Why get an online gambling license and what should you know about it?

Opening an online casino is a great business idea. The industry is constantly growing and developing. Statistics indicate that by 2024, the global online gambling market size will reach $94.8 billion. It is important, however, to understand that launching a reliable casino is impossible without getting a gambling license. This way, your customers can be sure of high quality services.

Online casino games are becoming more and more popular due to a number of factors. They use modern technologies and innovative solutions. Gamblers can play anywhere and anytime — all they need is an Internet-connected device. In order to convince players to choose your platform over the competition, you need to obtain a license. There are dozens of jurisdictions issuing such permits, and some of them are more advantageous than others. Below, we will talk about why an online gambling license is a must and what needs to be taken into account when submitting an application.

Why does an online casino need a license?

A gambling license is an official document that gives the right to conduct gambling activities. They vary in terms of type of gambling and period of validity. For an online casino, a license is somewhat a demonstration of its trustworthiness and credibility.

According to statistics, users prefer to play in licensed gambling establishments. The presence of such a permit confirms that the casino operates on a legal basis, complies with all obligations, does not delay payments to its customers, etc.

Things to consider when getting a gambling license

Before acquiring a license, a casino owner should decide on a target audience for their website. It is also important to make sure that games of chance are not prohibited in a particular country or state.

You do not have to obtain a license in the country where you reside and conduct business. Nowadays, it is possible to get a gambling permit in virtually any jurisdiction that allows gambling activities. You can buy a license in Curacao, Malta, and other countries. Note that each jurisdiction has its own requirements for applicants and perform audits for compliance with those requirements. Any violations may result in denial of a license.

A license is considered valid if it is issued by a jurisdiction where gambling is regulated and not illegal.

Licensing costs and reputation of the regulatory authority also differ from one jurisdiction to another.

What do regulators pay attention to?

Obtaining a gambling license is not always an easy process. Each jurisdiction sets its own requirements for operators.

Generally, regulatory authorities pay most attention to the following criteria:

  • Payment methods available;
  • Website’s CRM;
  • Game providers presented;
  • Other technical parameters.

You should only integrate games from licensed providers. When choosing software for your website, pay attention to such factors as:

  • Graphics, animation, audio, and bonus features;
  • Support team availability;
  • User security;
  • Supported currencies;
  • Interface language.

Casino players always look for unique content. There are numerous providers to choose from in today’s gambling industry. It is important for online casino owners to remember to focus not only on attracting new customers, but also on retaining existing ones.

What documents are required to obtain a license?

Documentation requirements also depend on the chosen jurisdiction. However, there is a common set of documents you are likely to be asked for:

  • Company registration certificate;
  • Bank account opening confirmation letter;
  • Employee details;
  • Business plan with financial and marketing considerations;
  • Technical documentation (software certificates, etc.).

Which jurisdiction to choose?

As mentioned above, there are a number of jurisdictions where you can obtain an online gambling license.

Curacao license

Curacao is an island in the southern Caribbean Sea. The Curacao license covers all types of gambling activities. With just one permit, you will be able to offer video slots, sports betting, lotteries, bingo games, etc. Applying for a license in Curacao is a quick and straightforward process.

Key requirements for operators:

  • Annual financial reports;
  • Company must be registered in Curacao;
  • Managing director must be a local resident;
  • License annual fee is €21,900.

Besides that, online casino owners have to pay an income tax of 2%.

Malta license

Malta is the second most popular jurisdiction for obtaining an online gambling license. Operators can get permits for the following games:

  • Video slots;
  • Poker;
  • Roulette;
  • Lotteries, etc.

You may choose one or several types of gambling activities. Key requirements include:

  • Annual and monthly financial reports;
  • Legal entity must be registered in Malta;
  • Fixed annual fee is €25,000.

If an online casino owner wants to build a reliable gambling business, they should definitely obtain a license. It will greatly increase the credibility of a casino and help attract more customers.

 

Nov 10, 2022
Igor Rumyantsev
Igor is the Head of Banking and Licensing Department at GamingLicensing who has over 15 years of experience in the industry. He is responsible for game and payment system integration, iGaming product licensing, and B2B certification. Igor is an expert in the gambling sector and game licensing. He keeps a close watch on industry trends and is always open to new ideas that can improve GamingLicensing’s services and help our clients.