Obtaining Gambling License
Gambling is one of the fast-growing and profitable businesses in the world. According to statistics, the market volume in 2016 reached 450 billion US dollars and is projected to grow to 495 billion dollars by 2019, while the casino market volume in 2016 amounted to 115 billion US dollars. Among the largest players in the market are Las Vegas Sand (USA), MGM Resorts (USA) and Galaxy Entertainment Group (Hong Kong). Ironically, gambling business is also the most stable with regard to investment, because annually the number of players grows significantly, as well as the number of gambling establishments (online casinos, lotteries, sports betting, etc.) also increases. And this means that if you have an excellent product - for example, a gambling website - you can easily attract customers and take your niche in the global market.
To start gambling online you will need:
- professional certified software;
- separate secure server;
- license to conduct gambling business in a country with a good reputation;
- multicurrency merchant account;
- current account in a reliable bank;
- marketing strategy.
An important step in launching a legal and transparent gambling business is obtaining an appropriate license. The availability of license will not only allow you to gain trust from customers, but also greatly facilitate the building of business. So, only if you have a license to do business, you will have the opportunity to open a bank account. For the banks, such type of business, as online casino, is high-risk, and most banks do not want to risk their reputation and license (often money laundering takes place through online casinos), so they do not open accounts for such customers. The rest banks, as well as payment systems that provide merchant accounts for gaming business, make rather high demands for the clients conducting gambling business, and primarily this is the recognition of the clientās business by the regulator in the country of registration. In other words, gambling business that desires to open a bank account must have a registration and a license in a respectable jurisdiction. In addition, you will also need a license to purchase certified software from a licensed manufacturer.
Advantages of a license:
- possibility of opening an account in a reliable financial institution;
- ability to integrate a website with a reliable payment system that allows you to receive payment and make payout of prize money in various ways in different currencies, including cryptocurrencies and online purses;
- opportunity to purchase certified software from recognized world manufacturers;
- guarantee of confidential relations with the audience: players will not deposit their money in a dubious casino that does not have a license and, therefore, does not guarantee the payment of prize money (there are enough competitors operating under the license especially in a global online network, and having quite attractive tariffs and conditions for the players);
- great opportunities for working at the international level, in any country in the world.
All kinds of gambling business are subject to licensing, among the most popular of them are bookmakers, sports betting, casino, poker games, slot machines, roulette, bingo, lottery, blackjack. Depending on the jurisdiction for obtaining a license and the type of planned business, you will need one or more licenses. To date, the legislation of the most countries of the world recognizes casinos and gambling as illegal. You can get a license at this time only in the following countries: the Caribbean (Antigua and Barbuda, Costa Rica, Curacao), Europe (Romania, Montenegro, Malta, Isle of Man, Latvia, Great Britain, Alderney, Gibraltar), the Seychelles, and the Kahnawake (Canada).
When choosing jurisdiction for obtaining a license, it is worth taking into account not only the terms and cost of the procedure, but also such factors as:
- effective legislation regulating the activities of gambling business;
- cost of annual maintenance;
- licensing requirements;
- reputation of jurisdiction;
- taxation and benefits.
Speaking about the terms, depending on the jurisdiction, obtaining a license will take from 1-2 months to 1 year.
|Jurisdiction||Terms of obtaining a license *||Annual maintenance *||Tax *|
|Antigua||3 months||USD 200,000||0% (for non-residents)|
|Belize||2 months||USD 60,000||0,75%|
|Costa Rica||1||USD 10,000||0%|
|Isle of Man||4||GBP 35,000||0-1,5%|
|Great Britain||1 year||GBP 25,000.00||15%|
|Alderney||3 months||From GBP 35,000||0%|
|Gibraltar||3-6 months||GBP 2,000||1%|
* The cost, terms and taxation may vary depending on the type of license, company structure and other factors.
Licensing commissions make demands on:
- competence and professionalism of managers and personnel (the role and previous experience of each involved person should be clearly documented);
- structure and resources of the company (it is required to provide a detailed description and up-to-date information on the planned gambling business, as well as accounting documentation and audit results);
- used software (it is necessary to provide a detailed description of each game, its specifications and system functionality);
- site (the guarantees and conditions for payment of winnings must be written on it, methods of payment, warnings for inveterate players);
- reputation of the business itself and its owners (neither the owner, nor the persons involved (partners, investors, employees) should have criminal records and ties with illegal business, the credit reputation of the owner of the company, sources of income for financing gambling business is also important).
Obtaining a gambling license may seem rather long and complicated process. It starts with the establishment of the company in the chosen jurisdiction, and includes the discovery of licensing requirements, collection and legalization of the package of documents, bringing the gambling site in line with requirements, submission of documents to the licensing commission, passing compliance, opening a bank account, integrating with the payment system for accepting payments. We understand that it is difficult to choose jurisdiction based on a large number of factors. Therefore, our specialists are always ready to meet with you to choose the most optimal variant of location, guided by your requirements and business plan. Our team will accompany you at every step of the process, making it as simple as possible.
- Consultations on the choice of jurisdiction.
- Establishment of the company.
- Consultations on the compliance of the website and software with licensing requirements.
- Obtaining a license.
- Subsequent business maintenance.