The issue of Gambling licenses is often of interest to people who want to start a business or make sure that it is legal. So, a license is an official document that confirms the legal conduct of business, including gambling. It also acts as a guarantor of compliance with certain rules and regulations that are necessary to obtain this license. If a casino has a license, it has been analyzed in detail and checked for honesty. As a result, you can fully trust such a casino.
What Licenses Are There in Online Casinos?
Licenses are different, with their own features and differences: bonuses offered, simplified rules, and players or aspects of the operation. Among the most famous and respected licenses are the following:
Alderney. The license offers a technologically advanced and forward-looking regime with two types of licenses:
- Category 1 (B2C business customer). This type enables and requires registration and verification of players, setting up contractual relationships with them, and managing invested funds.
- Category 2 (B2B business customer). It allows you to manage gaming platforms even outside the Alderney server centers.
Moreover, this license gives no gambling taxes and low-income tax rates.
United Kingdom. There are three types of licenses:
- Operating license;
- Personal management license;
- Premise license.
The first two are issued by the UK Gambling Commission, and the third by the place of registration of the company. In fact, the British license is considered one of the most stringent in terms of quality and safety standards. The сommission verifies the software and equipment, allows players to hold operators accountable, and pursues a very fair policy.
Belgium. Belgium provides different kinds of licenses. Among the most demanded are those:
- A license. You need to obtain this type to open a casino. For gaming and betting online, an A+ license is a must to have.
- B license is needed for a slot machine hall. Similarly, a B+ license is required for a similar business on the Internet.
- C license allows up to two gambling games, like bingo and ball rolling games, in a cafe selling food and drinks.
- The F license is for bookmakers, finally. F1 is for organizing betting, F2 is for accepting bets in favor of F1 license holders, and F+ is for online betting.
Gambling is regulated by the Belgian Gaming Commission, which constantly regulates the quality of casinos and often blocks those sites that do not comply with the license rules.
Gibraltar is a real center of online gambling, although the rules for obtaining here are quite strict, as well as the requirements for a licensed casino. If the software and other programs comply with the announced standards and run under a cross-licensing agreement, no issues with receiving a permit from Gibraltar will arise.
Types of Gibraltar licenses:
- B2C – for organizers of online casinos;
- B2C – for operators of online betting shops;
- B2C – with other gambling products;
- B2B – for software suppliers for the gambling industry;
- B2C – for land-based casinos;
- B2C – for operators of land-based betting shops.
The strictest rules for obtaining a license include: a licensed casino must already have a license from another regulator, have an impeccable international reputation, use anti-fraud programs, and provide documents confirming the possibility of paying out the announced prizes.
Denmark. Danish Gambling Authority is the state regulatory authority controlling the Danish gambling market and is subordinated to the Tax Ministry. The Casino Regulatory Commission is responsible for reviewing gambling licenses, supervising gaming operators, monitoring the gambling industry, compliance with the rules of responsible gaming, international cooperation, and consulting services.
The license in Denmark is issued for up to five years.
Kahnawake (province of Canada). Kahnawake is a jurisdiction of Quebec (in Canada). The regulatory body is the KGC gaming commission, which has provided online casinos with permits for real money since 1999. The benefits of receiving a license are the following: all types of games and sports betting, except for games with real croupiers, fast processing, and low tax.
A variety of types of licenses exist here:
- Interactive Game License (IGC);
- Key Person License (KPL);
- Client Provider Authorization;
- Live Dealer Studio Authorization;
- Casino Software Provider Authorizations;
- Inter-Jurisdictional Authorizations.
Costa Rica. This license demonstrates the most free regulation of casinos. This is both an advantage and a disadvantage. The advantage is that it is quite easy for entrepreneurs to open a business and get licensed. The disadvantage is that not all casinos have a good reputation and are honest with their customers.
Another interesting point of running an iGaming business from Costa Rica is the tax-free nature of Internet gambling revenues.
Curaçao is a prominent authority in the jurisdiction of the Caribbean island, one of the first commissions in the field of iGaming. The advantages for licensees are rather impressive:
- Low taxation rates
- A simple system of granting a casino license for real money
- Simultaneous coverage of all types of activities of a virtual club
This license has only one type in two formats: a basic license and a sub-license.
The basic license is issued directly to the company engaged in the gambling business.
A sub-license allows you to run your gambling business online just as well, but without the right to sub-license to anyone else.
The main license is valid for five years and renews automatically if all conditions are maintained. A sublicense is valid indefinitely.
Malta. The Malta license is famous for its strict gambling commission and especially thorough inspection of casinos. It is not easy to get it, but its presence automatically puts the casino on the highest level among competitors. The advantages include worldwide recognition, four types of permits, and access to the European market.
There are six types of licenses in Malta:
- Class 1 – management of recurrent games like online casinos, lotteries, and skill-based games;
- Class 2 – various betting;
- Class 3 – promoting other gambling games and getting a commission for it;
- Class 4 – license for platforms that provide remote work to other companies;
- Class 1 on 4 – the company operates online casinos, etc., on someone else’s remote platform;
- Class 3 on 4 – the company receives a commission for promoting other people’s projects on other people’s remote platforms.
Isle of Man. The Isle of Man is also under the jurisdiction of the British crown. The license can be obtained only by reliable casinos that fully comply with international gambling standards, offer gamblers quality services and online games for money, and meet the regulator’s requirements.
You can also get a full or sublicense here. However, not all types of games on the island require a license. This applies to games that depend on players’ skills and casinos that already have a license.
Why do you need a gambling license?
A license is the key to many legal gambling opportunities. Having it, the casino provides protection and support to its customers and ensures their safety. Therefore, the license is a guarantor of the legal operation of the casino and performs the following tasks:
- Without a license, you can’t open a bank account or a merchant account;
- Electronic payment systems will refuse to work;
- Without a license, it is not possible to get game content for your portal from licensed suppliers;
- The license allows you to advertise adequately, and users trust the company more;
- The reputation of the institution as a whole.
How to Apply for a License
First of all, obtaining a license begins with the fact that you need to decide what kind of license you can get. To do this, you should review the requirements of regulators and choose the license and the conditions you can fulfill. Also, be prepared for a certain expectation, which can last from one month to a year or more. And even if you have applied for a license, there is no guarantee that you will receive it. In case of mistakes made or shortcomings in the operation of the casino, you may be denied a license.
Typically, the list of requirements includes:
- A background check;
- business plan;
- proof of financial condition;
- software verification;
- compliance verification;
- registration in the licensor’s jurisdiction;
- server location (most often, it must be in the regulator’s jurisdiction).
How to Choose a License for an Online Casino?
Choosing a license can be complicated, as the list of available licenses is extensive. Above all, it is worth spending some time determining how the licenses differ and what requirements they impose. Therefore, when choosing a jurisdiction, take into account the following points:
- license fee;
- your level of experience;
- how many licenses you will need;
- administrative costs;
- international recognition;
- licensing requirements for the companies you will be partnering with;
- type of gambling activity (casino/sportsbook / other).
Concentrate on what is most important to you and choose the license that offers the most favorable conditions. After reviewing all the details, you can start collecting the necessary documents and start the procedure for obtaining a license.
In fact, the process of obtaining a license is quite complicated and sometimes a very long process that requires a lot of effort. But the end result, if you still manage to become a license holder, will be worth it. Players always try to choose a reliable casino, and the license is a certain guarantee of quality. Therefore, having a license is an investment in the future quality functioning of the business.
Featured Photo by Sergey Zolkin on Unsplash