Opening and operating a transparent online gaming and gambling business is impossible without complying with the law. This requires holding a special permit issued by a gambling licensing authority of each particular country. Let’s find out exactly what is gaming license and what subtleties accompany the process of applying for it.
What is the purpose of license for gambling?
The licensing process is expensive and complicated, but the benefits outweigh the costs. Foremost, you get clear and specific rules of operation, transparent tax policies, legal protection from the state in case of disputes, and, of course, respect and recognition from regulators, business partners, and players. In addition to that, companies with official gaming licenses are safeguarded against suspicions related to criminal activities or minor exploitation through gambling.
In legal terms, a gaming license refers to a document issued by a special authority following the jurisdiction of each particular country with the right to grant or deny licenses. Depending on the country, such authorities may have different names, such as Gambling Commission in the UK, or e-Gaming in Curacao.
Acquiring a gaming or sports betting license gives you the freedom to conduct business activities while also staying within the law. Here are a few examples of such activities.
- Online Casino
Casino websites offer players access to games you usually find at conventional brick-and-mortar casinos. Gaming options at online casinos include slots, video poker, table games, roulette, lotteries, quizzes, or other card and specialty games. Most of these games are also playable on PC, mobiles, and tablets, which is extremely convenient for players who despise the idea of traveling to a physical casino salon.
- Sports Betting
The process of sports betting is quite simple, all sports fans need to do is place a wager on the outcome of a certain game and wait for the results. This sort of pastime is quickly gaining popularity as bettors can do it from the comfort of their homes. Among the most admired sports that sports betting is offered for are football, baseball, boxing, hockey, basketball, and combat sports like UFC.
Esports combines a booming global gaming industry with the spirit of competition from the sports industry. In eSports, video gamers use their best skills to demonstrate their superiority and beat their competitors. Just like with traditional sports, there are many people who are fond of watching professional players do their thing both online and in person. As a matter of fact, there were more viewers at the finals of League of Legends game than at the NBA Finals Game in 2016.
- Online Poker
Poker enthusiasts used to gather in smoky casinos or dubious bars, but everything changed with the introduction of online poker. The virtual reality of our world allows players to enjoy playing at multiple tables simultaneously, which was unheard of before. In addition to that, enthusiasts can easily start the game 24/7, whenever they feel like it, at the luxury of their own house. No need to walk or drive anywhere, which is extremely convenient for avid poker players.
- Online Lotto
This form of gambling requires players to draw numbers at random for a chance to earn a prize. There are many types of formats that lotteries come in, and this diversity attracts players who are eager to take a shot to win.
- Online Bingo
The bingo games are similar to lotteries in a way that the winner is also determined randomly with the help of tickets with numbers. Players start the game by simply buying a ticket with a set of random numbers on it. After that, the game itself will draw numbers and mark them off the tickets. The goal is to get a whole line of numbers marked.
- Live Betting
Live betting refers to placing bets right after the start of the game. Also known as “in-play betting,” this type of gambling allows bettors to place reactionary bets as the game unfolds, changing the odds in real-time.
- Live Table Games
For some players, human interaction is a significant part of the gaming experience. Live table games grant users the opportunity to enjoy playing with real people from anywhere in the world, instead of dealing with games where no human element is present.
How and where to obtain gambling LICENSE?
If you’re wondering how do you get a gaming license, you should know that there are quite a few types of gaming licenses out there. The first thing you need to do before applying for it is to determine which one would serve your purpose best.
If you already have the idea of which activities you would like to offer in your business, e.g. poker games, sports betting, casino, bingo, lottery, then you should research the available gaming and gambling jurisdictions. For the record, it’s not necessary for the license to be from the country where you reside, it might be from the country that allows online gaming. If you want a lower-cost choice, it makes sense to get a license from an offshore supplier like Curacao, Gibraltar, or others. European licenses usually appear as a higher status option.
Once you choose the satisfactory jurisdiction, make sure to learn its requirements and follow them. We’re talking about running suitable software, registering a local company to incorporate a legal entity, preparing personal documents, etc.
It’s worth mentioning that you can avoid doing the paperwork all by yourself if you simply use the services of a consulting company that specializes in requirements for gaming license and picking the proper jurisdiction.
Rules and requirements for obtaining gambling LICENSE
The rules and requirements for obtaining betting, gambling, and casino licenses may differ depending on the chosen jurisdiction. Here are some of the rules & requirements applicable to most of them.
These include individual identity documents of the business owner, policies & procedures – LCCP, customer terms & conditions, rules of play, business plan, proof of funding, and other papers required by each particular jurisdiction
Many jurisdictions require your entity to have a certain amount of paid-up capital. For example, if we’re talking about Malta, such capital requirements can fluctuate between €40,000 and €100,000 for various types of critical gaming supply licenses.
It’s common for regulators to ask gaming license applicants to have an economic presence in the country of registration. For instance, Isle-of-Man-issued licenses are granted to companies registered in this country with at least 2 directors being local employees.
Leading Gambling Jurisdictions in the World
Any gambling license is valid as long as it is issued by a legitimate gambling licensing authority. European authorities are considered to grant renowned licenses, but they tend to be much less affordable than those issued by other authorities. Here are the most notable and affordable gambling jurisdictions that allow gambling business owners to offer safe and fair gaming for the players:
- Curacao – is one of the top countries to register your gambling business in. The country’s main regulator, eGaming, hands out a one-for-one kind of license that gives you the permission to seamlessly and transparently operate any type of gambling business.
- Malta – a highly reliable regulator called the Malta Gaming Authority, or the MGA, grants four types of licenses. Each type is handed out to a business with specific gambling activities it offers to the clients. The MGA, however, is said to have a large list of fees for license applicants.
- Isle of Man – has one of the oldest gaming authorities called the Gambling Supervision Commission which licenses gambling business operators and advocates for a crime-free, safe gambling environment.
- Antigua and Barbuda – gambling business owners appreciate the laws of this country. The regulator, the Financial Services Regulatory Commission’s Division of Gambling, charges low mandatory fees with fixed rates.