors.
