How to Acquire an Online Casino License: Main Ways
To open an online gambling business and launch an online casino, you need to acquire a special license. This document gives permission to run the online gambling activity officially and improves customer trust.
Like land-based gambling houses, online casinos work under a special license that gives permission to operate in certain countries and regions. It is important to obtain the permit before opening the casino in order for the gambling resource not to be blocked and the owner not to lose the invested money.
The gambling acquisition process has its subtleties and nuances that are necessary to take into account. For example, online casinos are banned in most CIS countries and legalization of their activity is impossible there. This means that gambling business owners have to obtain the license for their online platforms in offshore countries.
Let’s get into the list of regions that issue online casino licenses and subtleties of these jurisdictions. Every country provides gambling licenses at different prices, has its own requirements and tax rates. By assessing each option, the online casino owner will simplify the task of making the most beneficial choice.
Why an online casino license is needed?
Usually, license acquisition is not the simplest and cheapest process, but results are worth the efforts. The official permit increases the credit of trust in the online casino and allows the owner to act fully legally.
Other advantages of the license:
- a possibility to work at the international level;
- almost a full lack of tax payments and quick registration;
- a possibility to work with well-known developers (many of whom do not work with unlicensed platforms).
Besides, a great part of popular payment systems work with licensed online casinos and their variety attracts customers.
What criteria to rely on when you
choose the country to obtain a license?
Around 80 countries have the right to issue licenses, so one should take a very thorough approach to license acquisition: to take into account all peculiarities of the business, the audience that the online casino owner targets, the geographical reach.
Besides, it is necessary to factor in the budget that you can allocate for the license, as its acquisition envisages a uniform payment and besides you have to make payments monthly to run the business on the territory of the chosen country.
Every license has a credibility ranking, thanks to which the company is assessed by potential players and partners. Some licenses hold more credibility among customers and others enjoy more popularity among partners.
Gambling licenses are divided into two types:
- local licenses (give the right to operate in the region, where the permit was issued);
- international licenses (allow working in different countries).
However, casino owners should also take into consideration that an international gambling license does not allow conducting operations in countries where gambling is forbidden. A number of countries issue general gambling licenses, and others require a standalone permit for every type of gambling.
Online casino licenses in different regions
There are different gambling ministries and departments that issue licenses and these agencies have their own requirements for legal entities. Licenses also envisage the protection of the rights of entrepreneurs, which is ensured in different ways in different countries. For example, licenses issued by the EU countries give the right to the state support and hold a high level of customer trust, but it is quite difficult to obtain such permits.
Let’s review the most popular regions where the law allows acquiring an online gambling license.
Advantages: low entry fee, simple acquisition process, no taxes.
Disadvantages: the need for a resident, operation on the territory of the region only, an office is required, a low level of trust in the license.
Advantages: the requirement to pay the franchise tax only.
Disadvantages: the necessity to provide a big package of documents, biometrics dataof owners, financial statements.
Antigua and Barbuda
Advantages: zero tax rate, high level of trust among customers and partners.
Disadvantages: sophisticated requirements for the company that wants to acquire a license.
Advantages: credibility and customer trust, reliability.
Disadvantages: licensed software only, the necessity to prove the paying capacity (in case you need to pay customer winnings).
Advantages: prestigious jurisdiction, high trust level among partners, the possibility to work with European banks, no initial fee.
Disadvantages: taxes, financial statements, high requirements for the company (licenses are granted to experienced online gambling market players only).
Advantages: license of the EU that guarantees reliability and prestige.
Disadvantages: taxes, financial audit, high requirements for the company.
An alternative way to acquire
an online casino license
Obtaining an online casino permit is a time-consuming process and requires a thorough analysis of all nuances. Those gambling business owners that do not have time to get into everything on their own can address specialized companies. Such companies arrange turnkey licenses by handling the collection of needed documents, negotiations, and solution of disputable issues. They offer paid services but can save much time and nerves for the entrepreneur.